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c. pay damages.

InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, the firm may be required to

a. do nothing.
b. make another promise.
c. pay damages.
b. perform a different service.

b. the objective theory of contracts.

Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

a. the conscious theory of contracts.
b. the objective theory of contracts.
c. the personal theory of contracts.
d. the subjective theory of contracts.

a. a fundamental public policy of the United States.

Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The freedom to enter into contracts is

a. a fundamental public policy of the United States.
b. an ambiguous business goal that is irrelevant in terms of the law
c. a philosophical concept that underlies international law.
d. a principle that describes contracting parties' intent.

c. a unilateral contract as soon as Outdoor began to perform.

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

a. an expired contract when Neil said that he had changed his mind.
b. a bilateral contract when Neil said that he would pay for certain work.
c. a unilateral contract as soon as Outdoor began to perform.
d. no contract.

a. ensure proof of the contracts' existence.

On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, sends a written copy of the agreement to Thalia to be signed. Typically, businesspersons put their contracts in writing to

a. ensure proof of the contracts' existence.
b. create substance from form.
c. obtain a check.
d. practice their "letters of credit."

b. an implied contract.

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

a. an express contract.
b. an implied contract.
c. a formal contract.
d. no contract.

b. an express contract.

GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have

a. an executed contract.
b. an express contract.
c. an implied contract.
d. no contract.

a. a court imposed a promise in the interest of fairness.

Lou claims that he and Myra entered into an implied contract. To establish this contract, it is not necessary to show that

a. a court imposed a promise in the interest of fairness.
b. Lou expected to be paid for providing services or prop¬erty.
c. Lou provided Myra with services or property.
d. Myra failed to reject services or property provided by Lou.

a. defines the contract's terms.

Scot and Tiffany enter into an implied contract. The parties' conduct

a. defines the contract's terms.
b. finds the contract's facts.
c. terminates any unintended consequences.
d. undercuts any terms based on the facts.

a. both parties are released from it.

Vernon claims that his contract with Ulani is voidable. If their contract is avoided

a. both parties are released from it.
b. both parties must fully perform their obligations under it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties had agreed.

d. voidable.

Employment Sources, Inc., enters into a contract with Fred. If Fred is a mi-nor, this contract is most likely

a. enforceable.
b. unenforceable.
c. void.
d. voidable.

a. enforceable.

Demi promises to buy a house from Caleb, who promises to vacate the prop-erty on June 1. If these promises are in writing, they are most likely

a. enforceable.
b. unenforceable.
c. void.
d. voidable.

c. void.

Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These promises are most likely

a. enforceable.
b. valid.
c. void.
d. voidable.

b. no contract, because Vito sent the letter to more than one party.

Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the de¬tails. Wanda responds with a letter of "acceptance." Wanda and Vito have

a. a contract.
b. no contract, because Vito sent the letter to more than one party.
c. no contract, because Vito was only inviting bids.
d. no contract, because the letter was an invitation to negotiate.

d. whether Kyle's rejection or acceptance is received first.

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejec¬tion first, then changes his mind and sends an acceptance. Whether they have a contract is determined by

a. Kyle's rejection.
b. Kyle's subjective intent.
c. whatever Jane decides.
d. whether Kyle's rejection or acceptance is received first.

b. makes the offer irrevocable for three days if BPI accepts.

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

a. creates an illegal contract by adding a clause to BPI's offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI's offer by changing the price term.
d. voids BPI's offer by extending the time term.

d. no contract.

Lovett County Bank offers to lend money to Kino, the owner of Java Stop, at 15 percent interest. Before Kino accepts, a state statute is enacted prohibiting loans at rates greater than 12 percent. Kino and the bank have

a. a contract for a loan at 15 percent interest.
b. a contract for a loan at 12 percent interest.
c. a contract for a loan at 0 percent interest.
d. no contract.

d. none of the choices.

Kim sends an offer to Leo to cut down and remove a tree for $200. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to

a. accept the offer.
b. make a counteroffer.
c. reject the offer.
d. none of the choices.

b. sent.

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

a. received.
b. sent.
c. followed up by a confirmation letter sent by regular mail.
d. composed on a Relay computer.

a. before 10 A.M. Monday.

Mayfair Company offers to sell a certain mall to Galleria Stores, Inc., for a certain price if it accepts before 10 A.M. Monday. A contract is formed if Galleria's acceptance is received

a. before 10 A.M. Monday.
b. before midnight Monday.
c. before twenty-four hours of 10 A.M. Monday.
d. within a reasonable time of 10 A.M. Monday.

b. a click-on agreement.

Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to sell copies of the song. This provision is

a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.

b. Milo expressly agrees to the terms in the shrink-wrap agreement.

Lightspeed Corporation makes computers, each of which is packaged with a shrink-wrap agreement. Milo buys a Lightspeed desktop. The shrink-wrap agreement is most likely enforceable if

a. Milo buys the computer directly from Lightspeed.
b. Milo expressly agrees to the terms in the shrink-wrap agreement.
c. Milo reads the shrink-wrap agreement.
d. the terms in the shrink-wrap agreement concern warranties.

a. a browse-wrap term.

Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it. This warning is

a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. none of the choices.

d. not be denied effect because they are in electronic form.

Nero and Oona negotiate a contract. Nero prints out a hard copy to review before both parties sign the electronic form of the contract. Neither party signs the hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), the signatures can

a. be denied effect because they are in electronic form.
b. be denied effect because Nero has not signed a hard copy.
c. be denied effect because Oona has not signed a hard copy.
d. not be denied effect because they are in electronic form.

d. supports the enforcement of such contracts.

Lively Toys Store and Movin' Products Company (MPC) enter into an e-contract under which MPC agrees to ship a case of electronic, remote-controlled bugs to Lively Toys, which agrees to pay on delivery. The Uniform Electronics Transactions Act (UETA)

a. denies the enforcement of such contracts.
b. does not apply to such contracts.
c. preempts all other laws with respect to such contracts.
d. supports the enforcement of such contracts.

a. transact business electronically.

Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to

a. transact business electronically.
b. submit to the jurisdiction of any selected forum.
c. accept and respond to any correspondence sent to that address.
d. nothing.

c. something of value passed between the parties.

Quality Aluminum Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the considera¬tion if

a. it is obvious that the consideration is adequate.
b. Rite Tool asserts that there is adequate consideration.
c. something of value passed between the parties.
d. the consideration is worth more than $100.

c. legally sufficient.

Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consid¬eration ex-changed by the parties must be

a. adequately considerate.
b. equally valuable.
c. legally sufficient.
d. wisely priced.

d. valid due to the unforeseen difficulty of the sudden price increase.

Chip's Chips Company agrees to supply Delicioso Café with all the corn chips that it re¬quires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Chip's asks Delicioso to pay a higher price for the chips. This request is

a. invalid as an attempt at extortion or the so-called holdup game.
b. invalid under the preexisting duty rule.
c. valid as a risk ordinarily assumed in business.
d. valid due to the unforeseen difficulty of the sudden price increase.

a. unenforceable because Agro's performance was a preexisting duty.

Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is

a. unenforceable because Agro's performance was a preexisting duty.
b. unenforceable because Bucolic's promise was illusory.
c. enforceable.
d. unenforceable because its performance is unforeseeably difficult.

b. rescind their contract to the extent that it is executory.

Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties decide to cancel their contract. They can

a. rescind their entire contract.
b. rescind their contract to the extent that it is executory.
c. rescind their contract if they make a new contract at the same time.
d. not rescind their contract.

d. must return both the horse and the tack.

Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She

a. can keep the horse and the tack.
b. can keep the horse but not the tack.
c. can keep the tack but not the horse.
d. must return both the horse and the tack.

d. no one.

Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by

a. Jolie.
b. Jolie's medical insurance company.
c. Keaton.
d. no one.

a. both parties.

Kylie signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Lake Valley Medico, Inc., in exchange for a bonus payment. The covenant is most likely enforceable by

a. both parties.
b. Kylie, but not Lake Valley.
c. Lake Valley, but not Kylie.
d. no one.

b. the parties' relative bargaining power.

U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv, on installment plans. U-Can-Own-It files a suit against Viv when she stops making payments. Viv claims that the deal is unconscionable. The court will most likely consider

a. the geographic area of the relevant market.
b. the parties' relative bargaining power.
c. the quality of related products in the general market.
d. the relation of this deal to those of other customers.

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