16 terms

Sample Questions (Ch. 11, 12, 13)

A manager of International Sales Corporation makes statements to a represent to a representative of Global Distribution, Inc., regarding a business deal. Under the object theory of contracts, the manager's words and conduct are held to mean whatever:
A reasonable person in the representative's position would think they meant.
Geller tells Bett-Jane, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is:
A statement of future intent.
Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying,"We accept your offer." Between Royal and Standard, there is:
No contract
Geller offers to sell Betty-Jane his computer but conditions the sale on Betty-Jane accepting the offer by May 1. Geller may revoke the offer:
Before Betty-Jane accepts the offer.
Geller advertises a reward for the return of his lost dog. Betty-Jane, who does not know of the reward, finds and returns the dog. Betty-Jane cannot recover the reward because she:
Did not know of the reward when she found and returned the dog.
Geller promises to pay Betty-Jane $15,000 if she obtains her degree at Kappa University, where she is currently in her second year. Betty-Jane graduates. Geller is:
Required to pay because Betty-Jane obtained a degree at Kappa.
Geller promises to pay his assistant, Betty-Jane, $10,000 in consideration of the services she provided over the years. Geller never pays Betty-Jane. Geller is:
Not liable because the consideration is in the past.
Geller is injuried i an accident caused by Betty-Jane. Betty-Jane agrees to pay Geller $2,500 if he agrees to relase Betty-Jane from any further liability. Geller agrees and gives Bettey-Jane a written release. If Geller's damages ultimately exceed $2,500, Geller can:
Not collect the balance from Betty-Jane.
Collection of EZ Sales Company's debt to First Storage Corporation is barred by a statue of limitations. A new promise by EZ to pay the debt:
May become enforcable if payments are made.
Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract:
Does not change the fact that Phil is bound by the contract.
Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves:
Elmo, a minor, misrepresents his age to be 21 and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract:
under any circumstance
Max, a minor subject to his parents' care and control, signs a contract to rent an apartment from Noel for one year. Before the end of the term, Max moves out. Noel sues for the rent for the rest of the term. Max can:
Disaffirm the contract and avoid liability for the rent.
Nora signs a contract to buy a car just before reacing the age of majority. After reaching the age of majority, Nora does not take possession or make payments. Most courts would hold that she had:
Disaffirmed the contract.
On Tad's eighteenth birthday, he decides that he no longer wants to keep a car he bought from U-Pick Autos, Inc., when he was seventeen. His right to disaffirm the deal will depend on:
Whether Tad acts within a reasonable time.
Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State has:
violated the usury laws.