BLAW Final Exam Spring 2022

A party who is owed an obligation of performance is called a(n):
a. obligor.
b. obligee.
c. assignor.
d. assignee.
e. offeree
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Which of the following is true about the ability to assign contract rights?
a. Contract rights are not assignable.
b. Most contract rights are assignable, but the permission of the obligor is always
required.
c. In general, contract rights can be assigned only if the contract so states.
d. All contract rights can be assigned.
e. Most contract rights can be assigned even if a contract does not expressly allow this.
Which of the following is a true statement about the rights of an assignee of contract rights?
a. The assignee must have received all of the assignor's rights because partial
assignments are not permissible.
b. The assignee often gets greater ability to enforce a right than the assignor had.
c. The assignee obtains the assignor's rights only if the obligor consents.
d. The assignee's rights are no greater than those of the assignor.
e. The assignee has rights but must have the assignor institute any lawsuit needed to compel performance.
What is the legal effect of an obligor not being given notice of an assignment of rights under a contract?
a. There is no effect because there is not duty to notify the obligor.
b. The obligor must perform the same duty for both the assignor and the assignee.
c. Performance by the obligor to the assignor will discharge the duty as to the assignee.
d. The obligor is discharged from having to perform the duty to either the assignor
or the assignee.
e. The obligor may sue the assignor for damages.
What is the defining characteristic of a donee third-party beneficiary?
a. The benefit received by the donee beneficiary is a gift.
b. The donee beneficiary has also been delegated a duty.
c. The donee beneficiary was not intended to receive a benefit.
d. The donee beneficiary has preexisting obligations related to the contract.
e. The donee beneficiary status arose out of the assumption of a loan agreement.
Who can a donee third-party beneficiary sue under a contract?
a. The promisor who is to provide the benefit to the third-party beneficiary.
b. The promisee who directed that the benefit be provided to the third party
beneficiary.
c. Both A and B.
d. Neither A nor B.
e. Both A and B only if it can be shown that the third-party beneficiary was aware of the contract when it was made.
What is the defining characteristic of an incidental third-party beneficiary? a. The benefit received by the donee beneficiary is a gift. b. The donee beneficiary has also been delegated a duty. c. The donee beneficiary was not intended to receive a benefit. d. The donee beneficiary has preexisting obligations related to the contract. e. The donee beneficiary status arose out of the assumption of a loan agreement.c. The donee beneficiary was not intended to receive a benefit.Which kinds of third-party beneficiaries have rights to sue under a contract? a. Donee b. Creditor c. Incidental d. Both A and B. e. A, B and C.d. Both A and B.Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any? a. Bill has no duty to Judy so long as she did not expressly object to the delegation b. Bill has no duty to Judy regardless of whether she objected to the delegation c. Bill continues to be bound to Judy to see that her car gets washed d. Bill continues to be bound to Judy to see that her car gets washed only if the contract expressly prohibited delegationc. Bill continues to be bound to Judy to see that her car gets washedAn obligor is someone who owes a duty of performance.TrueWith an assignment of rights, an obligee generally becomes an assignor when the right is assigned.TrueIn order to be assignable, a contract usually must provide that the rights can be assigned.FalseWhen an assignment is made, it is said that the "assignor steps into the shoes of assignee".FalseAn anti-assignment clause is a clause that prohibits the assignment of rights under contracts.TrueWhen a delegator delegates duties, the delegator remains responsible for the performance of the duties.TrueAnti-delegation clauses are seldom enforced by the courts.FalseThird-party beneficiaries usually exist from the inception of a contract.TrueA creditor beneficiary cannot sue on the contract that made her a creditor beneficiary.FalseOnly people specifically identified by name in a contract may have the rights of an intended beneficiary.FalseDonee beneficiaries must be known about at the time that the original contract is entered into to get their rights.TrueWhat is a condition in connection with a contractual promise? a. A limitation on the manner in which the promise is performed. b. A limitation on the remedy available in the event that the promise is not properly performed. c. Something that must occur (or not occur) in order for there to be a duty to perform the promise. d. The reason that the promise was initially made. e. A and B.c. Something that must occur (or not occur) in order for there to be a duty to perform the promise.What is the significance of a contract clause stating that "time is of the essence?" a. It creates a legal goal for the parties. b. It puts a duty on the parties to a contract to perform as soon as possible. c. It means that the contract is ineffective if the time for performance is not expressly stated. d. It means that performance by the stated time is an express condition. e. It means that if performance of the contract is completed within a short time of the stated time, it will be considered performed at essentially the proper time.d. It means that performance by the stated time is an express condition.The release of one contractual party and the substitution of another party for the released party is called a(n): a. substitution by law. b. removal and replacement. c. novation. d. adjudication. e. accord and satisfaction.c. novation.If the contract requires the occurrence (or nonoccurrence) of an event before a party is obligated to perform a contractual duty, there is a condition precedent.TrueA condition subsequent exists when a contract provides that the occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing duty to perform.TrueImpossibility of performance occurs if the contract becomes subjectively impossible to perform by one of the parties.FalseIf a party to a contract intentionally alters the contract materially, the innocent party may opt either to discharge the contract or to enforce it.TrueReal estate transactions are always governed by Article 2 of the UCC.FalseFor an item to be characterized as a "good" under the UCC, it must be intangible.FalseFor an item to be characterized as a "good" under the UCC, it must be intangible.FalseA merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.TrueThe UCC imposes some different rules on merchants.TrueUnder the UCC, parties to sales and lease contracts are not free to establish whatever terms they wish.FalseA firm offer by a merchant may be oral.FalseIf there is no definite period stated, a firm offer by a merchant is irrevocable without the necessity of consideration for up to six months.FalseGenerally, acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.TrueUnder the UCC, prompt shipment of goods is considered an acceptance of an offer to buy the goods.TrueUnder the UCC, an agreement modifying a contract needs no consideration to be binding.TrueEntrusting goods to a merchant who deals in goods of the kind gives the merchant the power to transfer all rights to a buyer in the ordinary course of business.TrueUnder a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier.FalseIf a seller is not a merchant, and the goods are not to be moved, the risk of loss passes to a buyer on tender of delivery.TrueDan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer, sells Thelma his collection of seashells. Philip, a CEO of a successful company, sells George his pet parakeet. Judy, an expert horse trainer, sells Bob a horse. Which person would be considered a merchant under the UCC? a. Dan b. Will c. Judy d. Philipc. JudyPeter, an agent for Zippy Cars, Inc., writes a letter to Cassandra on March 1 stating that he will sell her a 2011 Suburu Outback for $20,000 between March 1 and April 30. Peter's letter to Cassandra is a. a firm offer. b. an acceptance. c. a bilateral contract. d. a breach.a. a firm offer.Community Construction Corporation offers to buy from Solid Cement Company a certain quantity of cement for a certain price. Solid can accept the offer by a. doing nothing. b. promising to ship or promptly shipping the cement. c. promising to ship the cement only. d. promptly shipping the cement only.b. promising to ship or promptly shipping the cement.Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing contract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the contract. Brand may a. cancel the contract immediately. b. cancel the contract only after accepting a final shipment. c. cancel the contract only on reasonable notice. d. not cancel the contract.d. not cancel the contract.Bill orders 1,000 nails from Super Hardware, Inc. Super Hardware keeps its nails in packages of 100,000. Bill and the agent for Super Hardware both sign the contract for the sale of the nails on Monday. The agent separates 1,000 nails on Wednesday and puts Bill's name on the box holding the nails. The agent delivers the nails to Bill on Thursday morning, and Bill pays for the nails on Friday. Identification of the nails took place on a. Monday. b. Wednesday. c. Thursday. d. Friday.b. Wednesday.Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.c. a shipment contract.Grace purchases three tons of fine merino wool on behalf of Woolen Creations. Woolen Creations wants the wool to remain in the warehouse where it is being stored until it is needed. Grace makes an offer for the wool on Monday. The offer is accepted on Tuesday. The warehouser gives Woolen Creations a warehouse receipt on Wednesday. Woolen Creations picks up the wool from the warehouse three months after the sale. Title for the wool passed to Woolen creations a. on Monday. b. on Tuesday. c. on Wednesday. d. three months after the sale.c. on Wednesday.Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell the car to her neighbor, John. Elizabeth's title to the car is a. valid. b. voidable. c. void. d. good.b. voidable.Levi, a well-known lumber dealer with a good reputation, buys a load of lumber and pays for it with a check that is later dishonored. Sam, who is unaware of the bad check and paid a reasonable price, buys the lumber from Levi. Sam is a(n) a. good faith purchaser. b. bad faith purchaser. c. insolvent purchaser. d. bailee.a. good faith purchaser.Sweets Store buys chocolate from Tasty Candies, Inc. The parties agree that the chocolate will be shipped "F.O.B. Sweets" via United Railroad Corporation. The chocolate is lost in transit. The loss is suffered by a. Sweets and Tasty, but not United. b. Sweets only. c. Sweets, Tasty, and United. d. Tasty only.d. Tasty only.Tender of delivery requires that the seller or lessor hold the goods at the buyer's or lessee's disposal, but not that the goods be conforming.FalseThere are no circumstances under which a contract can be tendered by multiple deliveries of goods.FalseUnder the UCC, if a contract does not designate the place of delivery for the goods, then the goods must be made available at a location halfway between the seller's and the buyer's places of business.FalseA shipment contract requires that the seller deliver the goods to a particular location.FalseIf the goods or their tender fail to conform to the contract, the buyer can accept part and reject part.TrueUnder the perfect tender rule, if tender is not perfect, the seller is obligated to try again.FalseUnder the UCC, there are no exceptions to the perfect tender rule.FalseUntil the time for performance under a contract expires, the seller has a right to cure.TrueIf goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.TrueIn general, a buyer's duty to pay for tendered goods becomes absolute before the buyer has had an opportunity to inspect the goods.FalseIf a buyer wrongfully refuses to accept goods that conform to a contract, the seller can recover damages.TrueIf a buyer repudiates a contract, the seller cannot recover damages.FalseA buyer may reject a seller's goods under any circumstances.FalseA buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.TrueClear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in a. California. b. Delaware. c. Florida. d. Hawaii.c. Florida.Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before shipping them. d. place the goods into the hands of a carrier.d. place the goods into the hands of a carrier.Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.b. can reject the entire shipment.Kim's Pony Rides orders ten saddles from Little Horse Saddles, Inc. The sales contract states that if the saddles are defective, Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment. When the saddles arrive, they are defective. In this case, the perfect tender rule a. does not apply. b. applies to both parties. c. applies only to Little Horse Saddles. d. applies only to Kim's Pony Rides.a. does not apply.Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden a. cannot reject delivery, and Food cannot later replace the containers. b. cannot reject delivery, but Food can later replace the containers. c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. d. may reject delivery, but Food cannot later replace the containers.c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers.On January 10, Winchester Pet Supplies orders fifty small dog collars from Quality Collars, Inc. to be delivered by January 15. On January 13, Quality Collars tenders fifty large dog collars. Winchester Pet Supplies rejects the shipment. Quality Collars has a. no right to cure. b. until January 15 to cure. c. until the end of the business day on January 13 to cure. d. unlimited time to cure.b. until January 15 to cure.Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is a. anticipatory repudiation. b. perfect tender. c. rejection of performance. d. revocation of acceptance.a. anticipatory repudiation.Warranties of title do not arise in most sales contracts.FalsePromises of fact made during the bargaining process are express warranties.TrueA seller does not have to use words such as "warrant" to make an express warranty.TrueOnly a statement made after a contract is entered into can be an express warranty.FalsePuffery creates an express warranty.FalseGoods must be of the highest quality possible to be merchantable.FalseA seller does not have to provide a written warranty for consumer goods.TrueJean buys a bike from Mike's Bike Shop. She wants to make sure that there is a warranty of title. Jean a. does not need to do anything because warranties of title arise automatically in most sales contracts. b. must request a written warranty of title. c. must request an oral warranty of title. d. must request both a written and an oral warranty of title.a. does not need to do anything because warranties of title arise automatically in most sales contracts.William steals a valuable collection of baseball cards from Phillip. William then sells the cards to Darrel, who does not know that the cards are stolen. Phillip discovers that Darrel has the cards. Which of the following best describes the rights and liabilities of the parties involved? a. Darrel has the right to keep the cards if he compensates Phillip monetarily. b. Phillip has the right to reclaim the cards from Darrel, but is liable to Darrel for damages. c. Phillip has the right to reclaim the cards from Darrel and William is liable to Darrel for damages. d. Darrel has the right to keep the cards without compensating William.c. Phillip has the right to reclaim the cards from Darrel and William is liable to Darrel for damages.Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor reposes the bulldozer, Barry a. can recover from Big Sandbox Equipment for breach of warranty. b. can do nothing. c. can file criminal charges against Big Sandbox Equipment. d. can recover damages from the creditor.a. can recover from Big Sandbox Equipment for breach of warranty.Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her breeding program, a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year. Krissa's statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.a. an express warranty.Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each bag has the words "Twenty percent protein" printed on the front. This is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.a. an express warranty.Myrtle walks into Hank's Hardware Store and says, "I need metal storage shelves that can hold 500 pounds." Hank directs her to a metal storage shelving system, which Myrtle buys. When Myrtle puts 425 pounds of weight on the shelves, they collapse. Hank's Hardware likely breached the implied warranty of fitness for a particular purpose.TrueIf the contract requires the occurrence (or nonoccurrence)of an event before a party is obligated to perform a contractual duty, there is a condition precedent.TrueIn a novation, only one of the original parties is replaced by a new party.TrueIf a party to a contract intentionally alters the contract materially, the innocent party may opt either to discharge the contract or to enforce it.TrueImpossibility of performance occurs if the contract becomes subjectively impossible to perform by one of the parties.False