BLAW EXAM 3

BLAW

Nell gives Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true?

Legally, Nell can neither get the money back nor force Al to do as he promised

Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause?

An unenforceable restraint of trade contrary to public policy

Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract?

Yes, it is likely to be enforceable during employment.

William recently sold his successful business to Janice. The contract for the sale contained an unreasonable restriction that did not allow William to open a similar business for fifteen years. The courts would, in this instance,

Either (a) or (d). (reform the contract to make it reasonable and enforceable. and refuse to enforce the unreasonable restriction.)

Which of the following is true with regard to an exculpatory clause?

All of the above are true.

If a restriction in an employment contract is found to be too harsh, a court may do any of the following EXCEPT:

refuse to void the restriction.

Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to its manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the package for a ball and tosses it to his buddy. Mary is:

likely to collect from DP because it is a common carrier.

A(n) ____ is a measure designed to protect the public from unqualified practitioners.

regulatory license

Before granting an injunction enjoining a former employee from competing in a described territory, the courts insist that the employer demonstrate that the restriction is:

necessary to protect the employer's legitimate interest

John operates a small repair business and is in desperate need of a certain type of building material. He obtains the material from a large corporation, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of:

substantive unconscionability.

Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage in the same business anywhere within the state for a period of three years.

Both (b) and (c).

Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage in the same business anywhere in River City for a period of five years

The geographic restraint is reasonable.

The UCC provides that if a court as a matter of law finds a contract for the sale of goods or a clause of such a contract to have been unconscionable at the time it was made, the court may:

All of the above.

Sarah is working hard on the mayoral campaign of Timothy. She thinks that just a few more votes could win the election, so she promises to pay her friend Violet $50 to register and vote. Violet does so, but Timothy loses the election, and Sarah now refuses to pay.

This agreement is unenforceable and opposed to public policy

Which of the following would generally be considered to be a revenue-raising licensing law?

A statute requiring that salespeople be licensed, but not establishing any educational or training requirements

Numerous states impose no limit on the rate of interest that may be charged on:

All of the above.

Non-compete agreements drafted for employees of Internet companies:

are subject to larger geographic restrictions than for other types of companies.

Patrick agrees to sell two different goods to his friend Ron, a retailer. One item is legal, and one item is illegal. The contract price is $2,000.

The court may view the contract as in (a) or (b)

A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called

an adhesion contract.

Custom Sales and Rentals uses a four-page contract with important contract terms buried in the fine print. This is an example of

procedural unconscionability

R&R, Inc. entered into a contract with Scott, an agent, under the terms of which Scott would receive $20,000 if he stole trade secrets from the leading competitor of R&R. Scott performed his end of the agreement by delivering the trade secrets. R&R now refuses to pay Scott for his services

Scott will be unable to recover, because this is an illegal contract

Which of the following is correct with regard to an enforceable restraint of trade?

All of the above

Under which of the following circumstances would a court be likely to enforce an illegal contract?

Under certain circumstances in which the aggrieved party was unaware of the illegality

Which of the following would always be considered to be contrary to public policy?

An agreement to pay someone to make false, negative statements about a competitor's product

Which of the following would be considered a valid and legally enforceable agreement?

An agreement by a car salesman not to sell automobiles or automobile parts in Marin County for a period of one year after terminating his employment

Bill bets his friend $100 that the Patriots will win the next Super Bowl.

This is an illegal wagering agreement.

Carl and Rob are both engaged in road construction work. They know that several jobs are going to be up for public bids, and agree between themselves that Carl will bid on one job and Rob will bid on the other, so that they both have work for the summer. When the bids are opened, Carl realizes that Rob has bid on both jobs. Rob is awarded both contracts. Carl now wants to sue Rob for breach of contract

This is an agreement in violation of public policy that will not be enforced by the courts

Al has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sales contract, he agrees that he will refrain from practicing accounting anywhere within a 20-mile radius of Redwood City for a period of two years. However, on weekends he returns to his house in Redwood City, and when clients call him, he meets with them in his home

Al is in violation of the sales agreement

Theresa is a travel agent at the Fly Away Travel Agency. She has signed an agreement with her employer which prohibits her from working in any similar business in any town within a 100-mile radius of where she works. If she wants to quit her job and go to work for another travel agency, it is likely that:

if no trade secrets are involved, and she has no dominion over customers, a court would rule the restrictions to be invalid.

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy

This contract is void.

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What result?

Fay is still liable because selling the skis amounts to a ratification.

Ann, a minor, disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company. She had used up all the eye shadows, lipsticks, and powders. The general rule is that she may

disaffirm, but she has to return the makeup that is not used up.

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

No, if Mark's father bought it without knowing that Mary was a minor.

Ratification can occur in which of the following ways?

All of the above

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?

Violet may not disaffirm the contract.

Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a pole. Under the majority view, can Rosa recover damages from Todd?

No, his contractual immunity protects him from legal action by Rosa

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?

Steve may simply return the vehicle and get his money.

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Which of the following expresses the status of this situation?

Randy may not recover the vehicle from Mr. Smith.

Robert is 17 years old. He lies to Bouyers Auto in order to induce it to sell him a new pickup. Bouyers falls for this lie and sells him the pickup. In most jurisdictions, which of the following is correct?

Robert may disaffirm and get his money back

Which of the following is not true regarding the contracts of incompetent persons?

Unlike a minor, an incompetent person can never ratify a contract.

Which of the following is not true regarding the contracts of intoxicated persons?

Slight intoxication will destroy one's contractual capacity.

The exercise of the power to avoid a contract is known as

disaffirmance

Sixteen-year-old Laura's disaffirmance of a contract:

for a sale of land by her is not effective until after she reaches the age of majority.

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract?

A camera

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract

Which of the following would be a valid ratification?

All of the above

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:

Percy may keep the mobile home but is only liable for the reasonable value of the mobile home.

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive and now wishes to cancel the order.

Cheryl may disaffirm this executory contract

Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract, Wanda:

must reach the age of majority and ratify the contract as a whole.

Donald, a minor, makes a contract with Albert, an adult, to buy a computer. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the computer next week.

Donald has expressly ratified the contract.

A contract by which of the following is void?

A thirty-six-year-old man under a court-ordered guardianship for mental incompetency.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor:

There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

Which of the following is correct regarding the contractual liability of incompetent persons?

For executed, fair contracts with a mentally incompetent person who understands but cannot control his behavior to act rationally, the incompetent must restore the competent party to the status quo before the transaction by a return of the consideration received or its equivalent in money

In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by:

the facts and circumstances of the case.

Which of the following promises does not have to be evidenced by writing in order to be enforceable?

Mindy's agreement with Susan to buy her bike for $400

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Chris can hold Wyandott to the order.

In states that have adopted it, the UETA:

encourages and gives full effect to electronic contracts

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

A promise, the leading object of which is to obtain an economic benefit for oneself

E-Sign provides consumers must

receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records.

What is another name for the main purpose doctrine?

The leading object rule

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?

Subsequent oral or written agreements modifying the original agreement

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

course of dealing

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection

course of performance

Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or trade.

usage of trade

In determining the meaning of a contract under the UCC, which of the following will have first priority?

Express terms

Which of the following would NOT require a writing under the statute of frauds?

Where a landscaper agrees to landscape the lot surrounding an office building

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?

Medical care received in a hospital

E-Sign

ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement?

The signature of the party suing

Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of frauds?

All of the above meet the signature requirement.

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable?

All of the above.

On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Yes, because the job offer is for longer than one year from March 1

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2007, and that it is an integrated document

A letter dated July 9, 2007, reciting agreement to new delivery terms

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?

No, because Barry does not have a writing signed by Champs Tee Shirts

Which of the following is untrue with regard to the interpretation of contracts?

Technical terms will always be given technical meaning even where a different intent is manifested by the parties.

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

An oral statement such as this is not enforceable because this promise is within the statute of frauds.

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the:

Electronic Signatures in Global and National Commerce Act

Which of the following promises in consideration of marriage would be outside the statute of frauds?

John and Joan mutually promise to marry each other in a formal ceremony on June 23.

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement?

The quantity of the goods

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly

Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

The parol evidence rule does not apply to:

The parol evidence rule does not apply to either (a) or (b).

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year

The term "year" in the contract is ambiguous, and the parties can bring in parol evidence to clarify their intent

Requirements for a memorandum that satisfies the statute of frauds include that the writing:

None of the above.