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Appendix C for Unit Three
Questions on the Features
CHAPTER 11—INSIGHT INTO ETHICS:
CAN A COMPANY THAT SPONSORS A CONTEST CHANGE THE PRIZE FROM
WHAT IT ORIGINALLY OFFERED?
B1. Arnold enters a Bunco tournament hosted by Bunco Players Association
(BPA). During the event, Arnold signs an agreement that stipulates BPA will
pay all of the winner’s fees and expenses to attend the Bunco World Games,
but if the winner does not attend, he or she agrees to repay the funds. Arnold
wins and BPA pays his expenses, but he does not go to the World Games. In
BPA’s suit to recover the expended funds, a court is most likely to rule that the
agreement is
a. an invalid modification of the tournament contract between Arnold and
BPA.
b. binding to the extent that the parties “split the difference.”
c. not binding because it was signed “during the event.”
d. binding and Arnold must repay the funds.
2 TEST BANK B—UNIT THREE: CONTRACTS AND E-CONTRACTS
CHAPTER 15—INSIGHT INTO SOCIAL MEDIA:
“CATFISHING”: IS THAT ONLINE “FRIEND” WHO YOU THINK IT IS?
B2. Evita pretends to be “Faith” online, fooling Garth into believing that Faith is his
friend. When Garth learns the truth, he is embarrassed and feels humiliated.
But he cannot recover damages because he cannot prove an actual injury,
which is a requirement for recovery in these circumstances on the ground of
a. mistake.
b. fraudulent misrepresentation.
c. undue influence
d. unconscionability.
CHAPTER 18—INSIGHT INTO ETHICS:
WHEN IS IMPOSSIBILITY OF PERFORMANCE A VALID DEFENSE?
B3. Nora contracts with Odell to sell land that, unknown to either party, has
groundwater contaminated from adjacent land that was occupied several
decades earlier by a paper pulp processing plant. When this is discovered,
Nora asserts the doctrine of commercial impracticability. This doctrine applies
only when, with respect to an event that renders performance impossible, at
the time the contract was formed the parties
a. could not have reasonably foreseen the supervening event.
b. could have reasonably foreseen the supervening event.
c. should have foreseen the supervening event, reasonable or not.
d. should not have foreseen any supervening events.
APPENDIX C FOR UNIT THREE 3
CHAPTER 19—INSIGHT INTO SOCIAL MEDIA:
WAS INSTAGRAM’S REVISION OF ITS TERMS OF SERVICE A BREACH OF
CONTRACT?
B4. Mainstay, Inc., sponsors NowUCMe, a social-networking, video– and photo-
sharing site. To use NowUCMe, Mainstay requires users to accept terms of
service associated with the site. By clicking on “accept,” users enter into a
contract
a. after thirty days.
b. as soon as they begin to use the service.
c. when a court declares that a contract exists.
d. under no circumstances.
UNIT THREE—FOCUS ON ETHICS:
CONTRACT LAW AND THE APPLICATION OF ETHICS
B5. Gladys enters into a contract with Hydraulic Fracturing, Inc., for a sale of the oil
beneath Gladys’s land for a fraction of the value of the oil and the cost to
restore the land after the oil is extracted. A court is most likely to determine that
this deal is unfair under
a. the concept of unconscionability.
b. the doctrine of promissory estoppel.
c. the principle of freedom of contract.
d. the Statute of Frauds.
4 TEST BANK B—UNIT THREE: CONTRACTS AND E-CONTRACTS
B6. To bid on a job, RoadCrew Construction Company relies on the oral promise of
Surface Paving, Inc., to perform certain work at a certain price. Smooth Paving
fails to perform. RoadCrew Construction can
a. not recover due to the principle of freedom of contract.
b. not recover due to the Statute of Frauds.
c. recover under the concept of unconscionability.
d. recover under the doctrine of promissory estoppel.