When performance is impeded due to the occurrence of an event whose nonoccurrence
was a basic assumption of the contract, the contract may be discharged on the grounds
of:
a. commercial impracticability.
b. commercial impossibility.
c. economic frustration.
d. economic stability.
Real property includes:
a. land.
b. shrubs, grass and tress.
c. rights in the land of another.
d. all of the above.
An oral understanding is not binding if:
a. the services performed were not to the satisfaction of the other party.
b. the amount agreed to be paid for services rendered was not a fair and reasonable
amount.
c. the parties intended to formalize their understanding with a written agreement.
d. the understanding may be terminated at will by either party.
The expense and the risk of return in a sale or return situation is on the:
a. seller.
b. buyer.
c. lienholder.
d. secured creditor.
Sales of goods transactions are subject to a statute of limitations period of:
a. one (1) year.
b. two (2) years.
c. three (3) years.
d. four (4) years.
One of the motions that can be made after a verdict has been entered is a motion for a:
a. mistrial.
b. summary judgment.
c. directed verdict.
d. judgment notwithstanding the verdict.
Which of the following is not an example of incidental damages recoverable by a
seller?
a. expenses for the care of the goods after the buyer’s breach
b. expenses for transportation of the goods after the buyer’s breach
c. expenses for resale of the goods after the buyer’s breach
d. expenses for the attorney’s fees after the buyer’s breach
Which is a correct statement about arbitration of contractual disputes regarding
international trade?
a. It is done in court.
b. There is extensive judicial review of the decision.
c. Parties frequently arbitrate in neutral countries.
d. It is not available in disputes of more than $1 million.
What type of insurance is written for a specified number of years and terminates at the
end of that period?
a. term insurance
b. whole life insurance
c. endowment insurance
d. universal insurance
Which of the following is not illegal?
a. an office football “pool” with a cash entry fee and cash prize
b. a raffle with an entry fee to win a car
c. a “giveaway” to every tenth person who buys meat at a butcher shop
d. a “giveaway” to every tenth person entering a department store
Bart was a self-made millionaire who had earned his fortune by dedicated hard work.
Bart had worked so hard that he never had developed much of a social life. Bart met
Linda and fell in love with her. When Bart proposed to Linda, she told him that she
needed time before making such an important decision. Pressing her for a favorable
response, Bart telephoned Linda and promised her $100,000 if she would marry him.
Linda then accepted the proposal.Bart contracted with Quick Builders for the
construction of a home Bart intended to move into with Linda after their marriage.
Construction by Quick was not very quick because Quick was not paying
subcontractors the sums that they were owed. They, in turn, were not completing their
work. To expedite matters, Bart called the subcontractors and assured them that Bart
would pay any sums that Quick Builders did not pay if they would complete the
construction.Bart and Linda married and the subcontractors completed the work. Quick
Builders did not pay the subcontractors in full. Bart failed to pay Linda the $100,000.
Both Linda and the subcontractors sued Bart. Discuss the probable outcome of the
lawsuits.
The jurisdictional rule of reason addresses the problems that arise when a foreign
country has a significant interest in regulating conduct taking place within the United
States.
Public policy exceptions to the employment-at-will doctrine apply only to
“whistleblowing” situations.
A debit transaction occurs when a person making a payment requests such payment be
made to the beneficiary€s bank.
Peter contracted to purchase five (5) cases of soda and a vacuum cleaner because Peter
was planning a party for his son’s graduation. Both contract forms that Peter signed
contained exclusion of damages clauses; i.e., each contract stated that the buyer had no
right to sue the seller in the event that the goods were defective. Instead, each seller’s
sole obligation was to replace or repair the defective goods within a reasonable time of
being notified of the defect(s). These clauses in the contract were set forth in the
ordinary type of the contract and were not especially conspicuous.
The vacuum cleaner was delivered on Friday, the day before the party, when the rugs in
Peter’s home were quite dirty. The vacuum cleaner did not work properly. Peter notified
the seller, who responded by saying that nothing could be done until the following
week. Frantic because guests were coming, Peter hired a cleaning service to clean the
rugs.
While serving the soda to guests, one of the bottle caps burst from an unopened bottle
with great force. It struck Peter in the eye and he required medical treatment and
hospitalization.
Eventually, Peter sued both sellers for damages. Peter sought the expense of the
cleaning service from one. From the other, Peter sought damages for personal injury,
including his medical and hospitalization expenses. Both defendant-sellers cited the
exclusion of damages clauses as their defense.
Goods are called identified goods when they have been selected as the goods called for
by a sales contract.
Trademarks may be used to protect the exclusive right to identify either products or
services.
A homeowner’s policy commonly provides protection from losses caused by theft.
Damages in excess of actual loss, imposed for the purpose of punishing or making an
example of the defendant, are known as compensatory damages.
Silence of Congress indicates that Congress is unwilling to make changes to an existing
law.