GOVT 404 QUIZ 2 fall 2019
• Question 1
5 out of 5 points
Which of the following is a false statement regarding consideration?
Selected
Answer:
An unfair bargain cannot constitute consideration since nobody
would genuinely bargain for a contract that is notfair.
• Question 2
5 out of 5 points
Which of the following can serve as consideration?
Selected
Answer:
Both a
andb.
• Question 3
5 out of 5 points
Angus is a drywall contractor. He learns that his neighbor, Bonnie, hadsome water
damage and has been talking to Drywall Solutions, anotherdrywall contractor, to
complete the repairs. Angus tells Bonnie that shedoes not need to hire a drywall
contractor and that he will perform the
work at no cost if Bonnie will supply the drywall materials. Bonnie calls Drywall
Solutions, which had offered to do the work for $3,000, and tellsthem not to come.
Angus subsequently refuses to do the work. Bonnie hasto pay a third drywall
contractor $4,000 to complete the job. What argument should Bonnie make to
recover from Angus?
Selected
Answer:
That Bonnie relied on Angus’s promise to her
detriment.
• Question 4
5 out of 5 points
True or false: An agreement modifying a contract governed by the UCC does not
require any consideration to be binding, but must be made ingood faith.
SelectedAnswer:
Tru e
• Question 5
5 out of 5 points
Bookstore, Inc., an independent bookstore, is looking for a new location. It agrees to
buy a small house from Jones for $165,000 if the municipal zoning board will approve
Bookstore, Inc.’s request for a variance from thelocal zoning ordinance, which currently
only allows houses in this part of town to be used as residences. The contract
between Bookstore, Inc. andJones is
Selected
Answer:
Enforceable, because Bookstore, Inc. has made an
enforceable conditional promise.
• Question 6
0 out of 5 points
True or false: A gift promise is generally unenforceable, unless thepromisee
reasonably and justifiably relies upon it.
SelectedAnswer:
False
• Question 7
5 out of 5 points
Baxter has been an employee of Shipping Company for seven years. His manager
notices that he has been working late, making sure that the company trucks are
properly cleaned out, stored, and locked up in the company garage at the end of each
workday. The
manager
tells
Baxter
that he appreciates his hard work, that Baxter
should not feel obligated tostay late to lock up the equipment anymore, and that
Baxter can expect a
$250 bonus in his next paycheck because of his past efforts. Is the manager’s statement
enforceable based on the theory of consideration?
Selected
Answer:
No, the manager’s promise was not a bargained-for
exchange, since Baxter had already done the work.
• Question 8
5 out of 5 points
Which case provides an example of a court applying the pre-existing dutyrule?
Selected
Answer: Alaska Packers’ Assn. v.
Domenico
• Question 9
5 out of 5 points
Hawke wears a gold medallion, passed down from his grandfather, at all times. He is
distraught one day when he returns home from work and realizes that the medallion
apparently detached from its chain and fell tothe ground at some point during the day.
He posts signs in the office building where he works and in the adjacent parking
garage, offering a
$300 reward to anyone who finds the medallion and returns it to him. Rhonda, one of
Hawke’s co-workers, finds the
medallion
in
an
office
stairwell, recognizes it as
Hawke’s, and returns it to him, not knowing thatHawke has offered a reward for its
return. Choose the best answer:
Selected
Answer:
Hawke does not owe Rhonda $300 because she did notreturn
the medallion as a bargain for the $300.
• Question 10
0 out of 5 points
Bob is a personal athletic trainer. He is speaking with his friend Jonnie while riding the
bus to work. During the bus ride, the two discuss Bob providing Jonnie with personal
training sessions. Bob provides personal training sessions to Jonnie, but Jonnie does not
pay for them. Which of thefollowing could be a viable theory of recovery against Jonnie?
Selected
Answer:
The agreed price for personal training services provided byBob in
exchange for a promise by Jonnie to pay for the services.
• Question 11
5 out of 5 points
Which statement most accurately describes the difference between theexpectation interest
and reliance interest in contract damages?
Selected
Answer:
Expectation interest is the amount of damages that places the promisee
in as good a position as if the contract had been fullyperformed; reliance
interest is the amount of damages that places the promisee in as good a
position as if the contract hadnever been made.
• Question 12
5 out of 5 points
Isobel contracts with Lance for Lance to market Isobel’s new line of athletic headwear
to sporting-goods retailers. She agrees to pay Lance
$10 per hour for his work and 1% of any sales he generates. After three months,
Isobel is concerned that Lance is only working 20–30 hours perweek and generating
very few sales. She learns that Lance is facing competition from several new
companies, all marketing products similar to Isobel’s line of athletic headwear. In light
of the increased competition,the two agree that Lance should receive 3% of any sales
he generates.
Choose the best answer:
Selected
Answer:
The modified contract is enforceable, because it is fair in lightof
circumstances unanticipated at the time Isobel and Lance formed their
contract.
• Question 13
5 out of 5 points
An agreement reached concerning some details of a transaction, butleaving other
details to be determined later, is called what?
Selected
Answer: a
preliminar
y
agreement
• Question 14
5 out of 5 points
Homeowner enters into a contract with Flooring Company to refinish Homeowner’s
hardwood floors on October 15 and 16. The contract price is
$4,000, payable after the completion of the work. Flooring Company failsto do any of
the work, and Homeowner pays Flooring Company nothing. Homeowner has to pay
$4,400 to another flooring contractor to refinish his floors. Which of the following
correctly describes Homeowner’s “expectation interest”?
Selected
Answer:
Homeowner’s expectation interest
is $400.
• Question 15
5 out of 5 points
AlphaCo and BetaCo enter into a contract for AlphaCo to provide computerand
printer repair services at BetaCo’s offices. The contract is scheduled to begin January
15 and end June 15. BetaCo agrees to pay AlphaCo
$18,000 for these six months of service. After the contract is signed by the parties,
BetaCo asks AlphaCo if it would be willing to provide cleaningservices until June 30 at no
additional cost. AlphaCo agrees to work until June 30. Choose the best answer:
Selected
Answer:
AlphaCo’s promise to work until June 30 is unenforceable,because
BetaCo had a preexisting duty to pay $18,000.
• Question 16
5 out of 5 points
Banker promises to Customer that the Bank will make a loan to the Customer’s son if
the Customer promises that the Customer will pay anybalance on the loan to the Bank
immediately if the son fails to repay theloan. Customer agrees. Later the Customer’s
son refuses to repay the loan. Customer argues that his promise to the Banker is
unenforceable.Choose the best answer:
Selected
Answer:
Customer’s argument is incorrect, because the Bank’spromise
to loan the money was bargained for.
• Question 17
5 out of 5 points
Which of the following is a gift promise, unenforceable under the
“bargained-for-exchange” theory of consideration?
Selected
Answer:
A promise by an uncle to pay $2,500 to his niece for“always
being so polite.”
• Question 18
5 out of 5 points
True or False: If a contract is made under circumstances in which one party
clearly gets a better deal than the other, the deal is unfair, and there will be no
consideration.
SelectedAnswer:
False
• Question 19
5 out of 5 points
Lisa runs a professional house painting company. She sends one of her painting crews
to the Hudson residence to paint the interior of the home. The crew misreads the
house numbers, and instead of painting the
Hudsons’ house, they start painting the
Brodys’ house, three houses downthe street. The Brody family home could use a fresh
coat of paint, so although they notice the painting crew starting work on their house,
theylet the crew paint the exterior of their house without objecting. When Lisa sends
a bill to Mr. and Mrs. Brody, they refuse to pay it, arguing that they never promised to
pay for the painting services. What is Lisa’s best argument?
Selected
Answer:
That she is entitled to recover because Mr. and Mrs. Brody received a
benefit at Lisa’s expense, under
circumstances
thatmake it unjust for
Mr. and Mrs. Brody to keep the benefit.
• Question 20
0 out of 5 points
AlphaCo and BetaCo enter into a contract for AlphaCo to sell 20 computersto
BetaCo. BetaCo agrees to pay AlphaCo $14,000 for the 20 computers.
After the contract is signed by the parties, BetaCo asks AlphaCo if it wouldbe willing to
provide 21 computers, instead of 20, at no additional cost.
AlphaCo agrees to deliver 21 computers. Choose the best answer:
Selected
Answer:
AlphaCo’s promise to provide 21 computers is unenforceable,because
AlphaCo had a preexisting duty to provide 20 computers.
• Question 21
0 out of 5 points
True or False: The reliance doctrine only enforces promises that a promisor should
reasonably expect to induce reliance by a promisee.
SelectedAnswer:
False
• Question 22
5 out of 5 points
Which of the following contracts is subject to the Convention on Contractsfor the
International Sale of Goods (CISG)?
Selected
Answer:
A contract for the sale of business goods from a seller inMexico
to a buyer in South Carolina.
