1. Seller agrees to supply all the gasoline Buyer needs for
the next year at $3.00 per gallon. After three months, the price of gas falls
to $2.33 per gallon. Buyer refuses to keep buying from Seller unless Seller
lowers the price. Seller agrees. Two months later, the average price for gas
goes up to $3.50 per gallon. Seller asks Buyer to agree to a price raise, but
Buyer refuses. Which of the following is true?
a) Buyer must pay $3.00 per gallon for the
rest of the year.
b) Buyer must pay $2.33 per gallon for the
rest of the year.
c) Buyer must pay $3.50 per gallon for the
rest of the year.
d) Seller can legally refuse to supply Buyer
with any more gasoline for the rest of the year.
2. Katrina is
complaining to her landlord about the six-inch long cockroaches in her
apartment. The landlord scoffs, saying: “Cockroaches don’t get that big! I’ll
pay $10,000 to anyone who can show me a six-inch cockroach.” Will, a bug
collector, overhears and promptly presents the landlord with his prize six-inch
South American cockroach. The landlord refuses to pay, and Will sues. Which of
the following best describes the situation?
a) There is no contract because the landlord
never intended to make an offer.
b) There is no contract; a reasonable person wouldn’t
believe the landlord intended to pay.
c) There is no contract because Will did not
have the power of acceptance.
d) There is definitely a contract.
3. Ashley sees a
maintenance crew from Acme Co. beginning to resurface her driveway, a service
she has not contracted for. Ashley thinks a new driveway would be good, so she
doesn’t say anything. If Acme sues
Ashley for the value of the resurfacing,
a) Ashley wins; she did not have a contract
b) Acme wins: there was an implied unilateral
c) Acme wins: Ashley unjustly accepted a
benefit she could have rejected.
wins; there is no quasi contract because she was not obligated to send Acme
4. Daniel offers to
sell his Toyota Camry to Jen for $8,000. Jen replies, “I accept. Make sure you
wash and wax the car before you bring it over.” Which best describes the
situation? (Points : 1)
There is a contract; Daniel must wash and wax
There is a contract, but Daniel does not have to
wash and wax the car.
There is no contract; Jen made a counteroffer.
There is no contract unless Jen is willing to
take an unwashed car.
Petra contracted to paint Bret’s house for $2,000. After beginning the job,
Petra realizes that the house is really quite big, and she’s not going to make
enough profit, so she tells Bret she wants another $500 to finish the job. Bret
doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll
have trouble finding someone else to finish it, so he agrees. Is Bret legally
obligated to pay the extra $500? A) Yes, if Petra does finish the paint job.
b) Yes, this is a contract under the UCC.
c) No, Bret made an illusory promise.
d) No, Petra had a pre-existing duty to paint
the house for $2,000.
6. Royal Hotel Inc. orally orders 100 standard sets of
sheets from Textile Inc. for a price of $500. Textile immediately sends back a
written invoice with the details of the conversation. Royal and Textile
a) have an enforceable contract unless Royal
objects within 10 days.
b) have an enforceable contract unless Textile
objects within a reasonable time.
c) do not have an enforceable contract because
it was an oral agreement.
d) do not have an enforceable contract because
Royal never signed the invoice.
7. Quasi contracts
a) are not real contracts.
b) are the same thing as an implied contract.
c) seek to prevent unjust enrichment.
d) Two of these
e) All of these
8. Jason promises to
tutor Maria in Essentials of Business Law for three hours next week in exchange
for $30. Maria promises to pay the $30. They have a/an:
a) Express contract
b) Implied contract
c) Quasi contract
d) Formal contract
9. After mowing his
own lawn, David goes next door and mows his neighbor Lena’s lawn as a nice
gesture. As he is finishing up, Lena arrives home. Happy to find a newly mown
lawn, Lena says, “That’s so nice of you! When I get paid Friday, I’ll give you
$20.” David says, “I accept!” Which best describes the situation?
a) There is a contract, since David accepted
b) There is no contract, because Lena made a
c) There is no contract, because Lena gave no
d) There is no contract, because David gave
only past consideration.
10. Peter offers to sell Maxine his car for $5,000, stating,
“I need to know by Friday, and you should email me your answer.” Maxine calls
Peter on Thursday and leaves a voicemail telling him she wants the car. Peter
listens to the voicemail on Thursday night. Which statement best describes the
a) There is a contract since Peter got the
message in time.
b) There is a contract regardless of when
Peter gets the message.
c) Maxine has rejected Peter’s offer by using
d) Maxine had made a counteroffer, which Peter
can now choose to reject or accept.