Need help with business law

Jul 20th, 2015
Price: $10 USD

Question description

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 with Acme.

b)  Acme wins: there was an implied unilateral contract.

c)  Acme wins: Ashley unjustly accepted a benefit she could have rejected.

d)  Ashley wins; there is no quasi contract because she was not obligated to send Acme away.

 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)

a)  There is a contract; Daniel must wash and wax the car.

b)  There is a contract, but Daniel does not have to wash and wax the car.

c)  There is no contract; Jen made a counteroffer.

d)  There is no contract unless Jen is willing to take an unwashed car.

a)  5. 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 the offer.

b)  There is no contract, because Lena made a unilateral offer.

c)  There is no contract, because Lena gave no consideration.

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 situation?

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 voicemail.

d)  Maxine had made a counteroffer, which Peter can now choose to reject or accept.

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School: Carnegie Mellon University

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