BLAW 2080 - Chapter 12 Homework PDF

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BLAW 2080 - Chapter 12 Homework...

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1 1.) Agreement normally is evidenced by an offer and an acceptance. T/F Answer: True 2.) Three Elements Necessary for Any Offer to be Effective Answer: 1. The offeror must have a serious intention to become bound by the offer. 2. The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract. 3. The offer must be communicated to the offeree 3.) Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally CANNOT buy the car for $1,000: Answer: because a reasonable person would know that a serious offer was not being made. 4.) Olivia says to Jim, "I think I'll sell my new digital camera for $100 because I'm never going to use it." This statement constitutes: Answer: a statement of future intent. 5.) The Definiteness of Terms: Answer: 1. The identification of parties. 2. The identification of the object or subject matter of the contract, including work to be performed, with specific identification of such items as goods, services, and land. 3. The consideration to be paid. 4. The time of payment, delivery, or performance. 6.) The Methods by Action of the Parties for Termination of an Offer Answer: 1. Revocation. Unless the offer is irrevocable, it can be revoked at any time before acceptance without liability. Revocation is not effective until received by the offeree or the offeree's agent. Some offers, such as merchant's firm offer and option to roe that the offeror cannot revoke the offer. 2. Rejection. Accomplished by words or actions that demonstrate a clear intent not to accept the offer; not effective until received by the offeror or the offeror's agent. 3. Counteroffer. A rejection of the original offer and the making of a new offer. 7.) The Methods by Operation of Law for Termination of an Offer Answer: 1. Lapse of Time. The offer terminates at the end of the time period specified in the offer or, if not time period is stated in the offer, at the end of reasonable time period. 2. Destruction of the subject matter. When the specific subject matter of the offer is destroyed before the offer is accepted, the offer automatically terminates. 3. Death or incompetence of the offeror or offeree. If the offeror or offeree dies or becomes incompetent, this offer terminates (unless the offer is irrevocable)/ 4. Supervening illegality. When a statute or court decision makes the proposed contract illegal, the offer automatically terminates. 8.) Which of the following occurrences will NOT terminate an offer? a. Acceptance b. Revocation c. Rejection Answer: Acceptance 9.) An acceptance must match the terms of the offer exactly in order to be valid. This is known as the mailbox rule. T/F Answer: False

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10.) The mailbox rule means that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective. T/F Answer: True 11.) Requirements for an e-contract: Answer: agreement, consideration, contractual capacity, legality 12.) Pick the one item in the list below that typically is NOT included in an online offer: a. Return policy b. Payment c. Disclaimer d. Future discount policies e. Limitation on remedies f. Privacy policy g. Dispute resolution h. Acceptance of terms Answer: d. Future discount policies 13.) Because individuals rarely read the underlying language in a click-on agreement, they are always invalid. T/F Answer: False 14.) Requirements of Acceptance Answer: 1. Silence as acceptance. 2. Communication of acceptance. 3. Mode and timeliness of acceptance. 15.) Shrink Wrap Agreement Answer: warranties, remedies, issues associated with he use of the products 16.) Browse -wrap terms Answer: do not require Internet users to assent to the terms before downloading or using certain software 17.) E-signatures typically do NOT include: Answer: signatures on original paper documents 18.) E-SIGN Act Answer: The act that provides that no contract, record, or signature may be denied legal effect solely because it is an electronic form 19.) The Mailbox Rule Answer: A rule providing that an acceptance of an offer becomes effective, on dispatch. Acceptance takes effect, thus completing formation of the contract, at the time the offeree send or delivers the communication via the mode expressly or impliedly authorized by the offeror. 20.) Those contracts and documents that are exempt from the Electronic Signatures in Global and National Commerce Act: Answer: court papers divorce decrees evictions

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3 foreclosures wills 21.) The primary purpose of the Uniform Electronic Transaction Act is to remove ________ to e-commerce by giving the same legal _________ to _____________ records and signatures as is given to _____________ signatures. Answer: barriers effect electronic paper 22.) A record is information that is inscribed on a tangible medium or stored in an electronic retrievable file. T/F Answer: True 23.) To what type of transaction does the UETA NOT apply? a. Transactions that have been negotiated for a contract via e-mail. b. Transactions for which the parties have not previously agreed to conduct by electronic means. c. The electronic records and signatures relating to a transaction. Answer: b. Transactions for which the parties have not previously agreed to conduct by electronic means. 24.) Consideration is the ________ given in exchange for a promise. A contract cannot be formed without _________ consideration. Consideration is often broken down into two elements: 1. Legal value-Something of legally sufficient value must be given in exchange for a promise. This may consist of a promise, a _________ , or a __________ . 2. Bargained-for exchange-There must be a bargained-for _____________. Answer: value sufficient performance forbearance exchange 25.) Consideration can be defined as: Answer: something of value given in exchange for a promise 26.) 3. Something of legally sufficient value may consist of a promise to do something that one has no _______ legal duty to do. 4. Something of legally sufficient value may consist of the performance of an action that one is otherwise not ________ to undertake. 5. Something of legally sufficient value may consist of the _________ from an action that one has a legal right to undertake (called a forbearance). Answer: prior obligated refraining 27.) In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when : Answer: contract performance involves unforeseen difficulties 28.) Past consideration is the equivalent of no consideration. T/F Answer: True 29.) When a minor who has entered into a contract opts to avoid that contract, she or he can choose the particular portions of the contract to disaffirm. T/F

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4 Answer: False 30.) Sven goes to a bar, drinks eight shots of bourbon, and then goes to an electronics store where he buys a large flat-screen TV for $2,500. If he later wants to void the contract based on his intoxication when he bought it, he will need to prove that: Answer: he lacked the mental capacity to enter into a contract. 31.) Maya sincerely believes that she was born on another planet. She goes to a car dealership and buys a KIA Sorrento, telling the salesperson that she is going to beam the car back to her home planet. Later, if she wants to avoid her contract she must: Answer: prove that she lacked adequate mental capacity when she bought the car. 32.) Any contact to commit a crime is in _________ of a statute and therefor unenforceable. Answer: violation 33.) A contract to sell illegal drugs is _____ because it is a crime. Answer: unenforceable 34.) A contract to smuggle undocumented workers into the U.S. for an employer is ________ and therefore unenforceable. Answer: illegal 35.) All gambling contracts in the United States are illegal. T/F Answer: False 36.) Covenant not to compete Answer: A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area. 37.) Reformation Answer: A court-ordered correction of a written contract so that it reflects the true intentions of the parties. 38.) A restaurant owner requires new employees to sign a covenant not to compete in the restaurant business in the entire United States for five years. Such a covenant likely will: a. be deemed not contrary to public policy. b. be deemed contrary to public policy because of excessive duration and unreasonable geographic restriction. c. be deemed against public policy because the restaurant business is not competitive. Answer: b. be deemed contrary to public policy because of excessive duration and unreasonable geographic restriction. 39.) When bargains are so oppressive that the court decides to relieve innocent parties of their duties, such bargains are deemed Answer: unconscionable 40.) Which of the following would NOT be considered an exculpatory clause that a court would hold was contrary to public policy and therefore unenforceable? a. Exculpatory clauses found in rental agreements for commercial property. b. Exculpatory clauses in residential property leases. c. Exculpatory clauses in bungee jumping contracts. d. Exculpatory clauses in contracts with employees. Answer: c. Exculpatory clauses in bungee jumping contracts. 41.) Four examples of businesses whose exculpatory clauses to limit their liability are often enforced by courts:

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5 Answer: racetracks skiing facilities skydiving organizations golf-cart concessions 42.) Every state has a statute specifying what types of contracts must be in writing and we refer to such a statute as the Statute of Frauds. Answer: True 43.) Contracts involving ________ in land. Answer: interests 44.) Contracts that cannot by their terms be ___________ within one year from the day after the date of formation. Answer: performed 45.) ____________ or secondary, contracts, such as promises to answer for the debt or duty of another. Answer: Collateral 46.) Promises made in _____________ of marriage. Answer: consideration 47.) Under the Uniform Commercial Code, contracts for the sale of goods priced at ______ or more. Answer: $500 48.) People make promises all the time, so promises have little to do with contract law. T/F Answer: False 49.) At a given point in time, contract law does NOT reflect which of the following? a. Our social values b. Our interests c. Our expectations d. Our physical well-being Answer: d. Our physical well-being 50.) Promises that involve moral obligations are the basis of contract law. T/F Answer: False 51.) A contract is Answer: a promise or agreement that can be enforced in court. 52.) The actions that potentially involve contractual relationships that the courts might enforce. Answer: buying a house buying insurance buying the services of a lawyer 53.) Contract Answer: An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future.

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