GOVT 404 Quiz 2

GOVT 404 Quiz 2 Liberty University

  1. An agreement reached concerning some details of a transaction, but leaving other details to be determined later, is called what?
  2. 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.
  3. Angus is a drywall contractor. He learns that his neighbor, Bonnie, had some water damage and has been talking to Drywall Solutions, another drywall contractor, to complete the repairs. Angus tells Bonnie that she does 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 tells them not to come. Angus subsequently refuses to do the work. Bonnie has to pay a third drywall contractor $4,000 to complete the job. What argument should Bonnie make to recover from Angus?
  4. AlphaCo and BetaCo enter into a contract for AlphaCo to sell 20 computers to 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 would be willing to provide 21 computers, instead of 20, at no additional cost. AlphaCo agrees to deliver 21 computers. Choose the best answer:
  5. 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 to the 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 that Hawke has offered a reward for its return. Choose the best answer:
  6. 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 per week 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:
  7. 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 down the street. The Brody family home could use a fresh coat of paint, so although they notice the painting crew starting work on their house, they let 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?
  8. 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 any balance on the loan to the Bank immediately if the son fails to repay the loan. 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:
  9. 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 fails to 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”?
  10. Which statement most accurately describes the difference between the expectation interest and reliance interest in contract damages?
  11. 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, and Bob says he would be happy to give Jonnie some instruction.  The next week, Bob provides two personal training sessions to Jonnie.  One week later, Jonnie promises to pay Bob for the sessions.  However, Jonnie does not pay for them. Which of the following arguments has the potential to be a successful argument for recovery by Bob against Jonnie?
  12. Which of the following contracts is subject to the Convention on Contracts for the International Sale of Goods (CISG)?
  13. Which of the following is a gift promise, unenforceable under the “bargained-for-exchange” theory of consideration?
  14. Which of the following can serve as consideration?
  15. 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 to stay 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?
  16. Which of the following is a false statement regarding consideration?
  17. True or false: A gift promise is generally unenforceable, unless the promisee reasonably and justifiably relies upon it.
  18. Which case provides an example of a court applying the pre-existing duty rule?
  19. 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 the local zoning ordinance, which currently only allows houses in this part of town to be used as residences. The contract between Bookstore, Inc. and Jones is
  20. True or False: The reliance doctrine only enforces promises that a promisor should reasonably expect to induce reliance by a promisee.
  21. AlphaCo and BetaCo enter into a contract for AlphaCo to provide computer and 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 cleaning services until June 30 at no additional cost. AlphaCo agrees to work until June 30. Choose the best answer:
  22. True or false: An agreement modifying a contract governed by the UCC does not require any consideration to be binding, but must be made in good faith.
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