1. A party that enters into an illegal contract can recover the considerations given if the party:
|reports the illegal act to law enforcement after committing it.|
|rescinds the contract before any illegal act has been performed.|
|demonstrates an unequal bargain due to the illegal contract.|
|rescinds the contract immediately after the illegal act has been performed.|
1. A common defense to the tort of interference with contract is:
|lack of capacity.|
|inducing a breach of contract.|
1. A building that deviates slightly from the contract’s specifications does not qualify as substantial performance.
1. A counteroffer:
|impliedly rejects an offer.|
|does not affect the material terms of the contract.|
|is a mirror-image of the offer.|
|is an inquiry into the terms of the offer.|
1. A contract is implied when the parties directly state its terms at the time the contract is formed.
1. A consumer who misuses a product:
|can hold the manufacturer liable even if the manufacturer uses a defense of strict product liability by knowingly assuming an obvious risk of injury by the consumer.|
|may not recover under the theory of strict liability.|
|will recover under the theory of strict liability if the misuse was not foreseeable.|
|cannot hold the manufacturer liable for not designing the product so that it could not be altered even if the danger it created was foreseeable.|
1. A conditional sales contract is an example of a(n):
|document of title.|
1. Assignments of future wages are not effective because:
|they involve personal relationships.|
|they are contrary to public policy.|
|they materially alter the duties of the promisor.|
|they involve personal rights.|
1. Bella is Ming’s babysitter. She takes Ming to the amusement park for a roller coaster ride. Due to the intensity of the ride, Ming, who has an especially weak heart, dies of a heart attack during the ride. Which of the following concepts best fits Bella’s act of negligence?
|Negligence per se|
|Breach of duty|
|Principles of causation|
1. If Gwen hands Lisa a detailed offer for the purchase of Lisa’s pottery wheel and Lisa signs the offer without changing any of its terms, the parties have created a:
1. A buyer is considered to have accepted a whole commercial unit of goods if:
|the buyer pays for the goods before inspecting them.|
|the buyer accepts any part of the commercial unit.|
|the seller delivers even part of the commercial unit.|
|the seller delivers all the goods in the commercial unit.|
1. A clothing store has opened a credit account in which Judy, a college student, gets Alice, her older sister, to agree to pay the amount owed on the account if Judy fails to do so. Which of the following statements is true of this scenario?
|Judy is the obligor, and she is secondarily liable to the clothing store.|
|Alice is the guarantor, and she is primarily liable to make the payments.|
|Judy is the obligor, and she is contractually liable to the guarantor.|
|Alice is the guarantor, and Alice’s contract must be in writing to be enforceable.|
1. Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck’s mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, _____.
|this is a contract|
|the offer has been conditionally tendered|
|the offer has not been communicated|
|the offer violates the UCC’s rule against third-party interveners in quasi contracts|
1. According to the Fair Credit Billing Act (FCBA), if the credit card holder thinks that the card issuer has made an error on the statement, he has _____.
|90 days from the time the card was issued to report, in writing, the error|
|30 days from the time the statement was mailed to report the error|
|120 days from the time the statement was mailed to report, in writing or orally, the error|
|60 days from the time the statement was mailed to report, in writing, the error|
1. A buyer is _____ if he cannot pay his bills when they become due.
1. Blackhawk Corporation contracted to sell Greeneye Corporation some materials that Greeneye needed to fulfill a contract it had with a third party. Knowing that Greeneye was in desperate need of the materials, Blackhawk called Greeneye the day before delivery was due and threatened to withhold delivery unless Greeneye agreed to pay a higher price. Greeneye could not get the materials elsewhere and would suffer a huge financial loss without them, so it agreed to pay the higher price. Greeneye later asserts that its promise to pay the higher price is unenforceable because it was the product of duress. Which of the following statements is true of this situation?
|Blackhawk only exercised superior bargaining powers and therefore is not at fault.|
|Under modern contract law, Blackhawk’s threat to cause Greeneye economic harm could be considered duress and the contract may be considered voidable.|
|Blackhawk’s threat could not be considered duress because they had a legal right to seek a higher price for its goods.|
|Under modern contract law, Blackhawk’s threat to cause Greeneye economic harm may be unintentional tort, but not duress.|
1. A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:
|a strategy that will maximize profits.|
|his or her individual conscience.|
|the advice of other managers.|
|his or her system of delegation to subordinates.|
1. Corporations have long been considered “persons” protected by some constitutional guaranties.
1. A young American woman named Monica killed her illegitimate child and buried the body in her backyard. Many years later, Monica called Claudio, the local policeman, and told him the entire story over the telephone before he could utter a single word. She then told him that voices from her backyard told her to confess to the crime. Monica told the police where to dig, and they unearthed a metal box containing the skeletal remains of a baby in her yard. Which of the following statements would be true of this scenario?
|The remains cannot be used as evidence against Monica because this would violate her Fifth Amendment privilege against self-incrimination.|
|Insanity on the part of a criminal defendant can affect a criminal trial.|
|The remains cannot be used as evidence against Monica because Claudio did not inform her of her right to remain silent before she told him her story.|
|Juries are often welcoming toward insanity pleas, because they fear that innocent defendants might be punished.|