GOVT 404 Final

GOVT 404 Final Exam Liberty University

GOVT 404 Quiz Final Cumulative Exam

Covers the Learn material from Module 1: Week 1 – Module 8: Week 8.

  1. Heather contracts for Leonard to play the piano at Heather’s company’s grand opening on the evening of December 14. The contract provides that Leonard will play for $2,000. Leonard finds another job on December 14 that will pay him $3,000. Other pianists are available to work on December 14 and will charge $2,000. If Leonard repudiates his contract with Heather, choose the best answer:
  2. Robert contracts to sell 2,000 pairs of sunglasses to Steve. The contract price is $20,000. Steve wrongfully refuses to pay for, or accept delivery of, the sunglasses when Robert delivers them. Robert resells all of the sunglasses for $18,000. Choose the best answer:
  3. Renée lost her job last year and has been unable to find employment since then. She has been living in her car for the past two months, but knows that with winter approaching, she needs to find a place to live. Unfortunately, the odd jobs she’s found only keep her employed for about 10 to 20 hours each week, and she does not make enough to rent even a small apartment. She meets with a property manager about renting a room in an older house that the manager manages. The manager agrees to rent the room to Renée for one year, for rental of $400 each month, but only if Renée will participate in the property manager’s illegal drug operation, delivering illegal drugs to local customers. No other affordable housing options are available to Renée. She signs the lease. The next month, Renee obtains a job working as lab technician in a hospital earning enough to move to a different apartment . What’s Renee’s best argument that balance of the one-year lease is unenforceable.
  4. Max is hiring a new office manager. He interviews Patty for the job, and would like to hire her. He needs someone who will be able to start work right away. Max makes a copy of his standard employment agreement and mails it to Patty. The cover letter enclosing the agreement indicates that Patty “must sign this agreement without making any changes to it and hand-deliver it to my secretary on or before October 1.” Choose the best answer:
  5. BuyCo and SellCo enter into a contract for the sale of aluminum flashlights. The agreement is memorialized in a completely integrated written agreement. A dispute between BuyCo and SellCo breaks out, and at trial BuyCo attempts to introduce parol evidence. Which parol evidence is more likely to be admitted over SellCo’s parol evidence rule objection?
  6. Where a party commits a _______________ breach, the nonbreaching party has the right to suspend performance, cancel the contract, and recover damages.
  7. Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts with Big Motor Co. (BMC) to clean the water drainage systems around its large manufacturing facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to perform the work. The fair market value of the work to BMC is $13,000. After the work is performed, BMC does not pay DCS. Choose the best answer:
  8. Boone hires Lenny to work as his bodyguard for 10 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has always liked spending time with Austin, so he hires Austin to be his security guard. Boone fires Lenny without cause. Two months later, Lenny gets a job working as a bodyguard for someone else making the same amount of money. Choose the best answer:
  9. Arrington wants to hire Bernice to make a prototype of a new hospital bed Arrington hopes to manufacture and sell. During their negotiations Arrington tells Bernice that he is going to take the prototype to the Hospital Expo in New York City on October 3, and that if the prototype is not ready by then, he will have wasted the $5,000 exhibition fee he paid. Bernice agrees to have the prototype ready by October 1 in exchange for payment of $20,000. On September 25, Bernice calls to tell Arrington the prototype will not be completed until October 21. Choose the best answer:
  10. Ramsey and Steven are discussing the sale of Ramsey’s used bulldozer to Steven. Ramsey tells Steven that he will sell the bulldozer for $85,000. Steven responds by saying: “$85,000 is a lot of money; I will pay you $75,000 for it but that is all.” Ramsey says: “You’ve got a deal” and the two shake hands. Choose the best answer:
  11. LeAnne buys, refurbishes, and resells used mobile phones. She agrees to give a refurbished mobile phone from the her warehouse to Dell, a 17-year-old, if Dell promises to pay for the mobile phone by picking up trash in the company parking lot every day after school for the entire school year. Dell picks up the mobile phone from LeAnne, then shows up after school and picks up trash for the first week of school. After that, he never shows up again and refuses to return the phone. Does the LeAnne have a breach of contract claim against Delbert?
  12. Bolt Restoration, LLC contracts to sell 10,000 boxes of reconditioned bolts to The Bolt Barn for $40 per box. The boxes are to be delivered in 30 days. At the time of contract, it costs Bolt Restoration, LLC $30 to make each box of bolts. The day after the contract is formed, one of the essential components for reconditioning the bolts, bolt solvent, increases in price sharply. The price increase means that it will cost Bolt Restoration, LLC $70 to make each box it sells. Accordingly, instead of making $100,000 on the contract, Bolt Restoration, LLC will lose $300,000 if it has to perform the contract. Choose the best answer:
  13. When a party seeks to recover damages for lost profits, it must prove that loss with
  14. GC Company is a building contractor, performing work for the Owner of a construction project. The contract between GC Company and Owner provides that there will be six phases of work. Further it provides that at the end of each phase of work, GC Company should submit its request for payment to Owner’s architect. Once the architect approves the work performed, GC Company is entitled to payment of 1/6 of the total contract price. GC Company performs work on phases 1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC Company never submitted its requests for payment to the architect and never got the architect’s approval of the work. When GC Company submits its request for the sixth and final payment, the Owner refuses to pay it on the grounds that GC Company has never submitted it, or any other request for payment, to the architect. What is GC Company’s most likely argument that it is entitled to payment?
  15. Which of the following contracts is most likely to be enforced by way of the remedy of specific performance?
  16. In a contract for the sale of goods, where a buyer and seller exchange preprinted purchase orders and sales confirmation documents, if the terms related to price, quantity, and description of goods are all the same, but the preprinted terms and conditions on the parties’ respective forms are different, any dispute between the parties regarding which terms and conditions control is likely controlled by:
  17. Oliver hires Pam to manage his 20 rental properties for 12 months. They agree, in a signed writing, that Pam will be paid 8% of the monthly rental that she collects on each of the 20 properties as her management fee. Pam agrees to be responsible for collecting rents and resolving any maintenance issues that arise at the properties. After three months, Pam has not collected any rents and has not addressed any of the six maintenance issues at the rental properties. What can Oliver do?
  18. Seller contracts to sell a 100 acre parcel of land to Buyer. In order to satisfy the requirement of the Statute of frauds, a writing needs to:
  19. Coldair manufactures refrigerators. The refrigerators are designed and advertised to maintain an internal temperature of between 33 and 45 degrees Fahrenheit. Natasha is a scientist who works with viruses. To preserve vials containing influenza viruses, she needs refrigerators that will maintain a constant temperature of 40 degrees. Natasha purchases 3 Coldair refrigerators for her lab, ordering them from a large retailer’s website. The refrigerators are delivered, but after she plugs them in and turns the temperature controls to the coldest setting, none of the refrigerators is cold enough to use for her experiments. Choose the answer that is false:
  20. Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s recording studio to record Teal’s series of 12 podcasts in exchange for payment of $4,000. The recording session is scheduled to take place on December 12. On December 11, Teal’s larynx and vocal chords are injured in a motorcycle accident, requiring emergency surgery and his inability to speak for three weeks after the surgery. Teal notifies Blue immediately that he will not use the studio on December 12. What defense is Teal most likely to raise as a defense to Blue’s lawsuit to enforce the contract.
  21. Jackson has hired Louis to work as an accountant in Jackson’s real estate management company for ten years. Over the years, Jackson occasionally asked Louis to “cheat” when preparing financial documents, including, on two occasions, making false statements on Jackson’s federal income tax returns. This year, when negotiating Louis’s employment contract, Jackson tells Louis that he is considering reporting Louis to the Internal Revenue Service for criminally falsifying tax information. He tells Louis that he won’t do that if Louis will agree to work for a substantially reduced salary for the next year. Louis agrees to a one-year contract, with a salary that is 40% lower than what he earned the preceding year. If Louis doesn’t want to be bound to the new contract, his best defense will be:
  22. Contractor enters into a construction contract with a Subcontractor for the Subcontractor to provide sufficient concrete on a construction job site to complete all concrete work according to the contract specifications. The contract provides that “any failure to comply with the strict terms of this contract subjects the Subcontractor to a $10,000 penalty, which the Subcontractor agrees it shall pay on demand.”
  23. Mandie interviews Carlton. At the end of the interview, Mandie tells the Carlton that she will be in touch. Mandie mails a letter agreement that offers to hire Carlton on a one- year contract with a salary of $56,500, plus health insurance. The letter indicates that the agreement must be accepted by March 9. On March 3, Carlton countersigns the letter agreement on the signature line provided for him and puts the signed letter on top of his desk, because he does not have a postage stamp. On March 4, Mandie calls Carlton and tells him that she revokes the offer. On March 5, Carlton mails the signed letter back to Mandie. On March 8, Mandie receives the countersigned letter from Carlton. Choose the best answer.
  24. Allied Signage, LLC contracts to sell to RampCo three custom parking garage signs, complete with brackets, and to install all three signs on the front of RampCo’s three parking garage locations. Is the transaction covered by the Uniform Commercial Code?
  25. Mandie interviews Carlton for a new job at Mandie’s company. At the end of the interview, Mandie offers to hire Carlton on a two-year contract with a salary of $42,000, plus health insurance. Carlton asks if he can “sleep on it” and let Mandie know his answer the next day. Mandie agrees. The next day, Carlton forgets to contact Mandie. The following week Mandie texts Carlton the message: “I just found someone else for the position, but thanks for interviewing and best of luck.” Choose the best answer:
  26. Contract Company makes an offer for a unilateral contract to Roland. When will the contract be formed?
  27. Bill and Linda have been searching for their “dream house” for years but have never found it. Ten years ago they both decided to substantially reduce the cost of their lifestyle. They sold one of their two cars, sold their house and bought a one-bedroom apartment, stopped going out to eat, started buying used clothing instead of new clothing, and terminated their cable TV accounts and mobile phones. As a result they were able to save money, and after ten years, through their sacrifices, they saved enough for a down payment on construction of their new dream home. The price to build the home is $400,000. The value of the home once completed will be $400,000. They contracted with a builder to construct a custom-designed home for them and gave the builder their 10 years of savings as a down payment: $80,000. The builder breached the contract and left town with their money. Bill immediately became anxious and had trouble sleeping because he was so upset with the builder. If Bill and Linda sue the builder for breach of contract, choose the best answer:
  28. Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo, Inc. provides business accounting services for LevelLLC’s small construction business. One spring day, Fifo, Inc. has some storm damage at its home office. The same day, LevelLLC found itself being audited by the Internal Revenue Service. Fifo, Inc. agrees to advise LevelLLC during the audit in exchange for LevelLLC agreeing to repair the storm damage. Is the agreement between Fifo, Inc. and LevelLLC a bargained-for exchange?
  29. Employer contracts with Employee to serve as the Chief Operating Officer to the Employer. The term of the contract is one year. The annual salary is $75,000 payable in monthly installments. Before the employment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter immediately finds a comparably qualified replacement employee who is willing to serve as Chief Operating Officer for an annual salary of $75,000. Choose the best answer:
  30. Surface Solutions contracts to resurface the flooring surfaces all three identical warehouses on Logistics-88’s distribution compound. The contract provides that the contract price will be $75,000. Surface Solutions resurfaces the first warehouse, but not the second or third. As a result, Logistics-88 has to hire someone else to resurface the second and third warehouses for $50,000. Choose the best answer:
  31. Mack contracts with Owner to polish and seal Owner’s concrete floor in Owner’s new manufacturing facility. The work is scheduled to take place on July 3. Mack contracts with Rent Master to rent a concrete polishing machine for July 3 at a cost of $500. On July 2 there is an earthquake that destroys Rent Master’ building and all of its rental equipment, including its concrete polishing machine. Rent Master wants to know if the law provides an excuse for its duty to provide the concrete polishing machine to Mack. Choose the best answer:
  32. Apples Co. sells apples. Their genetically modified A-45 brand of apples is unique and not available from any other seller in the marketplace. Beta Co. operates a fruit juice manufacturer and uses Apples Co.’s A-45 apples in the juice it makes. Apples Co. contracts to sell 300 bushels of apples to Beta Co. and deliver them on November 20. On November 1, Apples Co. tells Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer:
  33. Trina offers to sell her yacht in Galveston, Texas to Braxton for $450,000. Braxton inspects the yacht at Trina’s marina and mails a written acceptance letter indicating that “I agree to buy the yacht for $450,000 if you will delver the yacht to my marina in Fort Myer’s Florida.” Choose the best answer:
  34. Super Quilt, Inc. places an advertisement online, using a social-media company’s advertising distribution system. The advertisement includes a photograph of a quilt with the following message: “Get this cashmere wool quilt, for $29.99, only at your local Super Quilt, Inc.! Regularly priced at $130!” Elaine sees the advertisement and races to her local Super Quilt, Inc. to buy the quilt featured in the advertisement. When she tells the manager, “I want one of those quilts I saw on the internet,” the manager responds that they have sold out of their entire inventory of cashmere wool quilts. Elaine is enraged at the manager’s response. Choose the best answer.
  35. University Bookstore sells books and “spirit gear”—that is, shirts, sweatshirts, bumper stickers, and other items that fans of the University’s sports teams buy. The bookstore sells lots of spirit gear after a home victory by the university basketball and football teams. The Super Conference is a group of universities that compete against each other in various athletic contests. The Super Conference contracts with referees to officiate the contests between the various university teams. Dover is a football official. He is under contract with Super Conference to officiate a football game between University’s team and another school’s team. Dover is responsible for calling penalties, including a penalty called “pass interference.” As time expires in the game, Dover fails to see a player commit pass interference, and as a result of his error, the University team loses the game. Fans leave the stadium disappointed, and do not stop by the University Bookstore to purchase any spirit gear. Choose the best answer:
  36. Seller contracts with Buyer to sell 100 electric engines at a cost of $2,000 each. Seller agrees to deliver the engines in one installment on April 1. On March 20, Seller delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day. The next day Seller delivers two engines. Is Buyer entitled to reject all 100 engines? Choose the best answer:
  37. Window Cleaner contracts with Building Co. to wash the windows at Building Co.’s office building. Window Cleaner contracts with Spotless to wash the windows at Building Co.’s office building. Choose the best answer:
  38. Square Co. and Circle Co. enter into a contract for Circle Co. to provide carpet-cleaning services at Square Co.’s office building for one year. The agreement includes the following provision: “In the event that Square Co. transfers ownership of the office building at any time prior to the conclusion of the one-year term of this agreement, both parties’ obligations under this agreement shall end.” The provision is best described as:
  39. Nel owns a manufacturing company in Chicago. He purchases a new press from a press manufacturer in New Orleans. The manufacturer does not provide delivery service, so Nel contracts with Mike to load the press on a trailer and transport the press to Nel’s factory in Chicago for $7,500. Mike loads the press on his trailer, and drives the press to Memphis. He stops in Memphis, calls Nel, and tells Nel he will require payment of an additional $1,500 in order to deliver the press to Chicago. Nel agrees to pay an additional $1,500. Mike delivers the press. Chose the best answer.
  40. Lynda is the Chief Operating Officer a medical device manufacturer. She meets with Rupert, who has worked for the company for 40 years. Lynda verbally promises Rupert that if he retires within the next six months, the company will pay him, or in the event of his death, his favorite charitable organization, a monthly retirement benefit for ten years. Rupert retires. Lynda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer:
  41. Red Studio (Red) contracts with Danielle Orange (Orange) for Orange to lease Red’s recording studio to record Orange’s series of 12 songs for her new album. The recording session is scheduled to take place on October 19. It is important to Orange thattherecordingiscompletedonthe19th so she can fulfil her obligations to her record label. On October 18, a fire sweeps through the Red’s recording studio causing substantial damage to the building and making it impossible to access the building or use the recording facilities on October 19. If Red cannot make the studio available to Orange on the 19th, is Red in breach of contract, or is the duty to provide the studio excused by the doctrine of impracticability? Fully justify your answer.
  42. Seller manufactures specialty adhesives used in the aerospace industry. Buyer uses a specialty adhesive to make airplane windshields. Seller and Buyer agree that Seller will sell 500 gallons of adhesive to Buyer at a price of $200 per gallon. The agreement is memorialized in a writing signed by both parties. Two weeks after the agreement is signed, but before the adhesive is delivered, Buyer asks Seller if it would reduce its price to $190 per gallon. Seller agrees, and confirms the agreement in a signed letter. Later,Sellerdeliverstheadhesive,butinsistsonbeingpaid$200pergallon. Whatdo you predict the outcome of this dispute will be and be sure to state any legal principles justifying your conclusion?

Other sets

  1. TripleCyl contracts with ManuPow Partners to sell 100 forklift engines at a cost of $2,000 each. TripleCyl agrees to deliver the engines in one installment on April 1. On March 20, TripleCyl delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day. The next day TripleCyl delivers two engines. Is ManuPow Partners entitled to reject the engines? Choose the best answer:
  2. Mandie interviews Carlton for a new job at Mandie’s company. At the end of the interview, Mandie offers to hire Carlton on a two-year contract with a salary of $42,000, plus health insurance. Carlton asks if he can “sleep on it” and let Mandie know his answer the next day. Mandie agrees. That night, Mandie texts Carlton the message: “I just found someone else for the position, but thanks for interviewing and best of luck.” Choose the best answer:
  3. GC Company is a building contractor, performing work for the Owner of a construction project. The contract between GC Company and Owner provides that there will be six phases of work. Further it provides that at the end of each phase of work, GC Company should submit its request for payment to Owner’s architect. Once the architect approves the work performed, GC Company is entitled to payment of 1/6 of the total contract price. GC Company performs work on phases 1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC Company never submitted its requests for payment to the architect and never got the architect’s approval of the work. When GC Company submits its request for the sixth and final payment, the Owner refuses to pay it on the grounds that GC Company has never submitted it, or any other request for payment, to the architect. What is GC Company’s most likely argument that it is entitled to payment?
  4. Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts with Big Motor Co. (BMC) to clean the water drainage systems around its large manufacturing facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to perform the work. The fair market value of the work to BMC is $13,000. After the work is performed, BMC does not pay DCS. Choose the best answer:
  5. Apples Co. sells apples. Apples are readily available in the marketplace. Beta Co. operates a large retail fruit market. Apples contracts to sell 30 bushels of apples to Beta Co. and deliver them on November 20. On November 1, Apples Co. tells Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer:
  6. Allen is hiring a computer database designer to help his law firm design a custom client management database. He interviews Megan for the job, and would like to hire her. He needs someone who will be able to start work right away, and it is important that the new hire sign his confidentiality agreement so that confidentiality of client information will be preserved when the database is designed. Allen locates a form called “employment agreement,” which includes a confidentiality agreement, and mails it to Megan. The cover letter enclosing the agreement indicates that Megan “must sign this agreement without making any changes to it and hand-deliver it to my secretary on or before June 1.” Choose the best answer:
  7. Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s recording studio to record Teal’s series of 12 podcasts. The recording session is scheduled to take place on December 12. On December 11, the building where Blue’s studio is located is destroyed by a flood. What is the most likely outcome?
  8. Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo, Inc. provides business accounting services for LevelLLC’s small construction business. Last spring, when Fifo, Inc. had some storm damage at its home office, LevelLLC sent some workers over to repair the damage at no cost to Fifo, Inc. The following summer, LevelLLC found itself being audited by the Internal Revenue Service. Fifo, Inc. agreed to advise LevelLLC during the audit at no cost, as a way of thanking LevelLLC for its help the previous spring. Is the agreement between Fifo, Inc. and LevelLLC a bargained-for exchange?
  9. Employer contracts with Employee to serve as the Chief Operating Officer to the Employer. The term of the contract is one year. The annual salary is $75,000. Before the employment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter finds a comparably qualified replacement employee who is willing to serve as Chief Operating Officer for an annual salary of $80,000. Choose the best answer:
  10. Lynda is the Chief Operating Officer a medical device manufacturer. She meets with Rupert, who has worked for the company for 40 years. Lynda verbally promises Rupert that if he retires, the company will pay him a monthly retirement benefit until he dies. Rupert retires. Lynda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer:
  11. Coldair manufactures refrigerators designed and sold for residential use. The refrigerators are designed to maintain an internal temperature of between 33 and 40 degrees Fahrenheit. Natasha is a scientist who works with viruses. To preserve vials containing influenza viruses, she needs refrigerators that will maintain a constant temperature of 50 degrees. Natasha purchases 3 Coldair refrigerators for her lab, ordering them from a large retailer’s website. The refrigerators are delivered, but after she plugs them in and turns the temperature controls to the warmest setting, none of the refrigerators is warm enough to use for her experiments. Choose the answer that is false:
  12. Renée lost her job last year and has been unable to find employment since then. She has been living in her car for the past two months, but knows that with winter approaching, she needs to find a place to live. Unfortunately, the odd jobs she’s found only keep her employed for about 10 to 20 hours each week, and she is not sure she makes enough to rent even a small apartment. She meets with a property manager about renting a room in an older house that the manager manages. The manager agrees to rent the room to Renée for $200 each month, but only if Renée will sign a lease agreement that includes a densely worded “future wage assignment” provision in small print, which provides that Renée will pay 10% of any future wages she earns to the property management company for the next 5 years. No other affordable housing options are available to Renée. She signs the lease. The next year, Renee obtains a job working as lab technician in a hospital earning $35,000. What’s Renee’s best argument that the future wage assignment is unenforceable, and why?
  13. Which of the following contracts is most likely to be enforced by way of the remedy of specific performance?
  14. Where a party commits a _______________ breach, the nonbreaching party has the right to suspend performance, terminate the contract, and recover damages.
  15. Boone hires Lenny to work as his bodyguard for 12 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has always liked spending time with Austin, so he hires Austin to be his security guard. Boone, falsely, tells Lenny that because Lenny is always late for work, he is fired. One month later, Lenny gets a job working as a bodyguard for someone else. Choose the best answer:
  16. Allied Signage, LLC contracts to sell to RampCo three custom parking garage signs, complete with brackets, and to install all three signs on the front of RampCo’s three parking garage locations. Is the transaction covered by the Uniform Commercial Code?
  17. When a party seeks to recover damages for lost profits, it must prove that loss with ______________ certainty.
  18. Boone hires Lenny to work as his bodyguard for 12 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has always liked spending time with Austin, so he hires Austin to be his security guard. The next day when Lenny is 5 minutes late for work , Boone, tells Lenny that because Lenny is was late for work, he is fired.  Choose the best answer:
  19. Bolt Restoration, LLC contracts to sell 10,000 boxes of reconditioned bolts to The Bolt Barn for $40 per box. The boxes are to be delivered in 30 days. At the time of contract, it costs Bolt Restoration, LLC $30 to make each box of bolts. The day after the contract, one of the essential components for reconditioning the bolts, bolt solvent, increases in price sharply. The price increase means that it will cost Bolt Restoration, LLC $70 to make each box it sells. Accordingly, instead of making $100,000 on the contract, Bolt Restoration, LLC will lose $300,000 if it has to perform the contract. Choose the best answer:
  20. Surface Solutions contracts to resurface the flooring surfaces of each of three identical warehouses on Logistics-88’s distribution compound. The contract provides that the contract price will be $25,000 per warehouse. Surface Solutions resurfaces the first two warehouses, but not the third. As a result, Logistics-88 has to hire someone else to resurface the third warehouse for $25,000. Choose the best answer:
  21. BuyCo and SellCo enter into a contract for the sale of aluminum flashlights. The agreement is memorialized in a completely integrated written agreement. A dispute between BuyCo and SellCo breaks out, and at trial BuyCo attempts to introduce parol evidence. Which parol evidence is more likely to be admitted over SellCo’s parol evidence rule objection?
  22. Jackson has hired Louis to work as an accountant in Jackson’s real estate management company for ten years. Over the years, Jackson occasionally asked Louis to “cheat” when preparing financial documents, including, on two occasions, making false statements on Jackson’s federal income tax returns. This year, when negotiating Louis’s employment contract, Jackson tells Louis that he is considering reporting Louis to the Internal Revenue Service for criminally falsifying tax information. He tells Louis that he won’t do that if Louis will agree to work for a substantially reduced salary for the next year. Louis agrees to a one-year contract, with a salary that is 40% lower than what he earned the preceding year. If Louis doesn’t want to be bound to the new contract, his best defense will be:
  23. In order to satisfy the requirement of the statute of frauds, a writing needs to:
  24. Arrington hires Bernice to make a prototype of a new hospital bed Arrington hopes to manufacture and sell. Bernice agrees to have the prototype ready by October 1. On September 25, Bernice calls to tell Arrington that she’s almost finished but that it will likely be October 4th or 5th before the prototype is completed. Arrington tells her, for the first time, that he was planning to take the prototype to the Hospital Expo in New York City on October 3, and that if the prototype is not ready by then, he will have wasted the $5,000 exhibition fee he paid. Choose the best answer:
  25. Bill and Linda have been searching for their “dream house” for years but have never found it. Ten years ago they both decided to substantially reduce the cost of their lifestyle. They sold one of their two cars, sold their house and bought a one-bedroom apartment, stopped going out to eat, started buying used clothing instead of new clothing, and terminated their cable TV accounts and mobile phones. As a result they were able to save money, and after ten years, through their sacrifices, they saved enough for a down payment on construction of their new dream home. The price to build the home is $400,000. The value of the home once completed will be $400,000. They contracted with a builder to construct a custom-designed home for them and gave the builder their 10 years of savings as a down payment: $80,000. The builder breached the contract and left town with their money. Bill immediately became anxious and had trouble sleeping because he was so upset with the builder. If Bill and Linda sue the builder for breach of contract, choose the best answer:
  26. WCorp contracts with Building Co. to wash the windows at Building Co.’s office building. WCorp contracts with Wndx, LLC to wash the windows at Building Co.’s office building. Choose the best answer:
  27. Square Co. and Circle Co. enter into a contract for Circle Co. to provide carpet-cleaning services at Square Co.’s office building for one year. The agreement includes the following provision: “In the event that Square Co. transfers ownership of the office building at any time prior to the conclusion of the one-year term of this agreement, both parties’ obligations under this agreement shall end.” The provision is best described as:
  28. University Bookstore sells books and “spirit gear”—that is, shirts, sweatshirts, bumper stickers, and other items that fans of the University’s sports teams buy. The bookstore sells lots of spirit gear after a home victory by the university basketball and football teams. The Super Conference is a group of universities that compete against each other in various athletic contests. The Super Conference contracts with referees to officiate the contests between the various university teams. Dover is a football official. He is under contract with Super Conference to officiate a football game between University’s team and another school’s team. Dover is responsible for calling penalties, including a penalty called “pass interference.” As time expires in the game, Dover fails to see a player commit pass interference, and as a result of his error, the University team loses the game. Fans leave the stadium disappointed, and do not stop by the University Bookstore to purchase any spirit gear. Choose the best answer:
  29. Buddie contracts to sell 110 steering wheel covers to Donnie. The contract price is $600. Donnie wrongfully refuses to pay for, or accept delivery of, the steering wheel covers when Buddie delivers them. Buddie resells all of the steering wheel covers for $500. Choose the best answer:
  30. Contractor enters into a construction contract with a Subcontractor for the Subcontractor to provide sufficient concrete on a construction job site to complete all concrete work according to the contract specifications. The contract provides that “any failure to comply with the strict terms of this contract subjects the Subcontractor to a $10,000 penalty, which the Subcontractor agrees it shall pay on demand.”
  31. Ramsey and Steven are discussing the sale of Ramsey’s used bulldozer to Steven. Ramsey tells Steven that he will sell the bulldozer for $85,000. Steven responds by saying: “$85,000 is a lot of money; I will pay you $75,000 for it but that is all.” Choose the best answer:
  32. Shilo offers to sell his home to Bubba for $245,600. Bubba inspects the home and mails a written acceptance letter indicating that “I agree to buy the home for $245,600, including all of the furniture and window treatments in the house when I inspected it today.” Choose the best answer:
  33. Latricia runs a software development company. The company makes expensive software tools for graphic designers. She agrees to give a copy of one of the software packages from the company’s warehouse to Delbert, a 17-year-old budding graphic designer, if Delbert promises to pay for the software by picking up trash in the company parking lot every day after school for the entire school year. Delbert picks up the software from Latricia, then shows up after school and picks up trash for the first week of school. After that, he never shows up again and refuses to return the software. Does the company have a breach of contract claim against Delbert?
  34. In a contract for the sale of goods, where a buyer and seller exchange preprinted purchase orders and sales confirmation documents, if the terms related to price, quantity, and description of goods are all the same, but the preprinted terms and conditions on the parties’ respective forms are different, any dispute between the parties regarding which terms and conditions control is likely controlled by:
  35. Super Quilt, Inc. places an advertisement online, using a social-media company’s advertising distribution system. The advertisement includes a photograph of a quilt with the following message: “Get this cashmere wool quilt, for $29.99, only at your local Super Quilt, Inc.! Regularly priced at $130!” Elaine sees the advertisement and races to her local Super Quilt, Inc. to buy the quilt featured in the advertisement. When she tells the manager, “I want one of those quilts I saw on the internet,” the manager responds that they have sold out of their entire inventory of cashmere wool quilts. Elaine is enraged at the manager’s response. Choose the best answer.
  36. If Allen makes an offer for a unilateral contract to Robert, when will the contract be formed?
  37. Mandie interviews Carlton. At the end of the interview, Mandie tells the Carlton that she will be in touch. Mandie mails a letter agreement that offers to hire Carlton on a one-year contract with a salary of $56,500, plus health insurance.  The letter indicates that the agreement must be accepted by March 5. On March 3, Carlton countersigns the letter agreement on the signature line provided for him and mails it back to Mandie. On March 4, Mandie calls Carlton and tells him that she revokes the offer. On March 6, Mandie receives the countersigned letter from Carlton. Choose the best answer.
  38. Anderson contracts with Mallows for Anderson to paint Mallows’ two-story house. The price is $2,500, payable to Anderson once the painting is completed. Prior to the contract, Anderson meets with Mallows, looks at the house, and discusses the kind of paint that Anderson will use and the timing of the completion of the work. Anderson starts painting the house on Monday morning. Monday afternoon, after Anderson has painted only one side of the house, Anderson tells Mallows that he will require an additional $500 to finish the job. In response, Mallows promises to pay Anderson $3,000 upon completion of the house. Choose the best answer:
  39. Heather contracts for Leonard to play the piano at Heather’s company’s grand opening on the evening of December 14. The contract provides that Leonard will play for $2,000. Leonard finds another job on December 14 that will pay him $3,000. Other pianists are available to work on December 14 and will charge $2,000. If Leonard repudiates his contract with Heather, choose the best answer:
  40. Mack contracts with Owner to polish and seal Owner’s concrete floor in Owner’s new manufacturing facility. The work is scheduled to take place on July 3. Mack contracts with Rent Master to rent a concrete polishing machine for July 3 at a cost of $500. On July 2 there is an earthquake that destroys Owner’s building. Mack wants to know if the law provides an excuse for his duty to pay Rent Master for the concrete polishing machine. Choose the answer that describes the best defense for Mack to assert:
  41. Seller manufactures specialty adhesives used in the aerospace industry. Buyer uses a specialty adhesive to make airplane windshields. Seller and Buyer agree that Seller will sell as much “Adhesive 4242” as Buyer requires to make windshields during the next 12 months at a price of $200 per gallon. For the first three months of the contract, Buyer requires 50 gallons of glue every month. In the fourth month, Buyer orders 600 gallons. Seller only provides 50 gallons to Buyer, and Buyer sues for breach of contract. What do you predict the outcome of this dispute will be and be sure to state any legal principles justifying your conclusion?
  42. Red Studio (Red) contracts with Danielle Orange (Orange) for Orange to lease Red’s recording studio to record Orange’s series of 12 songs for her new album. The recording session is scheduled to take place on October 19. On October 17, Red emails Orange and says: “I’m not sure the studio is going to be available on October 19.” It is important to Orange that the recording is completed on the 19th so she can fulfil her obligations to her record label. Explain the legal consequence of Red’s October 17 email and be sure to state any legal principles justifying your conclusion?
Continue reading CRIS 605 Quiz Final

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