WorkfileContents.docxQuestion 10 out of 1 pointsA contract most likely will be declared unconscionable if:Selected Answer:it is signed by a minor for an item of luxury.Question 21 out of 1 pointsA party injured by fraud generally has the choice of suing for damages or rescinding the contract.Selected Answer:TrueQuestion 31 out of 1 pointsA party to a contract has a duty to investigate the other party's factual statements.Selected Answer:FalseQuestion 41 out of 1 pointsAfter her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.Selected Answer:TrueQuestion 50 out of 1 pointsAlpha and Xenon companies are both major international conglomerates. They are negotiating a contract whereby Alpha will install a computer system for Xenon. One clause in the contract states that Alpha will not be liable for damages caused by the negligent installation of the computer system, except that Alpha warrants the system and will fix any problem for a period of two years following installation. Alpha completes the installation of the computer system. Xenon loads extensive amounts of information on the system, but all of it is destroyed because Alpha negligently installed the memory chips. Alpha fixes the memory, but Xenon incurred significant expenses in recreating the lost information. Xenon sues for these expenses. Alpha defends with the noted clause in the contract.Selected Answer:[None Given]Question 60 out of 1 pointsAmanda, a recent university graduate, needed a car to get to her new job.To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral
WorkfileContents.docxpromise. His promise must be in writing to be enforceable.Selected Answer:FalseQuestion 70 out of 1 pointsAn exculpatory clause is generally unenforceable when:Selected Answer:it attempts to release a party from liability for ordinarily negligent behavior.Question 81 out of 1 pointsBarb has been a children's day care provider for several years in the small town of Sallton. She has decided to give it all up and move to the big city for excitement and adventure. She sells her business to Ken, agreeing not to open a competing business within five miles of Sallton for a period of nine months. After five months of the big city life, Barb is broke and movesback to Sallton. She opens a small day care business. Ken sues on the noncompete clause. What is the most likely result?Selected Answer:Ken wins. The agreement is enforceable.Question 90 out of 1 pointsBry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract.
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- Spring '14