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QUIZ 7 - QUIZ 7 CONSIDERATION Your session has expired...

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QUIZ 7 - CONSIDERATION Your session has expired. Please enter your password to re-authenticate for submission. Password: 1. An agreement to pay a lesser amount to settle an unliquidated debt is: A. enforceable, as there is consideration. B. unenforceable, as there is no consideration. C. enforceable in only some states. D. unenforceable as a violation of public policy. 2. What phrase is critical to the validity of a requirements contract? A. 100 percent of output” B. “accept the entire quantity” C. “giving no consideration” D. “in good faith” 3. In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct? A. Y-K's promise to refrain from suing Alex was not supported by legal consideration. B. Y-K's promise to refrain from suing Alex was supported by legal consideration and is
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enforceable. C. This is an accord and satisfaction, and Y-K cannot sue.` D. The courts would apply promissory estoppel in this situation. 4. Zero, Inc. agreed to build Millie a storage building for $8,000. After beginning the project, Zero realized that it could not complete the job and make a profit. Zero demanded $9,500 to complete the building. Millie agreed to pay the $9,500. When the project was complete, Millie tendered $8,000 to Zero for the job. If Zero sues Millie for the remaining $1,500: A. Zero will win because there was consideration for the additional $1,500. B. Zero will win because Millie had a pre-existing duty to pay any additional amounts. C. Zero will lose because there was no legal consideration to support the additional $1,500. D. Zero will lose because the UCC does not require consideration to modify an existing contract. 5. An unliquidated debt can be described as: A. a debt in which both its existence and amount is in dispute.
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