Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be: Correct Answer: enforceable as long as both parties act in good faith and Bob doesn't suddenly demand mo
Dick offered to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car, and it is totally destroyed. Which of the following is true? Correct Answer: The offer is terminated by law.
TravelAiders offered to sell 100 round-trip tickets to Elaine. TravelAiders stated that the acceptance must be in writing and delivered by UPS next-day service. Which of the following acceptances will create a contract between TravelAiders and Elaine? Cor
Collector Carl displays his beer can collection at the local swap meet. Millionaire Mary sees the collection and is interested in buying the collection. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is onl
Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an: Answer executory, bilateral, express contract.
Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refuses to pay and Matt sues: Correct Answer: Matt would win, as this is an implied contract.
Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result? Correct An
Jennifer has offered to sell her computer for $1,750 to Jack. She tells Jack that the computer is only six months old but, in fact, the computer is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer'
John enters into a contract to paint Chad's house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by: . Correct Answer: the common law of contracts because the predominant facto
The following statement is printed on the menu at Saltmill Restaurant:
"The Restaurant assumes no liability for food consumed in this establishment."
Which of the following is correct?
Correct Answer: The courts would not enforce the contract, as such cla
Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo. Correct Answer: This contract is
Chelvam is the director of quality control. Chelvam rejected some parts as non-conforming to the specifications. Chelvam's supervisor directs him to accept the parts. Which value might give Chelvam the strength to oppose his supervisor? Correct Answer: Co
Paul decided he did not want the new jeans he had purchased from a large discount department store. He had worn them three times and decided he just did not like them. The jeans fit him, and there was nothing wrong with them. He took the jeans back to the
A used car salesman tells Tim, "This is by far the best car you can buy for under $3,000." The salesman knows that for $3,000 Tim could buy a much better car. Which statement is correct? Correct Answer: The salesman's conduct is unethical.
Lois is running for political office. She trails the incumbent and decides to start running a series of "attack ads." The attack ads are very effective and one week before the election it appears that she has drawn even with her opponent. Lois admits that
Andrea, the vice president of production, is in the process of purchasing a new piece of equipment. She has narrowed the decision down to equipment from Westvox and Sonto. Westvox's equipment includes more safety features but costs 10% more. In making the
Don runs a construction company. He hires people to work on his projects and tells them they are all "independent contractors." Legally, they are not independent contractors since Don tells the workers when to come to work, how long to work, what days to
Don, a traveling salesman, customarily "pads" his expense reports every month. When he first started working, he honestly reported exactly how much he spent. However, other workers told him he was causing problems by doing this and that he needed to get h
Scott, the president of Nent, Inc, decided to relocate a manufacturing facility to Asia. He based his decision on the fact that moving the facility to Asia will cause the greatest good to the most people. What approach to ethical decision making did Scott
John discovered his company's accountant was "skimming" money from the business. The accountant agreed to pay John a one-time payment of $25,000 not to report the skimming to company officials. The accountant promised she would pay the company's money bac
Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she shines a flashlight into the passenger compartment of Tim's car and sees evidence of drug paraphernalia. Which statement is correct? . Correct Answer: Diane may sear