Question 2 Marks: 1 The Squeaky Clean Car Wash issues 'frequent washer' cards to its customers and stamps the card every time a customer pays for a...
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Question 2

Marks: 1 The Squeaky Clean Car Wash issues "frequent washer" cards to its customers and stamps

the card every time a customer pays for a car wash. Once the card has been stamped 10 times, the customer receives a free car wash. In issuing the frequent washer cards, Squeaky Clean has made:

a. An offer to enter into a bilateral contract, because the parties exchange promises.

b. An offer to enter into a bilateral contract, because Squeaky Clean provides car washes and the customers purchase them.

c. An offer to enter into a unilateral contract, because two proimses are exchanged.

d. An offer to enter into a unilateral contract, because the contract will only be


Question 15

Marks: 1 Buddy told Andy that the roof of his cabin was "practically new" and that there were no water leaks. Buddy was lying as he tried to convince Andy to purchase his cabin. As Buddy and Andy were inspecting the cabin, Andy saw that many roof shingles were missing, exposing the underlying tarpaper on the roof. Nevertheless, Andy purchased Buddy's cabin believing that the roof did not need to be repaired or replaced. With the first winter storm, Andy learned that the roof severely leaked. Consequently, he had to place buckets in the living room to catch the water. In this situation:

a. Andy actually and justifiably relied on Buddy's statements and will be able

to rescind the contract.

b. Andy will not be able to rescind the contract.

c. When Andy repairs or replaces the roof, he will be able to successfully sue Buddy

for rescission or for damages. Incorrect. Please review Top Ten Concept # 6.

d. Buddy lied intentionally and therefore must reimburse Andy for repairs to the cabin roof.

Question 16

Marks: 1 Hot Stuff Computers advertises their new laptop computer for $3,000. When Rodger goes to the store and says he would like to purchase one, he is told that the store had no more laptop computers. Rodger claims that because he accepted the offer to purchase a laptop computer for $3,000, Hot Stuff is obligated to sell one to him at that price. Is Rodger correct?

a. Yes, because Hot Stuff made an offer and Rodger accepted.

b. Yes, because Hot Stuff is obligated to sell a laptop computer to any person who wants to purchase one.

c. No, because Hot Stuff ran out of laptop computers

d. No, because Rodger made an offer and Hot Stuff did not accept.


Top Answer

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