Chapters
9 - 11
True/False
Indicate
whether the sentence or statement is true or false.
____
1.
An express contract must be in writing.
____
2.
The doctrine of promissory estoppel requires a clear and definite
promise.
____
3.
Any breach allows the breaching party to sue for damages.
____
4.
A breach of contract entitles the innocent party to sue for damages.
____
5.
An offer can be accepted by any reasonable means.
____
6.
Under a destination contract, the risk of loss passes to the buyer when
the goods are duly delivered to the carrier.
Multiple
Choice
Identify
the letter of the choice that best completes the statement or answers the
question.
____
7.
Bob claims that Carol breached their contract. Carol responds that she
never intended to enter into a contract with Bob. The intent to enter into a
contract is determined with reference to
a. |
the
conscious theory of contracts. |
b. |
the
objective theory of contracts. |
c. |
the
personal theory of contracts. |
d. |
the
subjective theory of contracts. |
____
8.
Sam announces that he plans to sell his business at a price below its
market value. Tina gives Sam a check for the stated amount. Sam
a. |
is
bound to sell his business to Tina. |
b. |
may
refuse to accept the check, because he only expressed an intent to do
something in the future. |
c. |
may
refuse to accept the check, because he only expressed an opinion as to the
worth of the business. |
d. |
may
refuse to accept the check, because he only expressed a willingness to
discuss a possibility of entering into a contract. |
____
9.
Coffee Brokers, Inc., offers to sell Java Roasters, Inc., fifty bags of
coffee beans. Java rejects the offer. The offer is
a. |
terminated. |
b. |
valid
for a reasonable time to give Java a “second chance.” |
c. |
valid
for the period of time prescribed by a state statute. |
d. |
valid
until Coffee Brokers revokes the offer. |
____
10.
Best Contractors, Inc., agrees to build an office building for Commercial
Properties Company. Best substantially performs. Commercial is entitled to
a. |
damages. |
b. |
rescission. |
c. |
specific
performance. |
d. |
none
of the above. |
____
11.
Nora contracts to work for Omega Investments during June for $2,500. On
May 31, Omega cancels the contract. Nora refuses to accept a similar job with
Peak Sales Corporation, which would pay $2,000. Nora files a suit against Omega.
As compensatory damages, Nora can recover
a. |
$2,500. |
b. |
$2,000. |
c. |
$500. |
d. |
nothing. |
____
12.
Eve contracts to repair a computer for Digital Distributors, Inc. Eve
knows that without the computer, Digital will lose a sale. Eve does not perform
as promised. Digital files a suit against Eve. As consequential damages, Digital
can recover
a. |
the
cost of a new computer. |
b. |
the
difference between Eve’s price and the actual cost of repair. |
c. |
the
loss of profit from the lost sale. |
d. |
nothing. |
____
13.
Best Music, Inc., offers to buy from Sound Products Corporation (SPC)
1,000 blank CDs of a certain brand. Without notifying Best, SPC timely ships CDs
of a different brand. This shipment is
a. |
an
acceptance of Best’s offer. |
b. |
a
breach of the parties’ contract. |
c. |
an
acceptance and a breach. |
d. |
none
of the above. |
____
14.
Air Transport Company contracts to buy goods from Beta Engines, Inc. Beta
wrongfully fails to deliver the goods. Air files a suit against Beta. Air can
recover damages equal to the difference between the contract price and the
market price
a. |
at
the time and place of tender. |
b. |
at
the time the contract was made. |
c. |
when
Air filed a suit against Beta. |
d. |
when
Air learned of Beta’s wrongful failure to deliver. |
____
15.
A statement by Adam, a salesperson for Best Textiles Company, that
Best’s bolts of fabric will match a particular sample is
a. |
an
express warranty. |
b. |
an
implied warranty. |
c. |
a
warranty of title. |
d. |
puffing. |
Chapters
9 - 11
Answer
Section
TRUE/FALSE
1.
ANS:
F
REF:
198
OBJ:
TYPE: N
2.
ANS:
T
REF:
209
OBJ:
TYPE: N
3.
ANS:
F
REF:
226
OBJ:
TYPE: +
4.
ANS:
T
REF:
232
OBJ:
TYPE: +
5.
ANS:
T
REF:
244
OBJ:
TYPE: +
6.
ANS:
F
REF:
251
OBJ:
TYPE: N
MULTIPLE
CHOICE
7.
ANS:
B
REF:
197
OBJ:
TYPE: N
8.
ANS:
B
REF:
200
OBJ:
TYPE: N
9.
ANS:
A
REF:
205
OBJ:
TYPE: N
10.
ANS:
A
REF:
226
OBJ:
TYPE: =
11.
ANS:
C
REF:
232
OBJ:
TYPE: =
12.
ANS:
C
REF:
233
OBJ:
TYPE: =
13.
ANS:
C
REF:
246
OBJ:
TYPE: N
14.
ANS:
D
REF:
260
OBJ:
TYPE: +
15.
ANS:
A
REF:
262
OBJ:
TYPE: N