Multiple Choice Questions

Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach of contract. The lawsuit for a breach of contract will be governed by
  • the conduct of the parties
  • She has no legal recourse
  • common law of contracts
  • an express contract
What are the requirements for an implied contract?
  • art work, merchandising and marketing ideas
  • 1. plaintiff furnished some service or property2. plaintiff expected to be paid for services or property and defendant knew or should have know that payment was expected3. defendant had a chance to reject services or property and did not
  • Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work
  • The contract is valid unless Jack did not know he was entering into the contract or lacked the mental capacity to comprehend its nature.
Suppose that Jack and Hal and Sophia enter into an agreement to sell the restaurant. The contract includes the non-competition agreement. A few months later, Jack decides that he will sell the frozen food in violation of non-competition agreement unless if Hal and Sophia agree to pay him an extra $100,Hal and Sophia agree since they do not want to fight. Six months later, however the still have not paid and Jack sues. What is the result?
  • If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.
  • Hal and Sophia would win, since Jack already had a prior existing legal duty to not compete with Hal and Sophia.
  • Jack would win since the promise not to compete was illusory.
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
n implied contract can also be referred to as:
  • art work, merchandising and marketing ideas
  • the conduct of the parties
  • Yes
  • implied in-fact contract
Why was Taco Bell's rejection of the terms not sufficient to be considered a rejection of Wrench's services or property?
  • Taco Bell
  • prevent enforcement of certain contracts that are not in writing
  • No, the only condition in her acceptance was that it pass a smog inspection.
  • Taco Bell rejected their terms, but ultimately used Wrench's idea
What property or services did Wrench furnish?
  • Taco Bell rejected their terms, but ultimately used Wrench's idea
  • the conduct of the parties
  • can return the bracelet and get her money back
  • art work, merchandising and marketing ideas
Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher the car needs to be towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she does not talk with the driver or sign any documents. Carol
  • That Jack, by waiting two years ratified the contract.
  • prevent enforcement of certain contracts that are not in writing
  • Jack would win since the promise not to compete was illusory.
  • owes the company for towing her car under an implied contract
What if Taco Bell had rejected the terms of the arrangement and never used or considered the Chihuahua as a Taco Bell icon? The court would likely find for
  • Taco Bell
  • Yes
  • bilateral contract
  • Taco Bell rejected their terms, but ultimately used Wrench's idea
Keisha contracts with a broker to invest all of her savings. The year goes badly, and she loses almost all the money. She is too ill to return to work and will be penniless if she cannot avoid the contract. Which of the following applies?
  • Probably not, because the terms are not definite
  • There would be no valid contract.
  • She has no legal recourse
  • Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance.
Assume that a contract was entered into for the sale of the restaurant, and that the sale included the covenant not to compete. Which of the following is true?
  • The covenant not to compete must be reasonable in geographic scope to be valid.
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
  • No, the only condition in her acceptance was that it pass a smog inspection.
  • The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.
Suppose that Jack makes an offer to sell the restaurant on July 10th. Hal and Sophia decide to think it over. On July 15th they mail a letter of acceptance to Jack. On July 16th Hal and Sophia change their mind and call Jack stating that they did not want to purchase the business. On July 20th, Jack receives the letter of acceptance. Would there be a valid contract?
  • Jack would win since the promise not to compete was illusory.
  • The contract is valid unless Jack did not know he was entering into the contract or lacked the mental capacity to comprehend its nature.
  • Hal and Sophia would win, since Jack already had a prior existing legal duty to not compete with Hal and Sophia.
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
Generally, what facts established an expectation that Wrench was to be paid for its services or property and that Taco Bell knew or should have know that payment was expected?
  • Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance.
  • Taco Bell using Wrench's idea or concept
  • She has no legal recourse
  • Probably not, because the terms are not definite
Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog with a "do-not-back-down" attitude. They promoted and marketed the character through their company, Wrench, L.L.C. Ed Alfaro and Rudy Pollak, representatives of Taco Bell Corp., learned of Psycho Chihuahua and met with Rinks and Shields to talk about using the character as a Taco Bell "icon." Wrench sent art-work, merchandise, and marketing ideas to Alfaro, who promoted the character within Taco Bell. Alfaro asked Wrench to propose terms for Taco Bell's use of Psycho Chihuahua. Taco Bell did not accept Wrench's terms, but Alfaro continued to promote the character within the company. Meanwhile, Taco Bell hired a new advertising agency, which proposed an advertising campaign involving a Chihuahua. When Alfaro learned of this proposal, he sent the Psycho Chihuahua materials to the agency. Taco Bell made a Chihuahua the focus of its marketing but paid nothing to Wrench. Wrench filed a suit against Taco Bell in a federal court claiming that it had an implied contract with Taco Bell and that Taco Bell breached that contract. Do these facts satisfy the requirements for an implied contract? Why or why not?
  • Case Study
  • She has no legal recourse
  • Probably not, because the terms are not definite
  • There would be no valid contract.
In this case, a court would rely on the:
  • an implied contract
  • the conduct of the parties
  • The contract is valid unless Jack did not know he was entering into the contract or lacked the mental capacity to comprehend its nature.
  • art work, merchandising and marketing ideas
Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the purpose of the law is to
  • That Jack, by waiting two years ratified the contract.
  • prevent enforcement of certain contracts that are not in writing
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
  • owes the company for towing her car under an implied contract
This case primarily involves:
  • an implied contract
  • an express contract
  • the conduct of the parties
  • bilateral contract
Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,Jamie accepts Carmen's offer. Jamie and Carmen have
  • an express contract
  • can return the bracelet and get her money back
  • an implied contract
  • bilateral contract
Suppose that Jack and Sophia and Hal enter into a contract to close on the business without the non-competition agreement. Jack states that he would probably sign the non-competition agreement if they included an extra $100,A month later, Hal and Sophia bring Jack $100,What is the result?
  • If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
  • The contract is valid unless Jack did not know he was entering into the contract or lacked the mental capacity to comprehend its nature.
  • Jack would win since the promise not to compete was illusory.
Suppose at the end of the meeting that Jack agrees to offer the restaurant buyout, including the non-competition agreement. Prior to Jack and Sophia agreeing to the offer, however, Jack changes his mind. Can he do so?
  • Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance.
  • She has no legal recourse
  • There would be no valid contract.
  • Taco Bell using Wrench's idea or concept
If Vinny and Maria had an otherwise valid contract, can she avoid her obligations if it does not have air conditioning?
  • owes the company for towing her car under an implied contract
  • Taco Bell rejected their terms, but ultimately used Wrench's idea
  • No, the only condition in her acceptance was that it pass a smog inspection.
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
Suppose that Jack and Hal and Sophia enter in to a contract for the sale of the business. Jack however was drunk at the time that the negotiations took place and at the time of the signing of the contract. Please decide.
  • The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.
  • If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.
  • The contract is valid unless Jack did not know he was entering into the contract or lacked the mental capacity to comprehend its nature.
  • Hal and Sophia would win, since Jack already had a prior existing legal duty to not compete with Hal and Sophia.
Edward offers to sell Penny his home gym equipment for $1,Penny tells Edward, "I like the gym equipment, but I'll only pay $750." Penny's statement constitutes a:
  • acceptance
  • he lacked the mental capacity to enter into the contract
  • formed a unilateral contract as soon as Jessica began reading
  • counteroffer
Would a court likely find an implied contract in this case and make Taco Bell pay for the services and property provided by Wrench?
  • Yes
  • Taco Bell
  • Taco Bell rejected their terms, but ultimately used Wrench's idea
  • prevent enforcement of certain contracts that are not in writing
Wes agrees to install a new hard drive and modem in Mary's computer in exchange for four of her used textbooks. After he installs the hard drive, Wes says he won't install the modem unless Mary gives him two more books. What legal position are the parties in now?
  • Mary can sue for breach of contract, because Wes had a preexisting duty to do all of the work
  • Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.
  • If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.
  • The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.
Patricia drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks Patricia what grade she wants, and she tells him, "regular." The attendant fills the tank. At this point, the contract between the station and Patricia is
  • bilateral contract
  • executory
  • owes the company for towing her car under an implied contract
  • an express contract
Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend the money on the bracelet, she
  • prevent enforcement of certain contracts that are not in writing
  • can return the bracelet and get her money back
  • That Jack, by waiting two years ratified the contract.
  • an express contract
Suppose that Jack, Hal, and Sophia enter into an agreement for the sale of the restaurant, with Jack stating in the agreement that if he feels comfortable with his finances in his retirement, that he will not sell the frozen food in competition with the restaurant. After the sale, the stock market rises considerably, and Jack's net worth quadruples. He still decides to sell the frozen food. Hal and Sophia sue. What is the result?
  • Jack would win since the promise not to compete was illusory.
  • Hal and Sophia would win, since Jack already had a prior existing legal duty to not compete with Hal and Sophia.
  • If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.
  • The contract would likely sever the illegal part of the contract and allow for the contract for the sale of the business to be enforced.
Ignoring issues of the Statute of Frauds, is there a contract for the sale of Vinny's Celica?
  • formed a unilateral contract as soon as Jessica began reading
  • acceptance
  • Yes, between Vinny and Oscar for $5,000 cash since that was the first offer accepted.
  • counteroffer
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Multiple Choice Questions
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