Reference no: EM132166186

TRUE/FALSE ___

1. Under the traditional rule or approach to unilateral contracts, a unilateral contract is not formed until the person receiving the offer completes the act that is the subject of the contract. ___

2. Vu enters into a contract with Irene (who owns the only house in the neighborhood that is always overgrown and messy) to landscape the property and update its appearance, but then Irene tries to back out of the contract. Jorge, Irene's next-door neighbor, who had been hoping to list his house for sale at a higher price, after the "makeover" of Irene's house, can sue to enforce the contract between Irene and Vu. ___

3. All contracts must be in writing to be enforceable. ___

4. Under the “plain meaning rule,” a court will make its determination about what the terms of a contract are, and whether it should be enforced, by referring to extrinsic evidence to help interpret the contract terms that are included within the written contract. ___

5. In Washington, whether an employee's covenant not to compete (an agreement signed with a current employer to prohibit the employee from leaving and working with a competing future employer) is enforceable will generally depend upon whether restrictions as to duration, geographic area, and scope of activity are reasonable, and whether the covenant, as drafted, reasonably protects the business interests of the current employer. ___

6. The general rule (which means there can be exceptions) about assignability of contract rights is that all contract rights are assignable. ___

7. All contracts with credit card companies are "unconscionable” contracts. ___

8. Under legal principles commonly referred to as "the mailbox rule," an acceptance of a contract offer will be valid as soon as it is sent (even if not sent by United States mail, or dropped in a mailbox), because it is no longer under an offeree's control. ___

9. Marta settles her auto accident lawsuit against Don, but discovers six months after the settlement that her back problems have returned. Marta can rescind the settlement agreement, due to the discovery of the return of the back problems. ___

10. The doctrine of quasi-contract applies only if there is an actual contract that covers the subject matter in. dispute. ___

11. A company's price lists or advertisements are not "serious intent offers," but are instead generally viewed by courts as "invitations to negotiate." ___

12. The mirror image rule generally permits the offeree’s acceptance of a non-commercial contract (a commercial contract is one for the sale of goods) to contain different terms from the offeror’s offer; the rule also allows some terms to still be negotiated after the parties have entered into the non-commercial contract. ___

13. In Washington, contracts for the sale of real estate not only are required to be in writing, but must usually also contain the legal description of the real property that is the subject of the contract. ___

14. Generally, if there is legally sufficient consideration for a contract, the court will not also make a determination about the adequacy of the consideration. ___

15. In December, Dimitri promises to give Anita $100, because she took care of his garden when he was on vacation for a month during the previous summer. Anita will be able to enforce Dimitri’s promise, and collect the $100. ___

16. If Faruk’s offer in an email to Marshall, to sell his car to Marshall, is rejected by Marshall in an email to Faruk, but then Marshall changes his mind, and accepts Faruk’s offer in a second email to Faruk, Marshall and Faruk have a contract. ___

17. In Washington, a minor never loses the right to disaffirm a contract, even if the minor misrepresents his/her age (says that he/she is over the age of 18 at the time of contracting). ___

18. A donee beneficiary (such as your spouse, who is a beneficiary of your life insurance policy) can never sue the promisor directly, to enforce the promise of a promisor (in this example, the promisor would be the insurance company, and the promise would be to pay the policy proceeds upon your death to your spouse). ___

19. The offeree's rejection of an offer terminates it. ___

20. An exculpatory clause in a contract between a homeowner and a utility company, excusing the utility company from any liability for negligence in the provision of services to a residence, is always enforceable by the utility company. ___

21. The Foreign Corrupt Practices Act prohibits bribery payments to foreign government officials by U.S. companies seeking favors from the foreign governments. ___

22. Barry and Joan have a contract. A delegation of Barry's contract duties by Barry to Carlos does not relieve Barry of the obligation to perform those duties, if Carlos fails to perform. ___

23. When a contractor submits a bid to a public entity that solicited bids for a construction project, the submission of the bid binds that public entity, because a contract has been formed. ___

24. If a person clicks on the “I agree” button to finalize an internet sale, that person is generally considered to have entered into an enforceable contract. ___

25. In Washington, all prenuptial agreements are enforceable, regardless of the circumstances under which they were created, and whether they were oral or written. ?

MULTIPLE CHOICE (Choose the one best answer from those given.)

26. RICO is a federal anti-racketeering law enforced A. against the Mafia. B. against tobacco companies. C. against banks. D. against any of the above.

27. Forrest and Galena enter into a bilateral contract for Forrest’s landscaping of Galena’s yard next month. This means that A. Galena has promised to pay Forrest for his work. B. Forrest has promised to landscape Galena’s yard. C. the contract does not actually exist until the landscaping work is completed. D. two of the above statements are correct.

28. Paul and Keesha sign a contract that contains a clause stating, "This contract contains the entire agreement of the parties; no evidence of previous oral or written negotiations may be used to vary its terms." This clause is an example of A. a quasi-contract clause. B. a clause indicating the parties’ agreement to apply the mailbox rule. C. an integration clause stating the parol evidence rule. D. a Statute of Frauds clause.

29. Nora enters into a contract with Owen's delivery service, which Nora drafted, for the delivery of a shipment of fresh produce. Assuming these are all the facts of the case, if there are ambiguities in the contract, a court will interpret them A. against Nora, because she is the party who drafted the contract. B. against Owen, because Owen had the greater bargaining power. C. against the produce grower. D. against no party, because there are no rules of interpretation that would apply in this situation.

30. “White collar crimes” include A. burglary B. murder C. health care fraud D. none of the above ?

31. Chang, a real estate developer, mentions to Sean that he plans to sell some property at a price below its market value. Sean gives Chang a check for the amount that Chang mentioned. Chang A. does not have a contract with Sean, and does not have to accept the check, because he merely indicated an intent to sell in the future B. has a contract with Sean C. does not have a contract with Sean, and does not have to accept the check, because he was mistaken about the market value of the property D. has a contract with Sean, but can rescind it, due to inadequate consideration

32. Philip sends an email to Dina, in which he offers to sell his car to Dina for $5,000. Dina sends him an email reply, in which she tells him that that is too much, but she will buy it for $4,000. After this series of emails, A. Dina has a contract with Philip. B. Dina has made a counteroffer to Philip, and has effectively rejected Philip’s offer, at the same time. C. Philip’s offer is terminated by Dina’s statement in her reply email. D. two of the above statements are correct.

33. In the same email referenced in Question 32, Philip also offers to sell all his outdoor furniture to Dina, for $100. In her reply email, Dina agrees to buy it from Philip. Dina and Philip have A. a quasi-contract B. an implied-in-fact contract C. an implied-in-law contract D. an express contract

34. Tom and Bob enjoy a few drinks together, and then Tom offers to sell Bob Tom’s custom motorcycle for $25. Bob gives Tom $25 and, with the help of others, gets the motorcycle home. The next day, Tom seeks to rescind the sale. In order for a court to order rescission of the sale, Tom would be required to prove A. that he did not understand the legal consequences of his act at the time of the sale. B. that his blood alcohol level was above the legal limit. C. that Bob’s blood alcohol level was above the legal limit. D. none of the above—the court will never order rescission of the sale under those circumstances.

35. An offer can become irrevocable if A. the offeree pays (or gives other consideration) to have the offer held open just for the offeree. B. no other offerees are available to accept the offer. C. the offeree justifiably relies on the offeror’s offer, to the offeree’s detriment. D. either the offeree pays (or gives other consideration) to have the offer held open just for the offeree OR the offeree justifiably relies on the offeror’s offer, to the offeree’s detriment. ?

36. Greg blackmails Hayley (threatening physical harm to her family), to get her to enter into a contract with him. If Hayley later asks a court to set aside their contract (order it unenforceable), it will be on the ground of A. undue influence B. puffery C. duress D. fraud

37. ABC Contractors begins building an office building for XYZ Corp., in accordance with their contract with each other. One month later, ABC tells XYZ that ABC will need $2 million more to complete the job, because ordinary business expenses have increased. XYZ, anxious to get the building finished, agrees, but later sues ABC for the $2 million over the original contract price. The additional $2 million term in the contract is A. enforceable, because of unforeseen difficulties. B. unenforceable, due to the preexisting duty rule. C. unenforceable, because $2 million extra is unconscionable D. enforceable, because the parties agreed, and the court will not interfere with their contract

38. Among the elements necessary to prove fraud are the following: A. intent to deceive B. justifiable reliance by the innocent party C. a false statement made by the defrauding party to the innocent party D. all of the above

39. Alicia and Brent sign a contract in which Alicia agrees to install double-paned windows in Brent’s home, for $2,500. One month later, Alicia and Brent agree that Brent will pay the $2,500 directly to Alicia’s supplier, instead. Under these circumstances, Alicia’s supplier is A. a delegee B. an intended beneficiary C. an assignee D. an incidental beneficiary

40. A court has determined that Jack is mentally incompetent, and has appointed a legal guardian for him. After the guardian is appointed, but not while Jack is with the guardian, Jack sees a home in which he would like to live, and signs a rental agreement to begin occupancy two weeks later. Jack’s rental agreement is A. voidable only if Jack does not understand the legal consequences of entering into the contract. B. void. C. valid if the landlord can prove that Jack was having a lucid interval when he signed the rental agreement. D. valid. ?

41. United States statutes that contain criminal penalties for environmental violations include A. the Clean Air Act. B. the Clean Water Act. C. the Endangered Species Act. D. all of the above.

42. On August 31, 2016, Arthur, who is a florist, enters into an oral contract with Stage-It, Inc., in which Arthur agrees to provide floral arrangements at all properties that Stage-It "stages" for high-end property showings in King County, from September 1, 2016 through August 31, 2018. This contract is enforceable by A. Arthur only. B. Stage-It, Inc., only. C. neither party. D. either party.

43. Which of the following contracts involving real estate must be in writing to be enforceable? A. a two-year lease B. a sale of a partial interest in the property for $400 C. a sale of the property for $500,000 D. all of the above

44. June and Autumn contract for the sale of June’s stud horse, for breeding purposes, for $10,000. Unknown to either party, the horse is sterile. Which of the following is true? A. Autumn is entitled under the law to another of June’s stud horses, which is not sterile. B. The contract can be rescinded, due to the parties’ mutual mistake. C. The contract can be rescinded, due to June’s unilateral mistake. D. Autumn is required to pay, anyway, because she assumed the risk that the horse might become sterile.

45. Ginger, who is wealthy-but-feeble 80-year-old Fred’s caregiver, convinces Fred that he should buy a high-end building at an exorbitant price, to house her dance studio, which she says she hopes to start as a business with her friend Cyd. The building is currently owned by Cyd, who sees this as a win-win—getting twice what the building is worth, and not having to be responsible for the property. If this is not really a wise investment for Fred, he might be able to get the contract set aside, on the grounds of A. mistake B. duress C. undue influence D. illegality ?

46. Seth, who is excited about his company’s first six months of success, tells his employees, “If I think we are making enough profits by the end of the year, you’ll all get bonuses.” This is an example of A. a bilateral contract B. a unilateral contract C. a contract with legally-sufficient consideration D. an illusory contract

47. Helen is a single mom, on food stamps. Her refrigerator goes out, so she contracts with a small appliance business to buy a basic refrigerator on an installment plan offered by the business, which is the only way she can get the refrigerator right away. The initial price of the refrigerator is $400, but by the time Helen completes all of her payments, with interest, she will have paid $2,000 for it. If Helen is able to get a court to set aside the contract, it will be on the ground of A. mutual mistake B. unconscionability C. fraud D. duress

48. Which of the following is true about Washington’s law about e-contracts? A. Washington has adopted UETA. B. Washington has adopted UCITA. C. Washington has adopted its own e-signature (digital signature) law. D. Washington has adopted UETA, UCITA, and its own e-signature (digital signature) law.

49. In Washington, if one party to a contract charges the other party to the contract more than the legal rate of interest, and the party charging more than the legal rate is not exempt from the statutory rate of interest rules, a court will find the contract A. void, because it is usurious. B. enforceable, but the party charging more than the legal rate of interest is liable for penalties. C. void, because it is fraudulent. D. completely enforceable, without any penalties.

50. Kyoto enters into a contract with Danielle to cater Danielle’s dinner party. Kyoto caters the party, but Danielle has not yet paid her. This contract is A. executory on the part of Danielle B. executory on the part of Kyoto C. executed on the part of Danielle D. none of the above.