Reference no: EM132194353

1. John, a 15 year old who loves skateboarding, wants to buy the new hyped magenta 3000 skateboard. He finds the last one on-line at his local sports store. He uses his debit card to purchase the board and the $500 is taken directly from his bank account. In order to avoid a delivery fee, he selects "pick up" as his shipping option.

When he arrives at the store to pick up the skateboard, the manager tells him he has canceled the transaction because another customer has promised to pay $600 for the board. John offers to pay an additional $150 for the skateboard and the manager agrees. John pays the $150 by credit card and takes the board. As soon as John gets home, he calls the credit card company and cancels the transaction.
The store sues John for the $150 or the return of the skateboard. What result?

A.The store will win. John has to return the skateboard because he is a minor without the capacity to contract.
B.John will win. There was no consideration given in exchange for John's payment of the $150.
C.The store will win under the doctrine of promissory estoppel.
D.The store will win because the store's website did not create a valid offer.

B. John will win. There was no consideration given in exchange for John's payment of the $150.

2.Rob, an elderly man, is dependent on his housekeeper, Larry, to care for him. Larry persuades Rob to withdraw $100,000 from the bank and make an interest free loan to him. Rob's daughter, Erica, sues Larry on behalf of her father to avoid the transaction. Erica's best claim is:
A.Unilateral mistake.
B.Undue Influence
C.Economic duress
D.Misrepresentation

B. Undue influence

3.Elise took out an ad in the newspaper to sell her car, fully described, for $17,000. Franklin saw the ad and called Elise, saying that he would like to see the car. Franklin met Elise, drove the car and said, "Okay, I'll buy it." Which of the following is true?
A.Elise made an offer, which Franklin accepted.
B.Franklin made an offer, which Elise may accept or reject.
C.Elise made an offer which Franklin may accept or reject.
D.Franklin made an offer, which Elise accepted.

B. Franklin made an offer, which Elise may accept or reject.

4.Colleen sold a house to Ben for $300,000. Before selling the house, Colleen forgot to tell Ben about a leaky faucet in a little-used sink in the basement, which would cost about $30 to fix. Ben inspected the house, but didn't notice the faucet. Later, Ben tries to rescind the deal on the grounds of fraud or misrepresentation because of the leaky faucet. Which of the following is the best reason why Ben cannot rescind?
A. Because Colleen made no statement about the faucet.
B. Because Ben did not rely on any false statement
C.Because the condition of the faucet is not material to the contract.
D.Because Colleen did not conceal the condition of the faucet.

C. Because the condition of the faucet is not material to the contract

5.Ana, a 19-year-old immigrant entered into an agreement with Hal's TV to buy a new projection TV for $2,700. Ana cannot read English, although she was given a copy of all the sales and financing documents. Hal's knew that Ana could not read English and did not tell her how much interest she would be charged. Ana signed a loan agreement to pay 17% interest, although the average consumer loan rate at the time was 12%. If Ana wants to rescind the agreement, her best argument is:

A.That she lacked capacity
B. That Hal's used undue influence
C.That Hal's defrauded her
D.That the agreement is unconscionable.

D. That the agreement is unconscionable.

6. Which of the following must be in writing to comply with the statute of frauds?
A.A contract to perform legal services for $1,5000
B.A contract for the lease of an automobile
C. A contract to perform a three-year IT project
D.A promise to pay a $5,000 debt.

C. A contract to perform a three-year IT project

7.Kathy lived in Jess's house, taking care of the ailing old man. After Jess's death, Kathy claimed that Jess had promised her that he would leave her his house as payment for her caretaking services if she would stay with him until the end of his life. Jess died without a will. Kathy's best argument is:

A.Kathy and Jess had an oral agreement for the sale of land that was fully performed on her side.
B.Kathy and Jess had an oral agreement for the sale of land that was fully performed on both sides.
C.Kathy and Jess had an implied written agreement for the sale of the land.
D. Kathy and Jess had an executed agreement for the sale of the land.

A. Kathy and Jess had an oral agreement for the sale of land that was fully performed on her side.

8.Karen and Marilyn have a valid contract under which Karen sold Marilyn a diamond necklace in return for twelve equal monthly payments of $100. After Marilyn made the fifth payment, Karen called her and told her to send the remaining payments to Pedro. This is:
A. A valid assignment of Karen's rights under the contract.
B.A valid delegation of Karen's duties under the contract.
C. A valid modification of the contract.
D. A valid novation.

A. A valid assignment of Karen's rights under the contract.

9.Which of the following is most likely to be subject to a "substantial performance" standard?

A. A promise to pay money
B. A promise to deliver a deed
C. A promise to transfer ownership of a truck
D. A promise to deliver 2000 tons of steel.

D. A promise to deliver 2000 tons of steel.