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Business Law Contract Principles
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Business Law Contract Principles
Business Law Contract Principles
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1
Question
What is Tommy most likely classified as when the Life Insurance Company hires him to sell policies for the company?
Page 5
Answer
Employee
2
Question
Who controls the details of Tommy's work in the Life Insurance Company hiring scenario?
Page 5
Answer
Life Insurance Company
3
Question
What workplace resource does the Life Insurance Company supply to Tommy?
Page 5
Answer
His office
4
Question
On whose behalf does Tommy agree to act in the insurance sales endeavor?
Page 5
Answer
The firm's behalf
5
Question
What trust does the Life Insurance Company place in Tommy regarding his role?
Page 5
Answer
Trusts Tommy to act for the company
6
Question
True or false: What a party said when entering a contract is a subjective fact.
Page 6
Answer
False
7
Question
When is a contract considered executory according to contract principles?
Page 6
Answer
If one party has fully performed but the other has not
8
Question
What defines an implied contract based on party conduct?
Page 6
Answer
The conduct of the parties creates and defines some of the terms
9
Question
True or false: The power of acceptance continues forever.
Page 6
Answer
False
10
Question
How can an offer be revoked by performance of an act?
Page 6
Answer
By the performance of an act that is inconsistent with the existence of an offer and made known to the offeree
11
Question
True or false: A minor can disaffirm a contract at any time but remains legally obligated to perform it.
Page 6
Answer
False
12
Question
True or false: Merely inquiring about an offer constitutes rejection.
Page 6
Answer
False
13
Question
What effect does a counteroffer have on the original offeror?
Page 6
Answer
Converts the original offeror into an offeree with the power of acceptance
14
Question
True or false: A promise to refrain from competing in business with another is unconscionable.
Page 6
Answer
False
15
Question
Under what condition will a court usually enforce a covenant not to compete?
Page 6
Answer
Provided its restrictions are reasonable
16
Question
What defines a material fact in the context of a contract?
Page 7
Answer
A fact that is important and central to the subject matter of a contract
17
Question
True or false: When both parties to a contract are mistaken about the same material fact unilateral mistake has occurred.
Page 7
Answer
False
18
Question
From what relationships can undue influence arise?
Page 7
Answer
A confidential relationship or a relationship based on trust
19
Question
What happens to landlord obligations if a condition in a university housing lease is not satisfied?
Page 7
Answer
The landlord's obligations under the lease are discharged
20
Question
True or false: In most states a person whose employment is wrongfully terminated has no duty to take a similar job if available.
Page 7
Answer
False
21
Question
True or false: A compromise or settlement agreement arising out of a genuine dispute over contract obligations will not be recognized at law.
Page 7
Answer
False
22
Question
What is Enterprise LLC's best argument in favor of enforcement in the Data Inc. pricing error scenario?
Page 7
Answer
Unilateral mistake
23
Question
What pricing error occurred in the Data Inc. offer to Enterprise LLC?
Page 7
Answer
$15,400 appears in the offer as $14,500 due to transposed digits
24
Question
Who made the mistake in the Data Inc. services offer scenario?
Page 7
Answer
Data Inc.
25
Question
Why can Jackson rescind the McDonald's restaurant purchase contract with Amaya?
Page 7
Answer
Fraudulent misrepresentation
26
Question
What did Amaya misrepresent to Jackson about the McDonald's restaurant?
Page 7
Answer
Several material features about the restaurant and the business
27
Question
What is the scrap steel contract detail between Connor and A & L Iron & Metal?
Page 7
Answer
Ten tons at $500 per ton delivered in seven months
28
Question
What defense does Connor have against performing the scrap steel contract due to shortage?
Page 8
Answer
Commercial impracticability
29
Question
What unforeseen event affected Connor's ability to fulfill the scrap steel contract profitably?
Page 8
Answer
Unforeseen shortage of scrap steel suddenly develops making it impossible for less than $5,000 per ton
30
Question
What is the covenant not to compete in the Meghan and Stephanie Domino's Pizza deal?
Page 8
Answer
Not to open a competing pizza business within a hundred-mile radius for ten years