Exam 12: Contracts and Sales: Performance,Remedies,and Collection

A contract with a minor is voidable at the minor's option.

A mortgage broker who sells mortgage contracts to mortgage companies has created a third party beneficiary contract.

The FDCPA is not applicable to the collection of judgments.

Covenants not to compete are valid only in sales of a business.

Attorneys' fees are an example of liquidated damages.

In order to recover damages under the Fair Credit Billing Act,the debtor must:

Which of the following statements (if later established as untrue)would constitute a misrepresentation defense to contract formation?

Allegheny Energy Supply Co.and Monogahela Power Co.,a subsidiary,filed suit against Anker West Virginia Mining Co.,later acquired by International Coal Group,for breach of contract.The parties had a contract for Allegheny and Monogahela to buy all of the coal produced from a proposed "Sycamore 2" mine,located in Harrison County,W.Va.The coal promised amounted to about 1.8 million tons per year,not less than 20 million tons total.Anker has never produced the necessary amount of coal,topping out at 480,000 tons per year in total from the mine.Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine.As a result,Anker said it was unable to deliver the necessary coal.Which defense to performance is Anker relying on?

The Fair Debt Collections Practices Act applies only to consumer credit collection.

Covenants not to compete are generally considered void as against public policy.

Which of the following is prohibited in the collection of consumer debt by the Fair Debt Collections Practices Act?

Chapter 11 is the liquidation provision in bankruptcy.

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

Costco,Inc.had a contract to purchase 300,000 electric mini-Mercedes from HUMBENZ Toy Co.The toy cars were to be delivered by November 1.On October 23,the Consumer Product Safety Commission announced a recall of the toy cars as well as a ban on their sales because of electrical shorts and a high risk of fire in the cars.HUMBENZ has not delivered the cars to Costco.HUMBENZ:

Which of the following acts by a third-party collector would be a violation of the FDCPA?

Exculpatory clauses are generally considered void as against public policy.

Compensatory damagescan be awardedin addition to liquidated damages.

Misrepresentation must be fraudulent before rescission can be permitted.

Dana Riley purchased a home in the Brentwood area of Los Angeles.After she purchased the home,she learned that the home had been the residence of a long-time drug dealer.She experienced many late-night visitors and often noticed cars parked outside near the street curb with the drivers and passengers studying the home.The former owner has been convicted of drug charges.Dana has become uncomfortable with the visitors and the surveillance.She just wants out of the house.Suppose that the listing agent was aware of the home's history and the drug dealer's arrest and conviction.The agent told the neighbors to cooperate by not disclosing any information to Dana."Look," the agent told them,"you can get the house sold and keep your values up or let it sit there and have the old druggies come by and destroy it." Which of the following statements is true?

Which of the following is $\underline{\text{not}}$ covered by the Fair Debt Collections Practices Act?