Question 1

Covenants not to compete are void only in sale-of-business contracts.

Accepted Answer

A) True 
 B)False

Question 2

Who is covered under the Fair Debt Collections Practices Act?

Accepted Answer

A) an attorney collecting a debt for himself 
B) Macy's collecting a debt through its own collection subsidiary 
C) a hospital collecting a debt from a patient 
D) None of the above is covered under the FDCPA. 
A) an attorney collecting a debt for himself 
B) Macy's collecting a debt through its own collection subsidiary 
C) a hospital collecting a debt from a patient 
D) None of the above is covered under the FDCPA.

Question 3

A lawyer/client relationship is an example of a confidential relationship.

Accepted Answer

A) True 
 B)False

Question 4

A contract with a party who has been declared incompetent is voidable.

Accepted Answer

A) True 
 B)False

Question 5

Conditions precedent are events that must happen before contract performance is required.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements in a letter from a collector to a debtor would be a violation of FDCPA?

Accepted Answer

A) "We will be contacting your employer to let him know of this problem." 
B) "We will file suit if payment is not made within 30 days." 
C) "We will be calling you at your home." 
D) All of the above are violations. 
A) "We will be contacting your employer to let him know of this problem." 
B) "We will file suit if payment is not made within 30 days." 
C) "We will be calling you at your home." 
D) All of the above are violations.

Question 7

The FDCPA does not apply to lawyers who are collecting bills for clients.

Accepted Answer

A) True 
 B)False

Question 8

Tristan Colbert owns an appliance store.He has ordered 10 Subzero refrigerators for his store at a cost of $2,500 each from Plains Manufacturing.Tristan ordered the refrigerators in anticipation of an order he was going to receive from a custom-home builder.Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production.They wereunable to deliver the refrigerators to Tristan and notified him immediately of the problem.Tristan has to purchase the 10 refrigerators from another plant at a cost of $3,000 each.​
-Which of the following statements is correct about the situation?​

Accepted Answer

A) ​Plains will need to pay the damages that Tristan experiences as a result of its failure to deliver- $500 X 10. 
B) ​Plains does not owe any damages to Tristan because of impracticability. 
C) Plains can use the defense of impossibility. 
D) This contract is governed by common law principles of damages. 
A) ​Plains will need to pay the damages that Tristan experiences as a result of its failure to deliver- $500 X 10. 
B) ​Plains does not owe any damages to Tristan because of impracticability. 
C) Plains can use the defense of impossibility. 
D) This contract is governed by common law principles of damages.

Question 9

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

Accepted Answer

A) True 
 B)False

Question 10

Liquidated damages are void as penalties.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true about a line of credit secured by the equity in the debtor's home?

Accepted Answer

A) there is a three-day rescission period 
B) the same levels of disclosure for other types of credit are not required 
C) the monthly payments need not be disclosed 
D) All of the above are true. 
A) there is a three-day rescission period 
B) the same levels of disclosure for other types of credit are not required 
C) the monthly payments need not be disclosed 
D) All of the above are true.

Question 12

Which of the following statements would be a basis for claiming misrepresentation?

Accepted Answer

A) This car is a real honey. 
B) This car has the finest road performance going. 
C) This car has the fastest zero to 60 acceleration on the planet. 
D) This car represents status. 
E) All of the above could be a basis for misrepresentation. 
A) This car is a real honey. 
B) This car has the finest road performance going. 
C) This car has the fastest zero to 60 acceleration on the planet. 
D) This car represents status. 
E) All of the above could be a basis for misrepresentation.

Question 13

Angela,age 17,is injured in a car accident and receives $5,200 in medical treatment at the emergency room.The hospital sends a bill to Angela,who signed the admitting form in which she agreed to pay for the treatment.​
-Angela:

Accepted Answer

A) is a minor and need not pay the bills. 
B) is liable for the bill as a necessity. 
C) can rescind the agreement. 
D) none of the above 
A) is a minor and need not pay the bills. 
B) is liable for the bill as a necessity. 
C) can rescind the agreement. 
D) none of the above

Question 14

Paula Sanford has filed a voluntary petition in bankruptcy.Paula has a job but admits that she is in over her head on credit card debt.The bankruptcy court:

Accepted Answer

A) can allow Paula to declare bankruptcy because she has debts. 
B) can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan. 
C) has no remedies for consumers with only credit card debt. 
D) none of the above 
A) can allow Paula to declare bankruptcy because she has debts. 
B) can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan. 
C) has no remedies for consumers with only credit card debt. 
D) none of the above

Question 15

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

Accepted Answer

A) a contract with no consideration. 
B) economic duress. 
C) a condition precedent. 
D) none of the above 
A) a contract with no consideration. 
B) economic duress. 
C) a condition precedent. 
D) none of the above

Question 16

Ann wrote a $500 check to Art as a deposit on Art's 240Z car.The memo section of the check read: "Deposit on 1978 240Z car of Art Mole.Sale price $4500." Art initialed the memo section.When Ann returned the next day with the remaining $4000,Art said,"Sorry,I sold the car for $4,000 cash yesterday and sent your check back." The cheapest 240Z Ann can find is $5200.What are Ann's rights? Discuss the following:
a.Was a contract formed?
b.Are there statute of frauds problems?
c.Could Ann collect damages? If so,what?

Accepted Answer

a.There was a contract.
b.The

Question 17

All contracts have conditions for performance.

Accepted Answer

A) True 
 B)False

Question 18

The Bankruptcy Reform Act of 2005 made it easier for consumers to declare bankruptcy.

Accepted Answer

A) True 
 B)False

Question 19

A minor's right to disaffirm a contract is conditioned on:

Accepted Answer

A) the ability to return the contract consideration. 
B) whether the minor misrepresented his/her age. 
C) a time limit of six months. 
D) none of the above 
A) the ability to return the contract consideration. 
B) whether the minor misrepresented his/her age. 
C) a time limit of six months. 
D) none of the above

Question 20

Tristan Colbert owns an appliance store.He has ordered 10 Subzero refrigerators for his store at a cost of $2,500 each from Plains Manufacturing.Tristan ordered the refrigerators in anticipation of an order he was going to receive from a custom-home builder.Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production.They wereunable to deliver the refrigerators to Tristan and notified him immediately of the problem.Tristan has to purchase the 10 refrigerators from another plant at a cost of $3,000 each.​
-​Suppose that instead of a flood,Plains simply did not deliver the refrigerators.Which of the following is correct?

Accepted Answer

A) ​Plains will need to pay the damages that Tristan experienced as a result of its failure to deliver - $500 X 10. 
B) ​Plains can use the defense of impracticability. 
C) Plains is not in breach if there is advance notification that it cannot deliver. 
D) This contract need not be in writing to be enforceable. 
A) ​Plains will need to pay the damages that Tristan experienced as a result of its failure to deliver - $500 X 10. 
B) ​Plains can use the defense of impracticability. 
C) Plains is not in breach if there is advance notification that it cannot deliver. 
D) This contract need not be in writing to be enforceable.

Covenants not to compete are void only in sale-of-business contracts.

Who is covered under the Fair Debt Collections Practices Act?

A lawyer/client relationship is an example of a confidential relationship.

A contract with a party who has been declared incompetent is voidable.

Conditions precedent are events that must happen before contract performance is required.

Which of the following statements in a letter from a collector to a debtor would be a violation of FDCPA?

The FDCPA does not apply to lawyers who are collecting bills for clients.

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

Liquidated damages are void as penalties.

Which of the following is true about a line of credit secured by the equity in the debtor's home?

Which of the following statements would be a basis for claiming misrepresentation?

Angela,age 17,is injured in a car accident and receives $5,200 in medical treatment at the emergency room.The hospital sends a bill to Angela,who signed the admitting form in which she agreed to pay for the treatment. -Angela:

Paula Sanford has filed a voluntary petition in bankruptcy.Paula has a job but admits that she is in over her head on credit card debt.The bankruptcy court:

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

All contracts have conditions for performance.

The Bankruptcy Reform Act of 2005 made it easier for consumers to declare bankruptcy.

A minor's right to disaffirm a contract is conditioned on:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

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

Covenants not to compete are void only in sale-of-business contracts.

Who is covered under the Fair Debt Collections Practices Act?

A lawyer/client relationship is an example of a confidential relationship.

A contract with a party who has been declared incompetent is voidable.

Conditions precedent are events that must happen before contract performance is required.

Which of the following statements in a letter from a collector to a debtor would be a violation of FDCPA?

The FDCPA does not apply to lawyers who are collecting bills for clients.

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

Liquidated damages are void as penalties.

Which of the following is true about a line of credit secured by the equity in the debtor's home?

Which of the following statements would be a basis for claiming misrepresentation?

Angela,age 17,is injured in a car accident and receives $5,200 in medical treatment at the emergency room.The hospital sends a bill to Angela,who signed the admitting form in which she agreed to pay for the treatment.​ -Angela:

Paula Sanford has filed a voluntary petition in bankruptcy.Paula has a job but admits that she is in over her head on credit card debt.The bankruptcy court:

A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of:

All contracts have conditions for performance.

The Bankruptcy Reform Act of 2005 made it easier for consumers to declare bankruptcy.

A minor's right to disaffirm a contract is conditioned on:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Angela,age 17,is injured in a car accident and receives $5,200 in medical treatment at the emergency room.The hospital sends a bill to Angela,who signed the admitting form in which she agreed to pay for the treatment. -Angela: