Exam 11: Contracts and Sales: Performance, Remedies, and Rights

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?

A defense of age capacity applies to all contracts made by parties under the age of 18.

The seller's cost of running another ad in order to sell the car that a buyer breached a contract on is an example of consequential damages.

Jake's Steaks has hired LONF, an audit firm, to conduct an audit for purposes of preparing an IPO for Jake's.  The contract provides that the audit will be completed within 4 months.  At the end of three months, LONF has not yet begun the audit and lets Jake's know that it cannot complete the audit within four months because Jake's staff have not provided access to the company's books and records.  Which of the following statements is correct?

The difference between fraud and misrepresentation is knowledge.

Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from for its clients. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD'S DEBT."

Competency licensing statutes do not prevent enforcement of contracts by unlicensed parties.

In the movie It Could Happen To You, a police officer (played by Nicholas Cage)does not have enough cash to leave a tip for a coffee shop server (Bridget Fonda). Cage promises to split a lottery ticket with her if he wins. The lottery ticket turns out to be a multi-million-dollar winner. Discuss the rights of the police officer and the coffee shop server.

Using a threatening tone of voice when negotiating a contract may lead to a valid charge of duress.

The maximum wage garnishment for general debts is 50 percent.

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

There is no difference between assignments and delegation.

Unconscionability is an illegality defense.

An exculpatory clause seeking to hold a party completely blameless in a contract is acceptable in all states except Louisiana, California, and Florida.

The Fair Debt Collections Act applies to:

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?

Incidental damages are the costs of being compensated and are nonrecoverable.

The three-day-cooling-off period applies to:

Which of the following sections of the federal bankruptcy laws deals with consumer debt adjustment plans?

Which of the following chapters under federal bankruptcy laws is the liquidation chapter?