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

Goods can be transferred physically or by transfer of the bill of lading.

Garnishments:

Duress requires proof of physical force.

Incidental and consequential damages are the same types of damages.

Andy Seagroves purchased a computer from Best Buy. Best Buy did not disclose to him that the computer was a return item. There was no indication of any price difference between the computer Andy bought and the unopened computers. Andy experiences significant difficulties with the computer and returns it to Best Buy. Andy indicates that he would like to have a new computer and that the price is now $150 more. Best Buy indicates that it is happy to take the return on the computer and credit Andy's account, but that it has no further liability.

The FDCPA places time limits for the placement of calls.

There is a three-day rescission period on home equity loans.

Laura Walsh owed $560 to a local department store. The debt was assigned to a collection agency. The agency did the following: (a)used a postcard to contact Laura and summarize her debt, (b)called her at 7 AM to catch her before she left for work, (c)called her in spite of Laura's requests to stop, (d)contacted her employer about the debt, (e)contacted her at the hospital as she visited her ill mother. Are any of the actions improper?

The subprime lending market uses title loans.

Which of the following would be sales puffing?

Under the Home Ownership and Equity Protection Act, if a creditor does not give the debtor notice of the three-day cooling off period the debtor's right of recission:

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

Which contractual defense requires a confidential relationship?

Courts rarely apply the excuse of commercial impracticability, even when the cost of the contract has increased dramatically for one party.

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:

An assignment is the transfer of benefits under a contract.

Which of the following transactions is protected by the three-day rescission rights?

Ralph Deuschle owned an ice sculpture company. Ralph provides ice sculptures for private weddings, parties, and receptions. The Canasta Resort was a large hotel located near Ralph that was not satisfied with its current catering company's ice sculptures and its events manager liked Ralph's work. The events manager approached Ralph and indicated the Canasta would like to have an ongoing supply contract but that its needs would require Ralph to expand his business, both with additional space and 3 new employees. Ralph entered into a supply contract with the Canasta and the events manager told a lending officer at the bank where Ralph got his construction mortgage for the business expansion that the Canasta would be sending all of its business to Ralph. The Canasta then began to rethink its events focus and marketing and decided to cut back on ice sculptures. Ralph could not use the additional space and the three employees had to be laid off. The Canasta:

A television rent-to-own contract that requires 24 payments of $30 each before the renter owns the $199 television set is unconscionable.

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