Question 1

Which of the following is an exception to the parol evidence rule?

Accepted Answer

A)  Evidence of oral agreement that merely explains the meaning of written terms without changing them. 
B)  Evidence of oral agreements made at the time of the written contract. 
C)  Evidence of oral agreements made before signing a written contract. 
D)  Evidence of oral modifications arising after the parties have made the written contract. 
E)  Evidence of oral agreements that changes the meaning of written terms. 
A)  Evidence of oral agreement that merely explains the meaning of written terms without changing them. 
B)  Evidence of oral agreements made at the time of the written contract. 
C)  Evidence of oral agreements made before signing a written contract. 
D)  Evidence of oral modifications arising after the parties have made the written contract. 
E)  Evidence of oral agreements that changes the meaning of written terms.

Question 2

Complete performance discharges a party to a contract.

Accepted Answer

A) True 
 B)False

Question 3

The parol evidence rule states that parties to a complete and final written contract can introduce oral evidence in court that changes the intended meaning of the written terms.

Accepted Answer

A) True 
 B)False

Question 4

A _____ exists when a party announces that the other party does not have to perform as promised.

Accepted Answer

A)  release 
B)  waiver 
C)  surrender 
D)  breach 
E)  condition 
A)  release 
B)  waiver 
C)  surrender 
D)  breach 
E)  condition

Question 5

When may oral evidence be introduced after a written contract has been agreed to?

Accepted Answer

Although the parol evidence rule prohibi

Question 6

Daniel's failure to deliver ice-cream makers and waffle makers on time, resulted in a two-week delay in the opening of Sheena's new ice-cream parlor. Sheena incurred a heavy loss since she had to pay the rent for those two weeks, as well as salaries to the personnel hired. Which of the following damages can Sheena claim from Daniel for breach of contract?

Accepted Answer

A)  Liquidated damages 
B)  Consequential damages 
C)  Compensatory damages 
D)  Nominal damages 
E)  Negotiated damages 
A)  Liquidated damages 
B)  Consequential damages 
C)  Compensatory damages 
D)  Nominal damages 
E)  Negotiated damages

Question 7

If performance of a party to a contract only slightly deviates from contract requirements, this will be considered:

Accepted Answer

A)  complete performance. 
B)  substantial performance. 
C)  breach of contract. 
D)  waiver of performance. 
E)  divisibility of performance 
A)  complete performance. 
B)  substantial performance. 
C)  breach of contract. 
D)  waiver of performance. 
E)  divisibility of performance

Question 8

What are UCC gap-filling provisions? Give an example and explain how and why they are applied?

Accepted Answer

In a contract between merchants, should

Question 9

Which of the following is true in cases where only one party drafts the contracts, which contain terms that appear vague and ambiguous to the other party?

Accepted Answer

A)  The court will give the terms the meaning as per trade usage. 
B)  The court will reject the non-drafting party's attempt to reinterpret the terms after the contract has been signed. 
C)  The court will declare the drafting party's behavior as a tort due to intentional ambiguity of terms. 
D)  The court will interpret the terms as they mean in the common language. 
E)  The court will interpret the ambiguous and vague terms against the party that drafts them. 
A)  The court will give the terms the meaning as per trade usage. 
B)  The court will reject the non-drafting party's attempt to reinterpret the terms after the contract has been signed. 
C)  The court will declare the drafting party's behavior as a tort due to intentional ambiguity of terms. 
D)  The court will interpret the terms as they mean in the common language. 
E)  The court will interpret the ambiguous and vague terms against the party that drafts them.

Question 10

Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

Accepted Answer

A) True 
 B)False

Question 11

Omi works as a cashier for Trinity Grocery Store. Omi believes that a customer is attempting to use counterfeit money to make a purchase and gets into a fist fight with the customer who truthfully denies using counterfeit money. Is Trinity liable for injuries the customer received in the fist fight?

Accepted Answer

A)  Yes, if Omi reasonably intended to further Trinity's business interests. 
B)  Yes, since Trinity gave Omi apparent authority. 
C)  No, since this was a personal incident not related to work. 
D)  Yes, since Trinity supplied the instrumentality for the action. 
E)  No, since a fist fight is outside the scope of employment. 
A)  Yes, if Omi reasonably intended to further Trinity's business interests. 
B)  Yes, since Trinity gave Omi apparent authority. 
C)  No, since this was a personal incident not related to work. 
D)  Yes, since Trinity supplied the instrumentality for the action. 
E)  No, since a fist fight is outside the scope of employment.

Question 12

A principal interacts with someone (or some organization) for the purpose of obtaining an agent's assistance.

Accepted Answer

A) True 
 B)False

Question 13

What is trading and nontrading partnership?

Accepted Answer

A partner in a trading partnership, that

Question 14

Which of the following is an example of a tortious act in the scope of employment?

Accepted Answer

A)  At a law firm, a lawyer and his client get into a heated argument over the passing of a women's bill. 
B)  A professor hits a student each time the student fails to finish his schoolwork. 
C)  A store manager and a customer have a fist fight over which football team will win the World Cup. 
D)  An executive gets involved in an argument with another business associate over vegetarianism. 
E)  A seller and a buyer argue over the price of a washing machine, trying to arrive at a discounted amount. 
A)  At a law firm, a lawyer and his client get into a heated argument over the passing of a women's bill. 
B)  A professor hits a student each time the student fails to finish his schoolwork. 
C)  A store manager and a customer have a fist fight over which football team will win the World Cup. 
D)  An executive gets involved in an argument with another business associate over vegetarianism. 
E)  A seller and a buyer argue over the price of a washing machine, trying to arrive at a discounted amount.

Question 15

In a situation where a buyer and seller have not mentioned details about delivery, which of the following can be applied?

Accepted Answer

A)  The seller will have to personally deliver the goods to the buyer. 
B)  The seller will have to ship the goods, assuming the risks of damages that take place in transit. 
C)  The buyer and the seller will have to enter into another contract stating the details of the delivery of the goods. 
D)  The buyer will have to make arrangements to pick up the goods at the location the seller designates. 
E)  The contract will be held as a void contract by the court, since it contains indefinite, unclear terms. 
A)  The seller will have to personally deliver the goods to the buyer. 
B)  The seller will have to ship the goods, assuming the risks of damages that take place in transit. 
C)  The buyer and the seller will have to enter into another contract stating the details of the delivery of the goods. 
D)  The buyer will have to make arrangements to pick up the goods at the location the seller designates. 
E)  The contract will be held as a void contract by the court, since it contains indefinite, unclear terms.

Question 16

Liquidated damages can simplify disputes when a breach occurs.

Accepted Answer

A) True 
 B)False

Question 17

_____ occurs when a principal voluntarily decides to honor an agreement, which otherwise would not be binding due to an agent's lack of authority.

Accepted Answer

A)  Novation 
B)  Ratification 
C)  Negotiation 
D)  Release 
E)  Waiver 
A)  Novation 
B)  Ratification 
C)  Negotiation 
D)  Release 
E)  Waiver

Question 18

Discuss the parol evidence rule?

Accepted Answer

Like the statute of frauds, the parol ev

Question 19

What is delivery?

Accepted Answer

Delivery is a legal term refer

Question 20

Andrea was injured when her car was hit by a truck driven recklessly. The driver, Antonio, an employee of the Azo Trucking Company fled the scene. On what basis may Andrea sue the Azo Trucking Company when Antonio was the individual being reckless?

Accepted Answer

Respondeat superior makes the employer l

Exam 9: Contractual Performance and Breach

Which of the following is an exception to the parol evidence rule?

Complete performance discharges a party to a contract.

The parol evidence rule states that parties to a complete and final written contract can introduce oral evidence in court that changes the intended meaning of the written terms.

A _____ exists when a party announces that the other party does not have to perform as promised.

When may oral evidence be introduced after a written contract has been agreed to?

If performance of a party to a contract only slightly deviates from contract requirements, this will be considered:

What are UCC gap-filling provisions? Give an example and explain how and why they are applied?

Which of the following is true in cases where only one party drafts the contracts, which contain terms that appear vague and ambiguous to the other party?

Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

A principal interacts with someone (or some organization) for the purpose of obtaining an agent's assistance.

What is trading and nontrading partnership?

Which of the following is an example of a tortious act in the scope of employment?

In a situation where a buyer and seller have not mentioned details about delivery, which of the following can be applied?

Liquidated damages can simplify disputes when a breach occurs.

_____ occurs when a principal voluntarily decides to honor an agreement, which otherwise would not be binding due to an agent's lack of authority.

Discuss the parol evidence rule?

What is delivery?

Andrea was injured when her car was hit by a truck driven recklessly. The driver, Antonio, an employee of the Azo Trucking Company fled the scene. On what basis may Andrea sue the Azo Trucking Company when Antonio was the individual being reckless?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competition_Antitrust Laws

Financial and Securities Regulations

Privacy and Consumer Protection

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

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