A) Martin knows that the transmission on his truck is defective, but does not tell this fact to potential buyers. B) The racehorse that Karen is trying to sell has a genetic defect, but Karen does not know about the defect, and so she does not warn potential buyers. C) Jake, a real estate agent, tells a client that he has a house that "will make all her dreams come true." D) Jon forces Bill to sign a contract to sell Jon a car below market value. A) Martin knows that the transmission on his truck is defective, but does not tell this fact to potential buyers. B) The racehorse that Karen is trying to sell has a genetic defect, but Karen does not know about the defect, and so she does not warn potential buyers. C) Jake, a real estate agent, tells a client that he has a house that "will make all her dreams come true." D) Jon forces Bill to sign a contract to sell Jon a car below market value.

Exam 12: Defenses to Contract Enforceability

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Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen agrees to buy "Garth's ATV" for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

(Multiple Choice)

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Question 41

Big Dog Security Service, Inc. orally agrees to provide security services for NorthGate Mall for as long as NorthGate Mall requires them. This contract is enforceable by

(Multiple Choice)

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(36)

Question 42

Pete, an accountant, convinces his client Kasey to invest her savings in a nonexistent social-networking Web site. When Kasey learns the truth, she can

(Multiple Choice)

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(38)

Question 43

Katie and Linda enter into a contract for Katie to buy Linda's house in which there are several terms that are subject to more than one reasonable interpretation. If Katie and Linda attach materially different meanings to a term

(Multiple Choice)

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Question 44

Misrepresentation can occur through conduct.

(True/False)

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Question 45

A false statement by an expert to a naive buyer usually will entitle the buyer to rescind or reform a contract.

(True/False)

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Question 46

Selena buys a cell phone for $350 and an air hockey table for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

(Multiple Choice)

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Question 47

Punitive damages are meant to reward the defendant.

(True/False)

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Question 48

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely

(Multiple Choice)

4.8/5

(39)

Question 49

Kathleen sells Richard a racehorse for $1,000. Both Kathleen and Richard think that the horse is too slow to win any races. Richard then enters the horse in a race, and it wins easily. He enters it in more races, and the horse soon wins more than $1 million. Kathleen tries to rescind the contract to sell the horse, claiming that it was worth more than $1,000. A court will

(Multiple Choice)

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Question 50

An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.

(True/False)

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Question 51

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate

(Multiple Choice)

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(38)

Question 52

Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by

(Multiple Choice)

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Question 53

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

(True/False)

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Question 54

Joy and Karl contract for the sale of Joy's prize-winning show dog for $1,000. Unknown to either party, the dog has died. Karl is

(Multiple Choice)

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Question 55

Dale files a suit against Evelyn, alleging her fraud in entering into a contract with him. Proof of an injury is required

(Multiple Choice)

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(40)

Question 56

Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to deliver a collection of exotic wines by April 30 of the following year. This contract is enforceable by

(Multiple Choice)

4.8/5

(34)

Question 57

Scienter exists if

(Multiple Choice)

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Question 58

Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.

(True/False)

4.9/5

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Question 59

An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.

(True/False)

4.9/5

(27)

Question 60

Showing 41 - 60 of 72

Exam 12: Defenses to Contract Enforceability

Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen agrees to buy "Garth's ATV" for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

Big Dog Security Service, Inc. orally agrees to provide security services for NorthGate Mall for as long as NorthGate Mall requires them. This contract is enforceable by

Pete, an accountant, convinces his client Kasey to invest her savings in a nonexistent social-networking Web site. When Kasey learns the truth, she can

Katie and Linda enter into a contract for Katie to buy Linda's house in which there are several terms that are subject to more than one reasonable interpretation. If Katie and Linda attach materially different meanings to a term

Misrepresentation can occur through conduct.

A false statement by an expert to a naive buyer usually will entitle the buyer to rescind or reform a contract.

Selena buys a cell phone for $350 and an air hockey table for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

Punitive damages are meant to reward the defendant.

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely

An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate

Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

Joy and Karl contract for the sale of Joy's prize-winning show dog for $1,000. Unknown to either party, the dog has died. Karl is

Dale files a suit against Evelyn, alleging her fraud in entering into a contract with him. Proof of an injury is required

Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to deliver a collection of exotic wines by April 30 of the following year. This contract is enforceable by

Scienter exists if

Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.

An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.

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