Exam 13: Contracts: Performance, Remedies, and Rights

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?

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

Allegheny Energy Supply Co. and Monogahela Power Co., a subsidiary, filed suit against Anker West Virginia Mining Co., later acquired by International Coal Group, for breach of contract. The parties had a contract for Allegheny and Monogahela to buy all of the coal produced from a proposed "Sycamore 2" mine, located in Harrison County, W.Va. The coal promised amounted to about 1.8 million tons per year, not less than 20 million tons total. Anker has never produced the necessary amount of coal, topping out at 480,000 tons per year in total from the mine. Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine. As a result, Anker said it was unable to deliver the necessary coal. Which defense to performance is Anker relying on?

"This shirt is 100% cotton" is a statement that is puffing.

List the federal laws regulating credit contracts and give a brief description of each.

A contract with a minor is voidable at the minor's option.

Which of the following statements would not be a basis for misrepresentation?

Credit repair organizations are now subject to federal law and disclosure requirements.

The Consumer Credit Protection Act puts limitations on garnishments.

Which of the following is not covered by the Fair Debt Collections Practices Act?

Covenants not to compete are valid only in sales of a business.

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. Which of the following statements is true?

The seller of a dry cleaning business has agreed not to open another dry cleaning business for two years within a one-mile radius of the sold business. Such an agreement:

The FCRA prohibits the disclosure of a bankruptcy that occurred eight years ago.

A multi-million dollar contract between a manufacturer and a parts supplier provides for damages of $300 per day for late delivery is void as a penalty contract.

The Fair Debt Collections Practices Act applies only to consumer credit collection.

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.

Akon had an idea for a website called "Fantrace," a site that would help celebrities connect with their fans. Akon entered into an agreement with Broomfield for his help in building the site and Khalilian to help with marketing. Broomfield had recommended his friend, Khalilian, for the project because of his connections with celebrities. However, Broomfield did not tell Akon that he knew that Khalilian was a liar and that he had also been in prison. When things did not go well in working with the two, Akon sought to set aside the contract on the grounds of misrepresentation. Which of the following is correct?

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:

Undue influence requires proof of a confidential relationship.