Question 1

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

Accepted Answer

A) True 
 B)False

Question 2

Garnishments:

Accepted Answer

A)  are attachments of funds for executing a judgment. 
B)  are not regulated by federal laws. 
C)  can take up to 75 percent of the debtor's wages. 
D)  all of the above 
A)  are attachments of funds for executing a judgment. 
B)  are not regulated by federal laws. 
C)  can take up to 75 percent of the debtor's wages. 
D)  all of the above

Question 3

Which of the following cannot be disclosed on a credit report being issued on a job applicant for a $37,000/year job in 2008?

Accepted Answer

A)  a bankruptcy in 1990 
B)  a judgment paid in 1991 
C)  a criminal conviction for running a meth lab in 1998 
D)  All of the above can be disclosed. 
A)  a bankruptcy in 1990 
B)  a judgment paid in 1991 
C)  a criminal conviction for running a meth lab in 1998 
D)  All of the above can be disclosed.

Question 4

Sue and Kevin Kellman signed a contract for the construction of a cabin near Pinetop. In building the $562,000 cabin, the builder discovered that it had to put the vent for the heating system in the area where the hall closet is located. The result was that the Kellman's had a half­closet there instead of a full­length closet that was open to the floor. The Kellmans:

Accepted Answer

A)  need not pay for the cabin because of this material breach. 
B)  can be compensated under the doctrine of force majeure. 
C)  can be compensated under the doctrine of commercial impracticability. 
D)  can be compensated under the doctrine of substantial performance. 
A)  need not pay for the cabin because of this material breach. 
B)  can be compensated under the doctrine of force majeure. 
C)  can be compensated under the doctrine of commercial impracticability. 
D)  can be compensated under the doctrine of substantial performance.

Question 5

A force majeure clause is one that provides excuses for nonperformance.

Accepted Answer

A) True 
 B)False

Question 6

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:

Accepted Answer

A)  has no liability to Ralph for the downturn in amount of ice sculptures ordered if it did not guarantee a minimum amount to be purchased. 
B)  may be liable to Ralph under a theory of a lack of good faith. 
C)  is entitled to refocus its business and has not breached its contract. 
D)  none of the above 
A)  has no liability to Ralph for the downturn in amount of ice sculptures ordered if it did not guarantee a minimum amount to be purchased. 
B)  may be liable to Ralph under a theory of a lack of good faith. 
C)  is entitled to refocus its business and has not breached its contract. 
D)  none of the above

Question 7

The Fair Debt Collections Practices Act applies to both commercial and consumer debt.

Accepted Answer

A) True 
 B)False

Question 8

Substantial performance is available for all types of contracts.

Accepted Answer

A) True 
 B)False

Question 9

What rights does a debtor have if he/she discovers inaccuracies in the credit report?

Accepted Answer

A)  can ask to have it eliminated 
B)  can sue for libel 
C)  can provide a separate credit report 
D)  all of the above 
A)  can ask to have it eliminated 
B)  can sue for libel 
C)  can provide a separate credit report 
D)  all of the above

Question 10

Alice, age 17, purchased a 2005 Kia auto at the Tempe Autoplex. After driving the vehicle for three months, Alice returned to the Autoplex for her money. She did not, however, have the Kia. "It was stolen at school last week." Which of the following statements is true?

Accepted Answer

A)  Alice may not rescind the agreement. 
B)  Alice may rescind the agreement only if the stolen Kia is found. 
C)  Alice may rescind the agreement regardless of whether she has the car. 
D)  none of the above 
A)  Alice may not rescind the agreement. 
B)  Alice may rescind the agreement only if the stolen Kia is found. 
C)  Alice may rescind the agreement regardless of whether she has the car. 
D)  none of the above

Question 11

All contracts have conditions for performance.

Accepted Answer

A) True 
 B)False

Question 12

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?

Accepted Answer

a. There was a contract.
b. Th

Question 13

The FDCPA places time limits for the placement of calls.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements would be a basis for claiming misrepresentation?

Accepted Answer

A)  This car is a real honey. 
B)  This car has the finest road performance going. 
C)  This car has the fastest zero to 60 acceleration on the planet. 
D)  This car represents status. 
E)  All of the above could be a basis for misrepresentation. 
A)  This car is a real honey. 
B)  This car has the finest road performance going. 
C)  This car has the fastest zero to 60 acceleration on the planet. 
D)  This car represents status. 
E)  All of the above could be a basis for misrepresentation.

Question 15

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

Accepted Answer

A)  credit contracts in which a security interest in the home is given. 
B)  second mortgages on homes. 
C)  both a and b 
D)  none of the above 
A)  credit contracts in which a security interest in the home is given. 
B)  second mortgages on homes. 
C)  both a and b 
D)  none of the above

Question 16

What would be their grounds for terminating the payment of their pledges?

Accepted Answer

A)  Misrepresentation 
B)  Lack of performance 
C)  Fraud 
D)  Undue influence 
A)  Misrepresentation 
B)  Lack of performance 
C)  Fraud 
D)  Undue influence

Question 17

Who is covered under the Fair Debt Collections Practices Act?

Accepted Answer

A)  an attorney collecting a debt for himself 
B)  Macy's collecting a debt through its own collection subsidiary 
C)  a hospital collecting a debt from a patient 
D)  None of the above is covered under the FDCPA. 
A)  an attorney collecting a debt for himself 
B)  Macy's collecting a debt through its own collection subsidiary 
C)  a hospital collecting a debt from a patient 
D)  None of the above is covered under the FDCPA.

Question 18

Chapter 13 bankruptcy is only available to consumers.

Accepted Answer

A) True 
 B)False

Question 19

Liquidated damages are void as penalties.

Accepted Answer

A) True 
 B)False

Question 20

If entered into by a minor, which of the following contractual situations may be enforceable against the minor?

Accepted Answer

A)  Student loan agreements 
B)  Military obligations 
C)  Payment for reasonable value for necessities 
D)  All of the above 
A)  Student loan agreements 
B)  Military obligations 
C)  Payment for reasonable value for necessities 
D)  All of the above

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

Garnishments:

Which of the following cannot be disclosed on a credit report being issued on a job applicant for a $37,000/year job in 2008?

A force majeure clause is one that provides excuses for nonperformance.

The Fair Debt Collections Practices Act applies to both commercial and consumer debt.

Substantial performance is available for all types of contracts.

What rights does a debtor have if he/she discovers inaccuracies in the credit report?

Alice, age 17, purchased a 2005 Kia auto at the Tempe Autoplex. After driving the vehicle for three months, Alice returned to the Autoplex for her money. She did not, however, have the Kia. "It was stolen at school last week." Which of the following statements is true?

All contracts have conditions for performance.

The FDCPA places time limits for the placement of calls.

Which of the following statements would be a basis for claiming misrepresentation?

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

What would be their grounds for terminating the payment of their pledges?

Who is covered under the Fair Debt Collections Practices Act?

Chapter 13 bankruptcy is only available to consumers.

Liquidated damages are void as penalties.

If entered into by a minor, which of the following contractual situations may be enforceable against the minor?

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters

Exam 13: Contracts: Performance, Remedies, and Rights

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

Garnishments:

Which of the following cannot be disclosed on a credit report being issued on a job applicant for a $37,000/year job in 2008?

A force majeure clause is one that provides excuses for nonperformance.

The Fair Debt Collections Practices Act applies to both commercial and consumer debt.

Substantial performance is available for all types of contracts.

What rights does a debtor have if he/she discovers inaccuracies in the credit report?

Alice, age 17, purchased a 2005 Kia auto at the Tempe Autoplex. After driving the vehicle for three months, Alice returned to the Autoplex for her money. She did not, however, have the Kia. "It was stolen at school last week." Which of the following statements is true?

All contracts have conditions for performance.

The FDCPA places time limits for the placement of calls.

Which of the following statements would be a basis for claiming misrepresentation?

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

What would be their grounds for terminating the payment of their pledges?

Who is covered under the Fair Debt Collections Practices Act?

Chapter 13 bankruptcy is only available to consumers.

Liquidated damages are void as penalties.

If entered into by a minor, which of the following contractual situations may be enforceable against the minor?

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters