Deck 51: Contracts and E Contracts

Question 1

Foo pretends to be "Ghee" online, fooling Haruo into believing that Ghee is his friend. Haruo can recover damages from Foo for the hoax on the ground of fraudulent misrepresentation if

A)Haruo can prove an actual injury.
B)Ghee is not in fact a "real" person but a totally fake persona.
C)Foo and Haruo's online relationship is "purely personal."
D)Haruo sent gifts to "Ghee" totaling at least $10,000.

Answer 1

C

Question 2

Rolf pretends to be "Svetlana" online, fooling Tor into believing that Svetlana is his friend. When Tor learns the truth, he is embarrassed and feels humiliated. But he cannot recover damages because he cannot prove an actual injury, which is a requirement for recovery in these circumstances on the ground of

A)mistake.
B)fraudulent misrepresentation.
C)undue influence.
D)unconscionability.

Answer 2

A

Question 3

Event Marketing LLC and Family Restaurant Inc. engage in an instant-messaging conversation while discussing an existing contract. Event suggests a modification-an increase in fees. Family asks about an increase in service. Event replies, "No limits!" Family responds, "Great!" As a modification of the parties' contract, this chat is most likely

A)enforceable.
B)not enforceable because any indication of an agreement is "accidental."
C)not enforceable because it is an instant-messaging conversation.
D)not enforceable because the language is relatively "careless."

Answer 3

A

Question 4

Rural Holdings LLC contracts with Sweetwater Homes to sell real property that, unknown to either party, has groundwater contaminated from adjacent land occupied several decades earlier by Toxic Products Inc. When this is discovered, Rural asserts the doctrine of commercial impracticability. This doctrine applies only when, with respect to an event that renders performance impossible, at the time the contract was formed the parties

A)could not have reasonably foreseen the supervening event.
B)could have reasonably foreseen the supervening event.
C)should have foreseen the supervening event, reasonable or not.
D)should not have foreseen any supervening events.

Question 5

Data Company wants to prohibit its employees from disclosing the firm's proprietary information except in the course of their employment and for the employer's benefit. Data could attain this result with

A)a unilateral nondisclosure agreement.
B)a multilateral settlement agreement.
C)a bilateral consortium agreement.
D)none of the choices.

Question 6

Shu Ltd. and Tech Inc. negotiate a joint venture to do business in Asia. The parties anticipate sharing intellectual property, including trade secrets, as part of the deal. To keep the information confidential, the parties should enter into a nondisclosure agreement that is

A)bilateral.
B)multilateral.
C)unilateral.
D)all of the choices.

Question 7

A court is most likely to enforce a nondisclosure agreement that

A)requires the parties to keep silent about illegal activities.
B)has no time or geographical limitations.
C)has a problem with contractual capacity.
D)none of the choices.

Question 8

Citrus Orchard contracts to deliver a crop of oranges to Dairy Mart. An unexpected freeze destroys the oranges in the orchard. Dairy insists that Citrus deliver by acquiring the oranges on the open market. Citrus claims that this is prohibitively expensive. The best argument against enforcing the contract is

A)frustration of purpose.
B)objective impossibility of performance.
C)anticipatory repudiation.
D)commercial impracticability.

Question 9

NONDISCLOSURE AGREEMENTS A court is most likely to enforce a nondisclosure agreement that requires the parties to keep silent about settlements involving sexual harassment if

A)the victim requested the agreement.
B)the agreement was required as a condition of employment.
C)the parties signed the agreement as part of the settlement.
D)under no circumstances.

Question 10

Tran and Ubie exchange offers and counteroffers via e-mail. These exchanges can constitute a valid contract

A)if the e-mails contain all of the necessary elements of a contract.
B)unless only the receiving party believes that there is an agreement.
C)unless the parties believe that the e-mails are only negotiations.
D)under no circumstances.