Deck 56: Contracts and Liability

Question 1

U.S. Oil Company and Vehicle Fuel Corporation enter into a contract for the sale of refined oil. Either party's nonperformance may be excused, be?cause of unforeseen circumstances, under the doctrine of commercial

A) good faith.
B) impracticability.
C) square dealing.
D) unconscionability.

Answer 1

B

Question 2

Sports Line, Inc., and Trudy, a consumer, enter into a contract for a sale of a snowmobile. If the contract includes a clause that is perceived as grossly unfair to Trudy, its enforcement may be challenged under the doctrine of

A) good faith.
B) impracticability.
C) square dealing.
D) unconscionability.

Answer 2

D

Question 3

Paltry Tools, Inc., makes and sells a QuikMade-brand power drill to Rolf, who is allegedly injured by the drill. Rolf and others allegedly injured by QuikMade -brand drills pool resources to file a suit as a group against Paltry. Under the Class Action Fairness Act, if more than two-thirds of the plaintiffs are from different states and the damages sought are $5 million or more, jurisdiction over the suit is in

A) a federal court.
B) a federal court and a state court.
C) a federal court or a state court.
D) a state court.

Answer 3

A

Question 4

Fast Food Corporation and Giant Potatoes, Inc., enter into a contract for Giant's sale to Fast of all of the potatoes that Fast needs. The amount of potatoes that Giant must supply is

A) all of Fast's requirements that may occur in good faith.
B) all of Giant's output that is not commercially impracticable.
C) the greatest quantity that is not unconscionable.
D) the greatest quantity that makes the contract a "square deal."

Question 5

Flimsy Watercraft, Inc., makes and sells a boat to Glen, who is injured in an accident allegedly due to the boat. Glen and others similarly situated pool resources to file a suit as a group against Flimsy, seeking $10 million in damages. Under the Class Action Fairness Act, the suit must be filed in a federal court

A) if Flimsy is a national corporation.
B) if more two-thirds of the plaintiffs are from multiple states.
C) under any circumstances.
D) under no circumstances.

Question 6

Precision Parts Company and Quality Manufacturing, Inc., enter into a contract for the sale of a certain quantity of machine parts. Although not expressly stated, a concept that is read into this contract is the concept of

A) good faith.
B) impracticability.
C) square dealing.
D) unconscionability.