Deck 10: D: Nature and Terminology

Question 1

To bid on a job,Budget Construction Company relies on the oral promise of Coldwater Plumbing,Inc. ,to perform certain work at a certain price.Coldwater fails to per?form.Budget can

A)not recover due to the principle of freedom of contract.
B)not recover due to the Statute of Frauds.
C)recover under the concept of unconscionability.
D)recover under the doctrine of promissory estoppel.

Answer 1

D

Question 2

Barrie is induced to leave a sales position with Car Town Auto Dealership due to a false promise by Delacroix,a sales supervisor at Rev Up Motors,as to the amount of compensation Barrie would earn at Rev Up.Barrie is most likely a victim of

A)fraud.
B)mistake.
C)nothing.
D)puffery.

Answer 2

A

Question 3

GPS Devices Inc.sponsors a "Finders Keepers!" contest in which Erwin and other entrants agree to race to certain locales to win small prizes and collect clues that lead to the "Grand Lost Treasure," which the first finder will be awarded.GPS reserves the right to cancel the contest or change its terms at any time.If Erwin challenges this reservation in court,the court will most likely hold that GPS can

A)cancel the contest or alter its terms at any time.
B)not modify the terms of the contest after it begins.
C)reduce the amount of the small prizes but not the grand prize.
D)reduce the amount of the grand prize but not the small prizes.

Answer 3

A

Question 4

Ray and Strip Mines,Inc. ,enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land.A court is most likely to determine that this deal is unfair under

A)the concept of unconscionability.
B)the doctrine of promissory estoppel.
C)the principle of freedom of contract.
D)the Statute of Frauds.

Question 5

Leticia contracts with Mariana to sell land that,unknown to either party,has groundwater contaminated from adjacent land that was occupied several decades earlier by a chemical manufacturing plant.When this is discovered,Leticia 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.