Deck 19: C: The Formation of Sales and Lease Contracts

Question 1

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."

Answer 1

A

Question 2

Catalyst Corporation is a small,U.S.-based business that makes sophisticated polymers for export.Under the National Export Initiative,the federal government is

A)erecting barriers to deny free access to foreign markets.
B)boosting lending to small businesses,especially for export purposes.
C)placing less emphasis on exports than other governments.
D)playing a less active role in promoting exports in emerging markets.

Answer 2

B

Question 3

Hamidi,a coffee farmer in Kenya,forms an alliance with Guthrie,an importer and marketer in Ireland.Their products carry a Fair Trade label.This means that Hamidi

A)accepts whatever price for his products that the market will bear.
B)produces crops with genetically modified organisms.
C)puts children to work whenever possible.
D)uses environmentally sustainable farming methods.

Answer 3

D

Question 4

Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute

A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.

Question 5

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.