Question 1

Travis and Brooke offer to buy a house from Michael and Tara because they love the location, the size, and the decorations. Michael and Tara accept the offer and reduce it to a writing that states Travis and Brooke will pay $100,000.00 to Michael and Tara for their house at 123 East 4th Street, Tulsa, OK. When Travis and Brooke move into the house, they are furious because Michael and Tara took all of their furniture and decorations with them, and Travis and Brooke loved the house so much primarily because of the furniture and decorations. Travis said they talked about this a lot with Michael and Tara during the sale. Which statement below is correct according to the parol evidence rule?

Accepted Answer

A)   Michael and Tara will be required to return their furniture and decorations because they talked about it with Travis and Tara in the sale of the house.
B)   Since the writing only referred to the sale of the house and not the contents, the sale only includes the house.
C)   Since there is a dispute as to the terms, the court will listen to evidence at trial to interpret the terms of the written contract.
D)   The court will throw out the contract and will require them to renegotiate a new contract. B

Question 2

Meghan has some very embarrassing pictures of Kalieh. Meghan tells Kalieh that she will post the pictures all over various social media accounts unless Kalieh agrees to sell Meghan an antique wedding ring for $500.00. Out of fear that Meghan will indeed publish the pictures, Kalieh agrees to sell the ring for $500.00. Kalieh will be able to claim the defense of

Accepted Answer

A)   Duress
B)   Undue influence
C)   Fraud
D)   Mistake A

Question 3

When a contract is entered into that is so grossly unfair that it shocks the conscience it is called

Accepted Answer

A)   Fraudulent
B)   Undue Influence
C)   Unconscionable
D)   Deceptive C

Question 4

Fraudulent misrepresentation requires

Accepted Answer

A)   Reckless disregard for the truth
B)   Negligent disregard for the truth
C)   Scienter
D)   Maliciousness and repugnant intent

Question 5

Standardized, preprinted contracts are called

Accepted Answer

A)   Adhesion contracts
B)   Option contracts
C)   Unconscionable contracts
D)   Exclusive contracts

Question 6

Josh sells t-shirts at an amusement park. When selling t-shirts, he often tells people that the shirts are the softest shirts ever created. If he did not truly believe that and it was a lie, would this be an example of misrepresentation?

Accepted Answer

A)   No because it is a lie about an opinion.
B)   Yes because it is a lie about an opinion.
C)   No because it is not an important opinion.
D)   Yes because he lied.

Question 7

Once a valid contract is formed, courts will enforce that contract no matter what.

Accepted Answer

A) True 
 B)False

Question 8

Courts routinely render a contract unenforceable due to unconscionability.

Accepted Answer

A) True 
 B)False

Question 9

Copeland Breeders sells a Redbone Coonhound puppy to the Hightower family. In anticipation for the day that the family gets to pick up the puppy they purchased, the breeder sent pictures via text of, "your pup!" The pictures show the same puppy in each one of a completely red haired pup with a solid black nose. When the Hightower family shows up to pick up their purchased pup, they all immediately notice the dog that the Breeder is giving them is not the same as the puppy in the many pictures because this puppy has a solid red nose and a white tail. When they ask for their puppy, the breeder said he never guaranteed a specific puppy and that the puppy in the pictures was already given to another family. The breeder states that the writing only states that he would sell them one puppy for $500.00. Will the court allow the use of the pictures and texts in contract interpretation?

Accepted Answer

A)   Yes, since the term is ambiguous and in dispute, the court will allow the texts and pictures.
B)   No, a puppy is a puppy and the court will rule any outside information will not be allowed.
C)   No, as long as the breeder is able to provide a puppy of the same age, there has been substantial performance of the contract and will not seek to disrupt the written word.
D)   Yes, as long as the court determines that the breeder operated in good faith.

Question 10

Custom Candy Creations, a candy shop, has on its sign "The Finest Candy in the World." This is an example of

Accepted Answer

A)   Fraud
B)   Misrepresentation
C)   Puffing
D)   Misleading

Question 11

The interpretation rule stating that any writing by the partiesintended to be the final expression of their agreement may not be contradicted by any oral or written agreements made prior to the writing is called the

Accepted Answer

A)   Statute of frauds
B)   Statute of finiteness
C)   Parol evidence rule
D)   Plain-meaning rule

Question 12

The knowing and voluntary and mutual approval of the terms of the contract by each party required for a contract to be enforceable is

Accepted Answer

A)   Genuine assent
B)   Consideration
C)   Capacity
D)   Legality

Question 13

In the business environment, explain why consent defects may affect the enforceability of a contract?

Accepted Answer

The answer of In the business environment, explain why consent...

Question 14

If a term in a contract is ambiguous and unclear, when interpreting the term the court will generally construe the terms

Accepted Answer

A)   In favor of the contract drafter
B)   Against the drafter
C)   In a manner the court feels is fair and just
D)   According to the rules set forth in the UCC

Question 15

Under the statute of frauds, the one year rule states

Accepted Answer

A)   Contracts that cannot be completed within a year must also be notarized
B)   Contracts that may take over a year to complete must be in writing
C)   Contracts that may take under a year to complete must be in writing
D)   Contracts that by their very terms cannot possibly be completed within a year must be in writing

Question 16

Without genuiness of assent

Accepted Answer

A)   A promise made is not legally binding.
B)   The contract lack legality of purpose.
C)   The parties to the contract are bound to the terms only if the court determines it is fair.
D)   The parties must renegotiate the terms of the contract.

Question 17

Shawn is selling her house. During an open house, she enters into a conversation with a prospective buyer, Ned, who keeps stating that he cannot believe that Shawn is selling this house with absolutely no termite damage for the price she is asking. Shawn has actual knowledge that the house is infested with termites but does not correct Ned at any time. Is this a lie?

Accepted Answer

A)   No because Shawn never made a statement
B)   No because she never made affirmative conduct
C)   Yes because Shawn failed to correct a past statement that she knew was false
D)   Yes because all people have a duty to disclose all facts of a transaction

Question 18

Which of the following is not an example of when a contract must be in writing according to the statute of frauds?

Accepted Answer

A)   Sadie sells Shirley five acres of land
B)   Reid agrees to cosign on Gabrielle's student loan
C)   Jeff agrees to mow Julie's lawn for $100.00
D)   Jessica sells her car to Tina for $5000.00

Question 19

Ralph threatens to fire Shirley if she reports incidents of sexual harassment she has faced on the job from a co-worker. She agrees to not report so long as Ralph does not fire her. Shirley could avoid this contract on the basis of duress.

Accepted Answer

A) True 
 B)False

Question 20

A fact is material if

Accepted Answer

A)   It concerns a basic assumption in the agreement that could change the value of the contract.
B)   The reasonable person would find it misleading during the negotiation process of the contract.
C)   It is any fact stated in contract negotiations that either party made.
D)   The fact is objectively verifiable as true or false.

Exam 9: Enforceability

When a contract is entered into that is so grossly unfair that it shocks the conscience it is called

Fraudulent misrepresentation requires

Standardized, preprinted contracts are called

Josh sells t-shirts at an amusement park. When selling t-shirts, he often tells people that the shirts are the softest shirts ever created. If he did not truly believe that and it was a lie, would this be an example of misrepresentation?

Once a valid contract is formed, courts will enforce that contract no matter what.

Courts routinely render a contract unenforceable due to unconscionability.

Custom Candy Creations, a candy shop, has on its sign "The Finest Candy in the World." This is an example of

The interpretation rule stating that any writing by the partiesintended to be the final expression of their agreement may not be contradicted by any oral or written agreements made prior to the writing is called the

The knowing and voluntary and mutual approval of the terms of the contract by each party required for a contract to be enforceable is

In the business environment, explain why consent defects may affect the enforceability of a contract?

If a term in a contract is ambiguous and unclear, when interpreting the term the court will generally construe the terms

Under the statute of frauds, the one year rule states

Without genuiness of assent

Which of the following is not an example of when a contract must be in writing according to the statute of frauds?

Ralph threatens to fire Shirley if she reports incidents of sexual harassment she has faced on the job from a co-worker. She agrees to not report so long as Ralph does not fire her. Shirley could avoid this contract on the basis of duress.

A fact is material if