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Exam 11: Contract Formation

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Question 31

Multiple Choice

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Avatar Designs, Inc., and Bling Retail Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay. Avatar delivers. The contract is

A) voidable.
B) executed.
C) executive.
D) executory.

E) A) and D)
F) All of the above

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Question 32

Multiple Choice

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Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is

A) enforceable only if Pam does not object after learning of Neil's status.
B) enforceable only if Pam knows that Neil is unlicensed.
C) enforceable only if the outcome is successful.
D) not enforceable.

E) None of the above
F) C) and D)

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Question 33

Multiple Choice

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Scot enters into a contract with Tiffany that later proves voidable at Tiffany's option. If she elects to avoid any duty to perform under the contract

Extraordinary unforeseen difficulties can be the basis for an exception to the preexisting duty rule.

Bulk Baked Foods Company agrees to supply Comida Café with all the corn chips that it requires for a year. A sudden blight caused by an organism hitherto unknown in the United States results in a shortage of corn, and the price rises sharply. Bulk asks Comida to pay a higher price for the chips. This request is most likely

An expression of opinion is not an offer.

A promise to do what one already has a legal duty to do does not normally constitute legally sufficient consideration.

An express contract must be in writing.

The power of acceptance continues forever.

QT Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. QT is

Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from his accountant Rupert within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have

Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

An adult may avoid any contract with a minor.

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he

Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is

Baby Products, Inc., hires Chewy to develop and implement an e-commerce strategy for marketing Baby's products. Chewy signs a contract that includes a clause prohibiting him from competing with Baby during and after the employment. Before the strategy is implemented, Chewy resigns from Baby's employ and opens a business to compete with Baby. In Baby's suit against Chewy, to determine whether he may compete with Baby, what is the most important factor the court should consider Is the clause likely to be enforced Explain.

An acceptance must be unequivocal to create a contract.

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

In an express contract, the terms are fully stated in words.

Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Most likely, Ben has a cause of action based on