LAW 421 - QUIZ 3
CONTRACTS AND AGENCY
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Please put only your last name on the Answer Sheet in the by writing it in the yellow space. _________________________________________________________________________ 1. With regard to the court, adequacy of consideration means: A. The court will adjust the consideration if the value exchanged is unfair. B. The consideration exchanged must be exactly equal in value. C. The court doesn't care about value as long as the mutual assent is valid. D. The consideration exchanged must be reasonably close in value. 2. Bill gets many speeding tickets. His friend Ron told Bill that he would pay Bill $300 if he did not get a ticket for one year. Bill drove very cautiously for the next year and did not get a ticket. Is Ron obligated to pay?
A. Yes, because Bill gave up a legal right based on the agreement. B. No, because $300 is not an adequate amount based on Bill's detriment. C. Yes, because a promise is a promise and consideration has nothing to do with this agreement. D. No, because Bill suffered no detriment in this agreement. Page 2 of 6 LAW 421 – Quiz 3 – 7.01.14 3. Excursions Inc. (Excursions) ordered 300 kayaks from Seafarer's, Inc. (Seafarer's), with delivery to be made on April 20. The kayaks will used during the upcoming season. Under which circumstance may Excursions claim anticipatory repudiation?
A. The popularity of kayaking has suddenly decreased and Excursions isn't sure it can use 300 kayaks during the upcoming season.
B. The cost of kayaks has tripled owing to worldwide demand, lowering Seafarer's profit margin. Yet Seafarer's insists that it will honor the contract with Excursions. C. Excursions have found another manufacturer that can provide less expensive kayaks of the same quality as Seafarer's kayaks.
D. Seafarer's only manufacturing plant burned down on January 15, yet Seafarer's insists that it will rebuild the plant and honor the contract with Excursions. 4. Ronald contracted with Quality Hotel (Quality) to rent a room for a weekend while at a business meeting in the city. The contract with Quality required a $50 deposit with the remaining balance due on check-in. The deposit was nonrefundable unless the reservation is cancelled at least 36 hours prior to check in. The day before he was to leave for the resort, Ronald's boss called off the business meeting. Ronald called Quality, canceled the reservation, and demanded a refund of his deposit. A. Ronald will get the refund because of impossibility of performance; he can't attend a business meeting that isn't going to be held.
B. Ronald will get the refund because of frustration of purpose; his intention was to attend a business meeting that is no longer being held.
C. Quality is not required to provide a refund.
D. Ronald will get the refund because of impracticability; he doesn't need a room to attend a business meeting that isn't going to be held.
5. Paul contracted with Dan to buy some land on behalf of Developers, Inc. Developers told Paul to use Paul's own name and not to...
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