BUSN420 Quiz Week 4

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BUSN420 Quiz Week 4
(TCO 4) Damages that will be paid upon a breach of contract, but that are established in advance…

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BUSN420 Quiz Week 4

BUSN420 Quiz Week 4

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(TCO 4) In selling paving stones to Yard & Garden Supply, Trey tells Yard & Garden’s buying representative that the stones are soft as carpet. This is _____. (Points : 2)

Unconscionable

Fraud

Mistake

Puffery

(TCO 4) Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle’s debt if he does not. Ilsa does not get any personal benefit from the agreement. This contract is enforceable by _____. (Points : 2)
any party

Jiffy only

Jiffy or Kyle

None of the parties

(TCO 4) Cody and Debora enter into an oral contract under which Cody agrees to work on Debora’s ranch for not less than ten days. This contract is enforceable by _____. (Points : 2)

Cody only

Debora only

Either party
Neither party

(TCO 4) Little’s Video Store and Major TV Sales Corporation enter into an oral contract for Major’s sale to Little’s of eighteen DVD players for $80 each. After Little’s takes possession of the players, but before it makes payment, this contract is _____ (Points : 2)

Enforceable only if it is in writing

Enforceable only if it is oral

Enforceable whether it is oral or in writing

Not enforceable

(TCO 4) Dale files a suit against Eve, alleging that she used fraud to induce him to enter into a contract with her. Proof of an injury is required _____ (Points : 2)

To recover damages

To rescind the contract

To undo Eve’s influence

Under no circumstances

(TCO 4)  Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor? (Points : 2)

The assignee’s only course of action is to sue the obligee for damages.

The assignee cannot sue the assignor for damages.

The obligor’s only recourse is to sue the assignee for damages.

The assignee cannot sue the obligor to recover payment.

(TCO 4) Mikayla enters into a contract with Logan to provide surface material for Mikayla’s tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is _____ (Points : 2)

An excessive estimate of the loss on a breach.
A reasonable estimate of the loss on a breach.

Designed to penalize the breaching party.

Intended to quickly provide cash to the non-breaching party.
(TCO 4) Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover _____ (Points : 2)

The amount of the wages that Handy promised only.
The difference between the wages at the two jobs only.

The difference between the wages at the two jobs plus $100.

$100 only.

(TCO 4) Damages that will be paid upon a breach of contract, but that are established in advance are known as ______. (Points : 2)

Capture

Replevy

Installment damages

Liquidated damages
(TCO 4) Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar’s insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another Studio where they had to settle for $150,000, as the chips were now only suitable for specific audio engineering processes.
What right to remedy did Klint exercise when selling the microchips to another studio? (Points : 2)

Right to claim lost profits

Right to cover

Right to dispose of goods

Right to recover damages