Garth owns two all-terrain vehicles (atvs), worth $1,000 and $500,

1. Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, re­spec­tively. Helen agrees to buy “Garth’s ATV” for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

 a.         Garth is entitled to $750 for the $500 ATV.

b.         Helen is entitled to the $1,000 ATV for $750.

c.         Helen must buy both ATVs for $1,500.

d.         there is no contract. 

 

2. Fact Pattern

Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime Bottomland is still willing to sell the land, but under these circumstances the deal would adversely affect Organic Farms. 

 – Refer to Fact Pattern above.  Because of the parties’ belief about the adjacency of the property, their contract is

 a.         unavoidable.

b.         unconscionable.

c.         unenforceable.

d.         voidable.

 

3. Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They be
lieve the land to be worthless, but beneath it is a gold mine. Byron can

a. not rescind the contract.
b. rescind the contract on the basis of fraud.

c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of undue influence.

 

4. Merry Music Inc. and Nayda enter into a contract for Nayda to write six songs for which Merry 
Music agrees to pay her. Nayda transfers her right to payment under the contract to Omni Artists 
Agency. In the transfer of rights, Nayda is

a. a delegator.
b. an assignor.
c. an obligor.
d. an alien

 

5. Devon and Edmond enter into a contract for the closing of a sale of Devon’s recording studio. 
When Edmond’s schedule conflicts, he asks Ferdie to perform his duties at the closing. This transfer 
of duties is

a. a delegation.
b. an assignment.
c. prohibited.
d. a negotiation

 

6. Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to 
transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, 
Beneficial contacts Crop Transport Company, to which Beneficial “assigns all rights under the 
contract.” This transfer is

a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited

 

7. Fact Pattern 
Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell Café is next to Coastal Marina.
Refer to Fact Pattern above. Halfway through the project, Able Contractors refuses to finish the
job. The contract can be enforced against Able Contractors by
a.Beau only.
b.Beau or Coastal Marina only.
c.Beau, Coastal Marina, or Delta Lumber only.
d.Beau, Coastal Marina, Delta Lumber, or Eatwell Café

8. Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can 
modify or rescind their contract without Mai’s consent
a.at any time.
b.at no time.
c.after Mai’s rights have vested.
d.before Mai’s rights have vested.

 

9. Global Outfitters Outlet and Hyacinth, a consumer, enter into a contract for a sale of ultra-weather camping gear. If the contract includes a clause that is perceived as grossly unfair to Hyacinth, its enforcement may be challenged under

 a.the mirror image rule.

b.the principle of fair trade.

c.the predominant-factor test.

d.the doctrine of unconscionability. 

 

10. Southeast Asian contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Southeast Asian is arguing that the court should take into account

a. the course of dealing

b. the course of performance

c. the use of trade

d. a rule of construction 

 

11. Fact Pattern 
In selling a commercial building, Birdie tells Colt that the property has a certain capacity, making it 
suitable for a nightclub. Birdie knows nothing about the capacity of the building, but it is not as she 
specifies. Colt buys the building.
Refer to Fact Pattern above. Under these circumstances, Colt’s best course of action is most 
likely to
a. scam Birdie.
b. induce Birdie to give him the commission on her next sale.
c. recover damages or rescind the contract to buy the building.
d. sabotage Birdie’s career with bad publicity.

 

 

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