BUSN420 Week 4

19 Jul BUSN420 Week 4

Question 1.1. (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.

Question 2.2. (TCO 4) Timber, Inc., and Wood Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by _____ (Points : 2)

the seller.

the buyer.

any interested third party, such as the mortgagee or title company.

None of the above

Question 3.3. (TCO 4) Dom, a salesperson for Excel Autos, promises Fern that a certain car will give her a smooth ride. Dom offers a test drive, which Fern declines. She buys the car but soon realizes that its suspension is in poor condition. Fern (Points : 2)

can rescind the contract on the ground of fraud.

can rescind the contract on the ground of misrepresentation.

can rescind the contract on the ground of mistake.

was not defrauded.

Question 4.4. (TCO 4) Kevin goes to the store to purchase a fully-automatic washing machine. He browses through several models of washing machines but does not let the salespersons know that he wants a fully-automatic model. While signing the sales contract, he does not notice that the model he is purchasing is a semi-automatic machine. After purchase, which of the following options does Kyle have? (Points : 2)

Exchange the machine with a fully-automatic one and sue the store if its does not accept it.

Demand a full cash refund from the store for fraud in concealment.

Sue the store for its innocent misrepresentation.

Keep the semi-automatic washing machine as he made a unilateral mistake.

Question 5.5. (TCO 4) Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states 12 percent. The Statute of Frauds governs ______ (Points : 2)

contracts that are induced by fraud.

contracts that must be in writing to be enforceable.

the admissibility in court of oral evidence.

the reformation of oral and written statements into one contract.

Question 6.6. (TCO 4) Kimlon Informatics has to recover $5,000 from a client for its services. The recovery period is 100 days but Kimlon needs the money immediately. It sells the right of collecting money from its client to Quikcollect, a collection agency. Here, Kimlon Informatics is the ______. (Points : 2)

obligor

obligee

subassignee

assignee

Question 7.7. (TCO 4) Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside sells the acreage to Fealty Realty, and fails to go through with DA’s deal on the agreed date, when the market price of the land is $17,000. DA may recover _____ (Points : 2)

$17,000.

$15,000.

$2,000.

$0.

Question 8.8. (TCO 4) A famous actor signs a contract with a movie studio where she agrees to star in a comedy. Which of the following is true of assignment of such a contract? (Points : 2)

The movie studio can assign the contract to another movie studio.

The movie studio is at liberty to include the actor in a different movie.

If the actor is injured, she can assign the contract to another popular actor.

Both the actor and the studio can agree that their contract can be assigned.

Question 9.9. (TCO 4) Howard is injured by Penny in a car accident, caused due to Penny’s negligence. Which of the following statements holds true for Howard’s right to assign? (Points : 2)

Howard cannot assign the recovery of punitive damages from Penny.

Howard can only assign the recovery of his medical expenses from Penny.

Howard’s right to sue Penny cannot be assigned.

Howard can only assign his right to take the case to the appellate court.

Question 10.10. (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