time is of the essence
The phrase “time is of the essence” means that:
A) the court is in a hurry to dispose of the case.
B) performance under the contract at the times specified in the contract is vital or essential.
C) the contract expressly states that time is of the essence..
D) the price stated in the contract is subject to change without notice.
Which of the following statements is not true regarding the buyer’s right to cover?
A) The buyer must cover.
B) The measure of damages in a cover is the difference between the cover price and the contract price.
C) Cover must be done by reasonably obtaining substitute goods.
D) Consequential damages can be recovered in addition to the cover damages.
Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?
A) Elaine calls Travel Lines and states that she will buy the tickets.
B) Elaine sends a fax to Travel Lines stating she will buy the tickets.
C) Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets.
D) All of the above responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication.
Which of the following events excuses a promisor from performing his or her contractual obligations?
A) a riot in a different state
B) a shortage of materials necessary for production of goods and/or provision of services called for under the contract.
C) an unanticipated increase in the cost of performance.
D) destruction of the subject matter through no fault of either party.
Tom receives an e-mail from someone alleging to be a Nigerian government official who has stolen money from the government. He needs some place safe to keep the money for a short time. The official promises that, if Tom lets his bank account be used for this purpose, Tom will be allowed to keep a percentage of the stolen money. Tom gives in to the temptation and provides his account information. Instead of receiving money, Tom loses everything he had in the account to the scammer. In this situation:
A) prosecution can be under state law.
B) prosecution can be under the Computer Fraud and Abuse Act.
C) a civil action can be brought under Section 5 of the FTC Act.
D) All of the above.
The Children’s Online Privacy Protection Act prohibits Internet operators from collecting information from children under what age without parental permission?
V3 was a successful singing group that contracted to perform at the “Metalsubstance” rock concert. V3 was aware that the promoter would sustain a substantial loss if the group failed to perform. The members of the group were stricken with a virus that confined them to their beds. The promoter sued for breach of contract. What is the probable result?.
A) V3 is liable for damages for breach of contract..
B) The contract was discharged by impossibility of performance.
C) In order to avoid liability for breach of contract, V3 must arrange for another group of comparable quality and reputation to perform on the scheduled date.
D) V3 will be deemed to have substantially performed the contract.
Meister Bros. shipped 250 radiator belts to fill Braybon’s order. Quality control measures had been in place in Meister’s factory when the belts were manufactured. When Braybon received the order one day before it was due, it notified Meister that it rejected the belts because of a variation from the contract specifications. Meister, although it believed the original belts met the contract specifications, notified Braybon that it would supply conforming goods within one week. When the conforming goods arrive in one week:
A) Braybon must accept them, but does not have to pay the full price because the contract deadline has passed.
B) Braybon does not have to accept them because Meister Bros. only has one chance to fill the order correctly.
C) Braybon should accept them because Meister Bros. has a right to cure even after the contract deadline under these circumstances.
D) Braybon does not have to accept them because Meister Bros. failed to meet its UCC requirement to deal in good faith.
The Uniform Commercial Code applies to:
A) new goods only.
B) used goods only.
C) both new and used goods.
D) none of the above.
Ron operates a garbage pickup business. He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $150 per week. Unexpectedly, the landfill center where Ron takes the garbage to dispose of it, files for bankruptcy. As a result, Ron must travel an additional 100 miles to the nearest landfill center, turning Ron’s expected profit into a loss of $40 per week. Ron’s best argument in support of his petition to be discharged from the contract is:
A) the mail box rule.
B) commercial impracticability.
C) frustration of purpose.
D) true impossibility.
Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is:
A) NSB wins because the modification was not supported by new consideration.
B) NSB wins because the modification has to be in writing.
C) Mid-American Oil wins because the UCC governs this case and no new consideration is required.
D) Mid-American Oil wins because new consideration was present.
A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:
A) promised to keep the offer open.
B) declared in the presence of two or more reputable witnesses that the offer will be kept open.
C) received consideration to keep the offer open.
D) stated in a signed letter that the offer would not be revoked for a specified period of time.
On impulse, you purchase a travel trailer and ask your acquaintance, Max, if you can leave the trailer at the edge of his restaurant’s parking lot until you can have a concrete pad built to store the trailer on your property. Max agrees. When you return for the trailer the next week, it is gone and you find out that Max sold it. You can:
A) recover the trailer because Max did not have any ownership interest to pass.
B) recover, but only if Max bought insurance to cover the trailer while it was on his property.
C) not recover because you “entrusted” the trailer to Max, who then had a right to sell it.
D) not recover because Max had only a voidable title to transfer.
Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and threatened to sue for breach of contract. Which is true?
A) Outdoor Times is guilty of “bait and swap.”
B) Seth will prevail in his case, as Outdoor Times is responsible for having sufficient stock of advertised items.
C) Seth will not prevail, as the advertisement was simply an invitation to negotiate.
D) Outdoor Times must provide Seth with a raincheck, ensuring he can buy the same bag at the sales price at a later date.
Office Plus, an office supply store, ordered 600 blank CDs from Curtis Co., a manufacturer of computer products. Office Plus placed the order using a preprinted purchase order form; Curtis acknowledged the order by sending a preprinted acceptance form back to Office Plus. Unlike Office Plus’ form which says nothing about packaging, Curtis’s form specifies that the CDs will be packaged in cases of 10 CDs per box, 10 boxes per case. Which statement is correct?
A) The UCC does not cover computer CDs.
B) Curtis’s packaging term is a different term which materially changes the offer. There is no contract.
C) Curtis’s packaging term is an additional term and therefore a part of the contract unless Office Plus promptly objects to the term.
D) The UCC does not cover the contract because both parties are merchants.
Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter’s boss told him, “I’m really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck.” When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:
A) Walter will win, as the promise is enforceable.
B) Walter will lose, as he gave no consideration.
C) Walter will lose unless the promise was in writing.
D) Walter will win, as no consideration is required to modify an employment contract.
Jennifer substantially performs her service contract with Gretchen. Due to Jennifer’s failure to render complete performance, Gretchen:
A) is discharged from any further contractual obligations.
B) is required to pay the full contract price, minus the value of Jennifer’s defective performance.
C) is required to pay the full contract price.
D) may declare a material breach and pay only for the value received.
If you allow another person to use your credit card but the person uses the card for a purpose other than the one you specified:
A) an unauthorized usage has occurred.
B) an authorized usage has occurred.
C) you will not be responsible for more than $50 of the amount charged.
D) both a and c.
On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?
A) On January 16, the contract was executory.
B) On January 16, the contract was executed.
C) This contract is a unilateral contract.
D) There is no contract until January 27.
Consumer protection statutes and regulations do not protect against
A) deceptive advertising.
B) the consumer’s own negligence.
C) unsolicited credit cards sent to creditworthy consumers.
D) unreasonable methods of debt collection by debt collection agencies.