1. Which of the following duties would not be delegable?

 

A) John has a contractual duty to pay Isaac $50.

 

B) Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1.

 

C) Jeffrey has a duty to mow Georgia's lawn at least once a week.

 

D) Arthur has a duty to teach an accounting class at a community college during the fall semester.

2. XYZ Company and Bill enter into a 5 year employment contract paying $90,000 per year. XYZ breachs the contract and fires Bill after 3 years of employment without cause. How much would a court award Bill?

 

A) $180,000 as restitution damages.

 

B) $180,000 as compensatory damages.

 

C) $180,000 as punitive damages.

 

D) The court will force XYZ to rehire Bill for the last two years of his contract.

3. William has a contract to build a new office building for Angela. The written contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:

 

A) an express condition.

 

B) an implied-in-fact condition.

 

C) an implied-in-law condition.

 

D) a condition subsequent.

 

4. Which of the following is a contract with a condition subsequent?

 

A) Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank.

 

B) Roger bought a VCR, but he may return the VCR within ten days and get all of his money back.

 

C) Both (a) and (b) are examples of a condition subsequent.

 

D) Neither (a) nor (b) is an example of a condition subsequent.

 

5. On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n):

 

A) material alteration.

 

B) anticipatory repudiation.

 

C) nonmaterial breach since the statement is made before December 31.

 

D) accord.

 

6. Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry refuses to allow them to work. After four weeks of this these kinds of excuses, Ace:

 

A) may be discharged, but Henry is not.

 

B) may be discharged, and so would Henry.

 

C) can sue for damages, but must perform when Henry is ready.

 

D) has no choice but to keep coming back each day until Henry is ready.

 

7. Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is personally satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is unreasonable.

 

A) Bryan must pay for the suit even if he is dissatisfied.

 

B) This is an illusory contract, because only Anita is bound.

 

C) Bryan's approval is an objective standard.

 

D) Anita has no recourse against Bryan, because she agreed to the subjective standard.

8. Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants to get out of his contract. Can he?

A) No, the parties expected the hardship and provided for it in their contract.

B) No, there is no hardship.

C) Yes, the contract is impracticable.

D) Yes, the freeze is a supervening event.

9. Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changes his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking:

A) restitution.

B) punitive damages.

C) specific performance.

D) valid tender.

10. A contractor and Buckingham, Inc. have a contract, which calls for the contractor to build a building with the completion of it by June 15. The total cost of the building is $1,000,000. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is most likely:

A) punitive damages.

B) nominal damages.

C) liquidated damages.

D) an illegal penalty.

11. In which of the following situations will a court grant specific performance?

A) In a case involving breach of contract for the sale of real property.

B) In contracts for personal services.

C) Where goods are unique or rare.

D) Both (a) and (c).

12. Steven is a manufacturer's representative for Sellmed Corporation. One day he receives a big-screen television as a gift from one of the clients he contacts on behalf of Sellmed.

A) Steven must account to Sellmed for the gift he has received.

B) The big-screen television belongs to Sellmed rather than to Steven.

C) If Steven keeps the TV without telling Sellmed, he will have breached his fiduciary duty to Sellmed.

D) All of the above are correct.

13. Which of the following is NOT a major duty which the agent owes to his principal?

A) Duty to obey instructions.

B) Duty to act in good faith and with loyalty.

C) Duty to indemnify.

D) Duty to exercise care.

14. Earl is working for his employer XYZ Company. While performing his job duties he negligently injures a customer, Ralph. Ralph's will:

A) only be able to sue XYZ Company.

B) only be able to sue Ralph.

C) Can sue either Ralph or XYZ Company.

D) Has no case against either Ralph or XYZ Company.

15. Leonard is a traveling salesman for Bighorn, Inc. He calls on Ralphyl, one of his regular accounts, in order to solicit another order. While in the store, Leonard collects a past due account for Bighorn, but he doesn't get another order. It has been a bad day in which Leonard hasn't had any orders. He is so angry about this when he leaves the store to go to his next appointment that he drives negligently and hits a pedestrian with his car.

A) Bighorn has no liability for Leonard's negligence, because Leonard is responsible for his own negligent conduct.

B) Since he was driving at the time of the negligent conduct, Leonard was no longer within the scope of his employment.

C) Bighorn will be liable for Leonard's negligence under the doctrine of respondeat superior.

D) Leonard is an independent contractor and, therefore, Bighorn will have no liability for his negligence.