Fall 2014 Exam 2 1 Which of the following is NOT one of the required elements of a contract A Agreement B Consideration C Capacity D Fairness E Legality 2 The Uniform Commercial Code is a body of statutory law that deals in part with certain forms of contracts Which of the following contracts would fall under the UCC specifically Article TWO of the UCC A Two year employment contract B Contract for sale of computer C Contract to mow a homeowner s lawn for the summer season D Health insurance policy E Contract to paint a house 3 Tom entered into a contract with Trusty Construction Company whereby Trusty was going to build an addition to Tom s office building The contract called for a fixed price of 20 000 with construction to begin on September 1 and to finish on September 30 It is now September 15 and Trusty is about halfway done with the job As of September 15 this contract can best be classified as A Bilateral and executory B Bilateral and executed C Unilateral and executory D Unilateral and executed E Quasi contract 4 Allen is considering making an offer to Baker to purchase Baker s house Allen and Baker had been discussing the matter for several weeks and finally Allen decided to make an offer to Baker He typed up the offer on his office computer printed it off and put it on his desk expecting to give it to Baker later that day He then left for lunch Baker s office happened to be in the same building and while Allen was at lunch Baker wandered into Allen s office which had been left open saw the offer and wrote I accept Baker at the bottom of the document During lunch Allen changed his mind and decided not to buy the house after all Baker insists that he already accepted Allen s offer and therefore a contract exists between the two parties Is there a contract in this case A Yes as the offer was communicated as soon as Baker read the document B No as there was no legal intent C No as the offer was not reasonably definite D No as the offer was not legally communicated to the offeree E No as the statute of frauds has not been satisfied Page 1 of 11 5 On Monday September 20 Elaine the owner of a business that sells office equipment received a written offer from a customer Charles whereby Charles a doctor offered to purchase a copy machine from Elaine The letter stated that Charles would be willing to pay 500 for the copier The letter also stated that the offer would be held open only until Friday September 24 at noon Which of the following is correct A There is no offer in this case since Charles did not include a check for 500 at the time the offer was made B There is no offer in this case since Charles did not personally face to face deliver the offer to Elaine C There is a legal offer in this case and Charles is obligated to hold the offer open for the indicated time D There is a legal offer in this case but Charles can revoke by simply deciding that he no longer wants the copier E There is a legal offer in this case but Charles can revoke by notifying Elaine prior to her acceptance of the offer 6 Frank sent a letter to Gary who lived in another state The letter contained a legal offer for a service contract Gary received the letter on Wednesday September 22 On Thursday September 23 Gary decided that he wanted to accept the offer On Friday September 24 Gary mailed a letter properly addressed and stamped to Frank accepting the offer The letter was received by Frank on Monday September 27 Under the general common law a contract was formed on A September 22 B September 23 C September 24 D September 27 E No contract was formed since Gary did not have the right to accept by using the mails 7 Which of the following is are required elements of consideration under general common law I It must be bargained for II The obligations agreed upon must be of approximately equal value III There must be an exchange of money A I only B II only C I and II only D III only E I II and III 8 Carol is a school teacher at Happy Child School At the end of the school year she received a letter from the principal stating that she had been chosen the teacher of the year and would be receiving a 5 000 bonus for her outstanding work Carol immediately phoned the principal and thanked him for the bonus which she had not expected since she did not even know that such an award existed Two weeks later the principal sent another letter to Carol letting her know that due to budget problems she would not be getting the bonus If Carol should go to court to collect the bonus a court would probably rule Page 2 of 11 A B C D E For Carol since this is a valid bilateral contract For Carol since this is a valid unilateral contract For the school under the past consideration rule For the school under the pre existing duty rule For the school under the parole evidence rule 9 Eddie age 16 entered into a contract with Bill a 21 year old college student to purchase a laptop which Bill had used for several years Eddie gave Bill 300 in cash which he had earned working at the local mall Neither party said anything about Eddie s age Three weeks later Eddie changed his mind and told Bill that he did not want the laptop after all and would like his money back Applying general common law to this case A The contract cannot be rescinded by Eddie since he did not tell Bill that he was under 18 B The contract is voidable and Eddie has the right to rescind by tendering the laptop to Bill C The contract is voidable but Eddie s right to rescind terminates 7 days after the date of sale D The contract is completely void since one of the parties Eddie lacked legal capacity 10 You have just opened a new sporting goods store In order to attract new customers you place advertisements in the local newspaper that every customer who comes into the store and buys at least 5 of merchandise can place their name in drum and at the end of the first month of doing business a drawing will be held The prize is a free trip to the NCAA Final Four basketball championship game complete with tickets transportation and lodging Under general common law this would probably be considered A A valid bilateral contract B A valid unilateral contract C An illegal adhesion contract D An illegal gambling contract E A legal condition precedent 11 While you are on a ski trip you take the time to read the back of your …