Question

QUESTION 1

1. Garrett has been an employee of Construction Company for seven years.   His manager notices that he has been working late making sure that the shop equipment is properly stored and locked up at the end of each workday. The manager tells Garrett that he has appreciated his hard work, that Garrett should not feel obligated to stay late to lock up the equipment anymore, and that Garrett can expect a $250 bonus in his next paycheck because of his past efforts. Is the manager’s statement enforceable under the “bargain” theory of consideration?

		No, the manager’s promise was not bargained for, since Garrett had already done the work.
		No, the manager’s promise was not bargained for, since Garrett never asked for payment.
		Yes, the manager’s promise was bargained for, since it created an expectation in Garrett that he would receive a bonus check.
		Yes, the manager’s promise was bargained for, since it was exchanged for Garrett’s extra work.

QUESTION 2

1. Which of the following is a false statement regarding consideration?

		When assessing consideration a court is not concerned with whether the parties have made a “good” deal or a “bad” deal, just whether the deal was bargained for.
		False recitals of the exchange of consideration are called “sham” bargains and are not enforceable under the bargain theory of consideration.
		An unfair bargain cannot constitute consideration since nobody would genuinely bargain for a contract that was not fair.
		None of the above.

QUESTION 3

1. Which of the following benefits can be recovered under the doctrine of restitution and not under the doctrine of consideration?

		Services provided as a gift to someone.
		Services provided officiously to someone who does not want to receive the services.
		Services provided, without a contract, to a person under circumstances in which it would be unjust for the person not to pay for them.
		Services provided pursuant to a valid, enforceable, bargained exchange.

QUESTION 4

1. Buyer and seller contract for Buyer to purchase and Seller to sell as many widgets as Buyer requires each month for the following 12 months, at a cost of $25 per widget. Choose the best answer:

		The contract is not enforceable because Buyer is not bound to purchase any specific number of widgets.
		The contract is enforceable, and Buyer must buy whatever number of widgets he requires in good faith.
		The contract is enforceable, but Seller will get to determine how many widgets Buyer is required to purchase.
		The contract is not enforceable because the terms of the contract seem to be unfair to the Seller.

QUESTION 5

1. Which of the following contracts is subject to applicable provisions of the Uniform Commercial Code?

		A contract to employ an automotive service technician.
		A contract to sell a parcel of land in a residential real estate development.
		A contract to repair an airplane engine.
		A contract between a boot manufacturer in Ohio and a boot retailer in North Dakota for the sale of 200 pairs of boots.

QUESTION 6

1. Buyer, an independent coffee shop, agrees to buy a small house from Seller for $125,000, if the local zoning authority will approve Buyer’s request to grant a variance from the local zoning ordinance, which currently only allows houses in this part of town to be used as residences. The contract between Buyer and Seller is

		Unenforceable because Buyer’s duty to buy is conditioned on the actions of the zoning authority.
		Enforceable because Buyer has made an enforceable conditional promise.
		Unenforceable because Seller has no control over whether the zoning authority approves the variance or not.
		Enforceable because Buyer has made a promise, and all promises are adequate to constitute consideration.

QUESTION 7

1. Which of the following policies is not one that the Uniform Commercial Code is designed to further?

		To simplify, clarify, and modernize the law governing commercial transactions.
		To permit the continued expansion of commercial practices through custom, usage, and agreement of the parties.
		To entirely eliminate the need for common law rules of contract.
		To make uniform the law among the various jurisdictions in the United States.

QUESTION 8

1. Which of the following contracts is subject to the CISG?

		A contract for the sale of consumer goods from a seller in Mexico to a buyer in South Carolina.
		A contract for the sale of business goods from a seller in Mexico to a buyer in South Carolina.
		A contract for the sale of consumer goods between a seller in California and a buyer in Oklahoma.
		A contract for the sale of business goods from a seller in California and a buyer in Oklahoma.

Answer 1

1. B. No the manager's promise was not bargained for, since he didn't ask for it

2. D. None of these

3. D. Services provided to a pursuant....

4. B. Contact in enforceable....

5. C. Contact to repair an airplane engine

6. C. Unenforceable because no control

7. D. To make uniform the law....

8. A. Consumer goods from Mexico to California