Question 1

Foo pretends to be &#34;Ghee&#34; online, fooling Haruo into believing that Ghee is his friend. Haruo can recover damages from Foo for the hoax on the ground of fraudulent misrepresentation if&#10;A)Haruo can prove an actual injury.&#10;B)Ghee is not in fact a &#34;real&#34; person but a totally fake persona.&#10;C)Foo and Haruo's online relationship is &#34;purely personal.&#34;&#10;D)Haruo sent gifts to &#34;Ghee&#34; totaling at least $10,000.

Accepted Answer

C

Question 2

Rolf pretends to be &#34;Svetlana&#34; online, fooling Tor into believing that Svetlana is his friend. When Tor learns the truth, he is embarrassed and feels humiliated. But he cannot recover damages because he cannot prove an actual injury, which is a requirement for recovery in these circumstances on the ground of&#10;A)mistake.&#10;B)fraudulent misrepresentation.&#10;C)undue influence.&#10;D)unconscionability.

Accepted Answer

A

Question 3

Event Marketing LLC and Family Restaurant Inc. engage in an instant-messaging conversation while discussing an existing contract. Event suggests a modification-an increase in fees. Family asks about an increase in service. Event replies, "No limits!" Family responds, "Great!" As a modification of the parties' contract, this chat is most likely

A)enforceable.
B)not enforceable because any indication of an agreement is "accidental."
C)not enforceable because it is an instant-messaging conversation.
D)not enforceable because the language is relatively "careless."

A

Accepted Answer

Instant messaging is a valid form of communication for contract modifications if the parties intend to modify their contract and the modification is supported by consideration. The conversation between Event Marketing LLC and Family Restaurant Inc. indicates a mutual agreement to modify the contract terms, making it enforceable despite the informal communication method.

Question 4

Rural Holdings LLC contracts with Sweetwater Homes to sell real property that, unknown to either party, has groundwater contaminated from adjacent land occupied several decades earlier by Toxic Products Inc. When this is discovered, Rural asserts the doctrine of commercial impracticability. This doctrine applies only when, with respect to an event that renders performance impossible, at the time the contract was formed the parties

A)could not have reasonably foreseen the supervening event.
B)could have reasonably foreseen the supervening event.
C)should have foreseen the supervening event, reasonable or not.
D)should not have foreseen any supervening events.

Accepted Answer

The doctrine of commercial impracticability applies when an unforeseen event makes the fulfillment of the contract terms impossible or impracticable, and this event could not have been reasonably foreseen by the parties at the time the contract was formed.

Question 5

Data Company wants to prohibit its employees from disclosing the firm's proprietary information except in the course of their employment and for the employer's benefit. Data could attain this result with

A)a unilateral nondisclosure agreement.
B)a multilateral settlement agreement.
C)a bilateral consortium agreement.
D)none of the choices.

Accepted Answer

A unilateral nondisclosure agreement (NDA) is specifically designed to prevent the disclosure of proprietary information, allowing the sharing of such information only for the employer's benefit and within the scope of the employee's job responsibilities.

Question 6

Shu Ltd. and Tech Inc. negotiate a joint venture to do business in Asia. The parties anticipate sharing intellectual property, including trade secrets, as part of the deal. To keep the information confidential, the parties should enter into a nondisclosure agreement that is

A)bilateral.
B)multilateral.
C)unilateral.
D)all of the choices.

Accepted Answer

A bilateral nondisclosure agreement is appropriate when two parties are sharing confidential information with each other, as in the case of Shu Ltd. and Tech Inc. negotiating a joint venture and planning to share intellectual property and trade secrets.

Question 7

A court is most likely to enforce a nondisclosure agreement that&#10;A)requires the parties to keep silent about illegal activities.&#10;B)has no time or geographical limitations.&#10;C)has a problem with contractual capacity.&#10;D)none of the choices.

Accepted Answer

Courts are unlikely to enforce nondisclosure agreements (NDAs) that involve illegal activities, lack specificity in terms of time or geographical scope, or have issues with contractual capacity, as these factors can render an NDA unenforceable or void.

Question 8

Citrus Orchard contracts to deliver a crop of oranges to Dairy Mart. An unexpected freeze destroys the oranges in the orchard. Dairy insists that Citrus deliver by acquiring the oranges on the open market. Citrus claims that this is prohibitively expensive. The best argument against enforcing the contract is

A)frustration of purpose.
B)objective impossibility of performance.
C)anticipatory repudiation.
D)commercial impracticability.

Accepted Answer

Commercial impracticability applies when unforeseen events make performance unreasonably difficult or expensive, such as the unexpected freeze making it prohibitively expensive for Citrus to acquire oranges elsewhere.

Question 9

NONDISCLOSURE AGREEMENTS A court is most likely to enforce a nondisclosure agreement that requires the parties to keep silent about settlements involving sexual harassment if&#10;A)the victim requested the agreement.&#10;B)the agreement was required as a condition of employment.&#10;C)the parties signed the agreement as part of the settlement.&#10;D)under no circumstances.

Accepted Answer

Courts are more likely to enforce nondisclosure agreements if the victim requested it, as it respects the victim's autonomy and decision-making.

Question 10

Tran and Ubie exchange offers and counteroffers via e-mail. These exchanges can constitute a valid contract&#10;A)if the e-mails contain all of the necessary elements of a contract.&#10;B)unless only the receiving party believes that there is an agreement.&#10;C)unless the parties believe that the e-mails are only negotiations.&#10;D)under no circumstances.

Accepted Answer

If the e-mails contain all of the necessary elements of a contract (offer, acceptance, consideration, and mutual intent to be bound), they can constitute a valid contract.

Deck 51: Contracts and E Contracts