Question 1

Parker runs Auto Oil Change. His arch enemy Stella comes into his business to get her oil changed. Parker intentionally lies when he tells Stella that he refilled her oil, when he actually left it empty. As a result, when Stella drives away her engine block freezes up and destroys her engine. Accordingly, which statement below is true about which damages she may recover because of Parker's fraudulent actions?
A) None, since there was no genuine assent no contract exists and therefore she cannot recover any damages.
B) Consequential damages because intentional lies allow an injured party to request them.
C) Only out of pocket costs for the lost oil.
D) Pain and suffering as the courts want to discourage this unethical conduct and the emotional stress it would cause.

Accepted Answer

Consequential damages are awarded in cases of fraud where the defendant's intentional misrepresentation leads to additional losses beyond the immediate scope of the transaction, such as the damage to Stella's engine in this scenario.

Question 2

If a person unintentionally engages in innocent misrepresentation, the other party may
A) Sue for trebble damages
B) Recover consequential damages
C) Avoid the contract
D) Sue for punitive damages

Accepted Answer

Innocent misrepresentation allows the misled party to avoid (or rescind) the contract but does not typically entitle them to damages, as the misrepresentation was not made fraudulently or negligently.

Question 3

Innocent misrepresentation includes all of the following except
A) The person making the representation believes it to be true
B) There is no intention to deceive
C) The aggrieved party can avoid the contract
D) The aggrieved party can recover punitive damages

Accepted Answer

Innocent misrepresentation allows the aggrieved party to avoid the contract but does not allow for the recovery of punitive damages, as it involves statements made without fraudulent intent.

Question 4

Tye is selling his house which sustained a lot of water damage due to a leaky roof. Water damage stains grace the living room walls. Right before he shows his house, he paints over the water stains. Which statement below is correct?
A) This is not misrepresentation since he never actually said something that was a lie.
B) This is an example of misrepresentation because he took affirmative actions to conceal the truth.
C) This is not misrepresentation unless the party buys the house believing that there is no water damage.
D) This is an example of misrepresentation because it would result in an unjust enrichment.

Accepted Answer

Misrepresentation can occur through actions taken to conceal defects, such as painting over water damage, which intentionally hides the truth from potential buyers.

Question 5

Meghan has some very embarrassing pictures of Kalieh. Meghan tells Kalieh that she will post the pictures all over various social media accounts unless Kalieh agrees to sell Meghan an antique wedding ring for $500.00. Out of fear that Meghan will indeed publish the pictures, Kalieh agrees to sell the ring for $500.00. Kalieh will be able to claim the defense of
A) Duress
B) Undue influence
C) Fraud
D) Mistake

Accepted Answer

Duress involves forcing someone to act against their will by using threats or coercion, which is what Meghan did by threatening to post embarrassing pictures unless Kalieh sold her the ring.

Question 6

Your boss threatens to fire you if you do not buy 10 boxes of his daughter's Girl Scout Cookies. You begrudgingly buy the 10 boxes of thin mints for fear that you will lose your job. Would this be an example of duress?
A) No because everyone loves thin mints and therefore the reasonable person would not feel a detriment.
B) No because the reasonable person, objectively, would not truly feel pressured into the contract.
C) Yes but only if you can prove that you do not like thin mints.
D) Yes because duress is determined by what the person put under pressure feels, not the reasonable person.

Accepted Answer

Duress is determined by the subjective experience of the person being pressured, not by an objective "reasonable person" standard. In this scenario, the threat of losing one's job to force a purchase clearly constitutes duress.

Question 7

Drake visited Dr. Young because his left foot was bothering him. After an examination, the doctor knew that the most common, most successful treatment would be rest, ice and an anti-inflammatory. However, Dr. Young knows that if he prescribes special vitamins he will profit from a special incentive program through a pharmaceutical company. Therefore, Dr. Young suggests that Drake also sign up for the vitamin regimen as well. While the vitamins will not hurt Drake, they also will not help his foot at all. Trusting Dr. Young, Drake signs up for the full vitamin regimen. Which would be the best defense to claim in this instance?
A) Fraud
B) Misrepresentation
C) Duress
D) Undue influence

Accepted Answer

Dr. Young used his position of trust and authority to influence Drake's decision for personal gain, which constitutes undue influence.

Question 8

When a contract is entered into that is so grossly unfair that it shocks the conscience it is called
A) Fraudulent
B) Undue Influence
C) Unconscionable
D) Deceptive

Accepted Answer

An unconscionable contract is one that is so one-sided or so unfair that it shocks the conscience. This term is used to describe agreements that are so imbalanced in favor of one party that they are considered unjust.

Question 9

Standardized, preprinted contracts are called
A) Adhesion contracts
B) Option contracts
C) Unconscionable contracts
D) Exclusive contracts

Accepted Answer

Adhesion contracts are standardized, preprinted contracts offered by a party who has a stronger bargaining position, where the weaker party has little to no ability to negotiate more favorable terms.

Question 10

In general, when dealing with an adhesion contract, courts will
A) Assume they are illegal
B) Assume they are unconscionable
C) Assume that the non-drafter had no real opportunity to bargain for the terms
D) Assume that the contract is unfair

Accepted Answer

Adhesion contracts are typically standard form contracts offered by a dominant party to a weaker party who has little bargaining power and is thus forced to accept the terms as presented. Courts often assume that the non-drafter had no real opportunity to negotiate the terms of the contract.

Question 11

A Verizon cell phone contract is an example of
A) A statutory contract
B) An adhesion contract
C) An equitable contract
D) A service contract

Accepted Answer

An adhesion contract is a contract in which one party has all the bargaining power and the other party has no choice but to accept the terms. Verizon cell phone contracts are an example of adhesion contracts because Verizon has all the bargaining power and customers have no choice but to accept the terms of the contract if they want to use Verizon's services.

Question 12

The main purpose of the statute of frauds is to
A) Ensure that both parties have equal bargaining power.
B) Create an equal exchange of information so that both parties can make an informed decision.
C) Prevent fraud by requiring a written contract to have written evidence of the agreement.
D) Encourage parties to operate ethically and morally.

Accepted Answer

The statute of frauds requires certain types of contracts to be in writing to prevent fraud and misunderstandings by ensuring there is clear evidence of the agreement.

Question 13

Which of the following is not an example of when a contract must be in writing according to the statute of frauds?
A) Sadie sells Shirley five acres of land
B) Reid agrees to cosign on Gabrielle's student loan
C) Jeff agrees to mow Julie's lawn for $100.00
D) Jessica sells her car to Tina for $5000.00

Accepted Answer

The statute of frauds requires certain types of contracts to be in writing to be enforceable. These typically include contracts for the sale of land (A), contracts that cannot be performed within one year, contracts to pay someone else's debts (B), and contracts for the sale of goods over a certain value (often $500 or more, which would include D). Jeff agreeing to mow Julie's lawn for $100.00 does not fall into these categories and therefore does not need to be in writing according to the statute of frauds.

Question 14

Under the statute of frauds, the one year rule states
A) Contracts that cannot be completed within a year must also be notarized
B) Contracts that may take over a year to complete must be in writing
C) Contracts that may take under a year to complete must be in writing
D) Contracts that by their very terms cannot possibly be completed within a year must be in writing

Accepted Answer

The statute of frauds requires that contracts which cannot possibly be completed within one year from the date of their making must be in writing to be enforceable.

Question 15

Which of the following examples falls under the one-year rule of the statute of frauds?
A) Dennis hires Att Construction to build his 15 bedroom house
B) Danyelle hires Bequette Cabinetry to make five complete sets of kitchen cabinets
C) Shana hires Robert to do her homework for three years
D) Eunice hires Herb to fix her roof

Accepted Answer

The one-year rule of the statute of frauds applies to contracts that cannot be performed within one year from the date of the agreement. Shana hiring Robert to do her homework for three years clearly cannot be completed within one year, thus it falls under this rule.

Question 16

Travis and Brooke offer to buy a house from Michael and Tara because they love the location, the size, and the decorations. Michael and Tara accept the offer and reduce it to a writing that states Travis and Brooke will pay $100,000.00 to Michael and Tara for their house at 123 East 4th Street, Tulsa, OK. When Travis and Brooke move into the house, they are furious because Michael and Tara took all of their furniture and decorations with them, and Travis and Brooke loved the house so much primarily because of the furniture and decorations. Travis said they talked about this a lot with Michael and Tara during the sale. Which statement below is correct according to the parol evidence rule?
A) Michael and Tara will be required to return their furniture and decorations because they talked about it with Travis and Tara in the sale of the house.
B) Since the writing only referred to the sale of the house and not the contents, the sale only includes the house.
C) Since there is a dispute as to the terms, the court will listen to evidence at trial to interpret the terms of the written contract.
D) The court will throw out the contract and will require them to renegotiate a new contract.

Accepted Answer

The parol evidence rule generally prohibits the introduction of evidence outside the contents of the written contract when the contract is intended to be a complete and final representation of the parties' agreement. Since the written agreement only mentioned the sale of the house and not the furniture or decorations, those items are not included in the sale according to the contract.

Question 17

Copeland Breeders sells a Redbone Coonhound puppy to the Hightower family. In anticipation for the day that the family gets to pick up the puppy they purchased, the breeder sent pictures via text of, "your pup!" The pictures show the same puppy in each one of a completely red haired pup with a solid black nose. When the Hightower family shows up to pick up their purchased pup, they all immediately notice the dog that the Breeder is giving them is not the same as the puppy in the many pictures because this puppy has a solid red nose and a white tail. When they ask for their puppy, the breeder said he never guaranteed a specific puppy and that the puppy in the pictures was already given to another family. The breeder states that the writing only states that he would sell them one puppy for $500.00. Will the court allow the use of the pictures and texts in contract interpretation?
A) Yes, since the term is ambiguous and in dispute, the court will allow the texts and pictures.
B) No, a puppy is a puppy and the court will rule any outside information will not be allowed.
C) No, as long as the breeder is able to provide a puppy of the same age, there has been substantial performance of the contract and will not seek to disrupt the written word.
D) Yes, as long as the court determines that the breeder operated in good faith.

Accepted Answer

The court will allow the use of texts and pictures in contract interpretation because they can provide clarity to ambiguous terms and demonstrate the expectations of the parties involved in the contract.

Question 18

The statute governing which contracts must be in writing to be enforceable is
A) The statue of terms
B) The statute of frauds
C) The statute of contracts
D) The statue of writings

Accepted Answer

The Statute of Frauds is the legal principle that requires certain types of contracts to be in writing to be enforceable. This includes contracts for the sale of land, contracts that cannot be performed within one year, and contracts for the sale of goods over a certain value, among others.

Question 19

The interpretation rule stating that any writing by the partiesintended to be the final expression of their agreement may not be contradicted by any oral or written agreements made prior to the writing is called the
A) Statute of frauds
B) Statute of finiteness
C) Parol evidence rule
D) Plain-meaning rule

Accepted Answer

The Parol Evidence Rule is the legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms or agreements that contradict or modify the written terms of the contract, assuming the written contract is intended to be a complete and final representation of their agreement.

Question 20

If a term in a contract is ambiguous and unclear, when interpreting the term the court will generally construe the terms
A) In favor of the contract drafter
B) Against the drafter
C) In a manner the court feels is fair and just
D) According to the rules set forth in the UCC

Accepted Answer

When a term in a contract is ambiguous or unclear, courts generally apply the principle of contra proferentem, construing the ambiguous terms against the interests of the party that drafted the contract. This is because the drafter is presumed to have had the opportunity to clarify any ambiguities but failed to do so.

Quiz 9: Enforceability

If a person unintentionally engages in innocent misrepresentation, the other party may

Innocent misrepresentation includes all of the following except

Tye is selling his house which sustained a lot of water damage due to a leaky roof. Water damage stains grace the living room walls. Right before he shows his house, he paints over the water stains. Which statement below is correct?

Your boss threatens to fire you if you do not buy 10 boxes of his daughter's Girl Scout Cookies. You begrudgingly buy the 10 boxes of thin mints for fear that you will lose your job. Would this be an example of duress?

When a contract is entered into that is so grossly unfair that it shocks the conscience it is called

Standardized, preprinted contracts are called

In general, when dealing with an adhesion contract, courts will

A Verizon cell phone contract is an example of

The main purpose of the statute of frauds is to

Which of the following is not an example of when a contract must be in writing according to the statute of frauds?

Under the statute of frauds, the one year rule states

Which of the following examples falls under the one-year rule of the statute of frauds?

The statute governing which contracts must be in writing to be enforceable is

The interpretation rule stating that any writing by the partiesintended to be the final expression of their agreement may not be contradicted by any oral or written agreements made prior to the writing is called the

If a term in a contract is ambiguous and unclear, when interpreting the term the court will generally construe the terms