Contract Law Essentials: Understanding Forbearance and Liability

1 21/21  that's 100% RETAKE  21 questions were answered correctly . Under contract law, a promise not to do something that a person could otherwise do __________.     is called a forbearance, but is not adequate legal consideration for a contract  is only deemed legal consideration for a contract if the person giving it is financially harmed  is called promissory estoppel, and qualifies as legal consideration  is called a forbearance and is an adequate legal value to support the existence of consideration for a contract UNIT 2 — MILESTONE 2 SCORE 21/21

CONCEPT  Contract Formation 2 Report an issue with this question A driver is texting and runs into a pedestrian crossing the road at a crosswalk. The pedestrian suffers a broken leg and is rushed to the hospital. Is the driver liable for negligence if the pedestrian sues?     Yes, because the driver had a duty of care which was breached by texting while driving, and the pedestrian had legally recognizable injuries directly resulting from that breach.  No, because it would be diﬃcult to prove that the driver's texting was the proximate cause of the pedestrian's broken leg.  No, because even though the driver was texting while driving, the pedestrian had a duty to look out for possible dangers before entering the crosswalk.  Yes, because the driver broke the law by texting while driving.

CONCEPT  Negligent Torts: Liability 3 Report an issue with this question Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.     In order to be more competitive with buyers, the sales contract for a television manufacturer extends the statute of limitations for breach of contract claims to six years.  In its sales contract, a software company specifies that its sole obligation in the event that its software is defective is to replace it with a non-defective copy.  An appliance company sells a defective stove that injures its owner. The sales contract excludes responsibility for consequential damages except those deemed unconscionable, so the company replaces the stove and compensates the woman for her injury. The sales contract for a shoe

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CONCEPT  Remedies in General Under the Uniform Commercial Code 4 Report an issue with this question Andy is driving a 20-year-old boat that he borrowed from a friend. While he's on the water, the steering system fails and the boat crashes. Subsequent investigation shows that the steering system failed as a result of corrosion. Andy sues the boat manufacturer for negligence. How strong is his negligence case against the product manufacturer?     company specifies that the statute of limitations for any charges of breach of contract shall be limited to two years.  Strong, because there is no evidence that Andy's own actions contributed to the damages.  Weak, unless he can show that the corrosion was the result of a design defect rather than normal wear and tear on a 20-year-old boat.  Strong, because proximate cause between the corroded steering system and the crash is easy to establish.

CONCEPT  Negligent Products Liability 5 Report an issue with this question Cynthia orders 100 blue shirts for her screenprinting business from Juan, a shirt supplier. When Cynthia receives the shirts, she discovers that Juan has sent her a batch of pink shirts. She rightfully rejects delivery, and the shirts are shipped back to Juan. Because of the delay in receiving the blue shirts, Cynthia is unable to fill a large order and loses $500 in sales. What remedy does Cynthia have in this scenario?    Weak, because he does not have privity of contract, since he was borrowing his friend's boat.  Since she rejected the delivery, Cynthia has no recourse in this scenario except for a refund of the price she paid for the shirts.  Cynthia must fulfill the contract by paying for the blue shirts when they finally arrive, but she is entitled to recover damages relating to her business losses in the meantime. Cynthia can cancel the contract

CONCEPT  Buyer's Remedies Under the Uniform Commercial Code 6 Report an issue with this question A manufacturer of an electric meter that included surge protectors to prevent damage to the meter from overloads is sued exclusively for strict product liability by an electric company after the surge protectors failed and damaged the electric meters. The manufacturer defends the claim of strict product liability on the basis that the defect in the product only damaged the product itself and there were no personal injuries. How strong is this defense by the manufacturer?     with Juan and recover in full what she paid for the shirts, as well as sue for damages since she suffered a loss directly related to the non-delivery.  Cynthia may either replevy the shirts or sue Juan for specific performance.  Weak, because strict product liability applies to defective products even when they do not cause personal injuries or damage a company's property. Strong, unless the electric company can provide a

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CONCEPT  Problems with Strict Products Liability 7 Report an issue with this question A manufacturer marketed a new mascara that initial testing revealed could cause an allergic reaction in a small number of people. One of the people found to have this allergic reaction in initial testing suffered significant loss of vision in one eye as a result. When the mascara was released on the market, the manufacturer included a warning of the possibility of an allergic reaction, but did not provide the consumer with any way to test for the allergy and made no mention of the possibility of this allergic reaction causing loss of vision. Joan purchased the new mascara from a local drug store and suffered an allergic reaction     reasonable alternative design to the meter that would have mitigated the risk of the surge protectors failing.  Strong, because strict product liability does not allow for economic loss occasioned from a defect in a product that only causes damage to the product itself.  Weak, because there is no indication that the electric company was aware of the product's defective surge protectors and elected to use the meters anyway.

to the mascara that caused a 90% loss of vision in her right eye. How strong of a case does Joan have against the manufacturer for strict product liability?   Weak, because the manufacturer met its duty to warn by informing consumers that the product could cause an allergic reaction, and therefore users of the mascara assumed the risk.  Strong, because the manufacturer was clearly negligent by releasing a product to market that could cause an allergic reaction in anyone.  Strong, because the warning by the manufacturer was inadequate, since the risk of harm was foreseeable and could have been reduced by providing a way of testing for the allergic reaction and informing consumers of the potential of vision loss.  Weak, because the manufacturer is not engaged in the business of selling and is therefore not subject to Section 402A of the Restatement of Torts (Second). However, Joan could sue the local drug store.

CONCEPT  Strict Products Liability 8 Report an issue with this question Which of the following scenarios would likely result in an order for specific performance or an injunction, rather than a monetary award?    Darien buys a new car from a dealership that is supposed to come with leather seating. When he takes possession of the car, it has regular fabric seating. Darien sues the car dealership for breach of contract.  Uma buys a copy of a photograph she loves from a local home decor shop. When she has the photograph framed, the framing company damages it and refuses to pay for its restoration. Uma sues the framing company for breach of contract.  Martina pays Omar $250 to deliver a cord of firewood to her home. Omar never delivers the wood, and Martina eventually sues him for breach of contract.

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CONCEPT  Equitable Remedies: Specific Performance and Injunction 9 Report an issue with this question Select the true statement about the Convention on Contracts for the International Sale of Goods (CISG).      Cheryl has all of her employees sign non-compete agreements that extend for two years after their employment ends. Cheryl's former employee, Jen, starts working for a competitor three months after she stops working for Cheryl. Cheryl files a suit against Jen for breach of contract.  It governs international sales contracts for all countries in the world.  It governs the international sale of services in addition to goods.  Parties to the Convention must re-approve the treaty every five years.  Its purpose is to unify contract law among countries to facilitate

CONCEPT  Sources of Contract Law 10 Report an issue with this question Which of the following is an example of a voidable contract?      international trade.  A 21-year-old forms a contract with an able-bodied and competent 30-year-old neighbor to drive her to work all year in exchange for gas money.  A 21-year-old adult forms a written contract with an able- bodied and competent adult neighbor to clean his house for $1 per month.  A 52-year-old forms an oral contract with an able-bodied and competent adult neighbor to paint his deck for $1,000.  A 28-year-old adult forms a written contract with an able- bodied and competent 17-year- old neighbor to cut her lawn for $200 per week.

CONCEPT  Different Types of Contracts 11 CONCEPT  Strict Liability 12 Report an issue with this question In which scenario would strict liability most likely apply? Report an issue with this question Which of the following conditions always renders a contract voidable?       An explosion at a chemical plant injures several workers.  A deck collapses at a restaurant, injuring two diners.  The ceiling of a city hall crumbles and injures a few employees.  A fire at a grocery store injures several customers.

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CONCEPT  Unenforceable Contracts 13 Report an issue with this question Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Before Juan ships the shirts, Cynthia calls him to inform him that she is going out of business and no longer needs the shirts. Juan decides to resell the 100 shirts at public auction. What further remedy does Juan have in this scenario?     If a party to the contract is in good mental health but misunderstands the terms of the contract  If a party to the contract has changed his or her mind  If a party to the contract fraudulently misrepresents material facts  If a party to the contract can no longer afford the promised consideration  Juan may sell the shirts at public auction without notifying Cynthia, since she is in breach of contract.

CONCEPT  Seller's Remedies Under the Uniform Commercial Code 14 Report an issue with this question Which contract generally must be in writing under the Statute of Frauds?      If Juan sells the shirts at auction for more that the original contract price, he is obligated to share the profits, less any incidental costs, with Cynthia.  Since Juan is reselling the shirts at public auction and they are not a perishable good, he must notify Cynthia of the public sale and allow her to bid if she wishes.  If Cynthia becomes aware of the public auction, Juan may refuse to allow Cynthia to bid on the shirts since she is in breach of contract.  Neesa agrees to co-sign a loan for her daughter to pay for college tuition.

CONCEPT  Statute of Frauds 15 Report an issue with this question In which scenario would the non-breaching party lose the opportunity to avoid or limit losses?     Miguel agrees to replace his neighbor's roof in three months for $15,000.  Finn agrees to buy a watch from a friend for $300.  Harlow agrees to pay $50 to anyone who can help her find her lost dog.  A housepainter stops painting a client's house once he realizes that the homeowner can't pay.  A caterer resells cakes that she baked for an event that was cancelled.  A landlord makes no attempt to find a new renter after a tenant breaks her lease.

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CONCEPT  Limitations on Contract Remedies 16 CONCEPT  Intentional Torts Report an issue with this question A disgruntled employee writes a letter to the local newspaper that contains harmful lies about his employer. The letter is published in Monday's edition of the newspaper. Which type of intentional tort does this represent? Report an issue with this question     A landscaper avoids using a newly-purchased lawnmower that she knows is defective.  Intentional inﬂiction of emotional distress  Defamation  This action does not rise to the level of an intentional tort.  Misrepresentation

17 CONCEPT  Negligent Torts: Damages and Defenses A store employee drops a box of oranges while stocking the produce section, and oranges roll all over the ﬂoor. A customer steps on an orange and falls, injuring her arm. The customer sues the store employee for negligence. Assuming it is true, which of the following would represent a strong defense against the negligence claim? Report an issue with this question     The customer has mounting debts and needs money to pay them off.  The customer was talking to her friend when the accident happened.  The employee had already partially cleaned up the oranges when the customer fell.  The customer ignored a barrier that the employee had set up around the produce section of the store.

18 CONCEPT  Monetary Awards 19 Zahra and Joseph sign a contract worth $1,000. When Zahra breaks the contract, Joseph loses the $1,000. Which type of monetary award does Joseph receive if he is later awarded $1,000? Report an issue with this question Select the statement that is true of current products liability law, rather than consumer law prior to the 20th century.        Compensatory damages  Incidental damages  Nominal damages  Restitution  It is an important way of ensuring consumer product safety.  It is rarely applied, as most consumer products are extremely safe.

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CONCEPT  Products Liability 20 Report an issue with this question Which of the following statements about torts and crimes is true?     It rests on the principle of "buyer beware."  It assumes that most commerce is local.  A criminal act is immoral, while a tortious act is not.  Torts carry a legal remedy of damages, while crimes do not.  An act may either be a crime or a tort, but not both.  Tort law is more concerned than criminal law about the reasons for a defendant’s actions.

CONCEPT  Introduction to Tort Law 21 CONCEPT  General Perspectives on Contracts Report an issue with this question Contracts function as a symbol of __________ in modern society. Report an issue with this question     wealth  disorder  oppression  free will About Contact Us Privacy Policy Terms of Use © 2022 SOPHIA Learning, LLC. SOPHIA is a registered trademark of SOPHIA Learning, LLC.

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