blaw ch 5 end of mcqs
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Humber College *
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Law
Date
Jan 9, 2024
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docx
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Uploaded by DoctorElk3499
Chapter 5: Working with Contracts
Exercises
True or False?
1.
If an offer specifies that it must be accepted by fax before a certain deadline, your
acceptance by email message before the deadline will result in a legally binding contract.
False
2.
Your business is running into financial difficulties, and you persuade one of your
customers to pay more for your marketing research services than the original contract
specified. If your customer changes their mind and refuses to pay the additional amount,
you would likely be successful if you sued them for breach of contract. F
alse
3.
Your business purchases a new computer. A week later, you see the same model at a
different store at a significantly lower price and realize you paid too much. If you attempt
to return the computer to the store where you bought it, the store must refund your
money.
False
4.
It is prudent to avoid finalizing a business transaction over drinks at the local pub.
True
5.
If they change their mind about a contract, individuals under the age of majority may be
excused from their contractual obligations.
True
6.
Resolving a contractual dispute in court will ensure the fairest result for all parties.
False
Multiple Choice
1.
A property developer is negotiating the purchase of several acres of land from the owner
to develop a residential complex. The owner has made an attractive offer that is set to
expire within 24 hours. The property developer wants more time to consider the offer
before making a final commitment. What should the property developer do to gain
additional time?
a.
Make a counteroffer on slightly different terms
b.
Allow the offer to lapse and make a new offer later
c.
Enter into an option agreement with the owner
d.
Reject the offer and make a new offer later
2.
When a dispute arises concerning a business contract, the first step the parties should
take is
a.
negotiation.
b.
mediation.
c.
arbitration.
d.
litigation.
3.
If found to be untrue, which of the following statements made by a car salesperson to a
potential buyer would constitute a misrepresentation that could render the contract
unenforceable?
a.
"The colour of the car matches your eyes—it's perfect for you!"
b.
"In my opinion, this car is the best value for your money."
c.
"
This car is accident-free and has had only one previous owner."
d.
"You won't get a better deal anywhere else."
4.
A retailer based in British Columbia orders a large quantity of toys from a toy
manufacturer in Ontario. The transaction is conducted online. The retailer fills in an
online form on the manufacturer's website, pays with a credit card, and clicks a "submit"
button to complete the transaction. The contract is formed when
a.
the retailer purchasing the toys clicks the "submit" button.
b.
the transaction data are processed by the retailer's Internet service provider.
c.
the transaction data reach the toy manufacturer's Internet service provider.
d.
the toy manufacturer sends an email message to the retailer confirming the
transaction.
Short Answer
1.
What situation might constitute a breach of contract?
Whether or not a contract is breached depends on the terms of the contract. If terms
relating to the quality or description of a product or service are ambiguous and open
to more than one interpretation, a buyer dissatisfied with what it receives might allege
that the seller breached these terms. Failure to deliver a product on time or at all, or
failure to complete a project within a specified deadline, could also constitute a breach
of contract by the product or service provider.
Failure of the purchaser to pay some or
all of the amount specified by the terms of the contract is another example of a
potential breach of a contract.
2.
Explain the remedies available if a breach of contract involves a condition versus a
warranty.
When a breach involves a condition, the non-breaching party is free of all further
obligations under the contract. Breach of a condition allows the non-breaching party
to treat the contract as if it had ended. It also gives the non-breaching party a right to
claim compensation for any losses or damages that flow from the breach.
If the breach is less serious and involves a relatively minor contractual term or
warranty, the non-breaching party must fulfill its remaining obligations under the
contract. The non-breaching party does, however, have the right to claim damages as
compensation for losses it incurred as a result of the breach.
3.
What is the obligation of a non-breaching party to mitigate its damages?
It must take all reasonable steps to keep its losses to a minimum.
4.
What options does a business have when the other party to a contract breaches it?
Ignore the breach
Negotiate a compromise that is agreeable to both parties
Seek alternative dispute resolution services
Litigate the dispute in court
5.
In what circumstances might a party to a contract be permitted to rescind the
agreement?
Misrepresentation of a material fact
Fraudulent misrepresentation
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