Question 1

"Garage Sale." Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to sell Denise a used business law book for $50. She asks if she can clean his apartment in return for the book instead of pay cash, and he agrees. Richard also agrees to sell a communications book for $5 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit and offers Richard $45 for the business law book. Richard sells it to him because he decides his apartment is clean enough. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $45 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $45. The next day Denise shows up to clean Richard's apartment and is very angry because Richard did not save the book for her. Denise claims that Richard breached their contract because they had a deal. Richard says that they never had a deal because no consideration was present. He also said that even if cleaning house would be considered consideration, any housekeeping done would have been wholly inadequate to support receipt of the book because his house was already clean. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Richard tells her that he had no obligation to hold the book for her because they had a unilateral contract. Two days after they first talked, Dawn tells Richard that she would like the computer. She tells him that her response bound him and that he should have awaited her action. Richard tells Sam that he needs to return everything for a full refund. Sam refuses.
-Which of the following is true regarding whether Richard breached a contract with Dawn?

Accepted Answer

A)   Dawn's statement created an illusory promise which cannot be enforced.
B)   Richard breached the contract because he had an obligation to wait a reasonable length of time on Dawn's response, and waiting only two days was not reasonable.
C)   Richard did not breach the contract with Dawn because he waited a reasonable amount of time before disposing of the computer.
D)   Richard did not breach the contract with Dawn because it was for the sale of goods and, therefore, a typical contract.
E)   Richard did not breach the contract, but Dawn can recover based on promissory estoppel.F) All of the above
G) C) and D)

Question 2

"Bank Robbery." Safe Bank was robbed of a significant sum of cash by a robber later identified as Victor Victory. Safe Bank offered a reward of $10,000 to anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money.
-In a lawsuit between the bank and Ted regarding the reward funds, who is likely to prevail and why?

Accepted Answer

A)   The bank is likely to prevail because Ted only provided past consideration.
B)   The bank is likely to prevail because Ted had a preexisting duty to catch Victor.
C)   The bank is likely to prevail because Ted's promise to catch Victor was illusory.
D)   Ted is likely to prevail because his promise to catch Victor resulted in a binding bilateral contract.
E)   Ted is likely to prevail because an enforceable unilateral contract exists based on his performance.F) A) and E)
G) A) and B)

Question 3

Which of the following was the judge's ruling in Jamil Blackmon v. Allen Iverson, the case in the text in which the plaintiff alleged that the defendant, a professional athlete, wrongfully failed to pay him a percentage of proceeds received from using the nickname "The Answer" in merchandising although the defendant agreed to do so after the plaintiff suggested the use of the nickname?

Accepted Answer

A)   That consideration was lacking because the defendant was not bound to use the nickname.
B)   That the defendant's promise to pay was past consideration insufficient to create a binding contract.
C)   That consideration was present and that the defendant was liable to the plaintiff.
D)   That the issue of consideration was irrelevant because consideration was not required in this type of contract.
E)   That the defendant was required to pay the plaintiff only half of the percentage initially offered because a gift situation was involved.F) B) and D)
G) A) and D)

Question 4

One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Accepted Answer

A) True 
 B)False

Exam 15: Consideration

Correct Answer
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Correct Answer
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One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Correct Answer
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Correct Answer
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Exam 15: Consideration

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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