2020 GOVT 404-B01 LUO FINAL EXAM. QUESTIONS & ANSWERS.

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• Question 1 0 out of 5 points TripleCyl contracts with ManuPow Partners to sell 100 forklift engines at a cost of $2,000 each. TripleCyl agrees to deliver the engines in one installment on April 1.... On March 20, TripleCyl delivers 98 engines together with a note stating that the remaining two engines would be delivered the following day. The next day TripleCyl delivers two engines. Is ManuPow Partners entitled to reject the engines? Choose the best answer: • Question 2 5 out of 5 points Mandie interviews Carlton for a new job at Mandie’s company. At the end of the interview, Mandie offers to hire Carlton on a two-year contract with a salary of $42,000, plus health insurance. Carlton asks if he can “sleep on it” and let Mandie know his answer the next day. Mandie agrees. That night, Mandie texts Carlton the message: “I just found someone else for the position, but thanks for interviewing and best of luck.” Choose the best answer: • Question 3 5 out of 5 points GC Company is a building contractor, performing work for the Owner of a construction project. The contract between GC Company and Owner provides that there will be six phases of work. Further it provides that at the end of each phase of work, GC Company should submit its request for payment to Owner’s architect. Once the architect approves the work performed, GC Company is entitled to payment of 1/6 of the total contract price. GC Company performs work on phases 1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC Company never submitted its requests for payment to the architect and never got the architect’s approval of the work. When GC Company submits its request for the sixth and final payment, the Owner refuses to pay it on the grounds that GC Company has never submitted it, or any other request for payment, to the architect. What is GC Company’s most likely argument that it is entitled to payment? • Question 4 5 out of 5 points Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts with Big Motor Co. (BMC) to clean the water drainage systems around its large manufacturing facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to perform the work. The fair market value of the work to BMC is $13,000. After the work is performed, BMC does not pay DCS. Choose the best answer: • Question 5 5 out of 5 points Apples Co. sells apples. Apples are readily available in the marketplace. Beta Co. operates a large retail fruit market. Apples contracts to sell 30 bushels of apples to Beta Co. and deliver them on November 20. On November 1, Apples Co. tells Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer: • Question 6 5 out of 5 points Allen is hiring a computer database designer to help his law firm design a custom client management database. He interviews Megan for the job, and would like to hire her. He needs someone who will be able to start work right away, and it is important that the new hire sign his confidentiality agreement so that confidentiality of client information will be preserved when the database is designed. Allen locates a form called “employment agreement,” which includes a confidentiality agreement, and mails it to Megan. The cover letter enclosing the agreement indicates that Megan “must sign this agreement without making any changes to it and hand-deliver it to my secretary on or before June 1.” Choose the best answer: • Question 7 5 out of 5 points Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s recording studio to record Teal’s series of 12 podcasts. The recording session is scheduled to take place on December 12. On December 11, the building where Blue’s studio is located is destroyed by a flood. What is the most likely outcome? • Question 8 5 out of 5 points Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo, Inc. provides business accounting services for LevelLLC’s small construction business. Last spring, when Fifo, Inc. had some storm damage at its home office, LevelLLC sent some workers over to repair the damage at no cost to Fifo, Inc. The following summer, LevelLLC found itself being audited by the Internal Revenue Service. Fifo, Inc. agreed to advise LevelLLC during the audit at no cost, as a way of thanking LevelLLC for its help the previous spring. Is the agreement between Fifo, Inc. and LevelLLC a bargained-for exchange? • Question 9 5 out of 5 points Employer contracts with Employee to serve as the Chief Operating Officer to the Employer. The term of the contract is one year. The annual salary is $75,000. Before the employment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter finds a comparably qualified replacement employee who is willing to serve as Chief Operating Officer for an annual salary of $80,000. Choose the best answer: • Question 10 5 out of 5 points Lynda is the Chief Operating Officer a medical device manufacturer. She meets with Rupert, who has worked for the company for 40 years. Lynda verbally promises Rupert that if he retires, the company will pay him a monthly retirement benefit until he dies. Rupert retires. Lynda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer: • Question 11 5 out of 5 points Coldair manufactures refrigerators designed and sold for residential use. The refrigerators are designed to maintain an internal temperature of between 33 and 40 degrees Fahrenheit. Natasha is a scientist who works with viruses. To preserve vials containing influenza viruses, she needs refrigerators that will maintain a constant temperature of 50 degrees. Natasha purchases 3 Coldair refrigerators for her lab, ordering them from a large retailer’s website. The refrigerators are delivered, but after she plugs them in and turns the temperature controls to the warmest setting, none of the refrigerators is warm enough to use for her experiments. Choose the answer that is false: • Question 12 0 out of 5 points Renée lost her job last year and has been unable to find employment since then. She has been living in her car for the past two months, but knows that with winter approaching, she needs to find a place to live. Unfortunately, the odd jobs she’s found only keep her employed for about 10 to 20 hours each week, and she is not sure she makes enough to rent even a small apartment. She meets with a property manager about renting a room in an older house that the manager manages. The manager agrees to rent the room to Renée for $200 each month, but only if Renée will sign a lease agreement that includes a densely worded “future wage assignment” provision in small print, which provides that Renée will pay 10% of any future wages she earns to the property management company for the next 5 years. No other affordable housing options are available to Renée. She signs the lease. The next year, Renee obtains a job working as lab technician in a hospital earning $35,000. What’s Renee’s best argument that the future wage assignment is unenforceable, and why? • Question 13 5 out of 5 points Which of the following contracts is most likely to be enforced by way of the remedy of specific performance? • Question 14 5 out of 5 points Where a party commits a _______________ breach, the nonbreaching party has the right to suspend performance, terminate the contract, and recover damages. • Question 15 0 out of 5 points Boone hires Lenny to work as his bodyguard for 12 months. Two months into the contract, Boone’s cousin, Austin, moves into the apartment building next to Boone. Boone knows Austin has a lot of experience in the security industry, and he has always liked spending time with Austin, so he hires Austin to be his security guard. Boone, falsely, tells Lenny that because Lenny is always late for work, he is fired. One month later, Lenny gets a job working as a bodyguard for someone else. Choose the best answer: • Question 16 5 out of 5 points Allied Signage, LLC contracts to sell to RampCo three custom parking garage signs, complete with brackets, and to install all three signs on the front of RampCo’s three parking garage locations. Is the transaction covered by the Uniform Commercial Code? • Question 17 5 out of 5 points When a party seeks to recover damages for lost profits, it must prove that loss with [Show More]

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