Question 1

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

Accepted Answer

A)   a requirements contract.
B)   an output contract.
C)   an exclusive dealing contract.
D)   an option contract.E) B) and C)
F) B) and D)

Question 2

The UCC requires consideration for agreements modifying contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 3

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is:

Accepted Answer

A)   enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
B)   enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking.
C)   not enforceable because Becky does not have a legal right to drink alcohol.
D)   not enforceable because Becky is a minor and could disaffirm the contract.E) A) and B)
F) A) and C)

Question 4

Agreeing not to open a competing business could be consideration.

Accepted Answer

A) True 
 B)False

Question 5

The Utah Court of Appeals in the Dementas v.Estate of Tallas case found:

Accepted Answer

A)   the trial court correctly determined that there was no consideration to support Tallas's promise.
B)   Utah applies the "moral obligation" exception to the requirement of consideration, and therefore Tallas's promise was supported by consideration.
C)   because Utah does not recognize the "moral obligation" exception to the requirement of consideration, Dementas prevails.
D)   the trial court's finding that the services rendered by Dementas to Tallas were performed gratuitously was erroneous.E) A) and B)
F) C) and D)

Question 6

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years.However,there is a clause in the contract that states if the hotel chooses,the contract may be terminated provided Plaza pays EZ $2,000 on termination.Which of the following is correct?

Accepted Answer

A)   The contract is unenforceable because the option to cancel clause makes the contract an illusory promise.
B)   The contract is unenforceable because the $2,000 is past consideration.
C)   The contract is unenforceable because only one party has the option to cancel.
D)   The contract is enforceable because the option to cancel clause is supported by consideration.E) B) and D)
F) B) and C)

Exam 12: Consideration

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years.However,there is a clause in the contract that states if the hotel chooses,the contract may be terminated provided Plaza pays EZ $2,000 on termination.Which of the following is correct?

Correct Answer
verified

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

Correct Answer
verified

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is:

Correct Answer
verified

Agreeing not to open a competing business could be consideration.

Correct Answer
verified

The UCC requires consideration for agreements modifying contracts for the sale of goods.

Correct Answer
verified

The Utah Court of Appeals in the Dementas v.Estate of Tallas case found:

Correct Answer
verified

Exam 12: Consideration

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years.However,there is a clause in the contract that states if the hotel chooses,the contract may be terminated provided Plaza pays EZ $2,000 on termination.Which of the following is correct?

Correct AnswerverifiedShow Answer

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

Correct AnswerverifiedShow Answer

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is:

Correct AnswerverifiedShow Answer

Agreeing not to open a competing business could be consideration.

Correct AnswerverifiedShow Answer

The UCC requires consideration for agreements modifying contracts for the sale of goods.

Correct AnswerverifiedShow Answer

The Utah Court of Appeals in the Dementas v.Estate of Tallas case found:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified