ACCT 324 Exam 1 Study Guide (with practice exam)
ACCT 324 Exam 1 Study Guide (with practice exam) ACCT 324 002
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This 8 page Study Guide was uploaded by Maddi_Jones on Tuesday September 15, 2015. The Study Guide belongs to ACCT 324 002 at University of South Carolina taught by Julius David Johnson (P) in Fall 2015. Since its upload, it has received 463 views. For similar materials see Survey of Commercial Law in Accounting at University of South Carolina.
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Date Created: 09/15/15
Exam Info 14 TrueFalse 26 Multiple Choice Exam Includes Material from o Quizes 13 0 Chapters 13 1325 No questions on chapters 1 or 3 Ch 2 Business Ethics What are business ethics Who do they affect and how Why are they a thing Ch 13 Contracts What constitutes a contract Defenses Sources of Contract Law 0 State common law 0 Uniform commercial code for goods above 500 Clasi cations o Bilateral a promise a promise Unilateral a promise a requested action Express contract is clearly and fully stated or written Implied contracts that aren39t exactly stated but implied Ex You re expected to pay for your emergency room bills even though during the time of your emergency you didn t sign or agree to anything 0 QuasiContract quotimplied in lawquot not really a contract Valid Void or Voidable 0 Valid everything is all good to go no hiccups o Void illegal purposesubject matter unenforceable by the law Example hiring a hit man to kill your professor o Voidable a party can withdraw from the contract Example minors Executed or Executory o Executed everything is done and completed 0 Executory some things are still left to do Example still haven39t paid in full for the lawn service done yesterday Formal or Informal 0 Formal needs to meet fancy requirements 0 Informal no requirements needed 000 Ch 14 Agreements 0 Valid offer MUST have 1 Manifestation of offeror39s intent to be bound a No joking unless everyone knows you39re obviously joking Auctions 0 quotwith reservequot Sellers purpose there is to try and get offers Auctioneer can take the item away whenever they want before the quothammer fallsquot the deal is made Before it39s sold or the hammer falls the offeror can take the item out of the auction 0 quotwithout reservequot Offeror must accept the highest bid no matter what it is They don39t reserve the right to take it back Ending an Offer 0 Revocation take it back 0 Reiection offeree doesn39t take the offer 0 Counter offer offeree doesn39t take the original offer but changes it to make a new one 0 Death if you39re dead you can39t make an offer 0 Destruction of Subject Matter If a hurricane destroys the vacation house you rent out you can39t expect people to keep their bookings there 0 Subsequent llleoalitv of Subiect Matter When you sign a contract that39s legal but later becomes illegal due to a change of law 0 Lapse of time If you miss the deadline the offer is off the table Exceonns 0 Down payment 0 Detrimental reliance if you invest in getting supplies for someone to paint your house the painter can39t back out 0 Acceptance 0 Mirror Image Rule you have to accept the offer exactly as it39s given 0 Communicate acceptance let 39em know you accept in their terms So if they say call me if you have any info and you email there is no acceptance 0 Mailbox rule Acceptance by mail when it39s placed in the mailbox Ch 15 Consideration Rules 0 For a promise to be enforced legally there must be consideration o If you promise to do something you gotta do it you gotta keep the promise o Illusory promise I promise to come by and take a look at your car for sale I don39t promise to buy it 0 Partial payment of debt 0 Liquidated no dispute as to the amount of money owed o Unliquidated argue that a factor is incorrect amount of times dates etc When you settle to a lesser payment because of the mistake it39s called quotAccord and Satisfactionquot Ch 16 Contractual Capacitv What is capacity 0 Who has and doesn39t have full capacity 0 Minor Rules 0 Minor must return consideration 0 Disaffirmance minors rights to say quotI didn39t know betterquot before they39re 18 o Exceptions Contracts that supply minor with the basic necessities of life food water shelter When the minor keeps their end of the contract after they39ve reachedlegalage Parental Liability 0 General rule is that parents aren39t held liable for contracts their kids entered into as a minor and they39re not liable for torts committed by their minor children unless they failed to supervise them Intoxication Rules 0 Usually voidable only if the other person knew you were intoxicated 0 Valid if you still knew what you were doing Ch 17 Legal Assent BilateralUnilateral mistakes Fraudulent Misinterpretation Negligent Misinterpretation Undueln uence Duress Unconsionability Ch 18 Contracts in Writing 0 3 purposes of the Statute of Frauds Which contracts must be in writing 0 Prenuptial agreements 0 Contracts that can t be performed within a year from when you sign it 0 Contracts you sign agreeing to pay another person39s debt 0 Real estate contracts 0 When you buy a moveable tangible good for 500 0 Requirements of written contracts MYLEGS Promissory Estoppel Ch 19 Third Party Rights Obligor vs Obligee Assignment transfer of rights under a contract to a third party 0 Assignor vs Assignee o Exceptions Personal rights Rights that increase obligor39s duties Rights that don39t allow assignments Rights prohibited by the law Delegation transfer of duties under a contract to a third party 0 Delegator vs Delegatee o Exceptions Personal duties Delegatee39s performance will vary a lot from the delegator39s Duties that don39t allow delegation Ch 20 Discharge and Remedies When there s a discharge of contracts 0 Types of conditions 0 Condition precedent 0 Condition subsequent o Concurrent conditions 0 Express conditions 0 Implied conditions 0 Types of performance Anticipatory Repudiation Discharge by mutual agreement 0 Mutual rescission o Substituted contract 0 Accord and satisfaction 0 Novation Discharge by Operation of Law Damages 0 Monetary damages compensatory damages special damages punitive damages nominal damages liquidated damages Equitable remedies for breach of contract 0 Rescission restitution speci c performance injunction reformation quasicontract Elements necessary to recognize quasicontractual recovery 0 The plaintiff conferred the bene t on the defendant 0 The plaintiff had reasonable needs for compensation o The defendant would be way better off if they didn39t compensate for the plaintiff Ch 21 Sales and Lease Contracts 0 Uniform Commercial Code UCC Article 2 Terminology 0 Sale goods merchants o Applies to the lease of a good 0 How are contracts formed under UCC o More lenient that common law The Mirror Image Rule doesn39t apply 0 Offer and acceptance 0 Consideration If there are open terms Price quotreasonable pricequot should be paid at the time of delivery Payment payment is made when the buyer receives the goods Delivery should be at the seller s place of business Time for performance within quotreasonable timequot Duration of contract quotreasonablequot period of time with prior notice Quantity contract fails for lack of de niteness You always have to claim a quantity in a contract Exceonns 0 Speci cally manufactured goods 0 Admission under oath 0 Partial performance 0 The court will hear the evidence if 0 Additional terms are consistent with contractual terms 0 The information helps interpret the agreement 0 Priority of evidence 0 Express contract terms 0 Course of performance 0 Course of dealing 0 Course of trade Unconsionability OOOOOO Ch 22 Title Risk of Loss and lnsurable Interest 0 Title 0 Good Void Voidable 0 General rule if a third party purchaser makes a quotgood faithquot purchase for value they can keep it And once you sell a good it39s no longer your property 0 Transfer of Title 0 quotsimplequot delivery 0 Common carrier delivery 1 How would you de ne capacity a The mental ability to understand rights and obligations established by contracts with the presumptive ability to understand Basically you39re physically able to understand what you agreed to 00 b A type of contract that requires a special form or must be created in a speci c manner c The person who transfers their rights in an assignment d Written contract that has the complete and nal agreement All of the following do not have ANY legal capacity EXCEPT a Adjudicated insane b Convicted Felons c Those appointed a legal guardian d Those who are habitually intoxicated You hire a hit man to kill your professor in hopes that you wouldn39t have to take the upcoming exam The contract between you and the person you hired is a valid contract true or false a True b False A 17 year old who is a minor somehow talks the car dealer into letting him buy his desired car Two weeks later he comes back with the car he wrecked asking to get out of the contract for car payments The judge agrees to let him out of the contract due to a Modi cation b A reversal of a court39s decision c The fact that the contract was voidable with a minor d Natural law Which of the following is a source of contract law a Voidable contracts b A person held under duress c Unduein uence d State common law What is another name for quotquasicontractquot a lmplied law contract b Valid contract c Void contract d Gaming contract Which of the following do NOT constitute a contract Agreement Mutual consideration Corporate management Legalcapac y apem lf Taylor hires Bradley to paint her house on Saturday for 400 with 200 paid as a down payment and the balance due on completion of the job the contract becomes as soon as they reach agreement a Void b Unenforceable c Executed d Executory Which of the following is NOT a purpose of the Statutes of Frauds a Attempt to ease contractual negotiations by requiring suf ciently reliable evidence b To agree before entering a marriage license how you would divide your assets in case of a divorce in the future c Prevent unreliable oral evidence from interfering with a contractual relationship d Prevent parties from entering into contracts with which they do not agree 10lfJane promises to sell her house to Max but takes the offer back after Max sold his original home in order to buy a new one This reliance is in Max39s detriment and therefore considered a Promissory estoppel b Admission c Parole evidence rule d Prenuptial agreement 11The G in MYLEGS stands for Goods True or False a True b False 12 Delegation is the transfer of rights under a contract to a third party True or False a True b False 13 All of the following are exceptions for delegation EXCEPT a Personal duties b Delegatee39s performance will vary a lot from delegator39s c Duties that don39t allow delegation d Personal rights 14 The mirror image rule does NOT apply to the UCC True or False a True b False 15All of the following are elements necessary to recognize quasicontractual recovery EXCEPT a The plaintiff conferred the bene t on the defendant b The plaintiff had reasonable needs for compensation c The defendant would be way better off if they didn39t compensate for the plaintiff d The defendant would have to perform a certain promise as well as provide monetary compensation 16 When is there a discharge of contracts a When there s full evidence of a complete performance b When there isn39t mutual agreement c When there isn39t consideration d When there was no honest effort 17 Fedex and UPS are examples of which type of sales contract a Simple delivery b Transfer of title c Common carrier delivery d Destination 18 A void title is a true title True or False a True b False 19 Tom sells his bike to Nick on July 21 2015 The agreement was mutual and they both went their happy separate ways but Tom decides that he wants to use the bike to get to campus once school starts in August 2015 What would be the court ruling if they were stubborn enough to bring this silly matter to court a Rule that Tom may use the bike as he pleased because it was his before b Rule that Tom may not use the bike because he shares ownership of the bike with Nick c Rule that Tom may use the bike because he has a good lawyer d Rule that Tom may not use the bike because once he has sold the item it is no longer under his ownership 20 Contracts formed under the UCC are more lenient than those formed under common law True or False a True b False Answer Key HHHHHFOWNP WPWN
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