Business Law, Ethics, and Public Policy
Business Law, Ethics, and Public Policy BCOR 3000
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This 3 page Class Notes was uploaded by Jaron Rowe Jr. on Friday October 30, 2015. The Class Notes belongs to BCOR 3000 at University of Colorado at Boulder taught by John Ballantine in Fall. Since its upload, it has received 24 views. For similar materials see /class/232075/bcor-3000-university-of-colorado-at-boulder in Business at University of Colorado at Boulder.
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Date Created: 10/30/15
Sample Multiple Choice Questions on Contract Law 1 What is the mailbox rule under contract law a All correspondence related to a contract becomes effective the moment that it is mailed b Contract correspondence must be passed through the mail although the mailing can occur after the contract is negotiated orall c An acceptance becomes effective at the moment that it is mailed assuming that it is properly addressed and proper postage is paid d Any contract correspondence in ineffective while it is sitting in a mailbox and has not been read e Under contract law all mailboxes are considered to be treated equally John was the offeree in a situation where he erroneously thought that his offer was an offer for a unilateral contract In fact the offer was set up such that it was for a bilateral contract The fact that is was for a bilateral contract rather than a unilateral contract would affect a Whether one side or both sides needed to give consideration in order for the contract to be valid b Whether one side or both sides has contractual capacity c What is required by the offeree in order for a contract to be formed d Whether or not the contract is against public policy John lived in Casper Wyoming in an older subdivision John s neighbor was out of town for two weeks On the second day of the first week John noticed his neighbor s cat at the top of a tree in the neighborhood but thought nothing else about it The next day John noticed that the cat had not moved and appeared to be moving slowly Because of the height of the tree neither John nor any of his friends had a ladder tall enough to reach the cat John rented a sufficiently tall ladder for 50 and rescued the cat The cat had not come out of the tree because its collar had become entangled in some branches When the neighbor returned to town she was extremely appreciative of John s feline rescue but refused John s request for 50 to cover the ladder rental cost John s best chance to recover the 50 is under the doctrine of Promissory estoppel Lack of consideration Quasi contract Best efforts contract Past consideration Mandy is planning her wedding and enters into a contract with a local hotel for the rental of a room for the reception The contract contains many provisions of items prohibited including a prohibition against bringing any food or drink onto the premises and that all food and drink at the reception will be purchased from the hotel One paragraph states that if Mandy and her new husband bring their own champagne for the reception that they have to open it themselvesthe hotel will not do so A few days before the wedding Mandy gets into a dispute with the hotel over whether or not Mandy can bring her own champagne to the reception In this situation The contradictory language of the contract makes the contract violate substantive due process There is no contract because the offer is not reasonably certain The specific language relative to champagne would allow Mandy to bring her own champa ne The contract specifically allows no food or drink to be brought in thus she is not allowed to bring any e The contradictory language used by the hotel amounts to fraud in the execution John runs a classified ad that says If you are the first to explain how I can get a car out of a ditch with an extremely long rope but no other tools or vehicles I will pay you 50 The day that the ad ran Cindy was riding her bike and came upon John in a rural area trying to figure out how to get his car out of the ditch in front of his house John showed Cindy a large coil of rope and asked her if she could show John how to use it to get her his car out of the ditch Cindy showed John how to do this then she completed her bike ride After she got home Cindy noticed John s ad for the first time She discovered the ad in the newspaper She drove back to John s house and demanded payment In this situation 09057 PM 57 a Cindy is entitled to payment because she performed the act that was requested in the ad b Cindy is entitled to payment under the doctrine of public policy c Cindy is not entitled to payment because she waived her right by not asking to be paid immediately upon completion of the act d Cindy is not entitled to payment under the doctrine of unconscionability e Cindy is not entitled to payment because she had not been aware of the advertisement when she helped John out 6 Barb goes into a car dealership in order to see how low a price she could negotiate for a new Ford Pluto car After appearing serious about a purchase and going through the entire negotiation process and signing an agreement Barb tears up the contract that had her signature and said to the sales manager I wasn t ever planning to really buy a car today I might have seemed serious but in reality I was just trying to see what kind of price I could negotiate In this situation a The objective theory of contracts would hold Barb to the contract b Barb effectively voided the contract by destroying the written document c This was a unilateral contract and until Barb pays for the car there is no contract d By destroying the contract Barb destroyed the consideration 7 Which characteristic results in a contract being classified as a formal contract a The contract is written rather than oral b The contract is one that is very long and contains much complex legal language c The contract is required by law to use certain language or be presented in a certain way d The contract is one where the same contract is used for many transactions by one of the parties The contract is entirely drafted by one party and the other can either sign or not but cannot modify it f one party backs out of an illegal contract after formation but before performance the effect of this is The party will avoid any criminal liability in the situation That party will be returned to the position he was in before the contract was formed That party will receive expectation damages In some cases the court will take action in that party s favor rather than do nothing 9 Adam is an avid skier who buys a new pair of skis almost every year including September of 2008 when Adam bought his most recent pair of skis Adam had talked a couple of times to his younger brother Bob that he might be willing to sell his Adam s last year s skis for a good price On October 27 Adam decided to simply give Bob the skis because Bob s 503911 birthday was October 28 Adam left the skis and a rude birthday card on Bob s front porch late on the night of October 27 In the card Adam wrote Happy birthday bro These skis are now yours Bob called Andy the next day and said Andy thank you so much I know that you don t often ski at Aspen so I will buy you a fourday Classic Pass Consider it done Bob told Andy two days later Forget the ski pass to Aspen I started remembering all the stuff you did to me when we were kids In this situation most likely a Because they were brothers the doctrine of undue influence will require Bob to buy the pass so Ho 9579 b Because Bob s promise was made due to receiving the skis the promise is enforceable c The enforceability of Bob s promise depends on the value of the skis compared to the ski pass d Bob s promise is unenforceable due to not meeting the consideration requirement 10 Ethel is in her 80s and her mind is present some days totally gone on others One day a telemarketer contacted Ethel and convinced Ethel to enter into a contract to join a vacation club that claimed to give her access to the best bargains in the travel business Whether or not Ethel can be held to this contract depends primarily on a Whether or not the prices for the trips truly are the best bargains in the travel business Ethel s state of mind when she entered into the contract Whether or not Eithel is able to take reasonable advantage of the trips available through the club Whether or not Ethel is of a state of mind to be able to enjoy the trips How much Ethel was charged for her membership in the club 09057 Answers on next page Answers below 1 c 2 c 3 c This was an emergency thus it would be unfair for the neighbor to get the bene t of the saved cat without paying for it It would not t under promissory estoppel because the cat owner had never promised anything here 4 c Speci c provisions control over contradictory general provisions 5 e Offers must be communicated in order to be effective 6 a A reasonable person would think Barb was serious 7 c 8 d The normal rule is that the courts leave the parties where they are The text and my slide describe several situations where the courts often will actually do something The general theme is where one party might be viewed as much less bad for getting into the illegal contract thus the court might do something to help out this less blameworthy P Y 9 d This is a fact situation example of past consideration which is no consideration The promise of the Aspen ski pass was made only after the skies had been received Thus the ski pass promise was for a gift and thus not enforceable because it was not bargainedfor pa1t of the consideration requirement 10 b The key is a party s state of mind at the time of contract formation