Deck 12: Contracts and Sales: Performance,Remedies,and Collection

Question 1

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

Answer 1

False

Question 2

Unconscionability is an illegality defense.

Answer 2

True

Question 3

A contract with a minor is voidable at the minor's option.

Answer 3

True

Question 4

Undue influence requires proof of a confidential relationship.

Question 5

Covenants not to compete are valid only in sales of a business.

Question 6

Conditions precedent are events that must happen before contract performance is required.

Question 7

"This shirt is 100% cotton" is a statement that is puffing.

Question 8

Material information is something that would affect the decision to buy or sell.

Question 9

Misrepresentation must be fraudulent before rescission can be permitted.

Question 10

The contracts of a person who has been declared legally incompetent are void.

Question 11

Liquidated damages are void as penalties.

Question 12

A force majeure clause is one that provides excuses for nonperformance.

Question 13

Contracts with illegal subject matter are voidable.

Question 14

Minors are liable for the reasonable value of necessaries.

Question 15

Substantial performance is available for all types of contracts.

Question 16

Fraud is misrepresentation with intent to mislead or deceive.

Question 17

Duress requires proof of physical force.

Question 18

Competency licensing statutes do not prevent enforcement of contracts by unlicensed parties.

Question 19

Contracts by minors to enter the military are generally viewed as unenforceable.

Question 20

A contract with a party who has been declared incompetent is voidable.

Question 21

The types of statements that qualify for express warranties also qualify as a basis for misrepresentation.

Question 22

Exculpatory clauses are generally considered void as against public policy.

Question 23

Incidental damages are the costs of being compensated and are nonrecoverable.

Question 24

Compensatory damage formulas are provided under the UCC.

Question 25

Compensatory damagescan be awardedin addition to liquidated damages.

Question 26

The difference between fraud and misrepresentation is knowledge.

Question 27

Covenants not to compete are generally considered void as against public policy.

Question 28

Incidental and consequential damages are the same types of damages.

Question 29

Silence,or the failure to disclose information,is not misrepresentation.

Question 30

The seller's cost of running another ad in order to sell the car that a buyer breached a contract on is an example of consequential damages.

Question 31

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

Question 32

An architect who fails to pay her annual license renewal fee will be unable to collect fees for work done until the renewal fee is paid.

Question 33

An accord and satisfaction is a void contract.

Question 34

"Only those on the cutting edge of technology have this product," is an example of puffing.

Question 35

A television rent-to-own contract that requires 24 payments of $30 each before the renter owns the $199 television set is unconscionable.

Question 36

Covenants not to compete are void only in sale-of-business contracts.

Question 37

The difference between fraud and misrepresentation is proof of intent.

Question 38

Attorneys' fees are an example of liquidated damages.

Question 39

A liability limitation clause is the same as an exculpatory clause.

Question 40

All contracts have conditions for performance.

Question 41

A multi-million dollar contract between a manufacturer and a parts supplier provides for damages of $300 per day for late delivery is void as a penalty contract.

Question 42

Regulation Z provides the details of compliance with the Fair Credit Billing Act.

Question 43

An assignment is the transfer of benefits under a contract.

Question 44

A minor who has received medical care can never be responsible for payment for those services.

Question 45

A bill of lading is a receipt for shipment issued by the seller.

Question 46

The Fair Credit Reporting Act regulates creditors.

Question 47

There is no difference between assignments and delegation.

Question 48

Home equity loans do not carry a rescission period.

Question 49

In a relationship of dependence,the failure to deal fairly can result in liability for the party controlling the contract term.

Question 50

An example of a condition precedent in an audit contract is access by the auditor to financial information.

Question 51

In theDurrett v.ACT,Inc.case,the court ruled that the students whoclicked on the agreement provisions on the ACT sites did so underduress.

Question 52

Goods can be transferred physically or by transfer of the bill of lading.

Question 53

A lawyer/client relationship is an example of a confidential relationship.

Question 54

A mortgage broker who sells mortgage contracts to mortgage companies has created a third party beneficiary contract.

Question 55

There are no limitations on credit-agency disclosures,if the debtor is applying for a loan of more than $50,000.

Question 56

The three-day-cooling-off period applies to all credit transactions.

Question 57

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

Question 58

The FCRA does not give the debtor a right of correction.

Question 59

Parents of minors can be held liable for the reasonable value of necessaries that their minor children contracted for.

Question 60

A letter of credit is issued by the buyer's bank.

Question 61

The FCRA permits the disclosure of an embezzlement for which probation was completed ten years ago.

Question 62

The Fair Debt Collections Practices Act applies to attorneys only if they are doing the collection on a percentage basis.

Question 63

The FDCPA applies to collection agencies and original creditors.

Question 64

There is a three-day rescission period on home equity loans.

Question 65

The failure to make a timely investigation into a consumer's question about his/her credit report is a violation of the FCRA.

Question 66

The FCRA prohibits the disclosure of a bankruptcy that occurred eight years ago.

Question 67

The Bankruptcy Reform Act of 2005 made it easier for consumers to declare bankruptcy.

Question 68

Chapter 13 bankruptcy is only available to consumers.

Question 69

Under the FCRA,the 100-word statement allows debtors to clarify their past credit experiences.

Question 70

The Consumer Credit Protection Act puts limitations on garnishments.

Question 71

Under the FDCPA,collectors identified as such can use postcards to contact debtors.

Question 72

The Fair Debt Collections Practices Act applies only to consumer credit collection.

Question 73

The maximum wage garnishment for general debts is 50 percent.

Question 74

A contract signed at home for the installation of a pool under a 90-days-same as cash agreement is not subject to the 3-day rescission period.

Question 75

Garnishment is an example of judgment execution.

Question 76

The FDCPA is not applicable to the collection of judgments.

Question 77

The FDCPA places time limits for the placement of calls.

Question 78

The Fair Debt Collections Practices Act applies to both commercial and consumer debt.

Question 79

Chapter 11 is the liquidation provision in bankruptcy.

Question 80

The FDCPA does not apply to lawyers who are collecting bills for clients.