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Devry BUSN 420 Week 4 Quiz

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Devry BUSN 420 Week 4 Quiz

1. (TCO 4) In selling inventory control software to Apex Auto Parts Corporation, Bond tells Apex’s purchasing agent that the software is almost human. This is _____. (Points : 2)

  • fraud
  • duress
  • puffery
  • undue influence

Question 2. 2. (TCO 4) Timber, Inc., and Wood Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by _____ (Points : 2)

  • the seller.
  • the buyer.
  • any interested third party, such as the mortgagee or title company.
  • None of the above

Question 3. 3. (TCO 4) Kevin goes to the store to purchase a fully-automatic washing machine. He browses through several models of washing machines but does not let the salespersons know that he wants a fully-automatic model. While signing the sales contract, he does not notice that the model he is purchasing is a semi-automatic machine. After purchase, which of the following options does Kyle have? (Points : 2)

  • Exchange the machine with a fully-automatic one and sue the store if its does not accept it.
  • Demand a full cash refund from the store for fraud in concealment.
  • Sue the store for its innocent misrepresentation.
  • Keep the semi-automatic washing machine as he made a unilateral mistake.

Question 4. 4. (TCO 4) Cody and Debora enter into an oral contract under which Cody agrees to work on Debora’s ranch for not less than ten days. This contract is enforceable by _____. (Points : 2)

  • Cody only
  • Debora only
  • either party
  • neither party

Question 5. 5. (TCO 4) In selling paving stones to Yard & Garden Supply, Trey tells Yard & Garden’s buying representative that the stones are soft as carpet. This is _____. (Points : 2)

  • unconscionable
  • fraud
  • mistake
  • puffery

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Question 6. 6. (TCO 4) Mikayla enters into a contract with Logan to provide surface material for Mikayla’s tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is _____ (Points : 2)

  • an excessive estimate of the loss on a breach.
  • a reasonable estimate of the loss on a breach.
  • designed to penalize the breaching party.
  • intended to quickly provide cash to the non-breaching party.

Question 7. 7. (TCO 4) Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover _____ (Points : 2)

  • the amount of the wages that Handy promised only.
  • the difference between the wages at the two jobs only.
  • the difference between the wages at the two jobs plus $100.
  • $100

Question 8. 8. (TCO 4) Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar’s insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another Studio where they had to settle for $150,000, as the chips were now only suitable for specific audio engineering processes.
What legal action can Klint take against Zeitar? (Points : 2)

  • Sue and recover lost profits
  • Sue to recover purchase price
  • Get a court order asking for specific performance
  • Exercise the buyer’s right to cover

Question 9. 9. (TCO 4) Blue Rorschach Inc. has an immediate requirement for 80 laptops and contracts with Zenzo Electronics 80 Dell laptops at $550 each. But Zenzo Electronics breaches the contract and fails to deliver the laptops. Blue Rorschach then immediately contracts Dell Computers, buys 100 laptops at $600 per laptop, and then sues Zenzo Electronics for the breach of contract.
What legal right to remedy did Blue Rorschach exercise when contracting Dell Computers and suing Zenzo for failure of delivery of goods? (Points : 2)
Right to replevy goods

  • Right to cover
  • Right to recover damages for accepted nonconforming goods
  • Right to obtain specific performance

Question 10. 10. (TCO 4) Kimlon Informatics has to recover $5,000 from a client for its services. The recovery period is 100 days but Kimlon needs the money immediately. It sells the right of collecting money from its client to Quikcollect, a collection agency. Here, Kimlon Informatics is the ______. (Points : 2)

  • obligor
  • obligee
  • subassignee
  • assignee