WGU D216 Business Law Questions
and Correct Answers Latest Updated
(Graded A+}
1. Dom enters into a contract to buy Ezra's office building for a certain price
subject to an appraiser's evaluation of the structure's condition. If the
appraiser deems the condition to be substandard, the parties' obligations will
be
a. breached.
b. performed.
c. discharged.
d. altered. - ANSWER C) discharged.
2. Bike Shop sells a trail bike to Ciena. When Ciena rides the bike, the frame
breaks apart. The cause is something that Bike Shop did not know about and
could not have discovered. This is a breach of
a. a warranty of title.
b. puffery.
c. an express warranty.
d. the implied warranty of merchantability. - ANSWER D) the implied
warranty of merchantability.
3. Sofia purchases a new vehicle from a neighborhood car dealer. The vehicle
warranty specifically states that there is a bumper to bumper warranty for the
first 30,000 and an engine and drivetrain warranty for 100,000 miles. The
, warranty documentation supplied with the car specifies that wear items such
as brake pads, belts, wipers and bulbs and oil changes are excluded. After
25,000 miles, Sofia's car needs new brake pads. She is told that this is not
covered by the warranty. This exclusion is an example of:
a. a warranty disclaimer.
b. a breach of the implied warranty of fitness for a particular use.
c. a breach of the express warranty.
d. a breach of the warranty of title. - ANSWER A) a warranty
disclaimer.
4. Bee is an employee of Credit Agency Inc. On the termination of Bee's
position, Credit pays Bee $10,000 to agree not to disclose the employer's
confidential information. Later, Bee sells the information to Debt Records
LLC for $100,000. In a suit for breach, Credit is most likely to recover
a. all future profits from Debt.
b. $100,000 from Debt.
c. $110,000 from Bee.
d. $10,000 from Bee. - ANSWER D) $10,000 from Bee.
5. Len contracts to work for Media Corporation during May for $4,500. On
April 30, Media cancels the contract. Len then accepts a similar job with
New Ads Inc., which pays $3,500. Len files a suit against Media. As
compensatory damages, Len can recover
a. $0.
b. $4,500.
c. $1,000.
d. $3,500. - ANSWER C) $1,000.
,6. Erma enters into a contract to buy a tract of riverfront property from Forest
Acres to build and sell a residential development. Forest Acres fails to close
the sale. Erma's remedy is most likely
a. the amount that Erma invested in the project to the date of the closing.
b. the difference between the contract and market prices of the land.
c. nothing—Forest Acres still owns the land.
d. specific performance. - ANSWER D) specific performance.
7. Steel Buildings Inc. agrees to sell four portable garages to Truck Service
Center. Five days later, Truck refuses delivery and cancels the contract.
Steel is entitled to
a. resell the garages but not recover any damages from Truck.
b. recover any damages from Truck but not resell the garages.
c. resell the garages and recover any damages from Truck.
d. force Truck to accept the garages. - ANSWER C) resell the garages
and recover any damages from Truck.
8. Builder Inc. and Concrete Supply Company enter into a contract for a sale of
cement. Concrete delivers, but Builder does not pay. Concrete can recover as
damages
a. any profit lost minus any loss avoided.
b. whatever amount Concrete wishes to claim.
c. the purchase price plus incidental damages.
d. the market price at the place at which Concrete delivered the goods
plus incidental damages. - ANSWER D) the market price at the place
at which Concrete delivered the goods plus incidental damages.
, 9. Keisha contracts to buy appliances from Crazy Carlos Appliances. Keisha
agrees to pay half within 5 days of the order and the remainder upon
delivery. Keisha fails to pay the first 50%. Carlos can:
a. obtain specific performance.
b. claim the difference between market price and purchase price.
c. recover as damages the full purchase price plus incidental damages.
d. withhold delivery. - ANSWER D) withhold delivery.
10.Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc. for $1 per
item. When the market price decreases to 50 cents per balloon, Fiesta refuses
to go through with the deal. Gas Bags can recover
a. $1,000.
b. $0.
c. $500.
d. $1,500. - ANSWER C) $500.
11.Brew Pub's debt to Credit Service is past due. Credit obtains a judgment
against Brew, but the firm refuses to pay. Credit asks the court to order the
seizure of Brew's property. This is a request for
A) a mechanic's lien.
B) a writ of attachment.
C) a writ of execution.
D) an artisan's lien. - ANSWER C) a writ of execution.
Bach borrows funds from City Bank to pay his tuition. Dvorak co-signs the credit
application. After the loan agreement is signed, Bach agrees to a higher rate of
interest without telling Dvorak, who is thereby
and Correct Answers Latest Updated
(Graded A+}
1. Dom enters into a contract to buy Ezra's office building for a certain price
subject to an appraiser's evaluation of the structure's condition. If the
appraiser deems the condition to be substandard, the parties' obligations will
be
a. breached.
b. performed.
c. discharged.
d. altered. - ANSWER C) discharged.
2. Bike Shop sells a trail bike to Ciena. When Ciena rides the bike, the frame
breaks apart. The cause is something that Bike Shop did not know about and
could not have discovered. This is a breach of
a. a warranty of title.
b. puffery.
c. an express warranty.
d. the implied warranty of merchantability. - ANSWER D) the implied
warranty of merchantability.
3. Sofia purchases a new vehicle from a neighborhood car dealer. The vehicle
warranty specifically states that there is a bumper to bumper warranty for the
first 30,000 and an engine and drivetrain warranty for 100,000 miles. The
, warranty documentation supplied with the car specifies that wear items such
as brake pads, belts, wipers and bulbs and oil changes are excluded. After
25,000 miles, Sofia's car needs new brake pads. She is told that this is not
covered by the warranty. This exclusion is an example of:
a. a warranty disclaimer.
b. a breach of the implied warranty of fitness for a particular use.
c. a breach of the express warranty.
d. a breach of the warranty of title. - ANSWER A) a warranty
disclaimer.
4. Bee is an employee of Credit Agency Inc. On the termination of Bee's
position, Credit pays Bee $10,000 to agree not to disclose the employer's
confidential information. Later, Bee sells the information to Debt Records
LLC for $100,000. In a suit for breach, Credit is most likely to recover
a. all future profits from Debt.
b. $100,000 from Debt.
c. $110,000 from Bee.
d. $10,000 from Bee. - ANSWER D) $10,000 from Bee.
5. Len contracts to work for Media Corporation during May for $4,500. On
April 30, Media cancels the contract. Len then accepts a similar job with
New Ads Inc., which pays $3,500. Len files a suit against Media. As
compensatory damages, Len can recover
a. $0.
b. $4,500.
c. $1,000.
d. $3,500. - ANSWER C) $1,000.
,6. Erma enters into a contract to buy a tract of riverfront property from Forest
Acres to build and sell a residential development. Forest Acres fails to close
the sale. Erma's remedy is most likely
a. the amount that Erma invested in the project to the date of the closing.
b. the difference between the contract and market prices of the land.
c. nothing—Forest Acres still owns the land.
d. specific performance. - ANSWER D) specific performance.
7. Steel Buildings Inc. agrees to sell four portable garages to Truck Service
Center. Five days later, Truck refuses delivery and cancels the contract.
Steel is entitled to
a. resell the garages but not recover any damages from Truck.
b. recover any damages from Truck but not resell the garages.
c. resell the garages and recover any damages from Truck.
d. force Truck to accept the garages. - ANSWER C) resell the garages
and recover any damages from Truck.
8. Builder Inc. and Concrete Supply Company enter into a contract for a sale of
cement. Concrete delivers, but Builder does not pay. Concrete can recover as
damages
a. any profit lost minus any loss avoided.
b. whatever amount Concrete wishes to claim.
c. the purchase price plus incidental damages.
d. the market price at the place at which Concrete delivered the goods
plus incidental damages. - ANSWER D) the market price at the place
at which Concrete delivered the goods plus incidental damages.
, 9. Keisha contracts to buy appliances from Crazy Carlos Appliances. Keisha
agrees to pay half within 5 days of the order and the remainder upon
delivery. Keisha fails to pay the first 50%. Carlos can:
a. obtain specific performance.
b. claim the difference between market price and purchase price.
c. recover as damages the full purchase price plus incidental damages.
d. withhold delivery. - ANSWER D) withhold delivery.
10.Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc. for $1 per
item. When the market price decreases to 50 cents per balloon, Fiesta refuses
to go through with the deal. Gas Bags can recover
a. $1,000.
b. $0.
c. $500.
d. $1,500. - ANSWER C) $500.
11.Brew Pub's debt to Credit Service is past due. Credit obtains a judgment
against Brew, but the firm refuses to pay. Credit asks the court to order the
seizure of Brew's property. This is a request for
A) a mechanic's lien.
B) a writ of attachment.
C) a writ of execution.
D) an artisan's lien. - ANSWER C) a writ of execution.
Bach borrows funds from City Bank to pay his tuition. Dvorak co-signs the credit
application. After the loan agreement is signed, Bach agrees to a higher rate of
interest without telling Dvorak, who is thereby
