BUSN 410 ACTUAL TEST BANK UPDATED
QUESTIONS AND VERIFIED RESPONSES
●● Gaskin v. Stumm Handel - Legal Issue
Answer: Whether failure to understand the contract language invalidates
a forum selection clause
●● Gaskin v. Stumm Handel - Judge Reasoning
Answer: Court held that failure to read or understand a contract is
negligence; signer bears responsibility absent fraud or emergency
●● Gaskin v. Stumm Handel - Decision
Answer: Forum selection clause enforced; case dismissed from U.S.
court
●● Gaskin v. Stumm Handel - Exam Rule
Answer: Contracts are binding even if not understood; forum selection
clauses are presumptively valid
●● Coker International v. Burlington - Background
Answer: Coker paid a nonrefundable deposit for textile looms intended
for resale in Peru; Peru denied import licenses
,●● Coker International v. Burlington - Legal Issue
Answer: Whether government action excuses contract performance
●● Coker International v. Burlington - Judge Reasoning
Answer: Contract explicitly allocated resale risk to buyer; political
instability is foreseeable in international trade
●● Coker International v. Burlington - Decision
Answer: Buyer not relieved of obligation; deposit forfeited
●● Coker International v. Burlington - Exam Rule
Answer: Political risk and resale risk remain with buyer unless contract
reallocates risk
●● Bernina Distributors v. Bernina Sewing - Background
Answer: Importer purchased Swiss machines; Swiss franc rose sharply,
increasing costs
●● Bernina Distributors v. Bernina Sewing - Legal Issue
Answer: Whether currency fluctuation makes contract impracticable
●● Bernina Distributors v. Bernina Sewing - Judge Reasoning
, Answer: Increased costs alone do not excuse performance; contract did
not shift exchange-rate risk
●● Bernina Distributors v. Bernina Sewing - Decision
Answer: Distributor wins; importer bears exchange-rate risk
●● Bernina Distributors v. Bernina Sewing - Exam Rule
Answer: Impracticability requires extreme hardship, not reduced profit
●● Tarbert Trading v. Cometals - Background
Answer: Parties knowingly used false EEC certificates of origin for
Kenyan beans
●● Tarbert Trading v. Cometals - Legal Issue
Answer: Whether courts will enforce contracts involving fraud
●● Tarbert Trading v. Cometals - Judge Reasoning
Answer: Contracts requiring illegal acts violate public policy and are
void
●● Tarbert Trading v. Cometals - Decision
Answer: Both claims dismissed
QUESTIONS AND VERIFIED RESPONSES
●● Gaskin v. Stumm Handel - Legal Issue
Answer: Whether failure to understand the contract language invalidates
a forum selection clause
●● Gaskin v. Stumm Handel - Judge Reasoning
Answer: Court held that failure to read or understand a contract is
negligence; signer bears responsibility absent fraud or emergency
●● Gaskin v. Stumm Handel - Decision
Answer: Forum selection clause enforced; case dismissed from U.S.
court
●● Gaskin v. Stumm Handel - Exam Rule
Answer: Contracts are binding even if not understood; forum selection
clauses are presumptively valid
●● Coker International v. Burlington - Background
Answer: Coker paid a nonrefundable deposit for textile looms intended
for resale in Peru; Peru denied import licenses
,●● Coker International v. Burlington - Legal Issue
Answer: Whether government action excuses contract performance
●● Coker International v. Burlington - Judge Reasoning
Answer: Contract explicitly allocated resale risk to buyer; political
instability is foreseeable in international trade
●● Coker International v. Burlington - Decision
Answer: Buyer not relieved of obligation; deposit forfeited
●● Coker International v. Burlington - Exam Rule
Answer: Political risk and resale risk remain with buyer unless contract
reallocates risk
●● Bernina Distributors v. Bernina Sewing - Background
Answer: Importer purchased Swiss machines; Swiss franc rose sharply,
increasing costs
●● Bernina Distributors v. Bernina Sewing - Legal Issue
Answer: Whether currency fluctuation makes contract impracticable
●● Bernina Distributors v. Bernina Sewing - Judge Reasoning
, Answer: Increased costs alone do not excuse performance; contract did
not shift exchange-rate risk
●● Bernina Distributors v. Bernina Sewing - Decision
Answer: Distributor wins; importer bears exchange-rate risk
●● Bernina Distributors v. Bernina Sewing - Exam Rule
Answer: Impracticability requires extreme hardship, not reduced profit
●● Tarbert Trading v. Cometals - Background
Answer: Parties knowingly used false EEC certificates of origin for
Kenyan beans
●● Tarbert Trading v. Cometals - Legal Issue
Answer: Whether courts will enforce contracts involving fraud
●● Tarbert Trading v. Cometals - Judge Reasoning
Answer: Contracts requiring illegal acts violate public policy and are
void
●● Tarbert Trading v. Cometals - Decision
Answer: Both claims dismissed
