GOVT 404 Final Exam.docx a useful
documentrevision for the upcoming
exams Liberty University (2021)
TripleCyl contracts with ManuPow Partners to sell 100 forklift engines at a cost of
$2,000each. TripleCyl agrees to deliver the engines in one installment on April 1.
On March 20, TripleCyl delivers 98 engines together with a note stating that the
remaining two engines would be delivered the following day. The next day
TripleCyl delivers two engines. Is ManuPow Partners entitled to reject the
engines? Choose the best answer:
SelectedAnswer:
• Question 2
No, TripleCyl has substantially performed, and substantial performanceis not breach.
5 out of 5 points
Mandie interviews Carlton for a new job at Mandie’s company. At the end of the
interview, Mandie offers to hire Carlton on a two-year contract with a salary of
$42,000,plus health insurance. Carlton asks if he can “sleep on it” and let
Mandie know his answer the next day. Mandie agrees. That night, Mandie texts
Carlton the message: “I just found someone else for the position, but thanks for
interviewing and best of luck.” Choose the best answer:
SelectedAnswer:
• Question 3
Carlton cannot accept the offer because it wasrevoked.
5 out of 5 points
GC Company is a building contractor, performing work for the Owner of a
construction project. The contract between GC Company and Owner provides that
there will be six phases of work. Further it provides that at the end of each phase
of work, GC Company should submit its request for payment to Owner’s architect.
, Once the architect approves the work performed, GC Company is entitled to
payment of 1/6 of the total contract price. GC Company performs work on phases
1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC
Company never submitted its requests for payment to the architect and never got
the architect’s approval of the work. When GC Company submits its request for
the sixth and final payment, the Owner refuses to pay it on the grounds that GC
Company has never submitted it, or any other request for payment, to the
architect. What is GC Company’s most likely argument that it is entitled to
payment?
SelectedAnswer:
• Question 4
Owner has waived the right to insist on strict compliance with thecondition that was
included in the contract.
5 out of 5 points
Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts
with Big Motor Co. (BMC) to clean the water drainage systems around its large
manufacturing
facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to
performthe work. The fair market value of the work to BMC is $13,000. After the
work is performed, BMC does not pay DCS. Choose the best answer:
SelectedAnswer:
• Question 5
If DCS is awarded $12,000, that amount represents DCS’sreliance interest.
5 out of 5 points
Apples Co. sells apples. Apples are readily available in the marketplace. Beta Co.
operates a large retail fruit market. Apples contracts to sell 30 bushels of apples
to BetaCo. and deliver them on November 20. On November 1, Apples Co. tells
Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer:
SelectedAnswer:
, • Question 6
If Beta Co. buys apples from another seller at a price that is $300 morethan the contract
price between Apples Co. and Beta Co., Beta Co. will recover $300 from Apples Co.
5
out of 5 pointsAllen is hiring a computer database designer to help his law firm design a
custom client management database. He interviews Megan for the job, and would like to hire
her. He
needs someone who will be able to start work right away, and it is important that the
new hire sign his confidentiality agreement so that confidentiality of client
informationwill be preserved when the database is designed. Allen locates a form
called “employment agreement,” which includes a confidentiality agreement,
and mails it to Megan. The cover letter enclosing the agreement indicates that
Megan “must sign thisagreement without making any changes to it and hand-
deliver it to my secretary on orbefore June 1.” Choose the best answer:
SelectedAnswer:
• Question 7
Allen can require that Megan hand-deliver the letter to his secretarybecause he, as
offeror, can dictate how it is accepted.
5 out of 5 points
Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s
recording studio to record Teal’s series of 12 podcasts. The recording session is
scheduled to takeplace on December 12. On December 11, the building where
Blue’s studio is located is destroyed by a flood. What is the most likely outcome?
SelectedAnswer:
• Question 8
Blue will have a defense of impracticability that will excuse its inability tomake a studio
available to Teal.
5 out of 5 points
Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo,
Inc. provides business accounting services for LevelLLC’s small construction
business. Last spring, when Fifo, Inc. had some storm damage at its home
office, LevelLLC sent some workers over to repair the damage at no cost to Fifo,
Inc. The following summer, LevelLLC found itself being audited by the Internal
documentrevision for the upcoming
exams Liberty University (2021)
TripleCyl contracts with ManuPow Partners to sell 100 forklift engines at a cost of
$2,000each. TripleCyl agrees to deliver the engines in one installment on April 1.
On March 20, TripleCyl delivers 98 engines together with a note stating that the
remaining two engines would be delivered the following day. The next day
TripleCyl delivers two engines. Is ManuPow Partners entitled to reject the
engines? Choose the best answer:
SelectedAnswer:
• Question 2
No, TripleCyl has substantially performed, and substantial performanceis not breach.
5 out of 5 points
Mandie interviews Carlton for a new job at Mandie’s company. At the end of the
interview, Mandie offers to hire Carlton on a two-year contract with a salary of
$42,000,plus health insurance. Carlton asks if he can “sleep on it” and let
Mandie know his answer the next day. Mandie agrees. That night, Mandie texts
Carlton the message: “I just found someone else for the position, but thanks for
interviewing and best of luck.” Choose the best answer:
SelectedAnswer:
• Question 3
Carlton cannot accept the offer because it wasrevoked.
5 out of 5 points
GC Company is a building contractor, performing work for the Owner of a
construction project. The contract between GC Company and Owner provides that
there will be six phases of work. Further it provides that at the end of each phase
of work, GC Company should submit its request for payment to Owner’s architect.
, Once the architect approves the work performed, GC Company is entitled to
payment of 1/6 of the total contract price. GC Company performs work on phases
1, 2, 3, 4, and 5, and the Owner pays for the work despite the fact that GC
Company never submitted its requests for payment to the architect and never got
the architect’s approval of the work. When GC Company submits its request for
the sixth and final payment, the Owner refuses to pay it on the grounds that GC
Company has never submitted it, or any other request for payment, to the
architect. What is GC Company’s most likely argument that it is entitled to
payment?
SelectedAnswer:
• Question 4
Owner has waived the right to insist on strict compliance with thecondition that was
included in the contract.
5 out of 5 points
Drain Clean Solution, Inc. (DCS) cleans industrial drainage systems. DCS contracts
with Big Motor Co. (BMC) to clean the water drainage systems around its large
manufacturing
facility. DCS agrees to charge $15,000 for its services. It costs DCS $12,000 to
performthe work. The fair market value of the work to BMC is $13,000. After the
work is performed, BMC does not pay DCS. Choose the best answer:
SelectedAnswer:
• Question 5
If DCS is awarded $12,000, that amount represents DCS’sreliance interest.
5 out of 5 points
Apples Co. sells apples. Apples are readily available in the marketplace. Beta Co.
operates a large retail fruit market. Apples contracts to sell 30 bushels of apples
to BetaCo. and deliver them on November 20. On November 1, Apples Co. tells
Beta Co. that it will not deliver any apples to Beta Co. Choose the best answer:
SelectedAnswer:
, • Question 6
If Beta Co. buys apples from another seller at a price that is $300 morethan the contract
price between Apples Co. and Beta Co., Beta Co. will recover $300 from Apples Co.
5
out of 5 pointsAllen is hiring a computer database designer to help his law firm design a
custom client management database. He interviews Megan for the job, and would like to hire
her. He
needs someone who will be able to start work right away, and it is important that the
new hire sign his confidentiality agreement so that confidentiality of client
informationwill be preserved when the database is designed. Allen locates a form
called “employment agreement,” which includes a confidentiality agreement,
and mails it to Megan. The cover letter enclosing the agreement indicates that
Megan “must sign thisagreement without making any changes to it and hand-
deliver it to my secretary on orbefore June 1.” Choose the best answer:
SelectedAnswer:
• Question 7
Allen can require that Megan hand-deliver the letter to his secretarybecause he, as
offeror, can dictate how it is accepted.
5 out of 5 points
Blue Studio (Blue) contracts with Derrick Teal (Teal) for Teal to lease Blue’s
recording studio to record Teal’s series of 12 podcasts. The recording session is
scheduled to takeplace on December 12. On December 11, the building where
Blue’s studio is located is destroyed by a flood. What is the most likely outcome?
SelectedAnswer:
• Question 8
Blue will have a defense of impracticability that will excuse its inability tomake a studio
available to Teal.
5 out of 5 points
Fifo, Inc. and LevelLLC have been doing business together for eleven years. Fifo,
Inc. provides business accounting services for LevelLLC’s small construction
business. Last spring, when Fifo, Inc. had some storm damage at its home
office, LevelLLC sent some workers over to repair the damage at no cost to Fifo,
Inc. The following summer, LevelLLC found itself being audited by the Internal
