Law 2- Final Exam Questions With 100% Complete Solutions.

Law 2- Final Exam Questions With 100% Complete Solutions. The president of Deal Corporation wrote to Boyd, offering to sell the Deal factory for $300,000. The offer was sent by Deal on June 5 and was received by Boyd on June 9. The offer stated it would remain open until December 20. The offer: May be revoked by Deal any time prior to Boyd's acceptance. Diel entered into a written contract to sell a building to Stone. The contract was properly recorded. Stone breached the contract and Diel has brought an action for breach of contract. Stone pleads the statute of limitations as a defense. Which of the following statements is correct? The remedy sought by Diel will be barred when the period of time provided by the statute of limitations has expired. Union Bank loaned $200,000 to Wagner. Union required Wagner to obtain a life insurance policy naming Union as beneficiary. While the loan was outstanding, Wagner stopped paying the premiums on the policy. Union paid the premiums, adding the amounts to Wagner's loan. Wagner died and the insurance company refused to pay the policy proceeds to Union. Union may: Recover the policy proceeds because it is a creditor beneficiary. Kent, a 16-year old minor, purchased a used car from Mint Motors Inc. Ten months later, the car was stolen and never recovered. Which of the following statements is correct? Kent may disaffirm the purchase because Kent is a minor. Race entered into a written contract to sell a parcel of land to Lark for $150,000. At the time the agreement was executed, Race had consumed a large amount of alcoholic beverages that significantly impaired Race's ability to understand the nature and terms of the contract. Lark knew Race was very intoxicated and that the land had been appraised at $280,000. Race wishes to avoid the contract. The contract is: Voidable at Race's option. Fred entered into a written contract with Joe to purchase a car. The written contract was intended to be the final and complete agreement of the parties. Fred is unhappy with the performance of the car and has commenced an action for breach of contract based on an oral representation made at the time the written contract was executed. Fred may introduce evidence of the representation if it: Serves to clarify an ambiguous term in the written contract Stahl Corp. entered into a written contract to purchase a warehouse from Mehl for $385,000. Thereafter, Mehl received an offer from another purchaser to buy the warehouse for $395,000. As a result, Mehl has refused to transfer the warehouse to Stahl. Stahl has commenced an action for specific performance. Mehl has raised the statute of frauds as a defense. In order for Stahl to successfully prevail on the statute of frauds issue, it must be shown among other requirements that the contract was signed by: Mehl. Dell owed Stark $9,000. As the result of an unrelated transaction, Stark owed Ball that same amount. The three parties signed an agreement that Dell would pay Ball instead of Stark, and Stark would be discharged from all liability. The agreement among the parties is: A novation. Terrence has been Pauline's agent in the liquor business for 10 years and has made numerous contracts on Pauline's behalf. Under which of the following situations could Terrence continue to have the power to bind Pauline? The firing of Terrence by Pauline. Phil asks his employee Ed to take a company truck to deliver some lumber to a customer, Carl. After delivering the lumber, Ed drives 10 miles beyond the customer's house to visit his mother at her house. While pulling the truck in into his mother's driveway, Ed negligently strikes a pedestrian, Vic. If Vic sues Phil for his injuries, will Vic likely recover? No, because the collision did not occur within the scope of Ed's employment. If a principal is undisclosed, which of the following statements is not true? The principal may ratify an unauthorized act by the agent. Able, on behalf of Pix Corp., entered into a contract with Sky Corp., by which Sky agreed to sell computer equipment to Pix. Able disclosed to Sky that she was acting on behalf of Pix. However, Able had exceeded her actual authority by entering into the contract with Sky. If Pix does not want to honor the contract, it will nonetheless be held liable if Sky can prove that: Able had apparent authority to bind Pix. Which of the following is a reason to deny a debtor a discharge in bankruptcy? Debtor received a discharge in bankruptcy five years ago. Mern Corp. sells computers and computer software to the public. Mern sold and delivered a personal computer to Whyte on credit. Whyte executed and delivered to Mern a promissory note for the purchase price and a security agreement covering the computer. If Whyte purchased the computer for personal use and Mern fails to file a financing statement, which of the following is correct? Perfection of Mern's security interest occurred at the time of attachment. Becky borrows $100,000 from Bank to open a new restaurant. She gives Bank a security interest in all of her equipment, including equipment to be acquired in the future. Bank perfects the interest by filing a financing statement covering all of the collateral in a proper place. Becky uses all of the money Bank gave her to purchase equipment, but still needs pots and pans. Her brother Alex offers to lend her $1,000 for pots and pans if she will give him her guitar until she repays him. Alex promises to return the guitar on repayment. Becky agrees, Alex gives her $1,000, she gives Alex her guitar, and she buys the pots and pans. Four months later, Becky defaults in payments to both Bank and Alex. Bank repossesses all of Becky's equipment, including the pots and pans. Which of the following statements is correct? Bank's security interest in the pots and pans is superior to Alex's interest in the pots and pans. Pix is offering to issue $10 million of its securities pursuant to Regulation D of the Securities Act of 1933. Under the applicable provisions of Regulation D: