BUL4310: Legal Environment Module 4

BUL4310: Legal Environment Module 4 Quiz A promise not to sue is commonly called a: Release Is the implied or expressed acceptance of less than what has been billed to the debtor. Accord Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value. Lisa may: not rescind since Lisa and Deb freely agreed In terms of agreements, preexisting duties: are unenforceable as a consideration in a new contract The legal term used to describe the sacrifice that each party must experience in a mutual exchange is that party's legal: Detriment In terms of disputed amounts, satisfaction: is the agreed-to settlement contained in the accord Promises under seal: are enforceable in some states for contracts not involving goods A seal is usually indicated by the addition of the work seal or the letters "L.S." meaning locus sigilli or: The "place of the seal" When a consideration is so ridiculously inadequate that it shocks the court's conscience, it is considered: Unconscionable Which of the following legal detriments is known as forbearance? Refraining from doing something one has a legal right to do Linda calls a cab in the morning to get to work. The fare that Linda would pay to the cab is: An consideration is a legal doctrine that restricts a party from denying that a promise was made under certain conditions, even though consideration has not been exchanged to bind an agreement. Promissory Estoppel Edwin, Marketing VP of Amalgamated Sales, Inc., writes a letter dated August 1 to Bargain Stores, Inc., offering to sell candy to Bargain Stores at $50 per case for the next one month. In mid August, Amalgamated receives an offer from Dandy Stores, Inc., to purchase this candy at a price of $75 per case. Can Amalgamated withdraw its offer to Bargain Stores? No, as this is a firm offer

BUL4310: Legal Environment Module 4 Quiz Tasha phones Robert and asks if she can borrow his vacuum cleaner to clean her apartment before her parents visit. Robert agrees to this. But when Tasha goes to pick up the vacuum, Robert refuses to give it to her. Which of the following statements is true? A bargained-for exchange has not occurred, so Robert does not have to loan Tasha the vacuum cleaner A woman who can neither speak nor read English purchases a stereo system from a local electronics store. Although the stereo is advertised for $450, the store owners charge the woman $10,000. A court would most likely consider this transaction: an unconscionable contract