GOVT 404 Final Exam.docx a useful document revision for the upcoming exams Liberty University (2021)

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Owner has waived the right to insist on strict compliance with the condition that was included in the contract. 5 out of 5 points Drain Clean Solution, Inc. (DCS) cleans industrial drainage syst... ems. 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 perform the 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: Selected Answer: • Question 5 If DCS is awarded $12,000, that amount represents DCS’s reliance 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 Beta Co. 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: Selected Answer: • Question 6 If Beta Co. buys apples from another seller at a price that is $300 more than the contract price between Apples Co. and Beta Co., Beta Co. will recover $300 from Apples Co. 5 out of 5 points Allen 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 information will 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 this agreement without making any changes to it and handdeliver it to my secretary on or before June 1.” Choose the best answer: Selected Answer: • Question 7 Allen can require that Megan hand-deliver the letter to his secretary because 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 take place 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? Selected Answer: • Question 8 Blue will have a defense of impracticability that will excuse its inability to make 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 Revenue Service. Fifo, Inc. agreed to advise LevelLLC during the audit at no cost, as a way of thanking LevelLLC for its help the previous spring. Is the agreement between Fifo, Inc. and LevelLLC a bargained-for exchange? Selected Answer: • Question 9 No, because Fifo, Inc.’s promise to assist in the audit was not made to induce a return promise or performance from LevelLLC. 5 out of 5 points Employer contracts with Employee to serve as the Chief Operating Officer to the Employer. The term of the contract is one year. The annual salary is $75,000. Before the employment begins, Employee quits. Employer pays a recruiter $3,250 to find a replacement employee. The recruiter finds a comparably qualified replacement employee who is willing to serve as Chief Operating Officer for an annual salary of $80,000. Choose the best answer: Selected Answer: • Question 10 Employer is entitled to damages of $8,250. 5 out of 5 points Lynda is the Chief Operating Officer a medical device manufacturer. She meets with Rupert, who has worked for the company for 40 years. Lynda verbally promises Rupert that if he retires, the company will pay him a monthly retirement benefit until he dies. Rupert retires. Lynda argues that the alleged verbal agreement is unenforceable because the Statue of Frauds requires that it be in writing. Choose the best answer: [Show More]

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