JOHANN AND BARTON CONTRACT FOR THE SALE OF GOODS. LATER JOHANN, WHO IS 15 YEARS OLD, DECIDED TO CANCEL THE CONTRACT ON GROUNDS OF INCAPACITY.
. Johann and Barton contract for the sale of goods. Later Johann, who is 15years old, decided to cancel the contract on grounds of incapacity. Which of thefollowing is true, assuming that neither Johann nor Barton is a merchant?a.The common law capacity rules apply, because Article 2 of the UCC has no ruleson the subject in such a case.b.The common law capacity rules supersede the UCC rules in all contracts for saleof goods, even if neither Johann nor Barton is a merchant.c.UCC, Article 2, capacity rules apply, because this is a contract for the sale ofgoods and UCC rules applies to all contracts for sale of goods.d.The Restatement (Second) of Contract rules apply; the UCC does not apply because neither Johann nor Barton are merchants, and because the Restatement(Second) supersedes any common law precedent.2. Contractor and Owner contracted for Contractor to build a house for Owner for$150,000 to be completed by December 24. Later, without terminating the firstcontract, Contractor and Owner agreed to change their agreement by writing andsigning an addendum to the original contract so that Owner will now pay$175,000 for the house to be built. In return, Contractor promised to build exactlythe same house, but to complete it 2 weeks earlier - by December 10.Assuming that all other elements of the contract are lawful and present in thissituation, this second addendum contract:a.b.Is not binding because it does not have a liquidated damages clause.Is not binding because Contractor is merely promising to perform a pre-existinglegal duty to build the house.c.Is not binding because Contractor is not giving adequate consideration by merelypromising to complete the house 2 weeks earlier compared to Owner’s paying anadditional $25,000.d.Is a validly modified addendum that is a binding contract.3. Which of the following is most likely to be considered unconscionable, thusmaking the contract invalid on the ground of unconscionability?a.All terms that are stated in fine print.b.Some moderate disparity in bargaining power between the parties.c.High pressure sales tactics.d.A penalty clause obligating the buyer to pay 5 times the product's price for failingto accept the goods when delivered.4. Office Depot orally agreed with Supplier to buy 475 memo pads at a total priceof $475. Later, Office Depot and Supplier agreed to modify the contract so thatthe price of the memo pads would increase to a total of $575. This modification:a.Must be in writing and signed by one or both parties.b.May be oral because the original contract agreement was oral.c.Can be written or oral because the original contract was oral.d.Is unenforceable because the terms of the original contract were fully agreedupon and cannot be modified. 5. Patient went to Clinic to have a chest x-ray. Patient did not sign any writtenagreement for the x-ray. Patient and Clinic also did not make an oral agreementregarding the x-ray. When Clinic billed Patient $325 for the x-ray, Patient refusedto pay. Clinic sued Patient to recover the $325.Which of the following is true about Clinic’s lawsuit?a.b.c.d.Clinic can recover under the quasi-contract theory of promissory estoppel.Clinic can recover under an implied contract theory.Clinic cannot recover because there was no express contract.Clinic cannot recover because Patient did not give consideration for the bargain.6.Lena owns and operates a van transportation service. Aunt promised tobuy Lena a new van so Lena sold her old van. Aunt then refused to buy Lena anew van. Lena cannot work without a van. If Lena sues Aunt to enforce thepromise, the likely result is that the promise will:a.Be enforced under promissory estoppel because Lena relied on Aunt’s promise.b.Not be enforced as Lena was not unjustly enriched because she did not receivethe van.c.Be enforced because the van is a necessity for Lena and all contracts fornecessities are binding and enforceable for all parties.d.Not be enforced as Aunt’s promise was merely a gift to Lena.7. Parker went to a golf practice putting green. He picked up a bucket of golfballs from the attendant at the entrance to the practice greens. After practicingfor an hour, Parker returned the golf balls and started to leave. A posted signstated the cost of each practice session, up to 1 hour, was $15.00. Customers areexpected to pay after completing practice.Parker refused to pay for the practice time. A court would most likely concludethat:a.Applying the subjective intent test, Parker is not bound to pay for the practicebecause there was no verbal agreement about the cost of the practice.b.