Glendale Community College » Business Administration » BUSAD 120 - Business Law » Summer 2022

BUSAD 120 - Business Law » Summer 2022 » Chapter 17 Study Guide Quiz

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Question #1

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is “void.” This ordinarily prohibits

A. only an assignment of contract rights to personal services.

B. only an assignment that would change the obligor’s risk.

C. any assignment.

D. no assignment.

Question #2

Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial “assigns all rights under the contract.” This transfer is

A. an alienation and a negotiation.

B. prohibited.

C. an obligation and a cancelation.

D. an assignment and a delegation.

Question #3

App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is

A. an assignee.

B. an intended beneficiary.

C. an incidental beneficiary.

D. a delegatee.

Question #4

Bobbie enters into a contract with Claire, who agrees to paint Bobbie’s studio apartment for $500. Claire is the

A. assignee.

B. obligee.

C. obligor.

D. assignor.

Question #5

Devon and Edmond enter into a contract for the closing of a sale of Devon’s recording studio. When Edmond’s schedule conflicts, he asks Ferdie to perform his duties at the closing. This transfer of duties is

A. a negotiation.

B. an assignment.

C. prohibited

D. a delegation.

Question #6

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya’s right to the $1,000 is then

A. extinguished.

B. incidental.

C. unchanged.

D. assigned to a court.

Question #7

Jean promises to paint Katy’s house in exchange for Lila’s promise to plant trees on Jean’s property. This is

A. none of the choices.

B. an assignment.

C. a delegation.

D. a third party beneficiary contract.

Question #8

Julia, a world-famous chef, signs a contract to give lessons in French cooking to Kyle. Julia wants to transfer her duties under the contract to Leila, a short-order cook at Mom’s Café. The transfer is

A. not valid because performance depends on Julia’s personal skills.

B. valid because the performance required is of a nonpersonal nature.

D. not valid if Kyle does not hold Leila in high regard.

E. valid if Leila is a highly regarded short-order cook.

Question #9

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

A. without continuing to be potentially liable.

B. without Miles’s consent.

C. without paying Miles at least one monthly fee.

D. under any circumstances.

Question #10

Leon contracts to install automatic watering troughs in Kendall’s dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue

A. Jake or Leon.

B. Jake only.

C. no one.

D. Leon only.

Question #11

Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can modify or rescind their contract without Mai’s consent

A. before Mai’s rights have vested.

B. at no time.

C. after Mai’s rights have vested.

D. at any time.

Question #12

Merry Music Inc. and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her. Nayda transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, Nayda is

A. an alien.

B. an obligor.

C. a delegator.

D. an assignor.

Question #13

Orchid and Peony enter into a contract for the sale of Orchid’s textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. This transfer

A. may be oral or written.

B. must be implied.

C. is prohibited.

D. must be in writing.

Question #14

Qiana has the right under a contract with Runway Retail, Inc., to buy the retailer’s clothing overstock. Qiana’s sale of this right to Sade’s Style House is

A. a third-party beneficiary contract.

B. a delegation.

C. an assignment.

D. prohibited.

Question #15

Richly Merchandise, Inc., contracts with Stand-Rite Contractors to build a store. Stand-Rite assigns the contract to Town Builders, which has a poor record of completing projects. Richly could most successfully argue that the contract cannot be assigned because

A. an assignment will significantly increase the risk of nonperformance.

B. Richly did not receive adequate consideration for the assignment.

C. Town Builders was not an original party to the deal.

D. Richly did not consent to the assignment.

Question #16

Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is

A. none of the choices.

B. a delegate and an obligee.

C. a delegator and an obligor.

D. an assignor and an assignee.

Question #17

A life insurance contract involves an intended beneficiary.

A. True

B. False

Question #18

A transfer of contract duties to a third party is an assignment.

A. True

B. False

Question #19

A valid delegation of duties relieves the delegator of obligations under the contract.

A. False

B. True

Question #20

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

A. True

B. False

Question #21

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

A. True

B. False

Question #22

Intended beneficiaries can sue to enforce a contract.

A. False

B. True

Question #23

No contract can prohibit delegation of the duties of the contract.

A. False

B. True

Question #24

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

A. False

B. True

Question #25

Vested is the condition in which rights have taken effect and cannot be taken away.

A. True

B. False

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