Business Law 380 1. Sam orally agreed to sell Ramie some land for $500,000. Rami
ID: 453866 • Letter: B
Question
Business Law 380
1. Sam orally agreed to sell Ramie some land for $500,000. Ramie paid Sam the $500,000; Sam gave Ramie the deed to the land. Ramie took possession of the land and began building a cabin on it. One month later, Sam tried to retake possession of the land by arguing that the contract for the sale was invalid because it was oral, not written. Sam sued Ramie to invalidate the contract and retake the land.
The court will likely conclude that Sam will:
a) Win; the sale exceeded $500 so the contract must be written to be valid.
b) Win; all land sales contracts must be written.
c) Lose; because the contract was fully executed Sam cannot rescind the contract.
d) Lose; because Ramie had begun building a cabin on the property, Sam cannot rescind the contract.
2. On Tuesday, Sam offered to sell his CD collection to Sandy for $100. Sandy replied, "I'm interested. I'll think it over and let you know Thursday whether I want to buy the CDs." On Wednesday, Sam agreed to sell the CDs to Jason, and Jason immediately gave Sam a letter that stated:
"Sam, I will buy your CD collection for $100. As we agreed, I will pay you on Friday when I pick up the CDs. Yours truly, Jason."
Upon Sam's receipt of this letter on Wednesday, what best describes Sam’s contract agreement(s)?
a) By forming an agreement with Jason, Sam breached his contract with Sandy because he did not effectively revoke his offer to Sandy.
b) Sam has formed contracts with both Jason and Sandy because Sam did not effectively revoke his offer to Sandy and created an enforceable written agreement with Jason.
c). Sam and Jason have formed a valid, enforceable contract; Sam’s offer to Sandy was properly revoked.
d) Sam effectively revoked his offer to Sandy, but has not formed an enforceable contract with Jason because Jason has not yet paid for the CD collection.
3. Mac and Rhamad signed a business contract with a clause that provides that if a dispute arises they must submit to binding arbitration to resolve the dispute. After they had been doing business together for a year, a dispute arose under the terms of the contract. Rather than submit to arbitration, Mac filed a lawsuit against Rhamad. Most likely the court will:
a) hear the lawsuit because Mac cannot be compelled to submit to arbitration; he is constitutionally entitled to a jury trial if he requests a trial.
b) conduct a bench trial, then order a remedy without compelling Mac to submit to arbitration or to a jury trial.
c) compel Mac to submit to arbitration to resolve the dispute.
d) hear the lawsuit in a trial, then compel Mac to submit to arbitration, if Mac is not satisfied with the trial decision.
4. Roxy, while driving through Wyoming to her home in Montana, accidentally lost control of her car and drove it through a window into a store owned by Colt. Colt sued Roxy in a Wyoming court for damages to his store.
Will the Wyoming court likely be able to exercise jurisdiction over Roxy?
a) no, because Wyoming has no in personam (personal) jurisdiction over Roxy, and cannot exercise its long arm statute only in cases involving automobile accidents.
b) no, because Wyoming has no in personam jurisdiction over Roxy, and cannot justify minimum contacts in this case.
c) yes, Wyoming can exercise in personam jurisdiction in this case because any state court has personal jurisdiction in every diversity of citizenship case.
d) yes, because Wyoming can assert in personam jurisdiction over Roxy under the minimum contacts test.
5. Assume a salesperson intentionally made one of the following statements - knowing that the statement was false - to a customer considering a purchase. Which statement could create liability for fraudulent misrepresentation if the customer made the purchase?
a) “In my opinion, this car is in flawless mechanical condition.”
b) “This crane will probably lift about 10,000 pounds.”
c) “This car is a real gem.”
d) “This is an original painting by the artist, Pablo Picasso.”
Explanation / Answer
1.Correct answer is option b i.e win;all land sales contract must be written.Under the transfer of property act 1882,sale of land contracts must be written and registered in order to constitute valid contract.
2.Correct answer is option a i.e by forming an agreement with Jason,sam breached his contract with sandy because he didn't effectively revoke his offer to sandy.because a revocation of an offer must be communicated to the offeree,otherwise the revocation doesn't prevent acceptance.
3.Correct answer is option c i.e compel Mac to submit to arbitration to solve the dispute..Because in their contract a clause was included that provides for binding arbitration in case of a dispute.The enforcement of binding arbitration decision is supported by the Federal Arbitration Act,which prevents courts from reviewing most arbitration decisions or even hearing cases that are supposed to be arbitrated persuant to an arbitration agreement.
4.Correct answer is option c i.e yes,wyoming can exercise inpersonam jurisdiction in this case because any state court haspersonal jurisdiction in every diversity of citizenship case.All states have motorist statutes giving their courts power to decide cases regarding accidents on their roads,regardless of the parties' citizenship.
5.Correct answer is option d i.e "this is an original painting by the artist,Pablo Picasso.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.