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MBE Sample Questions

 

RIGOS BAR REVIEW SERIES: MBE REVIEW - CHAPTER 1 CONTRACTS

 

CONTRACT AND UCC SALES ARTICLE 2
QUESTIONS

 

1.  The most likely contract to be classified under the Uniform Commercial Code (UCC) is a contract for
(A)  A common carrier delivering a new computer.
(B)  Crops and timber to be severed from the property next summer.
(C)  The purchase of a commercial property building.
(D)  The sale of an intangible asset.

2.  Connie Computer decided to purchase a $1,000 laptop computer to use during law school. When she went into Computer Retailer Inc., the salesperson also sold her a 5-year service agreement for $1,200 for a total price of $2,200. Nine months later, the laptop stopped working and Computer Retailer refused to perform on their service agreement. If Connie sues Computer Retailer, the trial court will likely find for
(A)  Connie, under the common law because the predominate purpose for which the parties contracted was the sale of goods.
(B)  Connie, under the UCC only if the predominate reason for entering into the contract was for the goods portion of the contract.
(C)  Connie, under the UCC unless the predominate purpose of the agreement was for the service agreement portion of the contract.
(D)  Computer Retailer, if the court determines that the predominate purpose of the agreement is determined by intent and not the relative dollars assigned to the computer and the service agreement.

3.  Wendy Wholesaler sold merchandise to Roberta Retailer.  A dispute has arisen between the parties and Roberta is trying to prove that Wendy is a “merchant” as opposed to a "casual party."  The least important factor indicating the status of a "merchant" is that Wendy
(A)  Is a wholesaler rather than a retailer.
(B)  Deals in the goods sold to Roberta.
(C)  Holds herself out as an expert in the goods sold to Roberta.
(D)  Sells under 10 units a year to Roberta.

4.  Where a client accepts the services of an attorney without an agreement concerning the amount of the fee, there is
(A)  An implied-in-fact contract.
(B)  An implied-in-law contract.
(C)  An express contract.
(D)  No contract.

5.  Sarah Student was a third-year law student who had just purchased the Primer Series MBE Review program.  She was studying in the law library and decided to take a short refreshment break.  When she returned to her study desk ten minutes later, her Primer Series was gone.  She ran into the student lounge and announced, "I will pay $20 to anyone who identifies the dirty bum who took my Primer Series MBE Review books." Donna Doubtful saw Terry Thief pick up Sarah's Primer Series books, but did not believe Sarah would actually pay her the $20, if she made the identification. Thus, Donna went up to Sarah and said, "I know the identity of the thief and promise to tell you, but I want the $20 in advance." The effect of Donna's statement is to
(A)  Create a unilateral contract.
(B)  Create a bilateral contract.
(C)  Create no contract.
(D)  Create a contract which is defeasible unless Donna makes the required disclosure within a reasonable period of time.

6.  There may be a substantial time period between contract formation and final completion of performance.  Concerning these executory contracts, which of the following is the least correct?
(A)  A wholly executory contract is where only promises have been exchanged and there has been no performance by either party.
(B)  A partially executed contract means that one party has completed performance while the other party has only promised.
(C)  An executed contract exists when both parties have fully performed and no obligations remain.
(D)  A partially executed contract means that at least one party has begun performance.

7.  Charlie Contractor entered into a contract with Nancy Non-cooperative to remodel a bathroom and kitchen in Nancy's home.  The contract assigned $10,000 to the bathroom and $15,000 to the kitchen with the $25,000 total due when all the remodeling was complete.  Charlie completed the bathroom, but refused to begin the kitchen because Nancy did not cooperate.  If Charlie sues Nancy, the likely outcome is for
(A)  Charlie in an amount of $25,000 since he alleges that Nancy breached the contract.
(B)  Charlie in an amount of $12,500 since he completed the bathroom construction.
(C)  Charlie in an amount of $10,000 if the court finds the contract divisible and the $10,000 is an equivalent amount for the completed portion of the agreement.
(D)  Nancy since Charlie will not complete the contract, he is not entitled to any compensation.

8.  Jack and Jill began to negotiate for the transfer of a business.  Their negotiations continued for some time. J ack is asserting that Jill made an offer and promise which he accepted with a return promise.  Jill asserts that the agreement was not what she intended.  In determining whether a contract has been created, the courts look primarily at
(A)  The fairness to the parties.
(B)  The objective intent of the parties.
(C)  The subjective intent of the parties.
(D)  The subjective intent of the offeror.

9.  Which of the following offers for the sale of widgets is not enforceable if the seller changes his mind prior to acceptance?
(A)  A merchant tells buyer in writing she will sell the widget for $35,000 and that the offer will be irrevocable for ten days.
(B)  A merchant writes buyer offering to sell the widget for $35,000.
(C)  A merchant telegraphs buyer offering to sell the widget for $35,000 and promises to hold the offer open for ten days.
(D)  A merchant writes buyer offering to sell the widget for $35,000 and stating that the offer will be irrevocable for ten days if buyer will pay $1.00. Buyer pays.

10.  In order to have an irrevocable offer under the Uniform Commercial Code, the offer must
(A)  Be made by a merchant to a merchant.
(B)  Be contained in a signed writing which gives assurance that the offer will be held open.
(C)  State the period of time for which it is irrevocable.
(D)  Not be contained in a form supplied by the offeror.

11.  James makes a written offer to Fred for the sale of land for $100,000.  In this offer, James states, "This offer will not be revocable for a ten-day period of time." The offer was signed on April 1, mailed to Fred on April 3 and received by Fred on April 5th.  Which of the following is true?
(A) Fred's unqualified acceptance on April 10 will not create a contract.
(B) Fred's acceptance on April 5 will not create a contract if James dies on April 4.
(C) Fred stating on April 5, "I accept your offer, but will pay only $90,000" creates a contract.
(D) Fred's unqualified acceptance on April 15 will not create a contract.

12.  A merchant's irrevocable written offer (firm offer) to sell goods
(A)  Must be separately signed if the offeree supplies a form contract containing the offer.
(B)  Is valid for three months.
(C)  Is nonassignable.
(D)  Can not exceed a three-month duration even if consideration is given.

13.  Water Works had a long-standing policy of offering employees $100 for suggestions actually used.  Due to inflation and a decline in the quantity and quality of suggestions received, Water Works decided to increase the award to $500.  Several suggestions were under consideration at that time.  Two days prior to the public announcement of the increase to $500, a suggestion by Farber was accepted and put into use.  Farber is seeking to collect $500. Farber is entitled to
(A)  $500 because Water Works had decided to pay that amount.
(B)  $500 because the suggestion submitted will be used during the period that Water Works indicated it would pay $500.
(C)  $100 in accordance with the original offer.
(D)  Nothing if Water Works chooses not to pay since the offer was gratuitous.

14.  Betty Buyer wanted to buy an antique Volvo automobile owned by Sarah Seller who had previously expressed some interest in selling.  Betty wrote Sarah a signed letter on April 1 stating "I will buy your Volvo for $10,000 cash upon you bringing the vehicle to my home before April 5. This offer is not subject to countermand." On April 2 Sarah received the letter and wrote back a signed letter to Betty stating "I accept your offer and promise to deliver the Volvo to you as you request." Unfortunately, the Postal Authority delayed delivery of Sarah's letter for 10 days.  In the mean time, Betty grew tired of not hearing from Sarah and purchased another car.  When she learned that Betty would not complete the transfer, Sarah sued for breach of contract.  The court will likely hold that
(A)  The mailing of the April 2nd letter did not prevent a subsequent effective revocation by Betty.
(B)  The April 2nd letter bound both parties to a bilateral contract when received.
(C)  The April 2nd letter bound both parties to a unilateral contract.
(D)  The April 2nd letter was effective to form a contract on April 12th, when the offeror received it.

15.  Fernandez is planning to attend an auction of the assets of Cross & Black, one of his major competitors who is liquidating.  In the conduct of the auction, which of the following rules applies?
(A)  Such a sale is without reserve unless the goods are explicitly put up with reserve.
(B)  A bidder may retract his bid at any time until the falling of the hammer.
(C)  The retraction of a bid by a bidder revives the previous bid.
(D)  If the auction is without reserve, the auctioneer can withdraw the article at any time prior to the fall of the hammer.

16.  Base Electric Co. has entered an agreement to buy its actual requirements of copper wiring for six months from the Seymour Metal Wire Company and Seymour Metal has agreed to sell all the copper wiring Base will require for six months. The agreement between the two companies is
(A)  Unenforceable because it is too indefinite as to quantity.
(B)  Unenforceable because it lacks mutuality of obligation.
(C)  Unenforceable because of lack of consideration.
(D)  Valid and enforceable.

17.  A contractor and home owner were bargaining on the price for the construction of a new home.  The contractor made a number of offers for construction to the home owner including one for $100,000.  Which of the following communications would not terminate the offer so that a subsequent acceptance could be effective
(A)  The home owner asks the contractor if they would be willing to build the house for $95,000.
(B)  The contractor contacts the home owner and states that the offer is withdrawn.
(C)  The contractor dies before the home owner accepts but the contractor's son intends to continue the business.
(D)  The home owner states "I accept your offer but the price is to be $97,000."

18.  Calvin Poultry Co. offered to sell Chickenshop 20,000 pounds of chicken at 40 cents per pound under specified delivery terms.  Chickenshop accepted the offer as follows:
"We accept your offer for 20,000 pounds of chicken at 40 cents per pound per city scale weight certificate."
Which of the following is correct?
(A)  A contract was formed on Calvin's terms.
(B)  Chickenshop's reply constitutes a conditional acceptance, but not a counteroffer.
(C)  Chickenshop's reply constitutes a counteroffer and no contract was formed.
(D)  A contract was formed on Chickenshop's terms.

19.  Rainmaking Lawfirm regularly purchased its office supplies from catalogs.  Marty Manager saw an advertising catalog from Costco offering 10,000 envelopes for $1,000 CIF.  He immediately sent a purchase order which stated "our law firm accepts your $1,000 offer for 10,000 envelopes for $1,000 CIF." Costco then sent Rainmaking an order confirmation which stated "Envelope order acceptance conditional upon a loading charge of $50 per thousand envelopes."  If the parties disagree on the proper contract relationship, a court would likely rule:
(A)  A contract at $1,000 because the offer terms CIF means cost, insurance and freight including all loading charges.
(B)  A contract at $1,500 because the loading charges are to be included.
(C)  No contract because the order confirmation was a counteroffer which was not accepted.
(D)  No contract because the purchase order was the offer and, under the mirror image rule, can not be deviated from.

20.  On October 1, Arthur mailed to Madison an offer to sell a tract of land located in Summerville for $13,000.  Acceptance was to be not later than October 10.  Madison posted his acceptance on the 3rd of October.  The acceptance arrived on October 7.  On October 4, Arthur sold the tract in question to Larson and mailed to Madison notice of the sale.  That letter arrived on the 6th of October, but after Madison had dispatched his letter of acceptance.  Which of the following is correct?
(A)  There was a valid acceptance of the Arthur offer on the day Madison posted his acceptance.
(B)  Arthur's offer was effectively revoked by the sale of the tract of land to Larson on the 4th of October.
(C)  Arthur could not revoke the offer to sell the land until after October 10.
(D)  Madison's acceptance was not valid since he was deemed to have notice of revocation prior to the acceptance.

21.  Berg offered to sell a parcel of land to Jones for $75,000 cash. The offer was in writing on March 1 and made by sending an e-mail to Jones' web site.  Jones responded by mailing a letter on March 10 which stated "I accept but would like to request that I can pay $25,000 in three equal installments over the next three years." Berg received the letter on March 15.  A contract was
(A)  Formed on March 10.
(B)  Formed on Match 15.
(C)  Not formed because Jones' addition of the three year payment request was a condition that Berg had to agree should be included.
(D)  Not formed because the addition of the three year request was, in effect, a rejection.

Last updated on 10/6/2011 10:56:55 AM