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MBE Sample Answers

 

RIGOS BAR REVIEW SERIES: MBE REVIEW - CHAPTER 1 CONTRACTS

 

CONTRACT AND UCC SALES ARTICLE 2
ANSWERS

 

1. /B/  The best answer because it is the only contract of the four presented that is not from the SIR topics which fall under the common law.  Goods include crops and timber that can be severed from the real property without harm.  A is incorrect because providing freight delivery by a common carrier is a type of service, which is our S in SIR even though the subject matter - a computer - is a UCC good.  C is incorrect because a contract for property falls under the real estate category, which is our R in SIR.  D is incorrect because a contract for an intangible asset falls under the intangible category, which is our I in SIR.

2. /B/  B is correct because the "only if" limiting modifier is possible under these facts and it creates a more compelling factual argument to support the legal conclusion than the other alternatives. A is incorrect because the conditional modifiers "because" or "since" make the following legal reasoning a requirement which must be met for the alternative to be correct; here the reasoning is not required and is incorrect since the predominate dollar purpose is for the personal service contract ($1,200 v $1,000).  C is not the best answer because the rationale supporting the conditional modifier "unless" means the rationale must be necessary; here the judge could apply the UCC to a common law contract by analogy.  D is not the best answer; the "if" modifier makes the most compelling argument, but the conclusion - Computer Retailer prevailing - does not follow from the argument.

3. /A/  The least important factor in determining if a seller is a merchant would be if they sold at wholesale or at retail.  Either a wholesaler or a retailer could be classified as a casual seller.  B is incorrect because a seller who "deals in the goods" is one of the merchant characteristics listed in UCC 2.104.  C is incorrect because a seller who "holds herself out as an expert having special knowledge and skill in the goods" is one of the merchant characteristics listed in UCC 2.104.  D is not the best answer because the number of units sold in a given year is not controlling as to whether the seller is a merchant or casual seller.  It could be that 10 units a year would not be a sufficient quantity to qualify as dealing in those goods.

4. /A/  The contract would be implied in the fact that the client accepts the services of the attorney.  B is incorrect because the law would not necessarily imply a contract.  C is incorrect because there is no express contract under these facts.  D is incorrect because there is an implied-in-fact contract.

5. /C/  The offeror, Sarah, was bargaining for a unilateral contract in which acceptance is only rendered by performance of the act requested.  A is incorrect because the offeree did not perform the requested act.  B is incorrect because the offeror was not bargaining for acceptance by a return promise.  D is incorrect; while the offer may become irrevocable if Donna's statement is deemed to be a beginning of performance, it does not create a legal contract until acceptance.

6. /B/  This is the least correct alternative since a partially executed contract is possible where both parties have partially performed.  This is a negative question; often the best approach in such questions is to use a true-false approach.  The odd man out is the correct answer.  A is true and therefore incorrect.  C is true and therefore incorrect.  D is true and therefore incorrect.

7. /C/  The best answer since it is correct and states a rationale that is consistent with the law and the facts given in the question.  The contract appears divisible since performance of one portion does not affect the other and payment equivalent to performance is possible.  A is not the best answer since the P's allegation of D's breach is not controlling.  B is incorrect because the contractor did complete a divisible portion of the contract.  D is incorrect because if the contract is deemed divisible, the P will collect an equivalent amount of the whole contract.

8. /B/  When interpreting a bilateral contract, the court attempts to ascertain the objective intent of the parties.  A is incorrect because fairness is not usually an issue unless the contract is unconscionable or patently unequal.  C is incorrect because the subjective intent is of less importance than the objective test.  D is not the best answer because the offeror's communications are to be evaluated objectively; how would a reasonable person interpret the offeror's expressions is the test.

9. /B/  A mere offer to sell without any promise that the offer is to be held open is revocable at the will of the seller.  A is incorrect because under the UCC this written statements by a merchant would constitute a "firm offer" which would be irrevocable for the time stated up to 90 days. C is incorrect because under the UCC this written statements by a merchant would constitute a "firm offer" which would be irrevocable for the time stated up to 90 days.  D is incorrect because, upon the receipt of consideration, the offer is transformed into an option contract which would be irrevocable for the stated time even if in excess of 90 days.

10. /B/  A concise statement of the UCC's "firm offer" rule.  A is incorrect because only the offeror must be a merchant.  C is incorrect because the UCC will impose a "reasonable" period of irrevocability on the offeror.  D is incorrect because who supplies the form is not relevant to the application of the rule.

11. /B/  The death of the offeror terminates an open offer.  A is incorrect because such an acceptance would be effective to create a contract.  C is incorrect because this purported "acceptance" is treated as a rejection and a counter offer.  D is incorrect; a time period stated in the offer begins to run on the date the offer is received by the offeree so an acceptance on April 15 would be timely.

12. /A/  If the other party provides the contract, the merchant must separately sign the agreement to constitute a firm offer under UCC 2.205.  B is not the best answer because a firm offer is valid for the offeror's stated time which may be less than three months.  C is incorrect because contracted rights may always be assigned under the UCC.  D is incorrect because consideration would convert the firm offer into an option contract.

13. /C/  Acceptance must be with knowledge of the offer.  A is incorrect because the award is limited to $100, the amount known to the offeree as of the date of acceptance.  B is incorrect because the award is limited to $100, the amount known to the offeree as of the date of acceptance.  D is incorrect because the award is limited to $100, the amount known to the offeree as of the date of acceptance.

14. /A/  The offer clearly was seeking performance for acceptance and not a mere promise to perform; as a result, there was no acceptance regardless of when it may be effective.  Therefore, the revocation by action of the seller was effective since a prior valid acceptance had not been made.  B is incorrect because the April 2 letter did no constitute a valid acceptance.  C is incorrect because the April 2 letter did not create a contract.  D is incorrect because the April 2 letter did not constitute an acceptance, no matter what the effective date might have been.

15. /B/  Acceptance is at the fall of the hammer and thus a bidder may retract his offer prior to that time.  A is incorrect because the presumption is that auctioned goods are put up with reserve.  C is incorrect because the previous bid is no longer effective once a new higher bid is accepted.  D is incorrect because only if the auction is with reserve does the auctioneer have the right to withdraw the goods prior to acceptance.

16. /D/  This is a contract falling under UCC 2.306.  Requirement contracts are valid and enforceable without specifying quantity as long as there is a reasonable basis for giving an appropriate remedy.  A reasonable quantity would be imposed.  A is incorrect because such a requirements contract is enforceable.  B is incorrect because such a requirements contract is enforceable.  C is incorrect because such a requirements contract is enforceable.

17. /A/  A is correct because this appears to be a mere inquiry by the offeree which has no effect on the offer; therefore a subsequent acceptance could be still be effective.  B is incorrect because the offeror can revoke an open offer thus terminating the offeree's power of acceptance.  C is incorrect because the death of the offeror terminates an open offer.  D is incorrect because an offeree's purported acceptance with different terms is a rejection which terminates an open offer.

18. /D/  The UCC would allow acceptance with minor additional consistent terms.  Because the "per city scale weight certificate" is minor and not inconsistent with Calvin's offer, the inclusion of same does not defeat the effectiveness of the acceptance and is not to be treated as a counteroffer.  A is incorrect because under the UCC such additional terms become a part of the contract unless the offeror notifies the offeree of an objection to the inclusion of the additional terms in the agreement.  B is incorrect because the reply is not a conditional acceptance.  C is incorrect because the reply is not a counter offer.

19. /C/  The advertising catalog is not an offer but only an invitation to deal. The offer was the "purchase order" and Costco's "order confirmation" was an attempted acceptance with an express condition that contradicted the offer terms.  Thus it should be interpreted as a counteroffer and since the counteroffer was not accepted by the original offeror, Rainmaking Lawfirm, no contract was formed.  A is incorrect because there was no contract.  B is incorrect because there was no contract.  D is not the best answer because this probably would be interpreted as different terms to which both parties are assumed to object.  The change also adds $500 or 50% to the price which is a material change, so inclusion through a seller's non-objection does not seem likely.

20. /A/  There was a valid Arthur-Madison contract because the effective date of the acceptance was upon dispatch while the effective date of revocation was on receipt which was later.  B is incorrect because revocations are only effective upon receipt.  C is incorrect because there is generally no restriction on the offeror's ability to revoke.  D is incorrect because acceptance occurred prior to revocation.

21. /B/  Under the traditional common law, mailbox treatment for acceptance requires that "as fast or faster" means be used to communicate the acceptance.  Here the mailed response was slower than the e-mailed offer so the acceptance can only be effective on receipt.  C is incorrect because the request for the payment terms was not a condition of the acceptance - only a mere request which the offeror could reject.  D is incorrect because an acceptance may contain a request for additional terms.

 

Last updated on 10/6/2011 2:47:06 PM