Showing posts with label Business Law Chapter 10. Show all posts
Showing posts with label Business Law Chapter 10. Show all posts

Which statement is NOT true regarding promissory estoppel?

Which statement is NOT true regarding promissory estoppel?




a. Promissory estoppel allows courts to enforce a promise even when there is no contract.
b. Promissory estoppel is the only possible remedy for an injured plaintiff in a case with no valid contract.
c. Promissory estoppel is an equitable remedy.
d. Promissory estoppel requires the plaintiff to establish that the defendant made a promise upon which plaintiff reasonably relied to his or her detriment and the only way to avoid injustice is to enforce the promise.






Answer: B

Jimmy enters into a contract to paint Chester's house. When Chester decides on a color, Jimmy will buy the paint and paint the house for the price of $2,500. This contract is governed by:

Jimmy enters into a contract to paint Chester's house. When Chester decides on a color, Jimmy will buy the paint and paint the house for the price of $2,500. This contract is governed by:




a. both the common law and the Uniform Commercial Code will govern this contract.
b. the Uniform Commercial Code governs because a sale of goods is involved.
c. the common law of contracts governs because this is a mixed contract (one for services and goods).
d. the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods.







Answer: D

Tucker enters a dentist office and points to a damaged tooth. The dentist, Mike, treats the tooth. If Tucker refused to pay and Mike sued:

Tucker enters a dentist office and points to a damaged tooth. The dentist, Mike, treats the tooth. If Tucker refused to pay and Mike sued:




a. Mike would win in quantum meruit.
b. Mike would win; this is an implied contract.
c. Tucker would win as there was no contract.
d. Tucker would win because of the UCC.






Answer: B

Gillian has offered to sell her computer for $1750 to Andy. She tells Andy that the computer is only six months old but, in fact, the computer is three years old, and Gillian wants to unload the lemon. Andy agrees to buy the computer based on Gillian's representations. This contract is:

Gillian has offered to sell her computer for $1750 to Andy. She tells Andy that the computer is only six months old but, in fact, the computer is three years old, and Gillian wants to unload the lemon. Andy agrees to buy the computer based on Gillian's representations. This contract is:




a. a void contract because of the UCC.
b. a voidable contract, one that Gillian can void.
c. a void agreement because of the fraud involved.
d. a voidable contract, one that Andy can void.






Answer: D