824 words - 4 pages

––Business Law I (LEG100)
Fall 2008
Prof. Markey

Assignment No. 6 – Due December 9, 2008

Instructions: Based on your reading of Chapters 10-16 and classroom discussion, select the best answer to these multiple choice questions. There are 10 questions of equal value.

d. 1. Best Building Corporation needs to resurface the parking lot of its corporate headquarters. Best’s facilities manager, Steve, is in charge of selecting and hiring a paving company to do the work. A-One Pavers, Inc., is interested in repaving Best’s parking lot, and sends its top sales representative, Jane, to discuss it with Bob. After discussing the specific paving work Best wants done, Jane ...view middle of the document...

c. void as a matter of law.
d. void unless it is also signed by Ed, the manager of Dine & Drink.

b. 5. Sue, a minor, signs a contract to buy a computer from Tom, the owner of United Computer Store. Sue's right to disaffirm the contract

a. does not change the fact that Tom is bound by the contract.
b. does not yet exist because Sue is still a minor.
c. gives Tom, an adult, the right to disaffirm the contract.
d. is not valid because a computer is a "necessary."

d. 6. Bart is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance on a new building, in answer to a question about prior convictions, Bart does not disclose his conviction. This makes the contract

a. binding because the statement is immaterial to the decision of the insurance company to issue coverage.
b. binding due to the failure of the insurance company to discover Bart's conviction.
c. voidable at the option of Bart because the question is immaterial to the decision to issue coverage.
d. voidable at the option of the insurance company because the statement is material to the decision to issue coverage.

a. 7. Sam approaches Diane in her retail store and, at knifepoint gets Diane to agree to pay him for protecting her store against the vandalism and theft. Diane may

a. avoid the contract or choose to carry it out.
b. do nothing...

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