California First-Year Law Students' Exam (Baby Bar)

A homeowner mails a signed letter to a contractor stating, "I will pay you $8,000 to repaint my house. This offer is good for 10 days." Three days later, before the contractor has responded, the homeowner phones and says, "Forget it, I changed my mind." The contractor then attempts to accept the next day. Is there a contract?

• ANo; the revocation was effective.
• BYes, because the offer expressly stated it would remain open for 10 days
• CYes, because the offer was in a signed writing
• DNo, because painting services are governed by the UCC, which requires a firm offer

A retailer emails a manufacturer: "Please ship 500 widgets at $4 each." The manufacturer replies, "Accepted; shipment to include our standard arbitration clause for all disputes." Both parties are merchants and neither objects further. Under UCC 2-207, what is the status of the arbitration clause?

• AA contract was formed and the arbitration clause is automatically part of it
• BContract formed; the clause enters only if not a material alteration.
• CA contract was formed on the manufacturer's terms because it sent the last form
• DThere is no contract because the acceptance varied the terms of the offer

An uncle promises his 21-year-old nephew $5,000 if the nephew refrains from lawful drinking and smoking for one year. The nephew fully performs. Is the promise enforceable?

• ANo; abstaining benefited the nephew
• BYes; a writing alone makes it binding
• CYes; forbearance from a legal right is consideration
• DNo; personal forbearance cannot be consideration

A buyer and seller orally agree on the sale of a vacant lot for $90,000. The seller later refuses to perform, and the buyer sues for specific performance. The seller raises the Statute of Frauds. Which of the following would best satisfy the writing requirement?

• AEvidence that the price was fair and the deal commercially reasonable
• BThe buyer's testimony that the parties shook hands on the deal
• CThe buyer's own signed note describing the agreement
• DThe seller-signed memorandum containing the essential terms.

A famous chef contracts to cater a wedding for a flat fee. The week before the event, the chef assigns her right to receive payment to a bank to satisfy a loan, and also attempts to delegate the actual cooking to a line cook the couple has never met. The couple objects. Which statement is most accurate?

• AAssignment of payment is valid, but delegation of the unique cooking duty is barred.
• BNeither the assignment nor the delegation is permitted without consent
• CThe delegation is valid, but the assignment of payment is barred as a material change in…
• DBoth the assignment of payment and the delegation of cooking are valid

A contractor agrees to build a garage for $20,000. After completing 90% of the work in a workmanlike manner, the contractor uses the wrong brand of pipe in a hidden water line, a deviation that does not affect function and would cost $9,000 to tear out and replace. The owner refuses to pay anything, claiming breach. What is the contractor most likely entitled to recover?

• ANothing, because the contractor breached the contract
• BContract price minus diminution in value.
• CThe reasonable value of materials only, in quantum meruit
• DThe full $20,000 contract price with no deduction

A seller contracts to sell custom-printed t-shirts to a buyer for a concert. Before the delivery date, the seller clearly tells the buyer, "I will not be able to deliver any shirts." The concert is two weeks away. What may the buyer do immediately?

• ARescind the contract but recover no damages
• BNothing until the actual delivery date passes
• CTreat it as repudiation and pursue remedies now.
• DOnly demand adequate assurances and wait 30 days

A buyer signs a written contract to purchase a car, and the writing states it is "the complete and final agreement of the parties." The buyer later sues, claiming the salesperson orally promised a free extended warranty before signing. The seller objects on parol-evidence grounds. Will the oral promise be admitted?

• AYes, because warranties may never be excluded by contract
• BYes, because oral evidence is always admissible to show the true intent of the parties
• CNo, but only if the buyer can prove fraud
• DNo; the integrated writing excludes the prior oral term.

A wholesaler promises to supply a startup with all the coffee beans the startup needs for one year at a fixed price. The startup makes no promise to buy any specific quantity. Is this requirements contract supported by consideration?

• AYes; good-faith exclusive requirements supply consideration.
• BNo, because the startup's promise is illusory since it need not buy anything
• CNo, because the quantity term is too indefinite to enforce
• DYes, but only if a minimum purchase amount is later agreed

A merchant sells a used boat to a consumer "as is." The boat sinks on the first outing because of a latent hull defect that existed at the time of sale. The consumer sues for breach of the implied warranty of merchantability. What is the most likely result?

• AThe consumer prevails because merchantability cannot be disclaimed
• BThe buyer loses; "as is" disclaimed merchantability.
• CThe consumer prevails because all sales of goods include a non-waivable fitness warranty
• DThe consumer loses because used goods carry no warranties of any kind

A grandmother promises her granddaughter $10,000 to help buy a house, knowing the granddaughter will rely on it. In reliance, the granddaughter signs a binding purchase contract and incurs closing costs. The grandmother then refuses to pay, and there was no bargained-for exchange. On what theory is the promise most likely enforceable?

• ABargained-for consideration
• BPast consideration
• CPromissory estoppel.
• DAn implied-in-fact contract

Two parties sign a contract for the sale of "my cotton arriving on the ship Peerless from Bombay." Unknown to either, there are two ships named Peerless leaving Bombay months apart, and each party subjectively meant a different ship. Is there an enforceable contract?

• AYes, on the terms intended by the seller
• BYes, on the terms intended by the buyer
• CYes, the court will pick whichever ship is commercially reasonable
• DNo; the material latent ambiguity prevents assent.

A landowner contracts to sell a parcel for $200,000. Before closing, a government rezoning unexpectedly cuts the land's value in half. The seller still wants to perform; the buyer refuses, citing the change in value. May the buyer escape the contract on grounds of impracticability?

• ANo; market-value change is an assumed risk.
• BNo, but only because the buyer failed to insure against the loss
• CYes, because the rezoning frustrated the buyer's purpose
• DYes, because the value dropped by 50%

A father contracts with a builder to construct a house for his daughter. The contract identifies her as the intended beneficiary. In reliance, she sells her current home before the father and builder try to cancel. May she enforce the contract?

• ANo; she furnished no consideration
• BYes; her intended-beneficiary rights vested through reliance
• COnly after an assignment from her father
• DNo; she lacks contractual privity

A 17-year-old buys a non-necessity electronic gaming console from a store, paying cash. Two weeks later, while still a minor, he returns it and demands his money back, having used it daily. The store refuses, noting the console is now used. What is the minor's right?

• AHe cannot disaffirm because electronics are necessities
• BHe may disaffirm only if he is still a minor at the time of trial and never used the item
• CHe may disaffirm and return the console under the majority rule.
• DHe has no right to a refund because he used the console

A seller and buyer agree on a sale of goods but never specify the price. The buyer takes delivery. The seller later demands payment; the buyer argues there is no contract because price was left open. What result under the UCC?

• AA contract exists, and the buyer may pay whatever it considers fair
• BNo contract exists because the buyer can set any price
• CNo contract exists because price is an essential term that must be agreed
• DA contract exists at a reasonable delivery-time price.

A buyer orders 1,000 units of goods. The seller ships 1,000 units, but 30 of them are defective. The single delivery is not an installment contract. May the buyer reject the entire shipment?

• AYes; the perfect-tender rule permits rejection.
• BNo, because substantial performance bars rejection of a near-complete delivery
• CNo, because the defect was less than 5% of the order
• DYes, but only if the seller acted in bad faith

A seller breaches a contract to deliver a one-of-a-kind antique vase. Comparable substitutes are unavailable. Which remedy may the buyer obtain because money damages are inadequate?

• ATreble damages
• BSpecific performance
• CPunitive damages
• DAutomatic rescission only