OH Bar Contracts and Sales 3

Question 1

A buyer sends a purchase order for 1,000 bolts.
The seller's acknowledgment form accepts but adds an arbitration clause.
Both parties are merchants and the buyer does not object.
Under UCC 2-207, is the arbitration clause part of the contract?

Accepted Answer

It becomes part of the contract unless it materially alters the deal, the offer limits acceptance to its terms, or the buyer objects

Answer

Never, because additional terms are always mere proposals

Answer

Always, because the buyer failed to object within a reasonable time

Answer

No contract is formed because the forms do not match

Question 2

A singer contracts to perform at a theater on July 4. On June 1, she tells the theater, "I will not perform." What may the theater do?

Accepted Answer

Treat the anticipatory repudiation as a breach and sue immediately, or await performance for a commercially reasonable time

Answer

Do nothing until July 4 because breach cannot occur before the performance date

Answer

Only suspend its own performance without any right to sue

Answer

Compel her to perform via specific performance

Question 3

A farmer contracts to sell his specific crop of corn from his own fields. A drought destroys the entire crop without the farmer's fault. What is the farmer's best defense to a breach claim?

Accepted Answer

Impossibility/impracticability because the contract contemplated crops from identified land destroyed without fault

Answer

Frustration of purpose because farming became unprofitable

Answer

Mutual mistake about future weather

Answer

Unconscionability of the price term

Question 4

A 17-year-old buys a car on credit, drives it for six months, then disaffirms the contract. In most jurisdictions applying the majority rule, what is the result?

Accepted Answer

The minor may disaffirm and recover payments, returning the car in its current condition

Answer

The minor is bound because a car is a necessity

Answer

The minor must pay the full contract price minus depreciation

Answer

Disaffirmance is barred after any use of the goods

Question 5

A debtor honestly disputes the amount owed to a creditor and sends a check for less than the claimed amount marked "payment in full," which the creditor cashes. What is the effect?

Accepted Answer

An accord and satisfaction discharges the disputed debt

Answer

The creditor may still sue for the balance because partial payment is not consideration

Answer

The check is void as against public policy

Answer

A novation substitutes a new obligation

Question 6

A contract requires a builder to construct a house "to the owner's personal satisfaction." The builder completes the work competently, but the owner honestly claims dissatisfaction. For aesthetic-taste contracts, what standard applies to the owner's rejection?

Accepted Answer

A subjective good-faith standard, so honest dissatisfaction defeats recovery on the contract

Answer

An objective reasonable-person standard in all cases

Answer

Satisfaction clauses are unenforceable as illusory

Answer

The owner must accept if performance is substantial

Question 7

A seller of a business promises not to compete within the same city for two years. The buyer later sues to enforce the covenant. How will a court most likely analyze it?

Accepted Answer

Enforce it if reasonable in scope, geography, and duration to protect a legitimate business interest

Answer

Refuse enforcement because all restraints on trade are illegal

Answer

Enforce it automatically because it was bargained for

Answer

Convert it to a money judgment only