Fact Pattern 12-1A
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deala
student loan accruing interest at a certain rate and payable beginning on a certain datewas unfair because
the consideration for their contract was inadequate.
____ 12. Refer to Fact Pattern 12-1A. If, as Jesse claims, the consideration in this problem is inadequate, it may
indicate a lack of
a. “heft,” “substance,” or “weight” in the terms of the contract.
b. bargained-for exchange or mutual assent [Answer]
c. accord in Jesse’s satisfaction with the value of the deal.
d. flexibility on the part of College Credit to accommodate Jesse’s needs.
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____ 13. Refer to Fact Pattern 12-1A. “Adequacy” of consideration refers to
a. the substantiality of the consideration exchanged.
b. legally sufficient value in the eyes of the law.
c. the intangible value to a contracting party of a thing exchanged.
d. “how much” consideration is given [Answer]
____ 14. Refer to Fact Pattern 12-1A. A court is most likely to evaluate the adequacy of consideration if
a. the items exchanged were of unequal value.
b. a thing exchanged has no intangible value to one of the parties.
c. something exchanged is not of direct economic or financial value.
d. there is a gross disparity in the value of the consideration exchanged [Answer]
____ 15. Homebuyers Mortgage Corporation’s promise to pay its employees a year-end bonus “if it seems like a good
idea at the time” is
a. an enforceable contract.
b. a unilateral pact.
c. an unconscionable proviso.
d. an illusory promise [Answer].
____ 16. Standard Purchasing Corporation and Topmost Sales, inc., enter into a partnering agreement. Under a
partnering agreement, parties agree
a. to resolve all disputes without involving a third party.
b. to become partners.
c. to conduct transactions solely in electronic form.
d. in advance to terms that apply to their future e-transactions [Answer].
____ 17. Effervescent Egg Cream Compnay’s trademark is used by Fizzy Drinks without its owner’s permission.
Fizzy’s use of the mark is actionable provided that
a. Fizzy and Effervescent are competitors.
b. consumers are confused [Answer].
c. Fizzy’s use is intentional.
d. Effervescent’s mark is registered.
____ 18. E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in E-Shopping’s Web site’s
key-words field without Fiesta’s permission in a manner that suggests Fiesta authorized the use. This is
a. copyright infringement.
b. trademark infringement [Answer].
c. patent infringement.
d. none of the choices.
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