Exam 4: Contract Law and the Hospitality Industry

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A 14-year-old who lives in the north purchases a winter coat and wears it for a few weeks. Thereafter he seeks to return the coat. He will not be successful because a winter coat is a ____________________ in the north.

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necessity

The following is an offer: "We have chicken, fish, and meat entrees."

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False

A void contract is unenforceable in court.

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True

After an offer is made, a contract results whether the offeree accepts or rejects.

(True/False)
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What is the effect of a counteroffer?

(Multiple Choice)
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For a plaintiff to collect money in a breach of contract case, the plaintiff must prove that it attempted to mitigate the loss.

(True/False)
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Jan made reservations at a hotel for three nights and paid a deposit of one night's charge. Due to family illness, she was forced to cancel the reservations. The hotel was able to rent the room to someone else. True or false: The hotel is entitled to retain Jan's deposit due to breach of her contract.

(True/False)
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Which of the following is not true about the statute of frauds?

(Multiple Choice)
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A primary reason that a contract for a catered event should be in writing is ____________________________________________________________________.

(Short Answer)
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An oral contract made by a restaurant for the purchase of a freezer for $1,100 is enforceable in court.

(True/False)
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Which of the following involves an intention to mislead?

(Multiple Choice)
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Grilled black bass is a very popular selection at the Colligan Restaurant. Due to toxic levels in the local river, the health department has prohibited eating bass caught there. Due to the popularity, however, the restaurant continues to serve the river bass. True or false: Diners who are served the bass from the river are legally obligated to pay for their own dinners.

(True/False)
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If one party to a contract made a unilateral mistake, the contract is voidable.

(True/False)
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_________________________ refers to practices generally adhered to in a particular industry and are used to clarify an ambiguity in a contract.

(Short Answer)
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Which of the following is not a contract?

(Multiple Choice)
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A 600-room hotel is sold out for the weekend. To accommodate the anticipated diners in the restaurant, the restaurant manager ordered a larger quantity of fresh fish to be delivered by noon on Friday. The supplier failed to provide the fish. As a result, the hotel was unable to serve many items on the menu and lost business. To mitigate the loss, the restaurant should have ____________________________________________________________.

(Short Answer)
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A breach of contract is a crime.

(True/False)
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The purpose of the ______________________________ is to protect written contracts from modifications by alleged oral agreements made prior to signing.

(Short Answer)
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An important reason for putting all contracts in writing is to avoid the _________________________ associated with oral contracts.

(Short Answer)
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A hotel is remodeling its lobby. The manager negotiated a contract for the work with a construction company and was about to sign it. The hotel manager then decided that installation of four additional wall plugs not referenced in the contract were needed. The owner of the construction company only orally agreed to add the four plugs. The hotel manager thereafter signed the contract, which did not make reference to the additional plugs. True or false: The hotel manager can enforce the company's promise to install the four extra plugs.

(True/False)
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