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[Refusal to Pay] Business law teacher Allison needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Karina who agreed to trim some shrubbery for $40. Another student, Brendan went to mow Allison’s yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Allison refused to pay Brendan because she said that he had upset the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Allison was glad about the dog bite because she felt it gave her a reason not to pay. Brendan refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Karina refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started the work. 66) Which of the following is true regarding Brendan’s statement that he did not have to pay the emergency room charges? A) He is incorrect because there was a bilateral, express contract. B) He is partially correct in that because a quasi-contract existed, he would have to pay; but he would only have to pay fair market value, not what the hospital requested. C) He is correct. D) He is incorrect because there was a binding implied contract. E) He is incorrect because there was a unilateral, express contract. [Wrong Deck] Gina hires Jackson over the telephone to paint her back deck. She tells him her address and agrees to pay him $200 for the job, and he accepts. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. Jackson had a little difficulty finding her house because he spilled coffee on the note where he wrote her address. When Jackson arrives, neither Gina nor her neighbor is at home. He mistakenly paints the neighbor’s deck. Gina calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. When it is discovered that he mistakenly painted the neighbor’s deck, Gina tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of the payment from Gina, because the contract is executed. 67) As of Tuesday when Jackson and Gina agreed upon the price for the job, what was the status of the agreement? A) The contract was executory. B) The contract was formal. C) The contract was executed. D) The contract was novated. E) The contract was a recognizance contract. 68) Which of the following is correct regarding Gina’s assertion that the neighbor will be required to pay Jackson? A) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract. B) She is correct. The neighbor will be required to pay Jackson based upon an express contract. C) She is incorrect. The neighbor will not be required to pay Jackson. D) She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract. E) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract. 69) Which statement is true regarding Jackson’s assertion that Gina must pay him if the neighbor fails to do so? A) He is correct because an implied contract existed, and he made an honest mistake for which Gina must accept the risk. B) He is correct because an express contract existed, and he made an honest mistake for which Gina must accept the risk. C) He is incorrect unless he can somehow establish that Gina gave him poor directions or was otherwise at fault in informing him which deck to paint, and the contract remains executory. D) He is correct because a valid contract existed; and, after his performance, it is considered executed. E) He is correct because an implied-in-law contract existed. 70) Which of the following statements is true about ESIGN? A) Documents produced electronically are legally valid, but not as valid as documents produced on paper. B) E-contracts are formed electronically but executed when printed and signed. C) ESIGN affirms e-contracts as legally valid. D) ESIGN is international law. E) ESIGN stands for the Electronic Signing In Great Numbers. Â Â

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