SOLVED

46) Which of the following is true regarding the preexisting duty rule? A) Unforeseen circumstances and past consideration are exceptions, but additional work is not an exception. B) Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception. C) Unforeseen circumstances are an exception, but additional work and past consideration are not exceptions. D) Additional work is an exception, but unforeseen circumstances and past consideration are not exceptions. E) Past consideration is an exception, but unforeseen circumstances and additional work are not exceptions. 47) If a home builder promises to build a house for $100,000 but a mudslide destroys the foundation during construction and he must rebuild it, does the preexisting duty rule prevent him from enforcing a contract in which he charges additional money to the homeowner? A) Yes because he has a pre-existing duty to build the house. B) Yes, because there are no exceptions to the pre-existing duty rule. C) No, because there are unforeseen circumstances (the mudslide) which necessitate additional work (rebuilding the foundation). D) No, because of UCC Article 2. E) No, because he had no duty to rebuild the house after the mudslide. 48) Sonia goes to have her hair trimmed and agrees to pay $40 to the stylist. While there, Sonia decides that she would also like highlights. The stylist informs her that highlights will cost an additional $30. Sonia agrees to the price, gets the highlights, but refuses to pay the extra amount. What is the likely result in a dispute between Sonia and the stylist and why? A) Sonia will win because the stylist had a preexisting duty to have Sonia’s hair look as good as possible. B) Sonia will win because there was no valid consideration in exchange for the highlighting. C) The stylist will win because she did additional work in exchange for the extra payment; and, therefore, a valid unilateral contract existed. D) The stylist will win because she did additional work in exchange for the extra payment; and, therefore, Sonia’s promise was supported by valid consideration. E) The stylist will win unless Sonia can show that she had previously received both a trim and highlights for $40. If she can prove that she previously received both for $40, then the past expectations rule applies. 49) Which of the following is true regarding the rating the World Bank gives China in relation to the ease of doing business there? A) China is ranked near the middle. B) China is ranked in the bottom 25. C) China is rated in the top 10. D) China is ranked last. E) China is ranked in the bottom 10. Â 50) Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration? A) Partial payment is consideration if a liquidated debt is involved. B) Partial payment is consideration if an exception applies to the general rule that partial payment is not consideration for an unliquidated debt. C) Partial payment is not consideration under any circumstances. D) Partial payment is consideration if an unliquidated debt is involved. E) Partial payment is consideration under all circumstances. Â Â