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14. Mark writes a check to Sally, intending to use it to pay Sally for babysitting Mark's daughter next week.?

• 14. Mark writes a check to Sally, intending to use it to pay Sally for babysitting Mark's daughter next week. Sally arrives at Mark's house for a visit and while Mark is in the bathroom, Sally discovers the check on Mark's desk and takes it. She endorses the check over to Bob in exchange for a used tennis racket. Mark ends up not hiring Sally to babysit, and when he discovers the check is missing, stops payment on it. Bob sues Mark to enforce payment of the check. Which of the following statements is true? A. Mark can assert the defense of lack of delivery against Bob. B. Mark can assert the defense of failure of consideration against Bob. C. Mark could assert the defense of fraud in the inducement against Bob. D. Mark must pay Bob the amount of the check. 15. John, an automobile dealer, entered a contract with Lisa in which Lisa agreed to purchase a 1995 Chevrolet automobile as is from John for $2,000. John expressly told Lisa that the motor in the automobile was bad, along with the clutch and brakes. Further, John told Lisa that she would probably need to have the automobile repaired immediately on leaving the dealership. Lisa purchased the automobile despite its problems. However, Lisa became disgruntled because the costs of the repairs were more than she expected. She filed suit against John for breach of warranty. The most likely result will be that Lisa will A. win because the implied warranty of fitness for a particular purpose was violated. B. lose because the UCC doesn't apply to sale of automobiles C. win because the implied warranty of merchantability was violated. D. lose because no warranties were violated. 16. Zeke orally agrees to sell six television sets to Molly for $4,000. Zeke then changes his mind and tells Molly the deal is off. Molly sues, claiming breach of contract to sell six television sets for $4,000. Zeke testifies about an oral agreement to sell five television sets to Molly for $4,000. The most likely result is that A. the court will enforce an agreement to sell five television sets for $4,000. B. there's no enforceable agreement because oral agreements aren't enforceable if the parties disagree about the terms. C. there's no enforceable agreement it wasn't in writing. D. the court will enforce an agreement to sell six television sets for $4,000. 17. Carl writes a check for $500, payable to Fred. Fred changes the 5 to a 6 and deposits the check in his bank account. Which of the following statements is true? A. Fred has violated an endorser's warranty to the bank. B. The bank has violated an endorser's warranty to Carl. C. While something illegal has occurred, it's not violation of any warranty. D. Carl has violated an endorser's warranty to the bank. 19. Without authority to do so and unbeknownst to Candy, Amos signed Brook's name to a promissory note to pay Candy $3,000 with 6 percent interest in 90 days in exchange for a used car. Candy negotiated the promissory note to David, who was a holder in due course, who presented the note to Brook for payment on the due date. Which of the following statements is true? A. Brook won't have to pay the note because the signature was unauthorized. B. Brook will have to pay the note because David was a holder in due course. C. Candy won't have to pay the note because she was a holder in due course. D. Candy won't have to pay the note because the original signature was unauthorized. 20. Zeke orally agrees to sell a video game to Molly for $200. Zeke then changes his mind and tells Molly the deal is off. Molly sues, claiming breach of contract. Both parties tell the court there was an oral agreement for $200. The most likely result is that A. Molly wins because agreements for less than $500 don't have to be written. B. Zeke wins because the agreement wasn't in writing. C. Molly wins because Zeke admits the oral agreement. D. Zeke wins because of the parol evidence rule.

• Answer:

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