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Guam Bar practice questions

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Question 1Civil Procedure

A plaintiff files suit in the Superior Court of Guam. Which set of rules governs the procedure in that action?

  1. The Guam Rules of Criminal Procedure
  2. The Guam Rules of Civil Procedure Correct answer.
  3. The Federal Rules of Civil Procedure, without exception
  4. The Local Rules of the Ninth Circuit

Explanation

The Superior Court of Guam applies the Guam Rules of Civil Procedure, which are modeled on the federal rules and govern pleading, motion practice, discovery, and trial in local civil actions. The Federal Rules govern federal district court proceedings, not the territorial superior court.

Question 2Civil Procedure

A complaint filed in the Superior Court of Guam omits any statement of the grounds for the court's jurisdiction. What is the most likely consequence?

  1. The court will dismiss the action with prejudice on its own motion
  2. The plaintiff must refile in the District Court of Guam
  3. The pleading is subject to a motion to strike or dismissal because a short and plain statement of jurisdiction is required Correct answer.
  4. The defect is cured automatically once the defendant appears

Explanation

Guam pleading practice requires the complaint to contain a short and plain statement of the grounds for the court's jurisdiction along with the claim and demand for relief. A missing jurisdictional allegation is a pleading defect that can be challenged by motion, though amendment is ordinarily permitted.

Question 3Civil Procedure

Under Guam civil procedure, when is a defendant required to serve a responsive pleading after being served with a summons and complaint?

  1. Within the time set by the rules for answering, generally 20 days after service of the summons and complaint Correct answer.
  2. Within 10 days of service in every case
  3. Only after the court issues a scheduling order
  4. Within 60 days of filing of the complaint regardless of service

Explanation

The Guam rules set a defined answer period running from service of the summons and complaint, generally 20 days, mirroring the federal model. The clock runs from service on the defendant, not from the filing date or a later scheduling order.

Question 4Civil Procedure

A defendant wishes to challenge the legal sufficiency of a complaint rather than answer it. Which filing is the appropriate vehicle under Guam practice?

  1. A motion for summary judgment filed with the answer
  2. A motion to dismiss for failure to state a claim upon which relief can be granted Correct answer.
  3. A demurrer accompanied by a bond
  4. A notice of removal to the District Court of Guam

Explanation

A motion to dismiss for failure to state a claim tests the legal sufficiency of the allegations, treating well-pleaded facts as true. Summary judgment requires a developed record, and removal is available only in limited circumstances.

Question 5Civil Procedure

A plaintiff serves interrogatories on the defendant along with the summons and complaint. The defendant objects that discovery was served too early. How should the court rule?

  1. Overrule the objection only if the plaintiff certifies the interrogatories are under 25 in number
  2. Sustain the objection, because discovery may not begin until the answer is filed
  3. Overrule the objection, because a party may serve interrogatories after commencement of the action without awaiting the answer Correct answer.
  4. Sustain the objection, because interrogatories require leave of court in all cases

Explanation

Under the Guam discovery rules, a party may serve interrogatories after the action commences without waiting for the defendant's answer or leave of court. Timing restrictions on early depositions and Rule 34 requests do not bar interrogatories served with the complaint.

Question 6Civil Procedure

Which discovery device under the Guam rules may be used to compel a nonparty to produce documents without a deposition?

  1. A notice of deposition duces tecum served only on the parties
  2. A request for admission directed to the nonparty
  3. A subpoena duces tecum issued under the applicable rule for subpoenas Correct answer.
  4. An interrogatory directed to the nonparty

Explanation

Nonparties are compelled to produce documents through a subpoena, which may command production without testimony. Interrogatories and requests for admission are available only against parties, not strangers to the action.

Question 7Civil Procedure

A defendant fails to respond to a request for admission within the time allowed and does not object. What is the effect under Guam practice?

  1. The matter is deemed admitted unless the court permits withdrawal or amendment Correct answer.
  2. The matter is treated as denied by operation of law
  3. The plaintiff must move to compel a response before any admission occurs
  4. The request is automatically void and must be re-served

Explanation

A matter covered by a request for admission is admitted if the party served fails to respond or object within the deadline. The court may allow withdrawal or amendment of the admission on a showing of good cause.

Question 8Civil Procedure

A plaintiff wants to take the deposition of a witness who lives in another jurisdiction and refuses to appear voluntarily. What must the plaintiff do under Guam practice?

  1. Proceed by written interrogatories served on the witness
  2. Serve a request for admission on the witness
  3. Obtain a subpoena under the applicable rule compelling attendance and production Correct answer.
  4. File a motion for a court order compelling the witness to attend

Explanation

A nonparty witness who will not appear voluntarily must be compelled by subpoena issued under the subpoena rule. A court order to attend is not the ordinary mechanism, and interrogatories cannot be directed to nonparties.

Question 9Civil Procedure

A party receives discovery requests and believes they are overly broad and unduly burdensome. What is the proper first step under Guam practice?

  1. File an immediate appeal of the discovery request
  2. Ignore the requests and raise the issue at trial
  3. Disclose the documents but redact them without explanation
  4. Serve timely written objections stating the grounds with specificity Correct answer.

Explanation

A party must serve written objections within the response period, stating grounds such as overbreadth or undue burden with specificity. Failure to object timely generally waives the objection.

Question 10Civil Procedure

A plaintiff moves for summary judgment and supports the motion with an affidavit. The defendant responds with a sworn declaration contradicting a key fact. How should the court proceed?

  1. Grant the motion because the plaintiff filed first
  2. Strike the defendant's declaration as self-serving
  3. Deny the motion because a genuine dispute of material fact exists Correct answer.
  4. Grant the motion because affidavits are disfavored

Explanation

Summary judgment is appropriate only where there is no genuine dispute as to any material fact. A sworn declaration creating a genuine factual dispute defeats the motion, and the court does not weigh credibility at this stage.

Question 11Civil Procedure

A defendant believes the plaintiff has joined a claim against a party who has no connection to the dispute and seeks to remove that party from the case. Which motion is designed for this purpose?

  1. A motion to change venue
  2. A motion to dismiss a party for misjoinder Correct answer.
  3. A motion for a more definite statement
  4. A motion to implead a third party

Explanation

Misjoinder of parties is challenged by a motion to dismiss the improperly joined party, and parties may be dropped or added by order of the court. Impleader brings in a new third party rather than removing one.

Question 12Civil Procedure

A plaintiff sues two defendants in the Superior Court of Guam on a single state-law claim. Which statement best describes permissive joinder of parties under Guam practice?

  1. Parties may never be joined unless they consent in writing
  2. Parties may be joined only with leave of court after a hearing
  3. Parties may be joined if the claims arise out of the same transaction or occurrence or share a common question of law or fact Correct answer.
  4. Parties may be joined only if they are jointly liable on the same obligation

Explanation

Permissive joinder permits plaintiffs or defendants to be joined when the asserted claims arise from the same transaction, occurrence, or series of transactions and share a common question of law or fact. Joint liability is not required.

Question 13Civil Procedure

A defendant in a Guam civil action wants to assert that the plaintiff's claim is barred by a prior judgment. How should that defense be raised?

  1. By an objection at the close of the plaintiff's case
  2. By a request for a jury instruction only
  3. By a motion in limine before trial
  4. As an affirmative defense pleaded in the answer Correct answer.

Explanation

Res judicata and similar bars are affirmative defenses that must be pleaded in the responsive pleading. Raising the matter only at trial or through instructions risks waiver.

Question 14Civil Procedure

A plaintiff files a complaint and later realizes a necessary claim was omitted. Before the defendant has answered, what is the most straightforward step?

  1. File a supplemental pleading adding the claim
  2. Dismiss the action and refile in a different court
  3. File a motion to vacate the complaint
  4. File an amended complaint as of right Correct answer.

Explanation

A party may amend its pleading once as a matter of course within the time allowed before a responsive pleading is served. After that point, amendment requires the opposing party's written consent or leave of court.

Question 15Civil Procedure

A defendant is served by publication because the plaintiff cannot locate the defendant after diligent efforts. What limitation applies to a judgment entered on such service?

  1. The judgment is valid as to the status of property within the court's jurisdiction but not as to personal liability Correct answer.
  2. The judgment may not be enforced anywhere
  3. The judgment is void in all circumstances
  4. The judgment is binding personally on the defendant only if the defendant actually received the notice

Explanation

Service by publication supports in rem or quasi in rem jurisdiction over property located within the territory but does not support a personal judgment against a defendant who never received actual notice. Due process requires notice reasonably calculated to apprise the party.

Question 16Civil Procedure

A plaintiff wishes to serve an individual defendant personally within Guam. Which method satisfies due process and the Guam rules?

  1. Leaving the papers with a neighbor who promises to deliver them
  2. Posting the papers on the courthouse bulletin board
  3. Mailing the papers to the defendant's last known address without more
  4. Personal delivery of the summons and complaint to the defendant Correct answer.

Explanation

Personal delivery of the summons and complaint to the defendant is the paradigm method of service that satisfies both the rules and due process. Substituted service and mailing require specific rule-based conditions.

Question 17Civil Procedure

A plaintiff sues in the Superior Court of Guam and wishes to have the case heard by a jury. What must the plaintiff do to preserve the right?

  1. Simply request a jury at the pretrial conference
  2. Rely on the court to order a jury in every civil case
  3. File a motion for a jury after the close of evidence
  4. Make a demand for a jury trial in the pleading or within the time set by the rules Correct answer.

Explanation

The right to a jury trial in a civil action is preserved by demanding it in the pleading or within the period fixed by the rules. A late request may be denied as waived.

Question 18Civil Procedure

A plaintiff obtains a default against a defendant who never appeared. Before entering default judgment, what must the plaintiff establish when the claim is for a sum certain?

  1. That the amount claimed is established by affidavit or documentary evidence Correct answer.
  2. That a jury has been empaneled
  3. That the defendant was personally served in Guam
  4. That the defendant has no meritorious defense

Explanation

When default judgment is sought for a sum certain, the plaintiff must establish the amount by affidavit or other documentary evidence so the court can enter judgment without a hearing. The defendant's absence means no defense is presented, but the amount still must be proved.

Question 19Civil Procedure

After a case is tried in the Superior Court of Guam, a party believes the judgment is unsupported by the evidence. What is the proper post-trial step before seeking appellate review?

  1. File a motion to dismiss the opposing party's case
  2. File a motion for a new trial or to alter or amend the judgment within the time allowed Correct answer.
  3. Request that the clerk vacate the judgment administratively
  4. File an immediate appeal without any post-trial motion

Explanation

A party challenging the sufficiency of the evidence ordinarily files a motion for a new trial or to alter or amend the judgment within the prescribed period. Such motions preserve issues and may obviate the need for appeal.

Question 20Civil Procedure

A defendant in a Guam civil action seeks to bring a third-party claim against a party who may be liable for contribution on the plaintiff's claim. When may the defendant file such a claim?

  1. Only after the plaintiff obtains a judgment
  2. Never, because contribution claims must be brought separately
  3. As of right within the period set by the rules after service of the original answer, and later only with leave of court Correct answer.
  4. Only with the plaintiff's written consent

Explanation

A defending party may serve a third-party complaint on a person who may be liable for all or part of the plaintiff's claim within the period fixed by the rules after serving the original answer, and thereafter only with leave of court. Contribution claims may be asserted in this manner.

Question 21Constitutional Law

Under the Organic Act of Guam, which branch of the territorial government is vested with the executive power, and who exercises it?

  1. The executive power is vested in the Secretary of the Interior, who delegates it to a resident administrator.
  2. The executive power is vested in the President of the United States, who administers Guam directly.
  3. The executive power is vested in the Governor of Guam, who is elected by the people of Guam. Correct answer.
  4. The executive power is vested in the Legislature of Guam, which appoints a chief executive officer.

Explanation

The Organic Act of Guam establishes a tripartite territorial government and vests executive power in a Governor elected by Guam's voters. The Secretary of the Interior retains certain federal oversight roles, but the day-to-day executive authority belongs to the elected Governor.

Question 22Constitutional Law

Guam's Legislature is known as the Liheslaturan Guåhan. Under the Organic Act, how are its members chosen?

  1. They are appointed by the Governor from among district representatives.
  2. They are selected by the island's municipal mayors acting jointly.
  3. They are elected by the qualified voters of Guam in at-large elections. Correct answer.
  4. They are appointed by the Secretary of the Interior for fixed terms.

Explanation

Members of the Guam Legislature are elected by the qualified voters of Guam, and the Legislature is organized as a single body chosen at large rather than by district. This reflects the Organic Act's framework for a popularly elected territorial legislature.

Question 23Constitutional Law

A Guam statute conflicts with a valid federal treaty ratified by the United States. Which principle governs the outcome?

  1. The Guam statute controls because territorial law is presumed to reflect local needs.
  2. The Guam statute controls unless Congress has expressly disapproved it.
  3. The federal treaty controls under the Supremacy Clause as applied to the territories. Correct answer.
  4. The two provisions are given equal weight and the court must balance the interests.

Explanation

The Supremacy Clause makes federal law, including treaties, supreme over conflicting territorial enactments. Guam's legislature exercises delegated authority and cannot enact laws that contradict valid federal law.

Question 24Constitutional Law

Which statement best describes the source of Guam's Bill of Rights protections under the Organic Act?

  1. Guam's Bill of Rights applies only to federal officials operating within the territory.
  2. Guam has no bill of rights; only the federal Constitution applies on the island.
  3. Guam's Bill of Rights mirrors many federal constitutional guarantees and is enforceable in Guam's courts. Correct answer.
  4. Guam's Bill of Rights is entirely a creation of the Legislature and may be repealed at will.

Explanation

The Organic Act contains a bill of rights that parallels many federal constitutional protections, and Guam courts enforce these guarantees. The Legislature cannot simply repeal them because they are embedded in the Organic Act.

Question 25Constitutional Law

A criminal defendant in the Superior Court of Guam argues that the Sixth Amendment right to counsel applies to her prosecution. Which doctrine supports application of that federal guarantee in Guam?

  1. The Insular Cases doctrine, which withholds fundamental rights from unincorporated territories.
  2. The selective incorporation of fundamental guarantees through the Due Process Clause. Correct answer.
  3. The doctrine of territorial incorporation, which applies all constitutional provisions automatically.
  4. The doctrine of sovereign immunity, which waives federal claims against territories.

Explanation

Fundamental guarantees in the federal Bill of Rights apply to the states and territories through the Due Process Clause and selective incorporation. The right to counsel is a fundamental guarantee recognized as binding in territorial prosecutions.

Question 26Constitutional Law

Which federal court hears appeals from the Supreme Court of Guam?

  1. The United States Court of Appeals for the Federal Circuit
  2. The Supreme Court of the United States directly, in all cases
  3. The United States District Court for the District of Guam
  4. The United States Court of Appeals for the Ninth Circuit Correct answer.

Explanation

The Ninth Circuit Court of Appeals reviews decisions of the Supreme Court of Guam, with further review available in the U.S. Supreme Court by certiorari. This appellate path reflects Guam's place within the federal judicial structure.

Question 27Constitutional Law

The Governor of Guam vetoes a bill passed by the Legislature. Under the Organic Act, what vote is required for the Legislature to override the veto?

  1. A two-thirds vote of all the members elected to the Legislature Correct answer.
  2. A unanimous vote of all members elected
  3. A simple majority of the members present
  4. A three-fourths vote of the members present

Explanation

The Organic Act requires a two-thirds vote of all members elected to the Legislature to override a gubernatorial veto. This mirrors the supermajority override mechanism familiar from the federal and state constitutions.

Question 28Constitutional Law

A Guam resident wishes to sue the government of Guam for damages arising from an alleged breach of contract. Which consideration most directly affects whether the suit may proceed?

  1. The suit may proceed only if the Legislature has consented through a statute waiving sovereign immunity. Correct answer.
  2. The suit may proceed only in federal court because territorial courts lack jurisdiction over the government.
  3. The suit may never proceed because Guam enjoys absolute immunity in all contexts.
  4. The suit may proceed automatically because the Organic Act abolishes sovereign immunity.

Explanation

Governmental immunity in Guam, as elsewhere, generally requires legislative consent before suit, often expressed through claims statutes or specific waivers. Without such consent, sovereign immunity can bar the action.

Question 29Constitutional Law

Which clause of the Organic Act addresses the relationship between Guam law and federal law, providing that the laws of Guam shall be subject to the Constitution and laws of the United States?

  1. The Commerce Clause
  2. The Supremacy Clause as incorporated into the Organic Act Correct answer.
  3. The Full Faith and Credit Clause
  4. The Territorial Clause of Article IV

Explanation

The Organic Act incorporates supremacy principles so that Guam's laws must conform to the U.S. Constitution and federal law. This ensures territorial legislation operates within the federal framework.

Question 30Constitutional Law

A Guam statute imposes a tax on federal employees working at a federal installation on the island. Which constitutional principle is most likely implicated?

  1. The First Amendment's Establishment Clause, which bars taxation of religious institutions.
  2. The Privileges and Immunities Clause of Article IV, which bars taxation of nonresidents.
  3. The Third Amendment's prohibition on quartering soldiers.
  4. The doctrine of intergovernmental tax immunity, which may bar discriminatory taxation of federal instrumentalities. Correct answer.

Explanation

Intergovernmental tax immunity limits a territory's ability to tax federal instrumentalities or discriminate against federal employees. The doctrine balances federal supremacy against legitimate territorial revenue needs.

Question 31Constitutional Law

The Organic Act provides that the Governor may be removed from office. Which mechanism is authorized?

  1. Removal by the Secretary of the Interior for cause
  2. Impeachment and conviction by the Legislature Correct answer.
  3. Recall election by the voters of Guam
  4. Removal by the President of the United States at will

Explanation

The Organic Act provides for impeachment of the Governor by the Legislature, reflecting the separation-of-powers design of the territorial government. The procedure requires legislative action rather than unilateral federal removal.

Question 32Constitutional Law

Which of the following best describes the relationship between the Guam Legislature and the Governor with respect to the budget?

  1. The Governor alone appropriates funds without legislative approval.
  2. The Legislature proposes the budget and the Governor must approve it without amendment.
  3. The Governor proposes a budget and the Legislature appropriates funds, subject to the Organic Act's limits. Correct answer.
  4. The Secretary of the Interior approves Guam's budget directly.

Explanation

The Organic Act separates the executive's budget-proposal function from the Legislature's appropriation power, creating checks between the branches. The Legislature's authority to appropriate is a core legislative function.

Question 33Constitutional Law

A Guam law grants preference in government hiring to Guam residents over nonresidents. Which constitutional challenge is most likely to arise?

  1. A challenge under the Second Amendment right to bear arms.
  2. A challenge under the Privileges and Immunities Clause of Article IV and the Equal Protection guarantee. Correct answer.
  3. A challenge under the Seventh Amendment right to jury trial in civil cases.
  4. A challenge under the Third Amendment prohibition on quartering soldiers.

Explanation

Residency preferences in public employment can implicate the Privileges and Immunities Clause and equal protection principles, which limit discrimination against nonresidents. Courts examine whether the preference serves a legitimate local interest.

Question 34Constitutional Law

Which body has the authority to admit new states or alter the territorial status of Guam under the U.S. Constitution?

  1. The Legislature of Guam
  2. The Congress of the United States Correct answer.
  3. The Governor of Guam
  4. The Supreme Court of Guam

Explanation

Article IV's Territorial Clause gives Congress plenary power over territories, including the authority to change territorial status. Guam's own officials cannot unilaterally alter the island's relationship with the United States.

Question 35Constitutional Law

A defendant in Guam Superior Court invokes the right against self-incrimination. Which source of law provides this protection in Guam?

  1. The Organic Act's bill of rights and the incorporated Fifth Amendment guarantee Correct answer.
  2. Only the federal courts sitting in Guam
  3. Only the Governor's executive orders
  4. Only the Guam Legislature's statutory rules, which may be amended at any time

Explanation

The privilege against self-incrimination is protected through the Organic Act's bill of rights and the incorporated Fifth Amendment guarantee. Guam courts enforce this protection in territorial prosecutions.

Question 36Constitutional Law

A Guam statute is challenged as violating the First Amendment's Free Exercise Clause. Which standard is most consistent with current doctrine?

  1. The statute is invalid whenever it burdens any religious practice, regardless of neutrality.
  2. The statute is valid if it is a neutral law of general applicability, even if it burdens religious practice incidentally. Correct answer.
  3. The statute is valid only if it is approved by the Governor and the Legislature unanimously.
  4. The statute is valid only if it is the least restrictive means of achieving a compelling interest.

Explanation

Under current doctrine, neutral laws of general applicability are generally valid even if they incidentally burden religious exercise. Heightened scrutiny applies when a law targets religious conduct or lacks neutrality.

Question 37Constitutional Law

Which statement accurately describes the term length and election of the Governor of Guam under the Organic Act?

  1. The Governor serves a two-year term and may be reelected without limit.
  2. The Governor serves a four-year term and may be reelected. Correct answer.
  3. The Governor serves a six-year term and may not be reelected.
  4. The Governor serves at the pleasure of the Legislature.

Explanation

The Organic Act provides for a Governor elected to a four-year term, with reelection permitted. This structure parallels the executive terms of many states and the federal government.

Question 38Constitutional Law

A litigant argues that a Guam statute violates the Equal Protection guarantee. Which source of equal protection applies in Guam?

  1. Only the Governor's executive orders
  2. Only the Guam Legislature's internal rules
  3. The Organic Act's bill of rights and the incorporated Fourteenth Amendment guarantee Correct answer.
  4. Only the federal district court's local rules

Explanation

Equal protection in Guam derives from the Organic Act's bill of rights and the incorporated Fourteenth Amendment guarantee. Guam courts apply familiar tiers of scrutiny to classifications challenged under this guarantee.

Question 39Constitutional Law

Which doctrine limits a Guam court's ability to hear a case challenging the internal procedures of the Guam Legislature?

  1. The parol evidence rule
  2. The political question doctrine and separation-of-powers concerns Correct answer.
  3. The rule against perpetuities
  4. The doctrine of ejusdem generis

Explanation

Courts may decline to adjudicate disputes committed to a coordinate branch under the political question doctrine and separation-of-powers principles. Internal legislative procedures are often left to the Legislature itself.

Question 40Constitutional Law

Which of the following is a correct statement about the Guam Legislature's power to enact laws under the Organic Act?

  1. Its power is limited to subjects not reserved to Congress and must conform to federal law. Correct answer.
  2. Its power is limited to municipal ordinances only.
  3. Its power is exercised only when the Governor delegates it.
  4. Its power is plenary and unlimited, like that of a sovereign state.

Explanation

The Guam Legislature exercises delegated legislative authority subject to the Organic Act and federal law, not the plenary sovereignty of a state. Congress retains authority over the territory under the Territorial Clause.

Question 41Contracts

Under the common law, which of the following is required for a contract to be enforceable under the Statute of Frauds?

  1. A notarized document executed by both parties
  2. Delivery of consideration at the time of formation
  3. A writing signed by the party to be charged that indicates the essential terms of the agreement Correct answer.
  4. Two witnesses to the agreement

Explanation

The Statute of Frauds requires a writing signed by the party against whom enforcement is sought that states the essential terms of the agreement. Notarization, witnesses, and simultaneous delivery of consideration are not statutory requirements.

Question 42Contracts

A merchant sends a signed writing confirming an oral agreement for the sale of goods. The recipient does not object within ten days. Under UCC § 2-201, the confirmatory memo is enforceable against the recipient if:

  1. The recipient is a merchant who signed the original oral agreement
  2. The recipient is a merchant and the goods are specially manufactured
  3. Both parties are merchants and the recipient had reason to know of the memo's contents Correct answer.
  4. The recipient is a merchant and the memo was sent by certified mail

Explanation

Under UCC § 2-201(2), a merchant who receives a signed written confirmation of an oral contract for goods may be bound if both parties are merchants and the recipient had reason to know of the contents and did not object within ten days. Signature by the recipient on the original agreement is not required.

Question 43Contracts

A party seeks to enforce an oral contract that would otherwise fall within the Statute of Frauds. The party has partially performed. Under the common law, partial performance will remove the contract from the Statute of Frauds only if:

  1. The performance is unequivocally referable to the contract and cannot be compensated by damages Correct answer.
  2. The performance is substantial and the party has paid at least half of the contract price
  3. The performing party has provided a written memorandum after performance began
  4. The performance has continued for more than one year

Explanation

At common law, the partial performance exception applies only where the performance is unequivocally referable to the alleged contract and would be unjust without enforcement because damages cannot adequately compensate. Mere substantial performance or payment of half the price is insufficient.

Question 44Contracts

An offeror mails a revocation that the offeree receives on Monday. On Sunday, the offeree had mailed an acceptance. Under the mailbox rule, the revocation is effective:

  1. On Sunday, when the acceptance was dispatched
  2. Never, because the acceptance was already effective Correct answer.
  3. When the offeror mailed the revocation
  4. On Monday, when the offeree received the revocation

Explanation

Under the mailbox rule, an acceptance is effective upon dispatch. Because the offeree dispatched the acceptance on Sunday before receiving the revocation, a contract was formed and the later revocation has no effect.

Question 45Contracts

An offeror sends an offer by email stating it will remain open for thirty days. The offeror does not receive any consideration for keeping it open. Under the UCC, the offer:

  1. Is irrevocable for thirty days because the offer states a time for acceptance
  2. Is irrevocable only if the offeree is a merchant
  3. Becomes a firm offer only if the offeree pays a nominal sum
  4. May be revoked at any time before acceptance because no consideration was given Correct answer.

Explanation

Under UCC § 2-205, a firm offer must be made by a merchant in a signed writing that gives assurance it will be held open. Absent those requirements, an offer supported by no consideration is revocable at any time before acceptance.

Question 46Contracts

Which of the following best describes the preexisting duty rule?

  1. A party may rescind a contract if the other party demands additional payment
  2. A promise to refrain from suing is never consideration
  3. A modification of a contract is enforceable without any consideration
  4. A promise to perform an existing legal duty is not consideration for a new promise Correct answer.

Explanation

The preexisting duty rule provides that performance of an obligation already owed to the promisor is not consideration for a new promise. This prevents parties from extracting additional compensation for doing what they are already bound to do.

Question 47Contracts

A party seeks to enforce the modification of a contract for the sale of goods. Under UCC § 2-209, the modification is enforceable without new consideration if:

  1. The modification is made in good faith Correct answer.
  2. The modification increases the quantity of goods by more than ten percent
  3. The modification is supported by a merchant's confirmatory memo
  4. The modification is in a writing signed by both parties

Explanation

UCC § 2-209(1) provides that an agreement modifying a contract for the sale of goods needs no consideration to be binding, but the modification must be sought in good faith. The other listed conditions are not required.

Question 48Contracts

A party claims that a contract is unenforceable because of unconscionability. Which of the following is most relevant to that claim?

  1. The contract was signed without the assistance of counsel
  2. The contract was negotiated over a period of several months
  3. The contract price exceeds the market price by twenty percent
  4. The contract contains terms that are oppressively one-sided and resulted from unequal bargaining power Correct answer.

Explanation

Unconscionability requires both procedural unfairness in the bargaining process and substantively oppressive terms. A price disparity alone or lack of counsel alone does not establish the defense.

Question 49Contracts

A minor enters into a contract to purchase a car. After reaching the age of majority, the minor continues to make payments for several months. The contract is:

  1. Void ab initio because a minor lacks capacity
  2. Enforceable only if the seller also ratifies
  3. Voidable at the minor's election because the minor was a minor at formation
  4. Ratified because the former minor continued to perform after reaching majority Correct answer.

Explanation

A contract entered into by a minor is voidable at the minor's election, but the minor may ratify it after reaching majority by continuing to perform or accepting benefits. Continued payments after majority constitute ratification.

Question 50Contracts

A party seeks to avoid a contract on the ground of mutual mistake. Which of the following is required?

  1. The mistake was unilateral and unknown to the other party
  2. The mistake concerns a collateral matter that neither party considered important
  3. The mistake concerns a basic assumption of the contract and materially affects the exchange Correct answer.
  4. The mistake was caused by the other party's negligence

Explanation

Mutual mistake permits avoidance when both parties share a mistaken belief about a basic assumption of the contract that materially affects the exchange. Negligence by the other party or a unilateral mistake is not required.