1)

A force majeure clause in a contract lists certain situations in which a party is excused from performance under the contract (such as flood, fire, war, etc).

Question options:

	True
	False

2)

Polar Bear Inc sells ski jackets and pants. They contract to buy down filling from Gray Goose LLC, with delivery to occur before December 1st. Gray Goose is late with the delivery and so Polar Bear has to buy down elsewhere. Because of the delay in purchasing down, Polar Bear loses 2 weeks worth of sales orders for its ski jackets and pants, totaling $10,000. The $10,000 lost is what type of damages?

Question options:

	compensatory
	liquidated
	punitive
	consequential

3)

An "Extendo Sword'' is a toy sword that springs from one foot long to five feet long when a button is pushed on the handles. Extendo Swords are sold by XYZ Toy Company. At a conference, a Vice President of ABC Drugstore says he is thinking about ordering 500 Extendo swords. XYZ's Vice President says, "Accepted." Is a contract formed?

Question options:

	Yes because there is objective intent and the offer was accepted.
	Yes because the quantity is stated and the offer was accepted.
	No because the acceptance was not the mirror image of the offer.
	No because there was no objective intent, so no offer was made.