Question 1

Which of the following is true of contracts?

Accepted Answer

A)  Contracts can be classified as either voluntary or involuntary. 
B)  All contracts are legally enforceable. 
C)  The terms of a valid contract become private law between the parties. 
D)  Courts of law usually do not enforce the promises made as part of contracts. 
A)  Contracts can be classified as either voluntary or involuntary. 
B)  All contracts are legally enforceable. 
C)  The terms of a valid contract become private law between the parties. 
D)  Courts of law usually do not enforce the promises made as part of contracts.

Question 2

Which of the following elements must be established to create an implied-in-fact contract?

Accepted Answer

A)  The plaintiff provided the property or services gratuitously. 
B)  The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied." 
C)  The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so. 
D)  The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity. 
A)  The plaintiff provided the property or services gratuitously. 
B)  The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied." 
C)  The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so. 
D)  The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.

Question 3

Which of the following pairs of terms describes the same concept or situation?

Accepted Answer

A)  implied-in-law contract and implied-in-fact contract 
B)  implied-in-law contract and quasi-contract 
C)  implied-in-fact contract and quasi-contract 
D)  formal contract and implied-in-law contract 
A)  implied-in-law contract and implied-in-fact contract 
B)  implied-in-law contract and quasi-contract 
C)  implied-in-fact contract and quasi-contract 
D)  formal contract and implied-in-law contract

Question 4

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday,she would pay him $1,000.This offer creates a(n)________ contract.

Accepted Answer

A)  executed 
B)  executory 
C)  unilateral 
D)  bilateral 
A)  executed 
B)  executory 
C)  unilateral 
D)  bilateral

Question 5

The ________ establishes common legal rules for the formation and enforcement of electronic contracts and licenses.

Accepted Answer

A)  Digital Millennium Copyright Act (DMC
A)  
B)  Uniform Computer Information Transactions Act (UCIT
A)  
C)  Electronic Communication Privacy Act 
D)  Computer Misuse Act of 1990 
A)  Digital Millennium Copyright Act (DMC
A)  
B)  Uniform Computer Information Transactions Act (UCIT
A)  
C)  Electronic Communication Privacy Act 
D)  Computer Misuse Act of 1990

Question 6

Which of the following is one of the four basic requirements for contract formation and enforcement?

Accepted Answer

A)  A promise must be supported by a signed written document and an advance payment. 
B)  The parties must have contractual capacity. 
C)  The object of the contract must be ethical. 
D)  Both parties to the contract must be at least 21 years old. 
A)  A promise must be supported by a signed written document and an advance payment. 
B)  The parties must have contractual capacity. 
C)  The object of the contract must be ethical. 
D)  Both parties to the contract must be at least 21 years old.

Question 7

Which of the following is true of the equity doctrine?

Accepted Answer

A)  Equity is resorted to when an award of money damages would not be the proper remedy. 
B)  In an equitable action, the jury decides on the issue. 
C)  An equitable action could be tried with a judge or a jury. 
D)  The doctrine of equity cannot be applied in contract cases. 
A)  Equity is resorted to when an award of money damages would not be the proper remedy. 
B)  In an equitable action, the jury decides on the issue. 
C)  An equitable action could be tried with a judge or a jury. 
D)  The doctrine of equity cannot be applied in contract cases.

Question 8

No act of performance is required to create a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 9

An implied-in-law contract is one based on the conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 10

Explain the basic requirements that must be met for a contract to be enforceable.

Accepted Answer

The requirements for a contract to be en

Question 11

Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 12

Janet pulls her car into a car wash line.She quietly sees her car getting washed by the employees.She then refuses to pay for the service,stating that there was no contract.If a lawsuit is filed,what would the result be?

Accepted Answer

A)  Janet wins; there can be no contract as she didn't ask them for their service. 
B)  The car wash wins; this is an express, unilateral contract that has been accepted. 
C)  Janet wins; there is no contract because the car wash made no promise to wash her car. 
D)  The car wash wins; this is an implied-in-fact contract. 
A)  Janet wins; there can be no contract as she didn't ask them for their service. 
B)  The car wash wins; this is an express, unilateral contract that has been accepted. 
C)  Janet wins; there is no contract because the car wash made no promise to wash her car. 
D)  The car wash wins; this is an implied-in-fact contract.

Question 13

A court may resort to the application of equitable principles when an award of money damages "at law" would not be the proper remedy.

Accepted Answer

A) True 
 B)False

Question 14

Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for three hours.After Mike has done the three hours of tutoring,but before Ike pays him,this contract is ________.

Accepted Answer

A)  executed 
B)  implied-in-fact 
C)  executory 
D)  performed 
A)  executed 
B)  implied-in-fact 
C)  executory 
D)  performed

Question 15

According to the Restatement (Second)of Contracts: "A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty."

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a type of formal contract recognized by the Restatement (Second)of Contracts?

Accepted Answer

A)  negotiable instrument 
B)  letter of credit 
C)  lease 
D)  contract under seal 
A)  negotiable instrument 
B)  letter of credit 
C)  lease 
D)  contract under seal

Question 17

What are the guidelines for dealing with attempts to revoke unilateral offers?

Accepted Answer

Problems can arise if the offeror in a u

Question 18

An informal contract is also known as a(n)________ contract.

Accepted Answer

A)  unilateral 
B)  bilateral 
C)  executed 
D)  simple 
A)  unilateral 
B)  bilateral 
C)  executed 
D)  simple

Question 19

Today,in most states of the United States,the courts of law and equity have been merged into one court.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following classifications of contracts is based on formation?

Accepted Answer

A)  express contracts 
B)  valid contracts 
C)  unenforceable contracts 
D)  executory contracts 
A)  express contracts 
B)  valid contracts 
C)  unenforceable contracts 
D)  executory contracts

Exam 9: Nature of Traditional and E-Contracts

Which of the following is true of contracts?

Which of the following elements must be established to create an implied-in-fact contract?

Which of the following pairs of terms describes the same concept or situation?

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday,she would pay him $1,000.This offer creates a(n)________ contract.

The ________ establishes common legal rules for the formation and enforcement of electronic contracts and licenses.

Which of the following is one of the four basic requirements for contract formation and enforcement?

Which of the following is true of the equity doctrine?

No act of performance is required to create a bilateral contract.

An implied-in-law contract is one based on the conduct of the parties.

Explain the basic requirements that must be met for a contract to be enforceable.

Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods.

Janet pulls her car into a car wash line.She quietly sees her car getting washed by the employees.She then refuses to pay for the service,stating that there was no contract.If a lawsuit is filed,what would the result be?

A court may resort to the application of equitable principles when an award of money damages "at law" would not be the proper remedy.

Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for three hours.After Mike has done the three hours of tutoring,but before Ike pays him,this contract is ________.

According to the Restatement (Second)of Contracts: "A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty."

Which of the following is not a type of formal contract recognized by the Restatement (Second)of Contracts?

What are the guidelines for dealing with attempts to revoke unilateral offers?

An informal contract is also known as a(n)________ contract.

Today,in most states of the United States,the courts of law and equity have been merged into one court.

Which of the following classifications of contracts is based on formation?

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

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