Question 1

Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no contract exists?

Accepted Answer

A)  an express contract 
B)  the doctrine of formal contracts 
C)  implied-in-law contract 
D)  quantum meruit 
A)  an express contract 
B)  the doctrine of formal contracts 
C)  implied-in-law contract 
D)  quantum meruit C

Question 2

Hilda Homeowner said to her neighbor,Paulette Painter,"If you paint my house,I'll pay you $1,500.All you must do is finish by the end of the next month.My price assumes that you will pay for all of the paint and any needed supplies." Paulette decided to paint the house.She purchased some supplies as well as enough custom-colored paint to complete the job.On the morning that Paulette was about to begin painting,Hilda told her that she had changed her mind and would not pay Paulette to paint the house.Discuss the rights of the parties in this situation.

Accepted Answer

This is a unilateral contract because Hilda seeks the act of having her house painted,not a promise that it will be painted.The contract is not formed until Paulette has completed the painting,but Hilda loses any right to revoke her offer once Paulette has begun to perform,including steps in preparation.

Question 3

What is the distinguishing characteristic that makes a contract a formal contract?

Accepted Answer

A)  a signature by both parties 
B)  the contract being in writing 
C)  a legal requirement that the contract be in a specific form 
D)  all possible scenarios are addressed in the contract terms 
A)  a signature by both parties 
B)  the contract being in writing 
C)  a legal requirement that the contract be in a specific form 
D)  all possible scenarios are addressed in the contract terms C

Question 4

Which of the following is NOT characteristic of a valid contract?

Accepted Answer

A)  It can be viewed as private law between the parties. 
B)  The parties must have the contract's terms approved by the appropriate court. 
C)  A court will enforce its terms if the parties do not voluntarily perform. 
D)  It will have at least two parties. 
A)  It can be viewed as private law between the parties. 
B)  The parties must have the contract's terms approved by the appropriate court. 
C)  A court will enforce its terms if the parties do not voluntarily perform. 
D)  It will have at least two parties.

Question 5

Which type of contract,bilateral or unilateral,is more common in business? Why? Under what circumstance would someone prefer one or the other? What are the advantages of each type for the offeror? For the offeree?

Accepted Answer

Bilateral contracts are more common in b

Question 6

Which of the following is true regarding contract validity?

Accepted Answer

A)  A void contract is one where a party has the option to avoid his/her contractual liability. 
B)  A voidable contract is one in which a party may avoid his/her obligation under that contract. 
C)  A voidable contract is one that has no legal effect because one of the essential elements is missing. 
D)  An executory contract is also unenforceable. 
E)  A unilateral contract is unenforceable. 
A)  A void contract is one where a party has the option to avoid his/her contractual liability. 
B)  A voidable contract is one in which a party may avoid his/her obligation under that contract. 
C)  A voidable contract is one that has no legal effect because one of the essential elements is missing. 
D)  An executory contract is also unenforceable. 
E)  A unilateral contract is unenforceable.

Question 7

Common law as a source of law for contracts:

Accepted Answer

A)  comes primarily from federal law 
B)  comes exclusively from state law 
C)  comes exclusively from federal law 
D)  comes primarily from state law 
E)  comes equally from state and federal law 
A)  comes primarily from federal law 
B)  comes exclusively from state law 
C)  comes exclusively from federal law 
D)  comes primarily from state law 
E)  comes equally from state and federal law

Question 8

Offers for both bilateral and unilateral contracts involve a promise by the offeror.

Accepted Answer

A) True 
 B)False

Question 9

Tim and his boss conspire by contract to cheat the IRS out of money.The boss later changes her mind.What is the status of the contract with respect to Tim?

Accepted Answer

A)  It is a valid contract. 
B)  It is a void contract. 
C)  It is a voidable contract. 
D)  It is a unenforceable contract. 
A)  It is a valid contract. 
B)  It is a void contract. 
C)  It is a voidable contract. 
D)  It is a unenforceable contract.

Question 10

The fact that a contract is legally enforceable means that the police can be called to make the other party live up to the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 11

How has the government role in contract regulation changed since the founding of the United States?

Accepted Answer

A)  There is greater state and federal government involvement today than in the past. 
B)  There is less state and federal government involvement today than in the past. 
C)  There is approximately the same degree of state and federal government involvement today as in the past. 
D)  There is less state,but more federal involvement today than in the past. 
E)  There is less federal,but more state involvement today than in the past. 
A)  There is greater state and federal government involvement today than in the past. 
B)  There is less state and federal government involvement today than in the past. 
C)  There is approximately the same degree of state and federal government involvement today as in the past. 
D)  There is less state,but more federal involvement today than in the past. 
E)  There is less federal,but more state involvement today than in the past.

Question 12

There must be at least three parties in order for a contract to be valid.

Accepted Answer

A) True 
 B)False

Question 13

Chad is sixteen years old.He went to a local used-car dealership and looked at an automobile.The salesperson never asked Chad his age,nor asked for identification.Chad agreed to purchase the vehicle,and then shortly thereafter changed his mind.What is the status of the contract with respect to Chad?

Accepted Answer

A)  It is an illegal contract. 
B)  It is a void contract. 
C)  It is a voidable contract. 
D)  It is a valid contract. 
A)  It is an illegal contract. 
B)  It is a void contract. 
C)  It is a voidable contract. 
D)  It is a valid contract.

Question 14

Mr.Smith awakens one morning to the sound of construction in his back yard.When he looks out the window,he sees Ajax Construction Co.apparently erecting a garage on his property.He had not spoken or contracted with Ajax for this service.However,Mr.Smith really wanted a new garage,so he let them continue.Later,it was discovered that the garage was intended to go next door.Ajax sues Mr.Smith for the value of the garage.What is the probable result?

Accepted Answer

A)  Ajax wins; this is a case of a contract implied-in-fact,and Mr. Smith implicitly agreed to pay for the garage. 
B)  Smith wins; there was no contract upon which Ajax could recover,and people are not liable for benefits that are thrust upon them. 
C)  Ajax wins; although there is no real contract,this is a case of unjust enrichment,and because Mr. Smith accepted the garage,he must pay for it. 
D)  Smith wins; unjust enrichment does not apply here because Mr. Smith had no duty to tell Ajax that it had the wrong house. 
A)  Ajax wins; this is a case of a contract implied-in-fact,and Mr. Smith implicitly agreed to pay for the garage. 
B)  Smith wins; there was no contract upon which Ajax could recover,and people are not liable for benefits that are thrust upon them. 
C)  Ajax wins; although there is no real contract,this is a case of unjust enrichment,and because Mr. Smith accepted the garage,he must pay for it. 
D)  Smith wins; unjust enrichment does not apply here because Mr. Smith had no duty to tell Ajax that it had the wrong house.

Question 15

The person who makes an offer to enter into a contract is the "offeree."

Accepted Answer

A) True 
 B)False

Question 16

A bail bond is an example of what type of formal contract?

Accepted Answer

A)  letters of credit 
B)  contracts under seal 
C)  negotiable instrument 
D)  recognizances 
E)  simple contract 
A)  letters of credit 
B)  contracts under seal 
C)  negotiable instrument 
D)  recognizances 
E)  simple contract

Question 17

Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000.There is adequate consideration,the contract is legal,and both parties have contractual capacity.The contract is fully performed by both parties on January 1.Which of the following best describes this contract as of January 2?

Accepted Answer

A)  bilateral,express,executed,valid 
B)  unilateral,express,executed,valid 
C)  unilateral,express,executory,valid 
D)  unilateral,implied,executory,valid 
A)  bilateral,express,executed,valid 
B)  unilateral,express,executed,valid 
C)  unilateral,express,executory,valid 
D)  unilateral,implied,executory,valid

Question 18

Wilma tells Sidney that she will buy his house from him.Before any paperwork is signed,Sidney backs out of the deal.Wilma sues Sidney for breach of contract.What is Sidney's best defense?

Accepted Answer

A)  The contract is void. 
B)  The contract is voidable. 
C)  The contract is unenforceable. 
D)  The contract is illegal. 
A)  The contract is void. 
B)  The contract is voidable. 
C)  The contract is unenforceable. 
D)  The contract is illegal.

Question 19

The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it,is known as:

Accepted Answer

A)  quasi-contract 
B)  pseudo-contract 
C)  unjust contract 
D)  unilateral contract 
A)  quasi-contract 
B)  pseudo-contract 
C)  unjust contract 
D)  unilateral contract

Question 20

Which of the following is NOT a basic requirement to be an enforceable contract?

Accepted Answer

A)  There must be an agreement between the parties. 
B)  The promise must be supported by a bargained-for exchange. 
C)  The parties must have contractual capacity. 
D)  The parties need not have assent. 
E)  The object of the contract must be lawful. 
A)  There must be an agreement between the parties. 
B)  The promise must be supported by a bargained-for exchange. 
C)  The parties must have contractual capacity. 
D)  The parties need not have assent. 
E)  The object of the contract must be lawful.

Exam 9: Nature of Traditional and E-Contracts

Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no contract exists?

What is the distinguishing characteristic that makes a contract a formal contract?

Which of the following is NOT characteristic of a valid contract?

Which type of contract,bilateral or unilateral,is more common in business? Why? Under what circumstance would someone prefer one or the other? What are the advantages of each type for the offeror? For the offeree?

Which of the following is true regarding contract validity?

Common law as a source of law for contracts:

Offers for both bilateral and unilateral contracts involve a promise by the offeror.

Tim and his boss conspire by contract to cheat the IRS out of money.The boss later changes her mind.What is the status of the contract with respect to Tim?

The fact that a contract is legally enforceable means that the police can be called to make the other party live up to the terms of the contract.

How has the government role in contract regulation changed since the founding of the United States?

There must be at least three parties in order for a contract to be valid.

The person who makes an offer to enter into a contract is the "offeree."

A bail bond is an example of what type of formal contract?

Wilma tells Sidney that she will buy his house from him.Before any paperwork is signed,Sidney backs out of the deal.Wilma sues Sidney for breach of contract.What is Sidney's best defense?

The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it,is known as:

Which of the following is NOT a basic requirement to be an enforceable contract?

Legal Heritage and the Information Age

Court Systems and Jurisdiction

Judicial, Alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Strict Liability and Product Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Internet 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

Sales and Lease Warranties

Creation of Negotiable Instruments

Transferability and Holder In Due Course

Liability,Defenses and Discharge

Checks, the Banking System, and E-Money

Creditor's and Debtor's Rights

Secured Transactions and Electronic Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment,Worker Protection,and Immigration Laws

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Businesses, Entrepreneurs, and General Partnerships

Limited Partnerships and Limited Liability Limited Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Business

Investor Protection and Online Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection and Global Warming

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord Tenant Law and Land Use Regulation

Insurance

Accountants' Liability

Wills, Trusts, and Elder Law

Family Law

International and World Trade Law

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