Question 1

A liquidated debt is one that is not in dispute.

Accepted Answer

A) True 
 B)False

Question 2

Iosa promised to pay a police officer $150 to keep an eye on Iosa's store while she was away. Is Iosa's promise binding? Why or why not?

Accepted Answer

No. Promising to pay a police

Question 3

Courts sometimes apply the doctrine of promissory estoppel to enforce a promise. This doctrine

Accepted Answer

A)  is grossly unfair. 
B)  requires consideration to be applicable. 
C)  sometimes allows enforcement of a promise even when an offeree gives no consideration for an offeror's promise. 
D)  is a popular legal remedy. 
A)  is grossly unfair. 
B)  requires consideration to be applicable. 
C)  sometimes allows enforcement of a promise even when an offeree gives no consideration for an offeror's promise. 
D)  is a popular legal remedy.

Question 4

Consideration is needed to make a promise legally enforceable.

Accepted Answer

A) True 
 B)False

Question 5

Modern courts now protect individuals from contracts that are so one-sided as to be ____________________.

Accepted Answer

unconscion

Question 6

Courts will not enforce contracts calling for nominal consideration.

Accepted Answer

A) True 
 B)False

Question 7

Promises made to charitable organizations that depend upon volunteer contributions are generally enforceable without consideration.

Accepted Answer

A) True 
 B)False

Question 8

A promise to refrain from doing something that the law requires is consideration.

Accepted Answer

A) True 
 B)False

Question 9

A debtor who makes a part payment of the debt before the due date is still liable for the balance if there is no dispute over the debt.

Accepted Answer

A) True 
 B)False

Question 10

____________________ is something of value given by each party to a contract to bind the agreement.

Accepted Answer

The answer of ____________________ is something of value given by...

Question 11

Consideration that consists of a sacrifice by the offeree is called ____________________.

Accepted Answer

The answer of Consideration that consists of a sacrifice by...

Question 12

Benson orally promised to give his nineteen-year-old son a car as a birthday gift. Benson was not legally bound to his promise because

Accepted Answer

A)  the promise was made orally. 
B)  a promise to make a gift is unenforceable. 
C)  the promise was a past consideration. 
D)  an executed gift requires consideration. 
A)  the promise was made orally. 
B)  a promise to make a gift is unenforceable. 
C)  the promise was a past consideration. 
D)  an executed gift requires consideration.

Question 13

Consideration can be

Accepted Answer

A)  a benefit to the offeror. 
B)  a sacrifice by the offeree. 
C)  performing an act. 
D)  all of these. 
A)  a benefit to the offeror. 
B)  a sacrifice by the offeree. 
C)  performing an act. 
D)  all of these.

Question 14

Promising to do something you are already required to do is adequate consideration.

Accepted Answer

A) True 
 B)False

Question 15

Martin sold his used car to Nixon for $2,000. Later Martin discovered that the car was worth $3,000. Martin then claimed that Nixon owed him an additional $1,000. If Martin attempted to take legal action to collect the additional $1,000, he would be entitled to

Accepted Answer

A)  $1,000 plus legal fees. 
B)  $1,000 only. 
C)  $3,000 minus $1,000. 
D)  nothing. 
A)  $1,000 plus legal fees. 
B)  $1,000 only. 
C)  $3,000 minus $1,000. 
D)  nothing.

Question 16

Which agreement is unenforceable because of lack of valid consideration?

Accepted Answer

A)  Johnson agreed to donate $1,000 to the United Hospital Building Fund. Based upon this and similar promises, construction was started. 
B)  Davis promised to give his neighbor's young son $50 if the boy would refrain from trespassing on his property. Because of Davis's promise, the boy complied. 
C)  Boyd agreed to sell his used motorboat to Yates for $300. Yates tendered the $300. 
D)  Philips promised his nephew $5,000 if the boy would refrain from smoking until he reached twenty-one years of age. Because of this promise, the nephew complied. 
A)  Johnson agreed to donate $1,000 to the United Hospital Building Fund. Based upon this and similar promises, construction was started. 
B)  Davis promised to give his neighbor's young son $50 if the boy would refrain from trespassing on his property. Because of Davis's promise, the boy complied. 
C)  Boyd agreed to sell his used motorboat to Yates for $300. Yates tendered the $300. 
D)  Philips promised his nephew $5,000 if the boy would refrain from smoking until he reached twenty-one years of age. Because of this promise, the nephew complied.

Question 17

A creditor's promise to accept less than the amount owed as full payment of a debt is legally binding.

Accepted Answer

A) True 
 B)False

Question 18

Part payment of a disputed debt may cancel the debt if the creditor accepts and cashes a check marked ____________________.

Accepted Answer

The answer of Part payment of a disputed debt may...

Question 19

Part payment of a debt can cancel a debt if there is an honest dispute over the correct amount of the debt called a(n) ____________________ claim.

Accepted Answer

The answer of Part payment of a debt can cancel...

Question 20

Part payment of a debt may cancel the entire debt if there is an honest dispute over the exact amount of the debt.

Accepted Answer

A) True 
 B)False

Exam 8: Consideration

A liquidated debt is one that is not in dispute.

Iosa promised to pay a police officer $150 to keep an eye on Iosa's store while she was away. Is Iosa's promise binding? Why or why not?

Courts sometimes apply the doctrine of promissory estoppel to enforce a promise. This doctrine

Consideration is needed to make a promise legally enforceable.

Modern courts now protect individuals from contracts that are so one-sided as to be ____________________.

Courts will not enforce contracts calling for nominal consideration.

Promises made to charitable organizations that depend upon volunteer contributions are generally enforceable without consideration.

A promise to refrain from doing something that the law requires is consideration.

A debtor who makes a part payment of the debt before the due date is still liable for the balance if there is no dispute over the debt.

____________________ is something of value given by each party to a contract to bind the agreement.

Consideration that consists of a sacrifice by the offeree is called ____________________.

Benson orally promised to give his nineteen-year-old son a car as a birthday gift. Benson was not legally bound to his promise because

Consideration can be

Promising to do something you are already required to do is adequate consideration.

Martin sold his used car to Nixon for $2,000. Later Martin discovered that the car was worth $3,000. Martin then claimed that Nixon owed him an additional $1,000. If Martin attempted to take legal action to collect the additional $1,000, he would be entitled to

Which agreement is unenforceable because of lack of valid consideration?

A creditor's promise to accept less than the amount owed as full payment of a debt is legally binding.

Part payment of a disputed debt may cancel the debt if the creditor accepts and cashes a check marked ____________________.

Part payment of a debt can cancel a debt if there is an honest dispute over the correct amount of the debt called a(n) ____________________ claim.

Part payment of a debt may cancel the entire debt if there is an honest dispute over the exact amount of the debt.

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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