Question 1

It is unethical to use your lawyer as an excuse for a provision of a contract,such as,"My lawyer insists that I have a liquidated damages clause..."

Accepted Answer

A) True 
 B)False

Question 2

If the subject of the contract includes issues that may be controversial,it is best to:

Accepted Answer

A)  keep lawyers out of the negotiation,so relationships are not strained. 
B)  deal with them up front before the relationship is strained. 
C)  deal with them one at a time,as the problems arise. 
D)  state your position up front and stand firm when the other party objects. 
A)  keep lawyers out of the negotiation,so relationships are not strained. 
B)  deal with them up front before the relationship is strained. 
C)  deal with them one at a time,as the problems arise. 
D)  state your position up front and stand firm when the other party objects.

Question 3

Outline the focused,multi-step process recommended for reading a contract before you agree to it.

Accepted Answer

Pre-reading.Before you begin read

Question 4

Statements of facts about the past and present are called:

Accepted Answer

A)  provisions and terms. 
B)  promises and covenants. 
C)  representations and warranties. 
D)  damages and remedies. 
A)  provisions and terms. 
B)  promises and covenants. 
C)  representations and warranties. 
D)  damages and remedies.

Question 5

You should always hire a lawyer to review any legal papers you have to sign,including such papers as lease agreements or telephone contracts.

Accepted Answer

A) True 
 B)False

Question 6

Ricardo has agreed to sell his family farm to Walter for a price of $450,000. Even though both sides agree on the terms,it is still worth the money for Ricardo to hire a lawyer to write the contract.

Accepted Answer

A) True 
 B)False

Question 7

A contract should have a descriptive title,which is generally in all capital letters,underlined and centered at the top of the page.

Accepted Answer

A) True 
 B)False

Question 8

Ralph is a professional football player.He signs a valid contract with the Jets.Later,he claims that he was also promised free use of the Jets' private jet,but this was not in the contract. What type of clause in his contract would prevent him from flying away with this claim?

Accepted Answer

A)  A complete agreement clause. 
B)  A "no additional terms" clause. 
C)  An integration clause. 
D)  A severability clause. 
A)  A complete agreement clause. 
B)  A "no additional terms" clause. 
C)  An integration clause. 
D)  A severability clause.

Question 9

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called:

Accepted Answer

A)  boilerroom. 
B)  boilerplate. 
C)  boilerpot. 
D)  Boilerplate. 
A)  boilerroom. 
B)  boilerplate. 
C)  boilerpot. 
D)  Boilerplate.

Question 10

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the evidence is clear that the two parties intended to agree to 50 days,the courts will probably apply the remedy of:

Accepted Answer

A)  reformation. 
B)  rescission. 
C)  restitution. 
D)  reliance. 
A)  reformation. 
B)  rescission. 
C)  restitution. 
D)  reliance.

Question 11

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising. The contract was probably written by:

Accepted Answer

A)  The owner of A+ Modeling Agency. 
B)  Sandi. 
C)  A+ Modeling Agency's lawyer. 
D)  Sandi's lawyer. 
A)  The owner of A+ Modeling Agency. 
B)  Sandi. 
C)  A+ Modeling Agency's lawyer. 
D)  Sandi's lawyer.

Question 12

Typos are almost always detrimental to the validity of a contract because they cause the contract to not reflect the true agreement of the parties.

Accepted Answer

A) True 
 B)False

Question 13

Which statement is true about definitions in a contract?

Accepted Answer

A)  All ambiguous terms must be defined. 
B)  Definitions must be grouped together in a separate section of the contract. 
C)  Definitions must be located on the same page where the term is first used. 
D)  The parties to the contract may be defined with shorter designations than their actual names. 
A)  All ambiguous terms must be defined. 
B)  Definitions must be grouped together in a separate section of the contract. 
C)  Definitions must be located on the same page where the term is first used. 
D)  The parties to the contract may be defined with shorter designations than their actual names.

Question 14

In a contract modification,the phrase,"charged with such amendment" means:

Accepted Answer

A)  the party who suggested the change. 
B)  the party who will benefit from the change. 
C)  the party who will be adversely affected by the change. 
D)  the party who did NOT suggest the change. 
A)  the party who suggested the change. 
B)  the party who will benefit from the change. 
C)  the party who will be adversely affected by the change. 
D)  the party who did NOT suggest the change.

Question 15

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage. The contract does not specify which insects are covered or how much damage is necessary to make a claim. The contract will probably be enforced in favor of:

Accepted Answer

A)  Farmer Fran. 
B)  Farmer's Fortune Insurance. 
C)  Neither side,as it is ridiculous to try to insure against insects. 
D)  Cannot determine...would have to go through litigation to decide. 
A)  Farmer Fran. 
B)  Farmer's Fortune Insurance. 
C)  Neither side,as it is ridiculous to try to insure against insects. 
D)  Cannot determine...would have to go through litigation to decide.

Question 16

Which of the following is NOT one of the three ways to amend a written contract?

Accepted Answer

A)  write and sign an amendment document. 
B)  verbally agreeing to the changes and shaking hands on the deal. 
C)  crossing out the mistakes and writing in the corrections. 
D)  writing a totally new contract with the correct provisions. 
A)  write and sign an amendment document. 
B)  verbally agreeing to the changes and shaking hands on the deal. 
C)  crossing out the mistakes and writing in the corrections. 
D)  writing a totally new contract with the correct provisions.

Question 17

Which of the following statements is incorrect concerning arbitration?

Accepted Answer

A)  The losing party in an arbitration can file an appeal in a District Appellate Court. 
B)  Arbitration is almost always cheaper and faster than litigation. 
C)  Arbitrators may be biased toward the "larger" party who may be a repeat client. 
D)  Parties to a contract cannot be forced to arbitrate unless the contract specifies it. 
A)  The losing party in an arbitration can file an appeal in a District Appellate Court. 
B)  Arbitration is almost always cheaper and faster than litigation. 
C)  Arbitrators may be biased toward the "larger" party who may be a repeat client. 
D)  Parties to a contract cannot be forced to arbitrate unless the contract specifies it.

Question 18

In business law,a lawyer's primary job is to represent the client in contract litigation.

Accepted Answer

A) True 
 B)False

Question 19

When one party to a contract fails to perform as promised,it is called:

Accepted Answer

A)  litigation. 
B)  breach. 
C)  liquidated damages. 
D)  bad faith. 
A)  litigation. 
B)  breach. 
C)  liquidated damages. 
D)  bad faith.

Question 20

In the case of scrivener's errors (commonly known as typos),a court will usually:

Accepted Answer

A)  reform the contract if it is clear that the mistake is not what the parties intended. 
B)  instruct the parties to rewrite the contract without the errors. 
C)  enforce the contract as written. 
D)  throw out the contract completely. 
A)  reform the contract if it is clear that the mistake is not what the parties intended. 
B)  instruct the parties to rewrite the contract without the errors. 
C)  enforce the contract as written. 
D)  throw out the contract completely.

Exam 12: Practical Contracts

It is unethical to use your lawyer as an excuse for a provision of a contract,such as,"My lawyer insists that I have a liquidated damages clause..."

If the subject of the contract includes issues that may be controversial,it is best to:

Outline the focused,multi-step process recommended for reading a contract before you agree to it.

Statements of facts about the past and present are called:

You should always hire a lawyer to review any legal papers you have to sign,including such papers as lease agreements or telephone contracts.

Ricardo has agreed to sell his family farm to Walter for a price of $450,000. Even though both sides agree on the terms,it is still worth the money for Ricardo to hire a lawyer to write the contract.

A contract should have a descriptive title,which is generally in all capital letters,underlined and centered at the top of the page.

Ralph is a professional football player.He signs a valid contract with the Jets.Later,he claims that he was also promised free use of the Jets' private jet,but this was not in the contract. What type of clause in his contract would prevent him from flying away with this claim?

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called:

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising. The contract was probably written by:

Typos are almost always detrimental to the validity of a contract because they cause the contract to not reflect the true agreement of the parties.

Which statement is true about definitions in a contract?

In a contract modification,the phrase,"charged with such amendment" means:

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage. The contract does not specify which insects are covered or how much damage is necessary to make a claim. The contract will probably be enforced in favor of:

Which of the following is NOT one of the three ways to amend a written contract?

Which of the following statements is incorrect concerning arbitration?

In business law,a lawyer's primary job is to represent the client in contract litigation.

When one party to a contract fails to perform as promised,it is called:

In the case of scrivener's errors (commonly known as typos),a court will usually:

Introduction to Law

Business Ethics and Social Responsibility

Courts,Litigation and Alterntive Dispute Resolution

Constitutional, Statutory, Administrative, and Common Law

Intentional Torts and Business Torts

Negligence and Strict Liability

Crime

International Law

Introduction to Contracts

Contract Impediments

Conclusion to Contracts

Introduction to Sales

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency Law

Employment Law

Employment Discrimination

Labor Law

Starting a Business: Llcs and Other Option

Life and Death of a Corporation

Government Regulation: Securities and Antitrust

Accountants' Liability

Consumer Law

Environmental Law

Cyberlaw

Intellectual Property

Real Property and Tenant: Landlord Law

Personal Property and Bailment

Estate Planning

Insurance

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