Question 1

Which of the following represents a unilateral offer?

Accepted Answer

A) "I will pay you $50 if you mow my lawn." 
B) "I will pay you $50 if you promise to trim that tree." 
C) "I will pay you $50 for your CD player." 
D) "I will pay you $50 for your backpack." 
A) "I will pay you $50 if you mow my lawn." 
B) "I will pay you $50 if you promise to trim that tree." 
C) "I will pay you $50 for your CD player." 
D) "I will pay you $50 for your backpack."

Question 2

An agreement in which parties intend to form a valid bargain,but a court declares that some rule of law prevents enforcing it.is:

Accepted Answer

A) void 
B) voidable 
C) Unenforceable 
D) none of the above. 
A) void 
B) voidable 
C) Unenforceable 
D) none of the above.

Question 3

Patty is a poor college student struggling to work and keep up with her studies.Fred,her uncle,promises to pay Patty support of $200 per month for the next six months.Although Fred didn't ask her to,she quits her current job in order to devote full time to her studies for the next six months.Fred makes one payment and then stops with no explanation.If Patty sues,what is the likely result?

Accepted Answer

A) Fred would win,as he did not ask Patty to quit her job. 
B) Patty would win,as a contract was formed when Fred promised to pay her the support. 
C) Fred would win,as family members cannot sue each other for breach of an oral promise. 
D) Patty may win under the doctrine of promissory estoppel. 
A) Fred would win,as he did not ask Patty to quit her job. 
B) Patty would win,as a contract was formed when Fred promised to pay her the support. 
C) Fred would win,as family members cannot sue each other for breach of an oral promise. 
D) Patty may win under the doctrine of promissory estoppel.

Question 4

Contracts for the sale of fabric,automobiles,computers,furniture,and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 5

Jennifer has offered to sell her laptop computer for $750 to Jack.She tells Jack that the computer is only six months old but,in fact,it is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is:

Accepted Answer

A) a void agreement because of the fraud involved. 
B) a voidable contract,one that Jack can void. 
C) a voidable contract,one that Jennifer can void. 
D) a void contract because of the UCC. 
A) a void agreement because of the fraud involved. 
B) a voidable contract,one that Jack can void. 
C) a voidable contract,one that Jennifer can void. 
D) a void contract because of the UCC.

Question 6

Strawly Corp.runs an "adult bookstore" in Metro City,leasing the building from MegaCorp.Then,Metro City passes an ordinance prohibiting the sales of the types of merchandise found in "adult bookstores." Strawly is still bound to the contract.

Accepted Answer

A) True 
 B)False

Question 7

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box.Lucy delivers the candy.Rick pays for the goods.This contract is fully executory.

Accepted Answer

A) True 
 B)False

Question 8

The courts will find an implied contract when:

Accepted Answer

A) justice demands it. 
B) conduct of the parties indicates they intended an agreement. 
C) there is promissory estoppel. 
D) there is undue influence. 
A) justice demands it. 
B) conduct of the parties indicates they intended an agreement. 
C) there is promissory estoppel. 
D) there is undue influence.

Question 9

Preferred Contractors was a general contractor and owner of a condominium complex which was under construction.Barrett,a subcontractor,had been hired by Henderson Plumbing,another subcontractor,to help it complete the plumbing work on the project.When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project,Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job.Barrett refused to continue until he knew who would pay him,since he feared Henderson's financial position was shaky.Nonetheless,Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent a $7,500 bill to Henderson,which was never paid.When Barrett later sent the bill to Preferred Contractors,these facts emerged:Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment,Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work.Discuss the best possible theory of recovery Barrett may argue.

Accepted Answer

Barrett's best theory for recovery is qu

Question 10

Mike made the following offer to Mick:"I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an:

Accepted Answer

A) executed,bilateral,express contract. 
B) executory,bilateral,implied-in-law contract. 
C) executory,unilateral,express contract. 
D) executory,bilateral,express contract. 
A) executed,bilateral,express contract. 
B) executory,bilateral,implied-in-law contract. 
C) executory,unilateral,express contract. 
D) executory,bilateral,express contract.

Question 11

Courts may award damages called "quantum meruit":

Accepted Answer

A) which means "as much as he deserved." 
B) which is money the court believes the plaintiff morally ought to have. 
C) even though there was no valid contract entitling the plaintiff to it. 
D) All of the above. 
A) which means "as much as he deserved." 
B) which is money the court believes the plaintiff morally ought to have. 
C) even though there was no valid contract entitling the plaintiff to it. 
D) All of the above.

Question 12

Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

Accepted Answer

A) True 
 B)False

Question 13

Jerry offers to shovel the snow from Ben's driveway for $35.Ben replies "OK." This is an example of:

Accepted Answer

A) an implied,unilateral contract. 
B) an express,unilateral contract. 
C) an implied,bilateral contract. 
D) an express,bilateral contract. 
A) an implied,unilateral contract. 
B) an express,unilateral contract. 
C) an implied,bilateral contract. 
D) an express,bilateral contract.

Question 14

John enters into a contract to paint Chad's house.When Chad decides on a color,John will buy the paint and paint the house for the price of $2,500.This contract is governed by:

Accepted Answer

A) the common law of contracts governs because this is a mixed contract (one for services and goods). 
B) the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods. 
C) the Uniform Commercial Code governs because a sale of goods is involved. 
D) both the common law and the Uniform Commercial Code will govern this contract. 
A) the common law of contracts governs because this is a mixed contract (one for services and goods). 
B) the common law of contracts governs because the predominant factor of the contract is for the sale of services and not goods. 
C) the Uniform Commercial Code governs because a sale of goods is involved. 
D) both the common law and the Uniform Commercial Code will govern this contract.

Question 15

A valid contract can legally be voided by either party.

Accepted Answer

A) True 
 B)False

Question 16

The basic distinction between a bilateral contract and a unilateral contract is that:

Accepted Answer

A) only one promise is involved in a bilateral contract. 
B) only one promise is involved in a unilateral contract. 
C) the Statute of Frauds applies to one and not the other. 
D) one is enforceable,the other is not. 
A) only one promise is involved in a bilateral contract. 
B) only one promise is involved in a unilateral contract. 
C) the Statute of Frauds applies to one and not the other. 
D) one is enforceable,the other is not.

Question 17

An express contract:

Accepted Answer

A) must be in writing. 
B) may be inferred by the conduct of the parties involved. 
C) has both parties setting forth their intentions. 
D) is not valid in many states. 
A) must be in writing. 
B) may be inferred by the conduct of the parties involved. 
C) has both parties setting forth their intentions. 
D) is not valid in many states.

Question 18

When promissory estoppel is used by the courts,it is because there is NOT an enforceable contract present.

Accepted Answer

A) True 
 B)False

Question 19

Upon the recommendation of a friend,Hope hires Joey to rewire her kitchen and he completes the work within the time agreed.Then Hope finds out that Joey is not a licensed electrician,and she refuses to pay him for the work.A court will enforce the agreement because otherwise Hope would be unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 20

The common law governs contracts for:

Accepted Answer

A) services. 
B) real estate. 
C) employment. 
D) All of the above. 
A) services. 
B) real estate. 
C) employment. 
D) All of the above.

Exam 9: Introduction to Contracts

Which of the following represents a unilateral offer?

An agreement in which parties intend to form a valid bargain,but a court declares that some rule of law prevents enforcing it.is:

Contracts for the sale of fabric,automobiles,computers,furniture,and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Jennifer has offered to sell her laptop computer for $750 to Jack.She tells Jack that the computer is only six months old but,in fact,it is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is:

Strawly Corp.runs an "adult bookstore" in Metro City,leasing the building from MegaCorp.Then,Metro City passes an ordinance prohibiting the sales of the types of merchandise found in "adult bookstores." Strawly is still bound to the contract.

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box.Lucy delivers the candy.Rick pays for the goods.This contract is fully executory.

The courts will find an implied contract when:

Mike made the following offer to Mick:"I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an:

Courts may award damages called "quantum meruit":

Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

Jerry offers to shovel the snow from Ben's driveway for $35.Ben replies "OK." This is an example of:

John enters into a contract to paint Chad's house.When Chad decides on a color,John will buy the paint and paint the house for the price of $2,500.This contract is governed by:

A valid contract can legally be voided by either party.

The basic distinction between a bilateral contract and a unilateral contract is that:

An express contract:

When promissory estoppel is used by the courts,it is because there is NOT an enforceable contract present.

The common law governs contracts for:

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Torts and Product Liability

Crime

International Law

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Consideration

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Capacity and Consent

Written Contracts

Third parties

Performance and Discharge

Remedies

practical Contracts

Introduction to Sales

Ownership and Warranties

Performance and Remedies

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

Employment and Labor Law

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Starting a Business

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Government Regulations:Securities and Antitrust

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Intellectual Property

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