Question 1

If there is a statute that prohibits a certain act, a contract to do it is unenforceable.

Accepted Answer

A) True 
 B)False

Question 2

To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Accepted Answer

A) True 
 B)False

Question 3

Health Source, Inc., offers to buy Medico Equipment & Supplies Corporation. On June 1, Medico gives Health Source copies of Medico's financial statements for the previous year. The statements show an inventory of $10 million. On June 15, Medico discovers that the previous year's inventory is overstated by $500,000, but does not inform Health Source. On July 1, Health Source, relying on the financial statements, buys Medico. On July 10, Health Source discovers the inventory overstatement. Can Health Source succeed in a suit against Medico? On what basis?​

Accepted Answer

Yes, Health Source can succeed in a suit

Question 4

Neil, a minor, attempts to return to its former owner, a set of skis that he recently bought, used, and wrecked, in a state in which a duty of restitution is imposed. Neil

Accepted Answer

A) can return the skis "as is" and avoid further liability. 
B) is not required to return the skis due to his or her minority. 
C) must return the skis and pay for the damage. 
D) cannot return the skis unless they can be fully restored. 
A) can return the skis "as is" and avoid further liability. 
B) is not required to return the skis due to his or her minority. 
C) must return the skis and pay for the damage. 
D) cannot return the skis unless they can be fully restored.

Question 5

Carl and Debra orally agree on the sale of Carl's Electrical Supplies Company to Debra and jot down the terms on the back of one of Carl's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain​

Accepted Answer

A) all terms. 
B) the essential terms. 
C) the preliminary terms. 
D) the qualitative terms. 
A) all terms. 
B) the essential terms. 
C) the preliminary terms. 
D) the qualitative terms.

Question 6

A contract entered into under undue influence is voidable.

Accepted Answer

A) True 
 B)False

Question 7

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Accepted Answer

A) True 
 B)False

Question 8

Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by​

Accepted Answer

A) Shannon. 
B) any third party who is not aware that Tevin is not licensed. 
C) Tevin. 
D) no one. 
A) Shannon. 
B) any third party who is not aware that Tevin is not licensed. 
C) Tevin. 
D) no one.

Question 9

Under the Statute of Frauds, all contracts must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 10

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of​

Accepted Answer

A) the tunes, the GPS device, and the tablet. 
B) the GPS device and the tablet only. 
C) the tablet only. 
D) the tunes only. 
A) the tunes, the GPS device, and the tablet. 
B) the GPS device and the tablet only. 
C) the tablet only. 
D) the tunes only.

Question 11

A contract must be in writing to be enforceable if its performance is impossible within one year.

Accepted Answer

A) True 
 B)False

Question 12

Misrepresentation cannot occur by silence.

Accepted Answer

A) True 
 B)False

Question 13

A threat to exercise a legal right ordinarily constitutes duress.

Accepted Answer

A) True 
 B)False

Question 14

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract​

Accepted Answer

A) under any circumstances. 
B) only if Claudia agrees to it. 
C) only if the value of the trumpet is more than $500. 
D) only if it is in writing. 
A) under any circumstances. 
B) only if Claudia agrees to it. 
C) only if the value of the trumpet is more than $500. 
D) only if it is in writing.

Question 15

Parents are always liable for the contracts made by their minor children.

Accepted Answer

A) True 
 B)False

Question 16

Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has​

Accepted Answer

A) expressly ratified the contract. 
B) impliedly ratified the contract. 
C) disaffirmed the contract. 
D) none of the choices. 
A) expressly ratified the contract. 
B) impliedly ratified the contract. 
C) disaffirmed the contract. 
D) none of the choices.

Question 17

A covenant not to compete is enforceable only if it is reasonable in duration and geographic area.

Accepted Answer

A) True 
 B)False

Question 18

All collateral promises must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract​

Accepted Answer

A) is prohibited. 
B) is enforceable whether or not it is in writing. 
C) must be in writing to be enforceable. 
D) must be oral and in writing to be enforceable. 
A) is prohibited. 
B) is enforceable whether or not it is in writing. 
C) must be in writing to be enforceable. 
D) must be oral and in writing to be enforceable.

Question 20

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by​

Accepted Answer

A) Air Flo. 
B) Banyan Grove. 
C) any third party, such as a HVAC supplies provider. 
D) none of the choices. 
A) Air Flo. 
B) Banyan Grove. 
C) any third party, such as a HVAC supplies provider. 
D) none of the choices.

Exam 9: Capacity, Legality, and Enforceability

If there is a statute that prohibits a certain act, a contract to do it is unenforceable.

To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Neil, a minor, attempts to return to its former owner, a set of skis that he recently bought, used, and wrecked, in a state in which a duty of restitution is imposed. Neil

Carl and Debra orally agree on the sale of Carl's Electrical Supplies Company to Debra and jot down the terms on the back of one of Carl's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain​

A contract entered into under undue influence is voidable.

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by​

Under the Statute of Frauds, all contracts must be in writing to be enforceable.

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of​

A contract must be in writing to be enforceable if its performance is impossible within one year.

Misrepresentation cannot occur by silence.

A threat to exercise a legal right ordinarily constitutes duress.

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract​

Parents are always liable for the contracts made by their minor children.

Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has​

A covenant not to compete is enforceable only if it is reasonable in duration and geographic area.

All collateral promises must be in writing to be enforceable.

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract​

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by​

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Agency Relationships in Business

Employment Law

The Entrepreneurs Options

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

Carl and Debra orally agree on the sale of Carl's Electrical Supplies Company to Debra and jot down the terms on the back of one of Carl's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract

Vijay enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by