Question 1

An acceptance must be unequivocal.

Accepted Answer

A) True 
 B)False  True

Question 2

A covenant not to sue is against public policy.

Accepted Answer

A) True 
 B)False  False

Question 3

A quasi contract is a fictional contract.

Accepted Answer

A) True 
 B)False  True

Question 4

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when​

Accepted Answer

A) received. 
B) sent. 
C) followed up by a confirmation letter sent by regular mail. 
D) composed on a Relay computer. 
A) received. 
B) sent. 
C) followed up by a confirmation letter sent by regular mail. 
D) composed on a Relay computer.

Question 5

The UETA applies only to electronic records and electronic signatures relating to a transaction.

Accepted Answer

A) True 
 B)False

Question 6

Jessie, a nurse practitioner, renders aid to Knute, who is injured and unconscious. Jessie can recover the cost of the aid from Knute​

Accepted Answer

A) on a quasi contract theory. 
B) only if Knute recovers because of the aid. 
C) only if Knute was aware of the aid. 
D) under no circumstances. 
A) on a quasi contract theory. 
B) only if Knute recovers because of the aid. 
C) only if Knute was aware of the aid. 
D) under no circumstances.

Question 7

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms​

Accepted Answer

A) reasonably clear. 
B) ambiguous. 
C) unreadable. 
D) non-negotiable. 
A) reasonably clear. 
B) ambiguous. 
C) unreadable. 
D) non-negotiable.

Question 8

In contract law, "consideration" refers to the time that a party takes to evaluate a deal.

Accepted Answer

A) True 
 B)False

Question 9

An "offer" to sell an item on an online auction site generally is treated as an invitation to negotiate.

Accepted Answer

A) True 
 B)False

Question 10

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is​

Accepted Answer

A) not consideration because her voluntary consent may be lacking. 
B) not consideration because the exchange is not a bargain. 
C) consideration. 
D) not consideration because the value is not legally sufficient. 
A) not consideration because her voluntary consent may be lacking. 
B) not consideration because the exchange is not a bargain. 
C) consideration. 
D) not consideration because the value is not legally sufficient.

Question 11

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is​

Accepted Answer

A) enforceable. 
B) unenforceable because Jolene's injuries are unforeseeably difficult. 
C) unenforceable because Kilroy has a preexisting duty to pay. 
D) unenforceable because the release is an illusory promise. 
A) enforceable. 
B) unenforceable because Jolene's injuries are unforeseeably difficult. 
C) unenforceable because Kilroy has a preexisting duty to pay. 
D) unenforceable because the release is an illusory promise.

Question 12

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is​

Accepted Answer

A) liable to Niki under the concept of rescission and new contract. 
B) liable to Niki under the doctrine of promissory estoppel. 
C) liable to Niki under the preexisting duty rule. 
D) not liable to Niki. 
A) liable to Niki under the concept of rescission and new contract. 
B) liable to Niki under the doctrine of promissory estoppel. 
C) liable to Niki under the preexisting duty rule. 
D) not liable to Niki.

Question 13

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf as their agent. Bo and Capri have executed a(n)

Accepted Answer

A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a simple contract. 
A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a simple contract.

Question 14

To be legally sufficient, consideration must be evidenced by something tangible.

Accepted Answer

A) True 
 B)False

Question 15

​Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

Accepted Answer

A) enforceable as the consideration is past. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule. 
A) enforceable as the consideration is past. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule.

Question 16

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

Accepted Answer

A) True 
 B)False

Question 17

D'Sean promises to pay his personal assistant Edie $50,000 in consideration of the services she provided over the years. D'Sean never makes the payment. D'Sean's promise is​

Accepted Answer

A) enforceable for the entire $50,000. 
B) enforceable to the extent of what Edie's services were actually worth. 
C) not enforceable because the consideration is in the past. 
D) not enforceable because the failure to pay is an unforeseen difficulty. 
A) enforceable for the entire $50,000. 
B) enforceable to the extent of what Edie's services were actually worth. 
C) not enforceable because the consideration is in the past. 
D) not enforceable because the failure to pay is an unforeseen difficulty.

Question 18

Lou asks Mark, a cobbler and shoe salesperson, to repair a pair of work boots. There is no discussion of a price, and Lou and Mark do not sign any documents. After the repair, Mark hands Lou a bill. With respect to Lou's obligation to pay the bill, this is​

Accepted Answer

A) an express contract. 
B) an implied contract. 
C) a quasi contract. 
D) no contract. 
A) an express contract. 
B) an implied contract. 
C) a quasi contract. 
D) no contract.

Question 19

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is​

Accepted Answer

A) enforceable as the consideration is past. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule. 
A) enforceable as the consideration is past. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule.

Question 20

An illusory promise is a promise that is enforceable without consideration.

Accepted Answer

A) True 
 B)False

Exam 8: Agreement and Consideration in Contracts

An acceptance must be unequivocal.

A covenant not to sue is against public policy.

A quasi contract is a fictional contract.

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when​

The UETA applies only to electronic records and electronic signatures relating to a transaction.

Jessie, a nurse practitioner, renders aid to Knute, who is injured and unconscious. Jessie can recover the cost of the aid from Knute​

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms​

In contract law, "consideration" refers to the time that a party takes to evaluate a deal.

An "offer" to sell an item on an online auction site generally is treated as an invitation to negotiate.

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is​

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is​

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is​

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf as their agent. Bo and Capri have executed a(n)

To be legally sufficient, consideration must be evidenced by something tangible.

​Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

D'Sean promises to pay his personal assistant Edie $50,000 in consideration of the services she provided over the years. D'Sean never makes the payment. D'Sean's promise is​

Lou asks Mark, a cobbler and shoe salesperson, to repair a pair of work boots. There is no discussion of a price, and Lou and Mark do not sign any documents. After the repair, Mark hands Lou a bill. With respect to Lou's obligation to pay the bill, this is​

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is​

An illusory promise is a promise that is enforceable without consideration.

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

Capacity, Legality, and Enforceability

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

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Jessie, a nurse practitioner, renders aid to Knute, who is injured and unconscious. Jessie can recover the cost of the aid from Knute

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

D'Sean promises to pay his personal assistant Edie $50,000 in consideration of the services she provided over the years. D'Sean never makes the payment. D'Sean's promise is

Lou asks Mark, a cobbler and shoe salesperson, to repair a pair of work boots. There is no discussion of a price, and Lou and Mark do not sign any documents. After the repair, Mark hands Lou a bill. With respect to Lou's obligation to pay the bill, this is

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is