Question 1

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Accepted Answer

A) True 
 B)False

Question 2

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

Accepted Answer

A)  The sale of a house. 
B)  The sale of a new car. 
C)  An employment agreement. 
D)  A sale of automobile insurance. 
A)  The sale of a house. 
B)  The sale of a new car. 
C)  An employment agreement. 
D)  A sale of automobile insurance.

Question 4

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "O.K." Under these facts, each party is a promisor and each party is a promisee.

Accepted Answer

A) True 
 B)False

Question 5

In order to be legally binding, a contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 6

Ronald says to Evan, "If you design and build my back deck according to these specifications by the time I return from California in 6 weeks, I will pay you $5,000." Evan does not respond but has the landscaping done by the time Ronald returns. This is an example of a unilateral contract.

Accepted Answer

A) True 
 B)False

Question 7

Hana has entered into a contract to buy a new tablet for personal use. The law governing the contract is Article 2of the UCC.

Accepted Answer

A) True 
 B)False

Question 8

A valid contract may be unenforceable for which reason(s)?

Accepted Answer

A)  Failure to satisfy the statute of frauds. 
B)  Running of the statute of limitations. 
C)  Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations. 
D)  A valid contract is always enforceable. 
A)  Failure to satisfy the statute of frauds. 
B)  Running of the statute of limitations. 
C)  Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations. 
D)  A valid contract is always enforceable.

Question 9

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Accepted Answer

A) True 
 B)False

Question 10

Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

Accepted Answer

A)  void. 
B)  unenforceable. 
C)  voidable. 
D)  executory and enforceable. 
A)  void. 
B)  unenforceable. 
C)  voidable. 
D)  executory and enforceable.

Question 11

Article 2 of the UCC lacks relevance in modern society because it, including its amendments, does not provide rules related to electronic commerce.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT always necessary in order for a valid contract to be formed?

Accepted Answer

A)  Mutual assent. 
B)  Legality of purpose. 
C)  A writing. 
D)  Competent parties. 
A)  Mutual assent. 
B)  Legality of purpose. 
C)  A writing. 
D)  Competent parties.

Question 13

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 14

Thomas contacted Welsh, a realtor, and asked him to be looking for property that is at least 20 acres, zoned commercial, within the city limits.  Welsh responded that he would look for such a property and reminded Thomas that the typical finders fee in such a situation is 10% of the property asking price.  If Thomas responds with "I know," the parties have formed an express contract by mutually manifesting assent to the essential terms.

Accepted Answer

A) True 
 B)False

Question 15

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact. In this case:

Accepted Answer

A)  Chet may avoid the contract. 
B)  Rosalind may avoid the contract. 
C)  either or both Chet or Rosalind may avoid the contract. 
D)  neither Chet nor Rosalind may avoid the contract. 
A)  Chet may avoid the contract. 
B)  Rosalind may avoid the contract. 
C)  either or both Chet or Rosalind may avoid the contract. 
D)  neither Chet nor Rosalind may avoid the contract.

Question 16

Which of the following is not generally required in order to have a valid contract?

Accepted Answer

A)  Mutual assent. 
B)  A lawful purpose. 
C)  Fairness of the bargain. 
D)  Parties who have contractual capacity. 
A)  Mutual assent. 
B)  A lawful purpose. 
C)  Fairness of the bargain. 
D)  Parties who have contractual capacity.

Question 17

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

Accepted Answer

A)  implied in fact contract. 
B)  express contract. 
C)  void contract. 
D)  quasi contract. 
A)  implied in fact contract. 
B)  express contract. 
C)  void contract. 
D)  quasi contract.

Question 18

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

Accepted Answer

A)  Quasi contract. 
B)  Executed contract. 
C)  Illusory contract. 
D)  Executory contract. 
A)  Quasi contract. 
B)  Executed contract. 
C)  Illusory contract. 
D)  Executory contract.

Question 19

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

Accepted Answer

A)  Bob is under no obligation to return the money. 
B)  Bob is under a contractual obligation to return the money. 
C)  Bob's obligation to return the money is quasi-contractual. 
D)  Bob's obligation to return the money is implied in fact. 
A)  Bob is under no obligation to return the money. 
B)  Bob is under a contractual obligation to return the money. 
C)  Bob's obligation to return the money is quasi-contractual. 
D)  Bob's obligation to return the money is implied in fact.

Question 20

A contract in which both parties exchange promises is a:

Accepted Answer

A)  voidable contract. 
B)  bilateral contract. 
C)  unilateral contract. 
D)  quasi contract. 
A)  voidable contract. 
B)  bilateral contract. 
C)  unilateral contract. 
D)  quasi contract.

Exam 9: Introduction to Contracts

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "O.K." Under these facts, each party is a promisor and each party is a promisee.

In order to be legally binding, a contract must be in writing.

Ronald says to Evan, "If you design and build my back deck according to these specifications by the time I return from California in 6 weeks, I will pay you $5,000." Evan does not respond but has the landscaping done by the time Ronald returns. This is an example of a unilateral contract.

Hana has entered into a contract to buy a new tablet for personal use. The law governing the contract is Article 2of the UCC.

A valid contract may be unenforceable for which reason(s)?

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

Article 2 of the UCC lacks relevance in modern society because it, including its amendments, does not provide rules related to electronic commerce.

Which of the following is NOT always necessary in order for a valid contract to be formed?

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact. In this case:

Which of the following is not generally required in order to have a valid contract?

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

A contract in which both parties exchange promises is a:

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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