Question 1

A change in contract law between the nineteenth and twentieth centuries was:

Accepted Answer

A)  a relaxation of requirements of contract formation. 
B)  an increase in technical requirements for contract formation. 
C)  a movement toward enforcement of promises only if there was strict compliance with basic contract requirements. 
D)  increasing difficulty for parties to get out of a contract. 
A)  a relaxation of requirements of contract formation. 
B)  an increase in technical requirements for contract formation. 
C)  a movement toward enforcement of promises only if there was strict compliance with basic contract requirements. 
D)  increasing difficulty for parties to get out of a contract.

Question 2

Verna has entered into a contract to buy a new laptop computer for personal use.The law governing the contract is Article 3 of the UCC.

Accepted Answer

A) True 
 B)False

Question 3

Atsuko signs a contract to work as a sales rep for Incellmed Corporation for a period of two years.This contract is governed by:

Accepted Answer

A)  Article 2 of the UCC. 
B)  state common law. 
C)  federal statute. 
D)  the law of quasi contract. 
A)  Article 2 of the UCC. 
B)  state common law. 
C)  federal statute. 
D)  the law of quasi contract.

Question 4

Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation.This contract is:

Accepted Answer

A)  void. 
B)  voidable. 
C)  executed. 
D)  unenforceable. 
A)  void. 
B)  voidable. 
C)  executed. 
D)  unenforceable.

Question 5

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

Accepted Answer

A)  express 
B)  implied 
C)  written 
D)  formal 
A)  express 
B)  implied 
C)  written 
D)  formal

Question 6

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

Accepted Answer

A)  commercial contract. 
B)  express contract. 
C)  formal contract. 
D)  sale. 
A)  commercial contract. 
B)  express contract. 
C)  formal contract. 
D)  sale.

Question 7

Mike, a plumbing contractor, was hired to correct a stoppage in the sewer line at Sarah's house.During his work, he discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line.To meet public regulations, the water pipe had to be replaced either then or later, when the yard would have to be redug.Mike replaced the water pipe and Sarah inspected the work daily and did not object to the extra work.When Mike finished, Sarah refused to pay for the water pipe replacement since that was not what she originally hired Mike to do and she had never specifically agreed to that work.Sarah must pay Mike for his labor and materials costs for both the sewer and water line repair.

Accepted Answer

A) True 
 B)False

Question 8

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract.Alfred now thinks that the contract is not fair to him.This contract is voidable at Alfred 's option.

Accepted Answer

A) True 
 B)False

Question 9

General contract law governs all contracts outside the scope of the UCC.

Accepted Answer

A) True 
 B)False

Question 10

Contracts are governed primarily by statute, including the UCC.

Accepted Answer

A) True 
 B)False

Question 11

The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent.

Accepted Answer

A) True 
 B)False

Question 12

An implied in fact contract is formed by conduct.

Accepted Answer

A) True 
 B)False

Question 13

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

Accepted Answer

A)  The agreement must always be in writing. 
B)  All terms of the agreement must be clearly indicated. 
C)  There must be an absence of invalidating conduct. 
D)  A legal remedy must be available for there to be a breach. 
A)  The agreement must always be in writing. 
B)  All terms of the agreement must be clearly indicated. 
C)  There must be an absence of invalidating conduct. 
D)  A legal remedy must be available for there to be a breach.

Question 14

A contract is a binding agreement that the courts will enforce.

Accepted Answer

A) True 
 B)False

Question 15

Possible remedies for a breach of contract include:

Accepted Answer

A)  compensatory damages. 
B)  fines. 
C)  incarceration. 
D)  All of these. 
E)  None of these. 
A)  compensatory damages. 
B)  fines. 
C)  incarceration. 
D)  All of these. 
E)  None of these.

Question 16

An implied in fact contract is not as enforceable as an express contract.

Accepted Answer

A) True 
 B)False

Question 17

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 18

When one party performs an action to the benefit of the other, even if a contract has not been effectively made, a court may rule that the performing party was entitled to recoup the reasonable value of the services rendered under:

Accepted Answer

A)  an express contract. 
B)  quantum meruit. 
C)  promissory estoppel. 
D)  Article 2 of the UCC. 
A)  an express contract. 
B)  quantum meruit. 
C)  promissory estoppel. 
D)  Article 2 of the UCC.

Question 19

As of 2011, the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 20

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

A change in contract law between the nineteenth and twentieth centuries was:

Verna has entered into a contract to buy a new laptop computer for personal use.The law governing the contract is Article 3 of the UCC.

Atsuko signs a contract to work as a sales rep for Incellmed Corporation for a period of two years.This contract is governed by:

Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation.This contract is:

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract.Alfred now thinks that the contract is not fair to him.This contract is voidable at Alfred 's option.

General contract law governs all contracts outside the scope of the UCC.

Contracts are governed primarily by statute, including the UCC.

The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent.

An implied in fact contract is formed by conduct.

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

A contract is a binding agreement that the courts will enforce.

Possible remedies for a breach of contract include:

An implied in fact contract is not as enforceable as an express contract.

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.

When one party performs an action to the benefit of the other, even if a contract has not been effectively made, a court may rule that the performing party was entitled to recoup the reasonable value of the services rendered under:

As of 2011, the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters