Question 1

An offeror can be given an amount of money to keep the offer open for a time, which is usually ________.

Accepted Answer

A) 15 days 
B) 30 days 
C) 60 days 
D) 90 days 
A) 15 days 
B) 30 days 
C) 60 days 
D) 90 days B

Question 2

Under the Uniform Commercial Code, a merchant can prevent additional terms contained in a counteroffer from being added to the contract by ________.

Accepted Answer

A) citing the limitations described in the Restatement of the Law of Contracts 
B) applying the mailbox rule 
C) issuing a written objection to the added terms within 90 days of receipt 
D) objecting to the added terms within a reasonable time 
A) citing the limitations described in the Restatement of the Law of Contracts 
B) applying the mailbox rule 
C) issuing a written objection to the added terms within 90 days of receipt 
D) objecting to the added terms within a reasonable time D

Question 3

Mrs. Jones offers to sell her house to Smith for $200,000. Smith says he will pay no more than $185,000. Which of the following statements would be true at common law?

Accepted Answer

A) Mrs. Jones and Smith have negotiated a settlement. 
B) Smith's price is close enough to constitute acceptance of Mrs. Jones's original offer, but the contract price will be set at $200,000. 
C) Smith has terminated the original offer and now has set forth a counteroffer. 
D) Mrs. Jones's offer remains open and so does Smith's counteroffer. 
A) Mrs. Jones and Smith have negotiated a settlement. 
B) Smith's price is close enough to constitute acceptance of Mrs. Jones's original offer, but the contract price will be set at $200,000. 
C) Smith has terminated the original offer and now has set forth a counteroffer. 
D) Mrs. Jones's offer remains open and so does Smith's counteroffer. C

Question 4

An assignment is the present transfer of an existing right.

Accepted Answer

A) True 
 B)False

Question 5

A liquidated debt exists when there is a dispute about the amount or other terms of the debt.

Accepted Answer

A) True 
 B)False

Question 6

An offeree can forestall revocation by paying an offeror an amount of money to keep the offer open for 60 days.

Accepted Answer

A) True 
 B)False

Question 7

Contracts are essential to the workings of a private-enterprise economy.

Accepted Answer

A) True 
 B)False

Question 8

Contract law is grounded in the case law of the state and federal courts, as well as state and federal statutory law.

Accepted Answer

A) True 
 B)False

Question 9

Courts apply an objective test when determining the existence of duress. The party's state of mind is irrelevant.

Accepted Answer

A) True 
 B)False

Question 10

Contract law is grounded in ________.

Accepted Answer

A) state and federal case law and statutes including the Uniform Commercial Code 
B) state and federal case law that now supersedes the Uniform Commercial Code 
C) the Uniform Commercial Code alone, which now supersedes state and federal case law 
D) the Commerce Clause of the U. S. Constitution 
A) state and federal case law and statutes including the Uniform Commercial Code 
B) state and federal case law that now supersedes the Uniform Commercial Code 
C) the Uniform Commercial Code alone, which now supersedes state and federal case law 
D) the Commerce Clause of the U. S. Constitution

Question 11

State the elements of a legal contract.

Accepted Answer

A valid contract has six elements:(1)leg

Question 12

An illusory promise can be defined as ________.

Accepted Answer

A) a contract providing that only one of the parties need perform, only if he or she chooses to do so 
B) a contract not supported by consideration since the promise is supported by an illegal act 
C) a promise that lacks consideration since the person promises to perform an act or do something she already has an obligation to do 
D) a contract based on love and affection 
A) a contract providing that only one of the parties need perform, only if he or she chooses to do so 
B) a contract not supported by consideration since the promise is supported by an illegal act 
C) a promise that lacks consideration since the person promises to perform an act or do something she already has an obligation to do 
D) a contract based on love and affection

Question 13

Randall agrees to pay a yearly premium to an insurance company that promises to give his daughter $150,000 upon his death. This is an example of a ________.

Accepted Answer

A) void contract 
B) creditor-beneficiary contract 
C) quasi-contract 
D) donee-beneficiary contract 
A) void contract 
B) creditor-beneficiary contract 
C) quasi-contract 
D) donee-beneficiary contract

Question 14

Which of the following would render a contract voidable?

Accepted Answer

A) the contract being unilateral 
B) one of the parties to the contract committing a crime 
C) one of the parties to the contract being underage 
D) the contract being bilateral 
A) the contract being unilateral 
B) one of the parties to the contract committing a crime 
C) one of the parties to the contract being underage 
D) the contract being bilateral

Question 15

A(n) ________ is the present transfer of an existing right.

Accepted Answer

A) garnishment 
B) assignment 
C) attachment 
D) consideration 
A) garnishment 
B) assignment 
C) attachment 
D) consideration

Question 16

Sarah owes Jane $10,000 under a valid contract but has been unable to pay the debt. Becky agrees to pay $10,000 to Jane in exchange for Jane's contract claim against Sarah. In this scenario, Becky is the ________.

Accepted Answer

A) assignee 
B) obligor-promisor 
C) obligee-assignor 
D) obligee-promisee-assignor 
A) assignee 
B) obligor-promisor 
C) obligee-assignor 
D) obligee-promisee-assignor

Question 17

A donee-beneficiary contract exists when the purpose of the promisee in obtaining a promise from the promisor is to make a gift to a third person.

Accepted Answer

A) True 
 B)False

Question 18

State the requirements for a legal acceptance to be valid.

Accepted Answer

Legal acceptance involves three requirem

Question 19

Sean agrees to restore Janine's car for $2,000. Janine agrees to this amount. However, she will pay Sean only after the restoration is complete. This is an example of a(n) ________.

Accepted Answer

A) quasi-contract 
B) executed contract 
C) bilateral contract 
D) executory contract 
A) quasi-contract 
B) executed contract 
C) bilateral contract 
D) executory contract

Question 20

Explain the types of third-party beneficiary contracts.

Accepted Answer

Intended beneficiary contracts:Two parti

Exam 9: The Law of Contracts and Sales—I

An offeror can be given an amount of money to keep the offer open for a time, which is usually ________.

Under the Uniform Commercial Code, a merchant can prevent additional terms contained in a counteroffer from being added to the contract by ________.

Mrs. Jones offers to sell her house to Smith for $200,000. Smith says he will pay no more than $185,000. Which of the following statements would be true at common law?

An assignment is the present transfer of an existing right.

A liquidated debt exists when there is a dispute about the amount or other terms of the debt.

An offeree can forestall revocation by paying an offeror an amount of money to keep the offer open for 60 days.

Contracts are essential to the workings of a private-enterprise economy.

Contract law is grounded in the case law of the state and federal courts, as well as state and federal statutory law.

Courts apply an objective test when determining the existence of duress. The party's state of mind is irrelevant.

Contract law is grounded in ________.

State the elements of a legal contract.

An illusory promise can be defined as ________.

Randall agrees to pay a yearly premium to an insurance company that promises to give his daughter $150,000 upon his death. This is an example of a ________.

Which of the following would render a contract voidable?

A(n) ________ is the present transfer of an existing right.

Sarah owes Jane $10,000 under a valid contract but has been unable to pay the debt. Becky agrees to pay $10,000 to Jane in exchange for Jane's contract claim against Sarah. In this scenario, Becky is the ________.

A donee-beneficiary contract exists when the purpose of the promisee in obtaining a promise from the promisor is to make a gift to a third person.

State the requirements for a legal acceptance to be valid.

Sean agrees to restore Janine's car for $2,000. Janine agrees to this amount. However, she will pay Sean only after the restoration is complete. This is an example of a(n) ________.

Explain the types of third-party beneficiary contracts.

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Alternative Tools of Dispute Resolution

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales—II

The Law of Torts

Product and Service Liability Law

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations

Law and Business Associations

The Law of Administrative Agencies

The Employment Relationship

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Antitrust Laws

Laws of Debtor Creditor Relations and Consumer Protection

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