Question 1

Caroline 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. B

Question 2

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  True

Question 3

A valid contract is one that meets all of the requirements of a binding contract.

Accepted Answer

A) True 
 B)False  True

Question 4

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:

Accepted Answer

A)  has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making. 
B)  has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity. 
C)  may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice. 
D)  cannot enforce the contract since she had not actually started working at Northland. 
A)  has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making. 
B)  has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity. 
C)  may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice. 
D)  cannot enforce the contract since she had not actually started working at Northland.

Question 5

Contracts are governed primarily by statute, including the UCC.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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)  There must be evidence of undue influence. 
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)  There must be evidence of undue influence. 
C)  There must be an absence of invalidating conduct. 
D)  A legal remedy must be available for there to be a breach.

Question 8

A promisee is the person making a promise.

Accepted Answer

A) True 
 B)False

Question 9

Brian 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 Brian accepts, without correcting his earlier misrepresentation of fact. In this case:

Accepted Answer

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

Question 10

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 11

A contract to sell five acres of land is governed by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 12

Ron says to Mark, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns. This is an example of a unilateral contract.

Accepted Answer

A) True 
 B)False

Question 13

Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Contract law is significant in that it is basic to other fields of law such as:

Accepted Answer

A)  sales of personal property. 
B)  commercial paper. 
C)  secured transactions. 
D)  All of these. 
A)  sales of personal property. 
B)  commercial paper. 
C)  secured transactions. 
D)  All of these.

Question 16

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

Accepted Answer

A)  a unilateral contract. 
B)  a quasi contract. 
C)  an implied in fact contract. 
D)  a bilateral contract. 
A)  a unilateral contract. 
B)  a quasi contract. 
C)  an implied in fact contract. 
D)  a bilateral contract.

Question 17

Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.

Accepted Answer

A) True 
 B)False

Question 18

The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms.

Accepted Answer

A) True 
 B)False

Question 19

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

Accepted Answer

A)  when Brenda tells James she will buy the boat. 
B)  when Brenda gets the money from the credit union. 
C)  when Brenda applies for the loan at the credit union. 
D)  only when James gets the $3,000. 
A)  when Brenda tells James she will buy the boat. 
B)  when Brenda gets the money from the credit union. 
C)  when Brenda applies for the loan at the credit union. 
D)  only when James gets the $3,000.

Question 20

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

Exam 9: Introduction to Contracts

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

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.

A valid contract is one that meets all of the requirements of a binding contract.

Contracts are governed primarily by statute, including the UCC.

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

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 promisee is the person making a promise.

Brian 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 Brian accepts, without correcting his earlier misrepresentation of fact. In this case:

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

A contract to sell five acres of land is governed by Article 2 of the UCC.

Ron says to Mark, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns. This is an example of a unilateral contract.

Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC.

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

Contract law is significant in that it is basic to other fields of law such as:

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.

The Weichert Co. Realtors v. Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms.

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

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

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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