Question 1

Which of the following terms refers to force or threat of force?

Accepted Answer

A)  rescission 
B)  misrepresentation 
C)  undue influence 
D)  duress 
E)  revocation 
A)  rescission 
B)  misrepresentation 
C)  undue influence 
D)  duress 
E)  revocation

Question 2

Valid consideration can include any promise to do something one has no obligation to do,refrain from doing something one has the right to do,or in the case of a unilateral contract,a performance when there is no obligation to do so.This is known as a(n)______.

Accepted Answer

A)  exculpation 
B)  legal detriment 
C)  release 
D)  negotiation 
E)  promissory estoppel 
A)  exculpation 
B)  legal detriment 
C)  release 
D)  negotiation 
E)  promissory estoppel

Question 3

Under the Uniform Commercial Code (UCC),all contracts and contract offers must have consideration.

Accepted Answer

A) True 
 B)False

Question 4

In the context of implied warranties as defined by the Uniform Commercial Code (UCC),which of the following refers to the merchantability of goods?

Accepted Answer

A)  The goods will be of fair average quality and conform to any labeling. 
B)  The goods will be suitable for the buyer's purpose if the seller is aware of it. 
C)  The goods will be delivered within two weeks of order. 
D)  The goods will be worth at least $500 or more. 
E)  The goods will be sold within states and not across states. 
A)  The goods will be of fair average quality and conform to any labeling. 
B)  The goods will be suitable for the buyer's purpose if the seller is aware of it. 
C)  The goods will be delivered within two weeks of order. 
D)  The goods will be worth at least $500 or more. 
E)  The goods will be sold within states and not across states.

Question 5

Which of the following statements is true about adhesion contracts?

Accepted Answer

A)  They are a common type of unconscionability. 
B)  They exclude any standard form contracts. 
C)  They are generally unenforceable in a court of law. 
D)  They provide substantial opportunity for revision for all parties involved in a contract. 
E)  They are usually drafted by multiple parties in a contract. 
A)  They are a common type of unconscionability. 
B)  They exclude any standard form contracts. 
C)  They are generally unenforceable in a court of law. 
D)  They provide substantial opportunity for revision for all parties involved in a contract. 
E)  They are usually drafted by multiple parties in a contract.

Question 6

A(n)______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

Accepted Answer

A)  voidable contract 
B)  unenforceable contract 
C)  void contract 
D)  valid contract 
E)  executed contract 
A)  voidable contract 
B)  unenforceable contract 
C)  void contract 
D)  valid contract 
E)  executed contract

Question 7

Inkirios Inc.offers Kevin the position of vice president at their head office in Washington,
D.C. Inkirios also offers to provide Kevin and his family a house and an annual salary of $100,000. Kevin responds by stating that he would accept the offer if the company would pay him an annual salary of $150,000 and other relocation expenses. Analyze the agreements between the parties.

Accepted Answer

Kevin and Inkirios Inc.have not created

Question 8

A collateral promise is a secondary or conditional promise.

Accepted Answer

A) True 
 B)False

Question 9

In the context of termination of an offer,______ occurs when an offeror retracts the offer before the acceptance.

Accepted Answer

A)  rejection 
B)  reversion 
C)  novation 
D)  revocation 
E)  rescission 
A)  rejection 
B)  reversion 
C)  novation 
D)  revocation 
E)  rescission

Question 10

If a minor fails to disaffirm a contract within a reasonable time after reaching majority,the minor is said to ______ the contract.

Accepted Answer

A)  transcend 
B)  terminate 
C)  rescind 
D)  ratify 
E)  breach 
A)  transcend 
B)  terminate 
C)  rescind 
D)  ratify 
E)  breach

Question 11

The legal mechanism for evaluating the existence of an incentive for a person's promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______.

Accepted Answer

A)  collusion 
B)  accord and satisfaction 
C)  consideration 
D)  reversion 
E)  novation 
A)  collusion 
B)  accord and satisfaction 
C)  consideration 
D)  reversion 
E)  novation

Question 12

Jamael is a chef who has opened a new restaurant.He agrees with Bob,a baker,that Bob will deliver 10 dozen hamburger and hotdog buns each morning at 6:00 a.m.as long as Jamael doesn't call to cancel the next morning's delivery by 6:00 p.m.the previous evening.This delivery routine continues for about ten days when Jamael realizes at 10:00 p.m.one evening that he has a surplus of buns.At 6:00 a.m.the next morning,he refuses to accept the morning delivery.Discuss,with reference to common law,whether a contract exists.

Accepted Answer

In most cases,silence does not constitut

Question 13

In the context of legal capacity of parties to a contract,who among the following are also called infants in a contract?

Accepted Answer

A)  intoxicated persons 
B)  physically impaired persons 
C)  mentally impaired persons 
D)  minors 
E)  non-merchants 
A)  intoxicated persons 
B)  physically impaired persons 
C)  mentally impaired persons 
D)  minors 
E)  non-merchants

Question 14

Which of the following statements is true about intoxicated and mentally incompetent persons in a contract?

Accepted Answer

A)  A court of law legally terms mentally incompetent persons as "infants" to a contract. 
B)  A court prevents intoxicated persons from making a contract voidable in any circumstance. 
C)  The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency. 
D)  A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract. 
E)  The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract. 
A)  A court of law legally terms mentally incompetent persons as "infants" to a contract. 
B)  A court prevents intoxicated persons from making a contract voidable in any circumstance. 
C)  The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency. 
D)  A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract. 
E)  The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract.

Question 15

According to the mailbox rule,a contract is formed

Accepted Answer

A)  when the offer is mailed. 
B)  when the offer is received. 
C)  when the acceptance is received. 
D)  when the acceptance is mailed. 
E)  when the offer is converted to a written document. 
A)  when the offer is mailed. 
B)  when the offer is received. 
C)  when the acceptance is received. 
D)  when the acceptance is mailed. 
E)  when the offer is converted to a written document.

Question 16

What is a covenant not to compete and under what conditions is it valid?

Accepted Answer

A covenant not to compete is a contract

Question 17

Which of the following statements is true of silence as a method of acceptance?

Accepted Answer

A)  An offeree's silence implies that the offeree will make a counter offer. 
B)  Silence may well imply acceptance if the parties previously dealt with each other. 
C)  When an offer specifies that silence indicates acceptance, the offeree has to respond. 
D)  Silence alone can be acceptance and the basis of a binding contract. 
E)  Silence leads to acceptance of an offer due to the mirror image rule. 
A)  An offeree's silence implies that the offeree will make a counter offer. 
B)  Silence may well imply acceptance if the parties previously dealt with each other. 
C)  When an offer specifies that silence indicates acceptance, the offeree has to respond. 
D)  Silence alone can be acceptance and the basis of a binding contract. 
E)  Silence leads to acceptance of an offer due to the mirror image rule.

Question 18

Promissory estoppel often is used to prevent a party who has made a unilateral offer from withdrawing the offer after the requested work has begun.

Accepted Answer

A) True 
 B)False

Question 19

Harry regularly shipped 100 cartons of electronic goods to Keith on the 15ᵗʰ of every month as per the original agreement.He had been continuing this shipment routine for over a year.On the 20ᵗʰ day of one of the months,Keith refused the goods as he did not want Harry to ship those goods to him and had never accepted any such offer of goods.Harry had not received any prior notification to cancel the shipment of goods.Which of the following statements is true of this situation?

Accepted Answer

A)  Keith can sue Harry based on the doctrine of promissory estoppel. 
B)  Keith's prior act of dealing and conduct with Harry confirms acceptance of the offer. 
C)  Harry used duress in controlling the terms of the offer. 
D)  Keith can sue Harry based on the misstatement of the facts of the offer. 
E)  Harry should have ensured only partial delivery of goods as he received no oral confirmation from Keith about the shipment of goods. 
A)  Keith can sue Harry based on the doctrine of promissory estoppel. 
B)  Keith's prior act of dealing and conduct with Harry confirms acceptance of the offer. 
C)  Harry used duress in controlling the terms of the offer. 
D)  Keith can sue Harry based on the misstatement of the facts of the offer. 
E)  Harry should have ensured only partial delivery of goods as he received no oral confirmation from Keith about the shipment of goods.

Question 20

Thomas asks Alicia,an accountant,for professional advice about his portfolio.Thomas is not obligated to pay Alicia since he does not express a promise to pay for her advice.

Accepted Answer

A) True 
 B)False

Which of the following terms refers to force or threat of force?

Valid consideration can include any promise to do something one has no obligation to do,refrain from doing something one has the right to do,or in the case of a unilateral contract,a performance when there is no obligation to do so.This is known as a(n)______.

Under the Uniform Commercial Code (UCC),all contracts and contract offers must have consideration.

In the context of implied warranties as defined by the Uniform Commercial Code (UCC),which of the following refers to the merchantability of goods?

Which of the following statements is true about adhesion contracts?

A(n)______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

A collateral promise is a secondary or conditional promise.

In the context of termination of an offer,______ occurs when an offeror retracts the offer before the acceptance.

If a minor fails to disaffirm a contract within a reasonable time after reaching majority,the minor is said to ______ the contract.

The legal mechanism for evaluating the existence of an incentive for a person's promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______.

In the context of legal capacity of parties to a contract,who among the following are also called infants in a contract?

Which of the following statements is true about intoxicated and mentally incompetent persons in a contract?

According to the mailbox rule,a contract is formed

What is a covenant not to compete and under what conditions is it valid?

Which of the following statements is true of silence as a method of acceptance?

Promissory estoppel often is used to prevent a party who has made a unilateral offer from withdrawing the offer after the requested work has begun.

Thomas asks Alicia,an accountant,for professional advice about his portfolio.Thomas is not obligated to pay Alicia since he does not express a promise to pay for her advice.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters

Exam 8: Contract Formation

Which of the following terms refers to force or threat of force?

Valid consideration can include any promise to do something one has no obligation to do,refrain from doing something one has the right to do,or in the case of a unilateral contract,a performance when there is no obligation to do so.This is known as a(n)______.

Under the Uniform Commercial Code (UCC),all contracts and contract offers must have consideration.

In the context of implied warranties as defined by the Uniform Commercial Code (UCC),which of the following refers to the merchantability of goods?

Which of the following statements is true about adhesion contracts?

A(n)______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

A collateral promise is a secondary or conditional promise.

In the context of termination of an offer,______ occurs when an offeror retracts the offer before the acceptance.

If a minor fails to disaffirm a contract within a reasonable time after reaching majority,the minor is said to ______ the contract.

The legal mechanism for evaluating the existence of an incentive for a person's promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______.

In the context of legal capacity of parties to a contract,who among the following are also called infants in a contract?

Which of the following statements is true about intoxicated and mentally incompetent persons in a contract?

According to the mailbox rule,a contract is formed

What is a covenant not to compete and under what conditions is it valid?

Which of the following statements is true of silence as a method of acceptance?

Promissory estoppel often is used to prevent a party who has made a unilateral offer from withdrawing the offer after the requested work has begun.

Thomas asks Alicia,an accountant,for professional advice about his portfolio.Thomas is not obligated to pay Alicia since he does not express a promise to pay for her advice.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters