Question 1

Contracts that are implied in law:

Accepted Answer

A) are obligations imposed by law on grounds of justice and equity. 
B) are intended to prevent unjust enrichment. 
C) do not rest upon the assent of the contracting parties. 
D) All of the above. 
A) are obligations imposed by law on grounds of justice and equity. 
B) are intended to prevent unjust enrichment. 
C) do not rest upon the assent of the contracting parties. 
D) All of the above.

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

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

Question 4

An implied in fact contract is formed by conduct.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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, such as duress. 
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, such as duress. 
D) A legal remedy must be available for there to be a breach.

Question 7

Which of the following is not an element necessary for recovery in quasi contract?

Accepted Answer

A) A benefit conferred on the defendant by the plaintiff. 
B) An implied or express promise. 
C) The defendant's knowledge or appreciation of a benefit. 
D) The defendant's acceptance or retention of a benefit. 
A) A benefit conferred on the defendant by the plaintiff. 
B) An implied or express promise. 
C) The defendant's knowledge or appreciation of a benefit. 
D) The defendant's acceptance or retention of a benefit.

Question 8

The Uniform Commercial Code does not apply to:

Accepted Answer

A) employment contracts. 
B) service contracts. 
C) insurance contracts. 
D) contracts involving real property. 
E) All of the above. 
A) employment contracts. 
B) service contracts. 
C) insurance contracts. 
D) contracts involving real property. 
E) All of the above.

Question 9

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

Accepted Answer

A) True 
 B)False

Question 10

Ron says to Matt, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Matt 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 11

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 12

Nearly every business transaction is based on contract and the expectations thus created.

Accepted Answer

A) True 
 B)False

Question 13

A person who makes a promise is a(n):

Accepted Answer

A) promisor. 
B) promisee. 
C) offeror. 
D) executor. 
A) promisor. 
B) promisee. 
C) offeror. 
D) executor.

Question 14

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 15

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 16

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns.In reliance on this promise, Christopher spends $200,000 to remodel the complex.Which of the following is correct with regard to Hal's promise?

Accepted Answer

A) Hal's promise not to foreclose is unsupported by consideration. 
B) Hal's promise is noncontractual. 
C) Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. 
D) All of the above. 
A) Hal's promise not to foreclose is unsupported by consideration. 
B) Hal's promise is noncontractual. 
C) Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. 
D) All of the above.

Question 17

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 18

A quasi contract is another name for an oral contract.

Accepted Answer

A) True 
 B)False

Question 19

"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

Question 20

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

Exam 9: Introduction to Contracts

Contracts that are implied in law:

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

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

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?

Which of the following is not an element necessary for recovery in quasi contract?

The Uniform Commercial Code does not apply to:

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

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

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

Nearly every business transaction is based on contract and the expectations thus created.

A person who makes a promise 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?

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.

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns.In reliance on this promise, Christopher spends $200,000 to remodel the complex.Which of the following is correct with regard to Hal's promise?

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

A quasi contract is another name for an oral contract.

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

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.

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

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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