Question 1

When a party to a contract is of proper age and mental competence,it is said that he or she has

Accepted Answer

A)  capacity to contract. 
B)  legal purpose. 
C)  mutual assent. 
D)  consideration. 
A)  capacity to contract. 
B)  legal purpose. 
C)  mutual assent. 
D)  consideration. A

Question 2

Contracts that involve goods and services are known as _______ contracts.

Accepted Answer

hybrid

Question 3

Parties must be of proper age and mental competence to have _______ to contract.

Accepted Answer

capacity

Question 4

Helen's cat Fluffy has run away,and she places reward posters throughout her neighborhood.Mark sees one of the reward posters and spends the next six hours searching for Fluffy.While Mark is searching the neighborhood,Fluffy gets hungry and comes home.

Accepted Answer

A)  This is a bilateral contract, and Mark is entitled to be compensated for his efforts. 
B)  This is a bilateral contract, and Mark is entitled to nothing because he did not perform. 
C)  This is a unilateral contract, and Mark is entitled to be compensated for his efforts. 
D)  This is a unilateral contract, and Mark is entitled to nothing because he did not perform. 
A)  This is a bilateral contract, and Mark is entitled to be compensated for his efforts. 
B)  This is a bilateral contract, and Mark is entitled to nothing because he did not perform. 
C)  This is a unilateral contract, and Mark is entitled to be compensated for his efforts. 
D)  This is a unilateral contract, and Mark is entitled to nothing because he did not perform.

Question 5

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offered to buy Zehmer's farm.After some negotiation,a written contract was executed.Zehmer claimed the entire episode was a joke and he never intended to sell his farm.The court determined that

Accepted Answer

A)  since Zehmer claimed to be "high as a Georgia pine" and it was only the liquor talking, there was no contract. 
B)  since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed. 
C)  because the terms were fair, the parties are bound by the contract regardless of their intent or capacity. 
D)  Zehmer's actions made him appear serious; therefore, he was bound by his act despite what he was inwardly thinking. 
A)  since Zehmer claimed to be "high as a Georgia pine" and it was only the liquor talking, there was no contract. 
B)  since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed. 
C)  because the terms were fair, the parties are bound by the contract regardless of their intent or capacity. 
D)  Zehmer's actions made him appear serious; therefore, he was bound by his act despite what he was inwardly thinking.

Question 6

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is

Accepted Answer

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

Question 7

All contracts can be classified in seven ways.

Accepted Answer

A) True 
 B)False

Question 8

At this moment,your contract with your university or college is

Accepted Answer

A)  implied, unilateral, and voidable. 
B)  express, bilateral, and valid. 
C)  implied, bilateral, and valid. 
D)  quasi, unilateral, and voidable. 
A)  implied, unilateral, and voidable. 
B)  express, bilateral, and valid. 
C)  implied, bilateral, and valid. 
D)  quasi, unilateral, and voidable.

Question 9

Franz asks Joe if he will paint his office building for $1,000.Joe says he will do the job for $2,000.Joe's response is

Accepted Answer

A)  an acceptance. 
B)  a rejection. 
C)  a counteroffer. 
D)  a mirror image offer. 
A)  an acceptance. 
B)  a rejection. 
C)  a counteroffer. 
D)  a mirror image offer.

Question 10

Valid contracts can be written or oral.

Accepted Answer

A) True 
 B)False

Question 11

When the reason and outcome of a contract are legal,the contract has

Accepted Answer

A)  legal purpose. 
B)  consideration. 
C)  capacity. 
D)  mutual assent. 
A)  legal purpose. 
B)  consideration. 
C)  capacity. 
D)  mutual assent.

Question 12

Elise hires an artist to paint a portrait of her family.This contract is governed by common law.

Accepted Answer

A) True 
 B)False

Question 13

To have _______ assent,there must be an offer and agreement between the parties.

Accepted Answer

The answer of To have _______ assent,there must be an...

Question 14

When a contract is formed from a party's actions rather than the party's words,it is called a[n] _______ contract.

Accepted Answer

The answer of When a contract is formed from a...

Question 15

A promise made in return for a detriment previously made by the promisee that does not meet the bargained-for exchange requirement is called _______.

Accepted Answer

The answer of A promise made in return for a...

Question 16

Only written agreements are enforceable as contracts by courts.

Accepted Answer

A) True 
 B)False

Question 17

The reason and outcome of the contract must be for a _______ purpose.

Accepted Answer

The answer of The reason and outcome of the contract...

Question 18

Tina's dog has run away.She places reward posters throughout the neighborhood and places an ad in the local newspaper.Ted,her good friend,sees Tina's dog wandering and takes the dog back to Tina's house without ever seeing a poster or the newspaper advertisement.After he leaves her home,he then sees a reward poster.If he returns and demands the reward,is Tina obligated to pay?

Accepted Answer

No,Tina would not have to pay.Offers mus

Question 19

When an offer and agreement exist between parties,this is called

Accepted Answer

A)  capacity. 
B)  legal purpose. 
C)  consideration. 
D)  mutual assent. 
A)  capacity. 
B)  legal purpose. 
C)  consideration. 
D)  mutual assent.

Question 20

What are some examples of contracts in the business context,and how does having an understanding of contract law help business owners and managers?

Accepted Answer

Contracts are used to carry out business

Exam 6: Overview and Language of Contracts

When a party to a contract is of proper age and mental competence,it is said that he or she has

Contracts that involve goods and services are known as _______ contracts.

Parties must be of proper age and mental competence to have _______ to contract.

Helen's cat Fluffy has run away,and she places reward posters throughout her neighborhood.Mark sees one of the reward posters and spends the next six hours searching for Fluffy.While Mark is searching the neighborhood,Fluffy gets hungry and comes home.

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offered to buy Zehmer's farm.After some negotiation,a written contract was executed.Zehmer claimed the entire episode was a joke and he never intended to sell his farm.The court determined that

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is

All contracts can be classified in seven ways.

At this moment,your contract with your university or college is

Franz asks Joe if he will paint his office building for $1,000.Joe says he will do the job for $2,000.Joe's response is

Valid contracts can be written or oral.

When the reason and outcome of a contract are legal,the contract has

Elise hires an artist to paint a portrait of her family.This contract is governed by common law.

To have _______ assent,there must be an offer and agreement between the parties.

When a contract is formed from a party's actions rather than the party's words,it is called a[n] _______ contract.

A promise made in return for a detriment previously made by the promisee that does not meet the bargained-for exchange requirement is called _______.

Only written agreements are enforceable as contracts by courts.

The reason and outcome of the contract must be for a _______ purpose.

When an offer and agreement exist between parties,this is called

What are some examples of contracts in the business context,and how does having an understanding of contract law help business owners and managers?

Legal Foundations

Business and the Constitution

The American Judicial System, Jurisdiction and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution

Business, Societal, and Ethical Contexts of Law

Contract Enforceability and Performance

Contracts for the Sale of Goods

Torts and Products Liability

Agency

Employment Relationships and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Companies and Limited Liability Partnerships

Corporations

Regulation of Securities, Corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Warranties and Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

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