Question 1

Why did the Restatement of Contracts not have the force of law?

Accepted Answer

A) It was the product of a private organization. 
B) It had conflicting perspectives. 
C) It was deemed significantly inferior to the common law. 
D) It was deemed significantly inferior to the UCC. 
A) It was the product of a private organization. 
B) It had conflicting perspectives. 
C) It was deemed significantly inferior to the common law. 
D) It was deemed significantly inferior to the UCC. A

Question 2

When contracting,one party is entering into an agreement with the federal government to enforce behavior on another party.

Accepted Answer

A) True 
 B)False  False

Question 3

When the surrounding facts and circumstances indicate that an agreement has in fact been reached,a(n)________ has been created.

Accepted Answer

A) implied contract 
B) quasi-contract 
C) void contract 
D) unenforceable contract 
A) implied contract 
B) quasi-contract 
C) void contract 
D) unenforceable contract A

Question 4

The UCC imposes a duty of good faith in the performance and enforcement of every contract it covers.

Accepted Answer

A) True 
 B)False

Question 5

Linda wanted to replace the old carpet in her home.She entered into a contract with Carpet Co. ,for the purchase and installation of a new carpet.The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150.Later,Linda became dissatisfied with this transaction and now wants to sue Carpet Co.Linda wants to apply the contract rules of the UCC,but Carpet Co. ,wants to apply the contract rules of the common law.Which source of law should govern this case?

Accepted Answer

A) The contract rules of the UCC apply,because the contract included the sale of goods. 
B) The contract rules of the UCC apply,because the predominant purpose of the contract was for the sale of goods. 
C) The contract rules of the common law apply,because the contract included services,which are governed by the common law. 
D) The contract rules of the common law apply,because all contracts are governed by the common law. 
A) The contract rules of the UCC apply,because the contract included the sale of goods. 
B) The contract rules of the UCC apply,because the predominant purpose of the contract was for the sale of goods. 
C) The contract rules of the common law apply,because the contract included services,which are governed by the common law. 
D) The contract rules of the common law apply,because all contracts are governed by the common law.

Question 6

How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace?

Accepted Answer

A) By applying stringent technicalities to contracts. 
B) By recognizing void contracts. 
C) By discriminating between merchants and nonmerchants. 
D) By imposing the doctrine of good faith. 
A) By applying stringent technicalities to contracts. 
B) By recognizing void contracts. 
C) By discriminating between merchants and nonmerchants. 
D) By imposing the doctrine of good faith.

Question 7

Greg signed a contract to work as an auto-parts manager for Jones Chevrolet.This contract is governed by:

Accepted Answer

A) Article 2 of the UCC. 
B) state common law. 
C) the doctrine of promissory estoppel. 
D) the law of quasi-contract. 
A) Article 2 of the UCC. 
B) state common law. 
C) the doctrine of promissory estoppel. 
D) the law of quasi-contract.

Question 8

Which of the following is NOT a basic element of a contract?

Accepted Answer

A) Offer 
B) Consideration 
C) Capacity 
D) Goods 
A) Offer 
B) Consideration 
C) Capacity 
D) Goods

Question 9

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

Accepted Answer

A) Valid contracts 
B) Unenforceable contracts 
C) Void contracts 
D) Voidable contracts 
A) Valid contracts 
B) Unenforceable contracts 
C) Void contracts 
D) Voidable contracts

Question 10

What is the test frequently used to determine "hybrid" contracts?

Accepted Answer

A) Determining the value of the contract. 
B) Determining the party to benefit. 
C) Determining which element predominates. 
D) Determining the validity of the contract. 
A) Determining the value of the contract. 
B) Determining the party to benefit. 
C) Determining which element predominates. 
D) Determining the validity of the contract.

Question 11

A fundamental difference between promissory estoppel and traditional contract principles is that promissory estoppel protects:

Accepted Answer

A) reliance. 
B) bargains. 
C) agreements. 
D) consideration. 
A) reliance. 
B) bargains. 
C) agreements. 
D) consideration.

Question 12

Which is the only state to have adopted the Uniform Commercial Code (UCC)only partially?

Accepted Answer

A) Arizona 
B) Connecticut 
C) Louisiana 
D) Wisconsin 
A) Arizona 
B) Connecticut 
C) Louisiana 
D) Wisconsin

Question 13

A voidable contract creates no obligation and is not enforceable by any party.

Accepted Answer

A) True 
 B)False

Question 14

James goes to a dentist to have a tooth extracted.James never signs a written contract for this service,and he and the dentist never made an oral agreement either.Later,the dentist bills James who refuses to pay.The dentist sues James.Which of the following is true?

Accepted Answer

A) The dentist can recover under a theory of quasi-contract liability. 
B) The dentist cannot recover under an implied contract theory. 
C) The dentist can recover under the doctrine of promissory estoppel. 
D) The dentist cannot recover because there was no express contract. 
A) The dentist can recover under a theory of quasi-contract liability. 
B) The dentist cannot recover under an implied contract theory. 
C) The dentist can recover under the doctrine of promissory estoppel. 
D) The dentist cannot recover because there was no express contract.

Question 15

What bodies of law govern contracts in the United State?

Accepted Answer

A) Article 2 of the UCC 
B) Common law related to contracts 
C) The United Nations Declaration on Human Rights 
D) Both A & B 
A) Article 2 of the UCC 
B) Common law related to contracts 
C) The United Nations Declaration on Human Rights 
D) Both A & B

Question 16

Mr.Green enters into a contract with Mr.Blue who is a crab fisherman.Mr.Green and Mr.Blue know that Mr.Blue has already caught the number of crabs allowed for the season.But Mr.Green and Mr.Blue agree to a contract to exceed the quota.What is the status of the contract between Mr.Green and Mr.Blue?

Accepted Answer

A) The contract is voidable,and is enforceable till Mr.Blue cancels it. 
B) The contract is void since it attempts to contract for services that are illegal. 
C) The contract is valid and enforceable. 
D) The contract will be valid if registered with the Secretary of State. 
A) The contract is voidable,and is enforceable till Mr.Blue cancels it. 
B) The contract is void since it attempts to contract for services that are illegal. 
C) The contract is valid and enforceable. 
D) The contract will be valid if registered with the Secretary of State.

Question 17

Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

Accepted Answer

The installation of a battery in an auto

Question 18

Which article of the UCC deals with the sale of goods?

Accepted Answer

A) Article 4 
B) Article 2 
C) Article 7 
D) Article 6 
A) Article 4 
B) Article 2 
C) Article 7 
D) Article 6

Question 19

Why are 20th century contract law rules so often uncertain and discretionary rather than precise and rigid?

Accepted Answer

The basic reason is the perceived need f

Question 20

An otherwise valid contract whose enforcement is barred by the applicable statute of limitations is an example of a(n):

Accepted Answer

A) voidable contract. 
B) quasi-contract. 
C) bilateral contract. 
D) unenforceable contract. 
A) voidable contract. 
B) quasi-contract. 
C) bilateral contract. 
D) unenforceable contract.

Exam 9: Introduction to Contracts

Why did the Restatement of Contracts not have the force of law?

When contracting,one party is entering into an agreement with the federal government to enforce behavior on another party.

When the surrounding facts and circumstances indicate that an agreement has in fact been reached,a(n)________ has been created.

The UCC imposes a duty of good faith in the performance and enforcement of every contract it covers.

How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace?

Greg signed a contract to work as an auto-parts manager for Jones Chevrolet.This contract is governed by:

Which of the following is NOT a basic element of a contract?

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

What is the test frequently used to determine "hybrid" contracts?

A fundamental difference between promissory estoppel and traditional contract principles is that promissory estoppel protects:

Which is the only state to have adopted the Uniform Commercial Code (UCC)only partially?

A voidable contract creates no obligation and is not enforceable by any party.

James goes to a dentist to have a tooth extracted.James never signs a written contract for this service,and he and the dentist never made an oral agreement either.Later,the dentist bills James who refuses to pay.The dentist sues James.Which of the following is true?

What bodies of law govern contracts in the United State?

Mr.Green enters into a contract with Mr.Blue who is a crab fisherman.Mr.Green and Mr.Blue know that Mr.Blue has already caught the number of crabs allowed for the season.But Mr.Green and Mr.Blue agree to a contract to exceed the quota.What is the status of the contract between Mr.Green and Mr.Blue?

Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

Which article of the UCC deals with the sale of goods?

Why are 20th century contract law rules so often uncertain and discretionary rather than precise and rigid?

An otherwise valid contract whose enforcement is barred by the applicable statute of limitations is an example of a(n):

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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