Question 1

A contract must be between parties who have ________ to contract.

Accepted Answer

A) knowledge 
B) capacity 
C) resources 
D) intention 
A) knowledge 
B) capacity 
C) resources 
D) intention

Question 2

Which of the following is an equitable doctrine that protects those who foreseeably and reasonably rely on the promises of others by enforcing such promises when enforcement is necessary to avoid injustice,even though one or more of the elements normally required for an enforceable agreement is absent?

Accepted Answer

A) Promissory estoppel 
B) Quasi-contract 
C) Freedom of contract 
D) Implied in law contract 
A) Promissory estoppel 
B) Quasi-contract 
C) Freedom of contract 
D) Implied in law contract

Question 3

In Thomas v.Archer,the case in the text,the Alaska Supreme Court held that the trial court erred when it decided that:

Accepted Answer

A) enforcement of the promise was not necessary in the interest of justice. 
B) there was no actual promise. 
C) the Thomases change in position was not foreseeable. 
D) the Thomases failed to show a substantial change in position. 
A) enforcement of the promise was not necessary in the interest of justice. 
B) there was no actual promise. 
C) the Thomases change in position was not foreseeable. 
D) the Thomases failed to show a substantial change in position.

Question 4

Pancake House,a local breakfast diner,issues "frequent buyer" cards to its customers and stamps the card each time a customer buys a stack of pancakes.Pancake House promises to give any customer a free stack of pancakes if the customer buys 10 stacks of pancakes and has his "frequent buyer" card stamped 10 times.This is an example of a(n)________ contract.

Accepted Answer

A) executed 
B) illegal 
C) unilateral 
D) bilateral 
A) executed 
B) illegal 
C) unilateral 
D) bilateral

Question 5

A contract where formation was induced by duress is an example of a contract that is:

Accepted Answer

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

Question 6

Mark,an attorney,accepts an offer for an attorney position at The Firm.Prior to Mark's first day at work,Harold,a managing partner,sends Mark an Employment Policy Manual that contains policies regarding attendance and confidentiality.Harold includes a note advising Mark to carefully review the manual,as he would be expected to adhere to its policies.During his first week at The Firm,Mark is seen leaving the office at noon with copies of files tucked under his arm.He is also observed giving the copied files to a man not associated with The Firm.At the end of the week,Mark is terminated for violating the terms of the Employment Policy Manual.Which of the following is true?

Accepted Answer

A) Mark may recover his moving expenses under the doctrine of promissory estoppel. 
B) The Firm breached its express contract with Mark by terminating him. 
C) The Employment Policy Manual is part of the implied contract between Mark and The Firm. 
D) The Firm may recover Mark's salary under the doctrine of quasi-contract. 
A) Mark may recover his moving expenses under the doctrine of promissory estoppel. 
B) The Firm breached its express contract with Mark by terminating him. 
C) The Employment Policy Manual is part of the implied contract between Mark and The Firm. 
D) The Firm may recover Mark's salary under the doctrine of quasi-contract.

Question 7

Reggie went to the Napa Valley Harvest Festival,when he stopped at Tracy's booth where she was selling paintings of vineyards.Reggie admired a painting of vineyards,which did not appear to be for sale.Reggie said to Tracy,"I will give you $200 if you give me that painting right now." Tracy said nothing in response,but she gave Reggie the painting,and Reggie gave her $200 in cash.This is an example of a contract that is now:

Accepted Answer

A) bilateral and executed. 
B) bilateral and executory. 
C) unilateral and executed. 
D) unilateral and executory. 
A) bilateral and executed. 
B) bilateral and executory. 
C) unilateral and executed. 
D) unilateral and executory.

Question 8

Which of the following statements about standardized form contracts is false?

Accepted Answer

A) Frequently,the terms of standardized contracts are negotiable. 
B) They are used both online and offline. 
C) They are contracts that are preprinted by one party and presented to the other party for signing. 
D) In most situations,the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction. 
A) Frequently,the terms of standardized contracts are negotiable. 
B) They are used both online and offline. 
C) They are contracts that are preprinted by one party and presented to the other party for signing. 
D) In most situations,the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction.

Question 9

Which of the following is true regarding promissory estoppel?

Accepted Answer

A) It requires reasonable reliance on the promisor's promise. 
B) It requires a written promise. 
C) It requires consideration. 
D) It applies only when one party is a merchant. 
A) It requires reasonable reliance on the promisor's promise. 
B) It requires a written promise. 
C) It requires consideration. 
D) It applies only when one party is a merchant.

Question 10

What is the main difference between a void contract and a voidable contract? Give examples of each.

Accepted Answer

The main difference between a void contr

Question 11

Contracts must always be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 12

In Symons v.Heaton,the case in the text,the court held that:

Accepted Answer

A) Symons' unjust enrichment claim was successful because Plachek received a benefit from Symons. 
B) Symons' unjust enrichment claim failed because,among other things,Symons never expected payment and took care of Plachek because he was his friend. 
C) an implied in fact contract existed based on the parties' conduct. 
D) an implied in fact contract existed because Plachek told Symons that he wanted him to have his estate when he died. 
A) Symons' unjust enrichment claim was successful because Plachek received a benefit from Symons. 
B) Symons' unjust enrichment claim failed because,among other things,Symons never expected payment and took care of Plachek because he was his friend. 
C) an implied in fact contract existed based on the parties' conduct. 
D) an implied in fact contract existed because Plachek told Symons that he wanted him to have his estate when he died.

Question 13

Generally,the terms of a standardized contract are negotiable.

Accepted Answer

A) True 
 B)False

Question 14

Alana,who manages a flower shop,sells Jose a shotgun.Jose is unemployed,and Alana has never sold a firearm before.Which of the following statements is true?

Accepted Answer

A) Article 2 of the UCC applies because Alana is a merchant. 
B) Article 2 of the UCC applies because a shotgun is a movable thing. 
C) Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. 
D) Article 2 of the UCC does not apply because Jose is not a merchant. 
A) Article 2 of the UCC applies because Alana is a merchant. 
B) Article 2 of the UCC applies because a shotgun is a movable thing. 
C) Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. 
D) Article 2 of the UCC does not apply because Jose is not a merchant.

Question 15

Article 2 of the UCC does NOT apply to a sale of:

Accepted Answer

A) baseball bats. 
B) harvested wheat. 
C) corporate stock. 
D) a new car. 
A) baseball bats. 
B) harvested wheat. 
C) corporate stock. 
D) a new car.

Question 16

Amy bought Mississippi State Lottery tickets.Several days later,she learned that someone won the lottery but that the winner had not yet come forward.She searched for her ticket to see if she had selected the winning numbers,but was unable to find it.Although the lottery ticket was gone,Amy still possessed the play slip she had used when she purchased the ticket.She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery.Reasoning that the play slip would satisfy the Lottery Office,Amy presented her claim.The Lottery Office took the position that Amy needed to produce the actual winning ticket as per the rules,and hence denied her claim.Amy sued the Lottery Office for breach of contract and unjust enrichment.Will she succeed?

Accepted Answer

A) Yes,because the play slip should be enough proof to substantiate her claim on the prize money. 
B) Yes,because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. 
C) No,because the court will find that Amy was not in good faith when she lost the original ticket. 
D) No,because the rules of the contract prescribed that the ticket must be shown to claim the money.Amy accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money. 
A) Yes,because the play slip should be enough proof to substantiate her claim on the prize money. 
B) Yes,because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. 
C) No,because the court will find that Amy was not in good faith when she lost the original ticket. 
D) No,because the rules of the contract prescribed that the ticket must be shown to claim the money.Amy accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Question 17

________ is the actual or implied receipt and retention of that which is tendered or offered.

Accepted Answer

A) Consideration 
B) Capacity 
C) Acceptance 
D) Quasi-contract 
A) Consideration 
B) Capacity 
C) Acceptance 
D) Quasi-contract

Question 18

Why does Article 2 hold merchants to a higher standard than nonmerchants?

Accepted Answer

A) Because buyers tend to place more reliance on merchants. 
B) Because merchants are not required to observe reasonable commercial standards of fair dealing. 
C) Because the Code gives more weight to technical requirements such as consideration. 
D) Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer. 
A) Because buyers tend to place more reliance on merchants. 
B) Because merchants are not required to observe reasonable commercial standards of fair dealing. 
C) Because the Code gives more weight to technical requirements such as consideration. 
D) Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

Question 19

What is the term for being equitably prevented from raising a legal defense?

Accepted Answer

A) Quid pro quo 
B) Estoppel 
C) Breach of Contract 
D) International Subsidy Agent 
A) Quid pro quo 
B) Estoppel 
C) Breach of Contract 
D) International Subsidy Agent

Question 20

Alan and Ben have a contract.Alan has performed 100 percent and Ben has performed 50 percent of it.This contract is now executory.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

A contract must be between parties who have ________ to contract.

In Thomas v.Archer,the case in the text,the Alaska Supreme Court held that the trial court erred when it decided that:

A contract where formation was induced by duress is an example of a contract that is:

Which of the following statements about standardized form contracts is false?

Which of the following is true regarding promissory estoppel?

What is the main difference between a void contract and a voidable contract? Give examples of each.

Contracts must always be in writing to be enforceable.

In Symons v.Heaton,the case in the text,the court held that:

Generally,the terms of a standardized contract are negotiable.

Alana,who manages a flower shop,sells Jose a shotgun.Jose is unemployed,and Alana has never sold a firearm before.Which of the following statements is true?

Article 2 of the UCC does NOT apply to a sale of:

________ is the actual or implied receipt and retention of that which is tendered or offered.

Why does Article 2 hold merchants to a higher standard than nonmerchants?

What is the term for being equitably prevented from raising a legal defense?

Alan and Ben have a contract.Alan has performed 100 percent and Ben has performed 50 percent of it.This contract is now executory.

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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