Question 1

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 2

A contract is a binding agreement that the courts will enforce.

Accepted Answer

A) True 
 B)False

Question 3

In order to be legally binding,a contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 4

If it is unclear whether the parties formed a unilateral or bilateral contract,the courts presume the parties intended a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 5

Quasi contracts are used to provide a remedy when the parties enter into a(n):

Accepted Answer

A) void contract. 
B) implied in fact contract. 
C) situation in which promissory estoppel applies. 
D) All of the above. 
A) void contract. 
B) implied in fact contract. 
C) situation in which promissory estoppel applies. 
D) All of the above.

Question 6

Promissory estoppel is a contractual doctrine that includes which of the following considerations?

Accepted Answer

A) The courts use the doctrine of promissory estoppel to enforce noncontractual promises. 
B) Under this doctrine, the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action and the promisee does so. 
C) The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract. 
D) Both (a) and (b). 
A) The courts use the doctrine of promissory estoppel to enforce noncontractual promises. 
B) Under this doctrine, the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action and the promisee does so. 
C) The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract. 
D) Both (a) and (b).

Question 7

An implied in fact contract is formed by conduct.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Which of the following is not generally required in order to have a valid contract?

Accepted Answer

A) Mutual assent. 
B) A lawful purpose. 
C) Fairness of the bargain. 
D) Parties who have contractual capacity. 
A) Mutual assent. 
B) A lawful purpose. 
C) Fairness of the bargain. 
D) Parties who have contractual capacity.

Question 10

As of 2011,the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Able is involved in an automobile accident and is injured.While he is unconscious,the police call an ambulance which takes him to a hospital.Able is treated at the hospital and released a day later.The hospital sends him a bill for $4,500,which Able refuses to pay,claiming it is too high and he never consented to the treatment because he was unconscious.Able:

Accepted Answer

A) has entered into a unilateral contract with the hospital and therefore will have to pay the bill. 
B) will have to pay the hospital, because this is a quasi-contractual agreement. 
C) has entered into an implied in fact contract with the hospital. 
D) and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill. 
A) has entered into a unilateral contract with the hospital and therefore will have to pay the bill. 
B) will have to pay the hospital, because this is a quasi-contractual agreement. 
C) has entered into an implied in fact contract with the hospital. 
D) and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Question 13

Albert breaches a contract with Bill in a state where the statute of limitations is six years.Seven years later Bill wants to sue.The contract is unenforceable,but it is neither void nor voidable.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Lance has a contract with Smith to resurface a driveway at the Smith residence.Lance by mistake stops at the Jones residence and resurfaces Jones' driveway.Jones lives next door to Smith and knows that Lance is at the wrong residence.Jones,however,says nothing and watches while Lance resurfaces his driveway.Is Jones under any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.

Accepted Answer

In addition to express and implied in fa

Question 16

The doctrine of promissory estoppel:

Accepted Answer

A) is a doctrine enforcing noncontractual promises. 
B) includes as a requirement within the doctrine that there has been justifiable reliance on the promise. 
C) a doctrine relying on justice and not contractual rights. 
D) All of the above 
A) is a doctrine enforcing noncontractual promises. 
B) includes as a requirement within the doctrine that there has been justifiable reliance on the promise. 
C) a doctrine relying on justice and not contractual rights. 
D) All of the above

Question 17

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 18

Stan sends for a law school catalog from Ivory Towers University.According to the catalog,the law school applications are evaluated on the basis of undergraduate grades,standardized test scores,and references.Stan,who is a straight-A student,has high test scores and excellent references,applies and pays the $100 application fee.His application is rejected.Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University.If Stan followed all of the guidelines in the college catalog and paid the required application fee,then according to the court in Steinberg v.Chicago Medical School:

Accepted Answer

A) there is not a contract. 
B) there is a quasi contract. 
C) there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. 
D) there is a voidable contract. 
A) there is not a contract. 
B) there is a quasi contract. 
C) there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. 
D) there is a voidable contract.

Question 19

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 20

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat.Dave calls to get a description of the cat and tells Maria,"I'll look for your cat." A contract is formed by Dave's call to Maria.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

A contract is a binding agreement that the courts will enforce.

In order to be legally binding,a contract must be in writing.

If it is unclear whether the parties formed a unilateral or bilateral contract,the courts presume the parties intended a bilateral contract.

Quasi contracts are used to provide a remedy when the parties enter into a(n):

Promissory estoppel is a contractual doctrine that includes which of the following considerations?

An implied in fact contract is formed by conduct.

Which of the following is not generally required in order to have a valid contract?

As of 2011,the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

The Uniform Commercial Code does not apply to:

Albert breaches a contract with Bill in a state where the statute of limitations is six years.Seven years later Bill wants to sue.The contract is unenforceable,but it is neither void nor voidable.

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.

The doctrine of promissory estoppel:

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?

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.

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat.Dave calls to get a description of the cat and tells Maria,"I'll look for your cat." A contract is formed by Dave's call to Maria.

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 and 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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