Question 1

Which of the following is the most likely measure of recovery when a quasi-contract is involved?

Accepted Answer

A)  The amount set forth in the contract. 
B)  The fair market value of the matter involved. 
C)  The wholesale price of any good involved. 
D)  The amount sought by the plaintiff in the Complaint. 
E)  Damages will be computed the same way as they are computed for any other contract. 
A)  The amount set forth in the contract. 
B)  The fair market value of the matter involved. 
C)  The wholesale price of any good involved. 
D)  The amount sought by the plaintiff in the Complaint. 
E)  Damages will be computed the same way as they are computed for any other contract. B

Question 2

Which of the following is correct regarding Betty's statement that there was no contract?

Accepted Answer

A)  Betty is correct. There was no contract because she had not started working. 
B)  Betty is incorrect because there was a bilateral, express agreement. 
C)  Betty is incorrect because there was a bilateral, implied agreement. 
D)  Betty is incorrect because there was a unilateral, express agreement. 
E)  Betty is incorrect because there was a unilateral, implied agreement. 
A)  Betty is correct. There was no contract because she had not started working. 
B)  Betty is incorrect because there was a bilateral, express agreement. 
C)  Betty is incorrect because there was a bilateral, implied agreement. 
D)  Betty is incorrect because there was a unilateral, express agreement. 
E)  Betty is incorrect because there was a unilateral, implied agreement. B

Question 3

The reference to __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

Accepted Answer

A)  Implied-in-fact contracts 
B)  Implied-in-law contracts 
C)  Contracts under wax 
D)  Contracts under seal 
E)  Contracts under pressure 
A)  Implied-in-fact contracts 
B)  Implied-in-law contracts 
C)  Contracts under wax 
D)  Contracts under seal 
E)  Contracts under pressure D

Question 4

Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges?

Accepted Answer

A)  He is correct. 
B)  He is incorrect because there was a bilateral, express contract. 
C)  He is incorrect because there was a unilateral, express contract. 
D)  He is partially correct in that because a quasi-contract existed, he would have to pay; but he would only have to pay fair market value, not what the hospital requested. 
E)  He is incorrect because there was a binding implied contract. 
A)  He is correct. 
B)  He is incorrect because there was a bilateral, express contract. 
C)  He is incorrect because there was a unilateral, express contract. 
D)  He is partially correct in that because a quasi-contract existed, he would have to pay; but he would only have to pay fair market value, not what the hospital requested. 
E)  He is incorrect because there was a binding implied contract.

Question 5

In the employer/employee context,the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Accepted Answer

A) True 
 B)False

Question 6

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car.At what point is there a binding contract?

Accepted Answer

A)  When the agreement is made. 
B)  When the money is paid. 
C)  When the car is delivered. 
D)  Ten days after the car is delivered and approved. 
E)  Twenty days after the car is delivered and approved. 
A)  When the agreement is made. 
B)  When the money is paid. 
C)  When the car is delivered. 
D)  Ten days after the car is delivered and approved. 
E)  Twenty days after the car is delivered and approved.

Question 7

In which of the following does a contract arise not from words but from the conduct of the parties?

Accepted Answer

A)  Implied contracts 
B)  Express contracts 
C)  Liquidated contracts 
D)  Bilateral contracts 
E)  Unilateral contracts 
A)  Implied contracts 
B)  Express contracts 
C)  Liquidated contracts 
D)  Bilateral contracts 
E)  Unilateral contracts

Question 8

Define a bilateral contract and a unilateral contract,and give an example of each.

Accepted Answer

A bilateral contract is commonly defined

Question 9

Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?

Accepted Answer

A)  She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract. 
B)  She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract. 
C)  She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract. 
D)  She is correct. The neighbor will be required to pay Jackson based upon an express contract. 
E)  She is incorrect. The neighbor will not be required to pay Jackson. 
A)  She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract. 
B)  She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract. 
C)  She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract. 
D)  She is correct. The neighbor will be required to pay Jackson based upon an express contract. 
E)  She is incorrect. The neighbor will not be required to pay Jackson.

Question 10

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Accepted Answer

A)  Negotiable instruments 
B)  Informal contracts 
C)  Simple contracts 
D)  Recognizances 
E)  Formal contracts 
A)  Negotiable instruments 
B)  Informal contracts 
C)  Simple contracts 
D)  Recognizances 
E)  Formal contracts

Question 11

Identify and describe the four elements that are necessary for a contract to exist.

Accepted Answer

The four elements necessary for a contra

Question 12

Which of the following was the result in the Case Opener in which Hallmark claimed that an arbitration ruling against a former employee should be upheld?

Accepted Answer

A)  The former employee was barred from proceeding in court because of the binding arbitration clause. 
B)  The former employee was barred from proceeding in court based on the statute of limitations which expired while she was pursuing her remedies in arbitration. 
C)  The former employee was allowed to proceed in court because she had exhausted her remedies in the arbitration arena. 
D)  The former employee could proceed with an action in court because there was no consideration for the arbitration agreement and, therefore, no valid agreement. 
E)  The former employee could proceed with an action in court because, as a matter of law, arbitration agreements are barred in the arbitration context. 
A)  The former employee was barred from proceeding in court because of the binding arbitration clause. 
B)  The former employee was barred from proceeding in court based on the statute of limitations which expired while she was pursuing her remedies in arbitration. 
C)  The former employee was allowed to proceed in court because she had exhausted her remedies in the arbitration arena. 
D)  The former employee could proceed with an action in court because there was no consideration for the arbitration agreement and, therefore, no valid agreement. 
E)  The former employee could proceed with an action in court because, as a matter of law, arbitration agreements are barred in the arbitration context.

Question 13

Which of the following was propounded by prominent legal scholars,recruited by the American Law Institute?

Accepted Answer

A)  The Restatement of the Law Second, Contracts. 
B)  The Convention on Contracts for the National Sales of Goods. 
C)  Common law. 
D)  Common law and the Convention on Contracts for International Sales of Goods. 
E)  The Convention on Contracts for the National Sales of Goods and the Restatement of the Law Second, Contracts. 
A)  The Restatement of the Law Second, Contracts. 
B)  The Convention on Contracts for the National Sales of Goods. 
C)  Common law. 
D)  Common law and the Convention on Contracts for International Sales of Goods. 
E)  The Convention on Contracts for the National Sales of Goods and the Restatement of the Law Second, Contracts.

Question 14

If a[n] _____________ misunderstanding between the parties exists,and as a result of that misunderstanding the parties do not really come to a meeting of the minds,there is no contract.

Accepted Answer

A)  Mutual 
B)  Unilateral 
C)  Comprehensive 
D)  Subjective 
E)  Reasonable 
A)  Mutual 
B)  Unilateral 
C)  Comprehensive 
D)  Subjective 
E)  Reasonable

Question 15

A person who is intoxicated when signing a contract may not avoid the contract based on being intoxicated because being intoxicated is a voluntary condition.

Accepted Answer

A) True 
 B)False

Question 16

All contracts can be categorized as either ___________ or __________.

Accepted Answer

A)  Unilateral; complete 
B)  Unilateral; trilateral 
C)  Bilateral; trilateral 
D)  Unilateral; bilateral 
E)  Bilateral; complete 
A)  Unilateral; complete 
B)  Unilateral; trilateral 
C)  Bilateral; trilateral 
D)  Unilateral; bilateral 
E)  Bilateral; complete

Question 17

If a contract is valid,then it is enforceable.

Accepted Answer

A) True 
 B)False

Question 18

A[n] ______________ contract is commonly defined as a promise in exchange for a promise.

Accepted Answer

A)  Unilateral 
B)  Trilateral 
C)  Complete 
D)  Bilateral 
E)  Classified 
A)  Unilateral 
B)  Trilateral 
C)  Complete 
D)  Bilateral 
E)  Classified

Question 19

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.

Accepted Answer

A)  Contract under seal 
B)  Voidable contract 
C)  Recognizance 
D)  Implied-in-fact 
E)  Informal contract 
A)  Contract under seal 
B)  Voidable contract 
C)  Recognizance 
D)  Implied-in-fact 
E)  Informal contract

Question 20

Which of the following describes Rick's role in the transaction?

Accepted Answer

A)  He was the offeror. 
B)  He was the offeree. 
C)  He was the assentor. 
D)  He was the assentee. 
E)  He was the offeree and the assentee. 
A)  He was the offeror. 
B)  He was the offeree. 
C)  He was the assentor. 
D)  He was the assentee. 
E)  He was the offeree and the assentee.

Exam 13: Introduction to Contracts

Which of the following is the most likely measure of recovery when a quasi-contract is involved?

Which of the following is correct regarding Betty's statement that there was no contract?

The reference to __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges?

In the employer/employee context,the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car.At what point is there a binding contract?

In which of the following does a contract arise not from words but from the conduct of the parties?

Define a bilateral contract and a unilateral contract,and give an example of each.

Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Identify and describe the four elements that are necessary for a contract to exist.

Which of the following was the result in the Case Opener in which Hallmark claimed that an arbitration ruling against a former employee should be upheld?

Which of the following was propounded by prominent legal scholars,recruited by the American Law Institute?

If a[n] _____________ misunderstanding between the parties exists,and as a result of that misunderstanding the parties do not really come to a meeting of the minds,there is no contract.

A person who is intoxicated when signing a contract may not avoid the contract based on being intoxicated because being intoxicated is a voluntary condition.

All contracts can be categorized as either ___________ or __________.

If a contract is valid,then it is enforceable.

A[n] ______________ contract is commonly defined as a promise in exchange for a promise.

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.

Which of the following describes Rick's role in the transaction?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Agreement

Consideration

Capacity and Illegality

Reality of Assent

Contracts in Writing

Third Party Rights to Contracts

Performance,Breach of Contract,discharge,and Remedies

Introduction to Sales and Lease Contracts

Title,Risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Lease Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability,defenses,and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organizations

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, and Termination

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters

All contracts can be categorized as either _ or .