Question 1

Which of the following may represent a lack of genuine assent?

Accepted Answer

A)  Acceptance secured through fraud, duress, or misrepresentation, but not acceptance through undue influence. 
B)  Acceptance secured through undue influence, misrepresentation, or duress, but not through fraud. 
C)  Acceptance secured through fraud or duress, but not through misrepresentation or undue influence. 
D)  Acceptance secured through fraud, dress, or undue influence, but not through misrepresentation. 
E)  Acceptance secured through fraud, duress, undue influence, or misrepresentation. 
A)  Acceptance secured through fraud, duress, or misrepresentation, but not acceptance through undue influence. 
B)  Acceptance secured through undue influence, misrepresentation, or duress, but not through fraud. 
C)  Acceptance secured through fraud or duress, but not through misrepresentation or undue influence. 
D)  Acceptance secured through fraud, dress, or undue influence, but not through misrepresentation. 
E)  Acceptance secured through fraud, duress, undue influence, or misrepresentation.

Question 2

The Restatement (Second)of the Law of Contracts is not actually the law itself.

Accepted Answer

A) True 
 B)False

Question 3

A contract is ______________ if one or both of the parties,without breaching the contract,have the ability to either withdraw from the contract or enforce it.

Accepted Answer

A)  Voidable 
B)  Executory 
C)  Implied 
D)  Executed 
E)  Void 
A)  Voidable 
B)  Executory 
C)  Implied 
D)  Executed 
E)  Void

Question 4

Which of the following was the result in In Re Zappos.com Inc.,v.Customer Data Security Breach Litigation,the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos?

Accepted Answer

A)  The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time. 
B)  The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs lack of assent. 
C)  The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time. 
D)  The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable. 
E)  The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable. 
A)  The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time. 
B)  The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs lack of assent. 
C)  The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time. 
D)  The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable. 
E)  The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.

Question 5

A valid contract may be valid but _____________ when there is some law that prohibits the courts from enforcing it.

Accepted Answer

A)  Executed 
B)  Executory 
C)  Unenforceable 
D)  Novated 
E)  Condoned 
A)  Executed 
B)  Executory 
C)  Unenforceable 
D)  Novated 
E)  Condoned

Question 6

Today,courts hold that once an offeree begins performance on a unilateral contract,the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding the type of marriage contract discussed in the text called the muta'a?

Accepted Answer

A)  It is a type of premarital contract typical to the U.S. in which the parties agree ahead of time how property and assets should be divided in the event of divorce. 
B)  It is a contract by which the female agrees to a divorce if there are no children from the marriage within five years. 
C)  It is a contract by which the female agrees to a divorce if there are no children from the marriage within three years. 
D)  It is a temporary type of arrangement called a "responsibility marriage" in which the female is paid to care for the male's elderly parents. 
E)  It is a temporary type of arrangement called a "pleasure marriage" in which the female is paid for sexual intimacy. 
A)  It is a type of premarital contract typical to the U.S. in which the parties agree ahead of time how property and assets should be divided in the event of divorce. 
B)  It is a contract by which the female agrees to a divorce if there are no children from the marriage within five years. 
C)  It is a contract by which the female agrees to a divorce if there are no children from the marriage within three years. 
D)  It is a temporary type of arrangement called a "responsibility marriage" in which the female is paid to care for the male's elderly parents. 
E)  It is a temporary type of arrangement called a "pleasure marriage" in which the female is paid for sexual intimacy.

Question 8

Which of the following is the reason the Uniform Commercial Code was drafted?

Accepted Answer

A)  Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce. 
B)  Some states had no law governing contracts. 
C)  Federal law governing contracts was difficult to apply. 
D)  The Uniform State Act on laws was not working. 
E)  The Restatement of the Law Second, Contracts was not being evenly and fairly applied. 
A)  Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce. 
B)  Some states had no law governing contracts. 
C)  Federal law governing contracts was difficult to apply. 
D)  The Uniform State Act on laws was not working. 
E)  The Restatement of the Law Second, Contracts was not being evenly and fairly applied.

Question 9

In a[n] _____________ contract,the offeror wants a performance to form the contract.

Accepted Answer

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

Question 10

Today's law of contracts originated from judicial decisions in ______.

Accepted Answer

A)  France 
B)  Italy 
C)  Spain 
D)  England 
E)  Switzerland 
A)  France 
B)  Italy 
C)  Spain 
D)  England 
E)  Switzerland

Question 11

Any contract that is not a formal contract is an informal contract,also called a simple contract.

Accepted Answer

A) True 
 B)False

Question 12

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract,and give an example of an express and implied contract.

Accepted Answer

Express contracts have all their terms c

Question 13

Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class?

Accepted Answer

A)  Rick is stuck with the book because he objectively agreed to purchase it. 
B)  Rick is stuck with the book because Beverly did not commit fraud. 
C)  Rick is stuck with the book because Beverly subjectively thought it was the correct book, and Rick did not openly disagree before the contract was executed. 
D)  Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract. 
E)  Because both parties were mistaken, at Rick's option he may return the book; but only half of the purchase price would be required as a refund from Beverly because she is not guilty of fraud. 
A)  Rick is stuck with the book because he objectively agreed to purchase it. 
B)  Rick is stuck with the book because Beverly did not commit fraud. 
C)  Rick is stuck with the book because Beverly subjectively thought it was the correct book, and Rick did not openly disagree before the contract was executed. 
D)  Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract. 
E)  Because both parties were mistaken, at Rick's option he may return the book; but only half of the purchase price would be required as a refund from Beverly because she is not guilty of fraud.

Question 14

Which of the following is sometimes referred to as an implied-in-law contract?

Accepted Answer

A)  Quasi-contracts 
B)  Express contracts 
C)  Implied-in-fact contracts 
D)  Express contracts and implied-in-fact contracts 
E)  Express contracts and quasi-contracts 
A)  Quasi-contracts 
B)  Express contracts 
C)  Implied-in-fact contracts 
D)  Express contracts and implied-in-fact contracts 
E)  Express contracts and quasi-contracts

Question 15

A ________________ is an agreement by the person who issues a letter to pay a sum of money on receipt of an invoice and other documents.

Accepted Answer

A)  Letter of agreement 
B)  Letter of credit 
C)  Letter of acknowledgement 
D)  Negotiated credit instrument letter 
E)  Letter of simple contract 
A)  Letter of agreement 
B)  Letter of credit 
C)  Letter of acknowledgement 
D)  Negotiated credit instrument letter 
E)  Letter of simple contract

Question 16

Which of the following is a definition for consideration?

Accepted Answer

A)  Being cordial in the negotiation of contracts. 
B)  Refraining from unethical behavior in the negotiation of contracts. 
C)  Being cordial and refraining from unethical behavior in the negotiation of contracts. 
D)  The bargained-for exchange. 
E)  A contract negotiated in person as opposed to by telephone or e-mail. 
A)  Being cordial in the negotiation of contracts. 
B)  Refraining from unethical behavior in the negotiation of contracts. 
C)  Being cordial and refraining from unethical behavior in the negotiation of contracts. 
D)  The bargained-for exchange. 
E)  A contract negotiated in person as opposed to by telephone or e-mail.

Question 17

Which of the following states that if a writing,or term in question,appears to be plain and unambiguous on its face,its meaning must be determined from the four corners of the instrument without resort to outside evidence,with the words being given their ordinary meaning?

Accepted Answer

A)  The Interpretation Rule 
B)  The Simple Rule 
C)  The Understandable Rule 
D)  The Plain Meaning Rule 
E)  The Comprehensive Rule 
A)  The Interpretation Rule 
B)  The Simple Rule 
C)  The Understandable Rule 
D)  The Plain Meaning Rule 
E)  The Comprehensive Rule

Question 18

Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of a formal contract?

Accepted Answer

A)  Contracts under seal but not executed contracts or letters of credit. 
B)  Executed contracts but not contracts under sale or letters of credit. 
C)  Letters of credit and contracts under seal, but not executed contracts. 
D)  Contracts under seal letters of credit, but not executory contracts. 
E)  Contracts under seal, letters of credit, and also executed contracts. 
A)  Contracts under seal but not executed contracts or letters of credit. 
B)  Executed contracts but not contracts under sale or letters of credit. 
C)  Letters of credit and contracts under seal, but not executed contracts. 
D)  Contracts under seal letters of credit, but not executory contracts. 
E)  Contracts under seal, letters of credit, and also executed contracts.

Question 20

Which of the following is true regarding Beverly's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract,therefore,existed?

Accepted Answer

A)  She is correct because contract law is based upon a subjective theory of contracts. 
B)  She is correct because her genuinely held belief establishes that she did not commit fraud. 
C)  She is correct because agreements for the sale of goods are based on a subjective theory. 
D)  She is incorrect because her subjective belief would not be the basis for a determination of whether the contract would be enforced in this case and also because fraud is not necessary in order to find a breach of contract. 
E)  She is correct but only if Rick subjectively believed the same as she did. 
A)  She is correct because contract law is based upon a subjective theory of contracts. 
B)  She is correct because her genuinely held belief establishes that she did not commit fraud. 
C)  She is correct because agreements for the sale of goods are based on a subjective theory. 
D)  She is incorrect because her subjective belief would not be the basis for a determination of whether the contract would be enforced in this case and also because fraud is not necessary in order to find a breach of contract. 
E)  She is correct but only if Rick subjectively believed the same as she did.

Exam 13: Introduction to Contracts

Which of the following may represent a lack of genuine assent?

The Restatement (Second)of the Law of Contracts is not actually the law itself.

A contract is ______________ if one or both of the parties,without breaching the contract,have the ability to either withdraw from the contract or enforce it.

Which of the following was the result in In Re Zappos.com Inc.,v.Customer Data Security Breach Litigation,the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos?

A valid contract may be valid but _____________ when there is some law that prohibits the courts from enforcing it.

Today,courts hold that once an offeree begins performance on a unilateral contract,the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Which of the following is true regarding the type of marriage contract discussed in the text called the muta'a?

Which of the following is the reason the Uniform Commercial Code was drafted?

In a[n] _____________ contract,the offeror wants a performance to form the contract.

Today's law of contracts originated from judicial decisions in ______.

Any contract that is not a formal contract is an informal contract,also called a simple contract.

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract,and give an example of an express and implied contract.

Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class?

Which of the following is sometimes referred to as an implied-in-law contract?

A ________________ is an agreement by the person who issues a letter to pay a sum of money on receipt of an invoice and other documents.

Which of the following is a definition for consideration?

Which of the following states that if a writing,or term in question,appears to be plain and unambiguous on its face,its meaning must be determined from the four corners of the instrument without resort to outside evidence,with the words being given their ordinary meaning?

Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.

Which of the following is an example of a formal contract?

Which of the following is true regarding Beverly's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract,therefore,existed?

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

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