Question 1

Contracts must always be in writing to be enforceable.

Accepted Answer

A) True 
 B)False  False

Question 2

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 B

Question 3

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 weightage 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 weightage 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

Question 4

The mutual agreement necessary to create an express contract is evidenced by writing.

Accepted Answer

A) True 
 B)False

Question 5

A contract in which the parties have not yet fully performed their obligations is called a(n):

Accepted Answer

A)  executed contract. 
B)  executory contract. 
C)  quasi-contract. 
D)  bilateral contract. 
A)  executed contract. 
B)  executory contract. 
C)  quasi-contract. 
D)  bilateral contract.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

A contract is _____ when all of the parties have fully performed their contractual duties.

Accepted Answer

A)  void 
B)  executed 
C)  contingent 
D)  ineffective 
A)  void 
B)  executed 
C)  contingent 
D)  ineffective

Question 9

Calvin tells Sara that he will sell her his car for $5,000.Sara agrees.The exchange is to take place in 10 days.The contract between Calvin and Sara is now:

Accepted Answer

A)  unilateral,executory,and valid. 
B)  bilateral,executed,and voidable. 
C)  bilateral,executory,and express. 
D)  bilateral,executory,and implied. 
A)  unilateral,executory,and valid. 
B)  bilateral,executed,and voidable. 
C)  bilateral,executory,and express. 
D)  bilateral,executory,and implied.

Question 10

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

Accepted Answer

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

Question 11

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A contract whose formation is 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 14

If no Code rule applies to an issue regarding a sale of goods contract,the common law rules apply.

Accepted Answer

A) True 
 B)False

Question 15

Sometimes,Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT covered by Article 2 of the UCC?

Accepted Answer

A)  Vehicles 
B)  Appliances 
C)  Stocks 
D)  Books 
A)  Vehicles 
B)  Appliances 
C)  Stocks 
D)  Books

Question 17

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 18

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):

Accepted Answer

A)  void contract. 
B)  valid contract. 
C)  voidable contract. 
D)  unenforceable contract. 
A)  void contract. 
B)  valid contract. 
C)  voidable contract. 
D)  unenforceable contract.

Question 19

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 20

The CISG:

Accepted Answer

A)  provides uniformity for transactions among contracting parties in different states in the United States. 
B)  applies only to consumers,not commercial parties. 
C)  applies only to services,not sales of goods. 
D)  does not have provisions to cover every contract problem that might occur. 
A)  provides uniformity for transactions among contracting parties in different states in the United States. 
B)  applies only to consumers,not commercial parties. 
C)  applies only to services,not sales of goods. 
D)  does not have provisions to cover every contract problem that might occur.

Exam 9: Introduction to Contracts

Contracts must always be in writing to be enforceable.

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?

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

The mutual agreement necessary to create an express contract is evidenced by writing.

A contract in which the parties have not yet fully performed their obligations is called a(n):

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

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

A contract is _____ when all of the parties have fully performed their contractual duties.

Calvin tells Sara that he will sell her his car for $5,000.Sara agrees.The exchange is to take place in 10 days.The contract between Calvin and Sara is now:

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

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

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

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

If no Code rule applies to an issue regarding a sale of goods contract,the common law rules apply.

Sometimes,Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Which of the following is NOT covered by Article 2 of the UCC?

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

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):

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

The CISG:

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 Robinson-Patman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters