Question 1

The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of:

Accepted Answer

A)  good faith. 
B)  unconscionable contract. 
C)  quasi-contract. 
D)  implied contract. 
A)  good faith. 
B)  unconscionable contract. 
C)  quasi-contract. 
D)  implied contract.

Question 2

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

Accepted Answer

A)  Valid contracts 
B)  Unenforceable contracts 
C)  Void contracts 
D)  Voidable contracts 
A)  Valid contracts 
B)  Unenforceable contracts 
C)  Void contracts 
D)  Voidable contracts

Question 3

The rules promulgated by the Restatement (Second)of Contracts often resemble the rules created by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 4

Aaron promises to sell his boat to Matt,and Matt promises to buy it from Aaron.What type of contract is this?

Accepted Answer

A)  A unilateral contract 
B)  A quasi-contract 
C)  A bilateral contract 
D)  A promissory estoppel contract 
A)  A unilateral contract 
B)  A quasi-contract 
C)  A bilateral contract 
D)  A promissory estoppel contract

Question 5

A void contract is:

Accepted Answer

A)  a contract that one or both parties can cancel at their convenience. 
B)  a contract,even though the courts will not enforce it. 
C)  an agreement that creates no legal obligations. 
D)  created by operation of law rather than by the agreement of the parties. 
A)  a contract that one or both parties can cancel at their convenience. 
B)  a contract,even though the courts will not enforce it. 
C)  an agreement that creates no legal obligations. 
D)  created by operation of law rather than by the agreement of the parties.

Question 6

Amy bought Mississippi State Lottery tickets.Several days later,she learned that someone had 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 laid 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 proof enough 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 Amy had made a mistake in losing the original ticket. 
D)  No,because the rules of the contract prescribed the ticket must be shown to claim the money.Amy had 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 proof enough 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 Amy had made a mistake in losing the original ticket. 
D)  No,because the rules of the contract prescribed the ticket must be shown to claim the money.Amy had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Question 7

James goes to a dentist to have a tooth extracted.James never signs a written contract for this service,and he and the dentist never made an oral agreement either.Later,the dentist bills James who refuses to pay.The dentist sues James.Which of the following is true?

Accepted Answer

A)  The dentist can recover under quasi-contract. 
B)  The dentist cannot recover under an implied contract theory. 
C)  The dentist can recover under the doctrine of promissory estoppel. 
D)  The dentist cannot recover because there was no express contract here. 
A)  The dentist can recover under quasi-contract. 
B)  The dentist cannot recover under an implied contract theory. 
C)  The dentist can recover under the doctrine of promissory estoppel. 
D)  The dentist cannot recover because there was no express contract here.

Question 8

An executed contract is one that has been:

Accepted Answer

A)  terminated by operation of law. 
B)  terminated by the parties' voluntary agreement. 
C)  fully performed by one or both parties. 
D)  fully performed by both parties. 
A)  terminated by operation of law. 
B)  terminated by the parties' voluntary agreement. 
C)  fully performed by one or both parties. 
D)  fully performed by both parties.

Question 9

The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

Accepted Answer

A) True 
 B)False

Question 10

Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

Accepted Answer

The installation of a battery in an auto

Question 11

What bodies of law govern contracts in the United State?

Accepted Answer

A)  Article 2 of the UCC 
B)  Common law related to contracts 
C)  The United Nations Declaration on Human Rights 
D)  Both A & B 
A)  Article 2 of the UCC 
B)  Common law related to contracts 
C)  The United Nations Declaration on Human Rights 
D)  Both A & B

Question 12

Which of the following is NOT a basic element of a contract?

Accepted Answer

A)  Offer 
B)  Consideration 
C)  Capacity 
D)  Goods 
A)  Offer 
B)  Consideration 
C)  Capacity 
D)  Goods

Question 13

Why was the emergence of large corporations so important in shaping the 20th century contract law?

Accepted Answer

The emergence of truly large organizatio

Question 14

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 15

Mr.White enters into a contract to sell a car to Joe Jr.who is 15 years old and is considered a minor in the state where he lives.What is the status of the contract that Mr.White and Joe Jr.entered into?

Accepted Answer

A)  The contract is voidable,and is enforceable till Joe Jr.cancels it. 
B)  The contract is void and unenforceable. 
C)  The contract is enforceable and valid. 
D)  If the contract is registered with the Secretary of State's office it will become enforceable. 
A)  The contract is voidable,and is enforceable till Joe Jr.cancels it. 
B)  The contract is void and unenforceable. 
C)  The contract is enforceable and valid. 
D)  If the contract is registered with the Secretary of State's office it will become enforceable.

Question 16

What is the test frequently used to determine "hybrid" contracts?

Accepted Answer

A)  Determining the value of the contract. 
B)  Determining the party to benefit. 
C)  Determine which element predominates. 
D)  Determining the validity of the contract. 
A)  Determining the value of the contract. 
B)  Determining the party to benefit. 
C)  Determine which element predominates. 
D)  Determining the validity of the contract.

Question 17

The UCC differs from the common law of contracts in that the UCC:

Accepted Answer

A)  is less concerned with technical rules. 
B)  deals with the sale of intangibles. 
C)  deals with service contracts. 
D)  is less concerned with the "good faith" doctrine. 
A)  is less concerned with technical rules. 
B)  deals with the sale of intangibles. 
C)  deals with service contracts. 
D)  is less concerned with the "good faith" doctrine.

Question 18

Ms.White hired Mr.Blue to steal from Ms.Yellow.Ms.White is upset with how everything turned out and wants to sue Mr.Blue for breach of contract.But the court will refuse to recognize the contract and subsequently a breach of it because it is a contract for an illegal activity.

Accepted Answer

A) True 
 B)False

Question 19

Mark,an attorney,accepts an offer for an attorney position at The Firm.Prior to Mitch's first day at work,Harold,a managing partner,sends Mark an Employment Policy Manual which 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 20

When the surrounding facts and circumstances indicate that an agreement has in fact been reached,a(n)_____ has been created.

Accepted Answer

A)  implied contract 
B)  quasi-contract 
C)  void contract 
D)  unenforceable contract 
A)  implied contract 
B)  quasi-contract 
C)  void contract 
D)  unenforceable contract

Exam 9: Introduction to Contracts

The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of:

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

The rules promulgated by the Restatement (Second)of Contracts often resemble the rules created by Article 2 of the UCC.

Aaron promises to sell his boat to Matt,and Matt promises to buy it from Aaron.What type of contract is this?

A void contract is:

James goes to a dentist to have a tooth extracted.James never signs a written contract for this service,and he and the dentist never made an oral agreement either.Later,the dentist bills James who refuses to pay.The dentist sues James.Which of the following is true?

An executed contract is one that has been:

The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

What bodies of law govern contracts in the United State?

Which of the following is NOT a basic element of a contract?

Why was the emergence of large corporations so important in shaping the 20th century contract law?

Which of the following is true regarding promissory estoppel?

Mr.White enters into a contract to sell a car to Joe Jr.who is 15 years old and is considered a minor in the state where he lives.What is the status of the contract that Mr.White and Joe Jr.entered into?

What is the test frequently used to determine "hybrid" contracts?

The UCC differs from the common law of contracts in that the UCC:

Ms.White hired Mr.Blue to steal from Ms.Yellow.Ms.White is upset with how everything turned out and wants to sue Mr.Blue for breach of contract.But the court will refuse to recognize the contract and subsequently a breach of it because it is a contract for an illegal activity.

When the surrounding facts and circumstances indicate that an agreement has in fact been reached,a(n)_____ has been created.

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

Why was the emergence of large corporations so important in shaping the 20^th century contract law?