Question 1

Which of the following provides that a revocation is effective only when received by the offeree?

Accepted Answer

A) The equal dignity rule. 
B) The United States Postal Service (USPS)revocation rule. 
C) The reasonable revocation rule. 
D) The mailbox rule. 
E) The doctrine of reasonable conveyance. 
A) The equal dignity rule. 
B) The United States Postal Service (USPS)revocation rule. 
C) The reasonable revocation rule. 
D) The mailbox rule. 
E) The doctrine of reasonable conveyance.

Question 2

A contract is a set of legally unenforceable statements of intent.

Accepted Answer

A) True 
 B)False

Question 3

The mirror-image rule says that the terms of the acceptance must mirror the industry-specific terms applicable to the contract.

Accepted Answer

A) True 
 B)False

Question 4

Refusal to Pay.Business law professor Debby needed some yard work done.She told her class that she would give $50 to the first person who mowed her yard.She also entered into an agreement with Brenda to trim some shrubbery for $40.Max went to mow Debby's yard.Unfortunately,just as he finished mowing,a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches.Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth.Max refused to pay the emergency room because he said that they did not have a binding,bilateral contract.Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform.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 incorrect because there was an express,trilateral contract. 
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 incorrect because there was an express,trilateral contract. 
E) He is incorrect because there was a binding implied contract.

Question 5

Some states still allow a contract without consideration to be enforced if it is under seal.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a written document 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) A negotiable instrument 
B) An implied-in-law contract 
C) A recognizance 
D) An implied-in-fact contract 
E) A commercial bond 
A) A negotiable instrument 
B) An implied-in-law contract 
C) A recognizance 
D) An implied-in-fact contract 
E) A commercial bond

Question 7

Which of the following references a contract problem occurring when a buyer and a seller purport to make an agreement,but their preprinted forms do not match?

Accepted Answer

A) The mutual exclusivity paradox. 
B) The substantial performance conundrum. 
C) The battle of the forms. 
D) The "frolic and detour" deviation. 
E) The "substantial deviation" issue. 
A) The mutual exclusivity paradox. 
B) The substantial performance conundrum. 
C) The battle of the forms. 
D) The "frolic and detour" deviation. 
E) The "substantial deviation" issue.

Question 8

Quasi-contracts are legally recognized as contracts.

Accepted Answer

A) True 
 B)False

Question 9

If a person wishes to ensure that an offer will in fact be held open for a set period of time,the person may do so by entering into a(n)________ contract with the offeror.

Accepted Answer

A) quasi- 
B) implied 
C) voidable 
D) option 
E) implied-in-law 
A) quasi- 
B) implied 
C) voidable 
D) option 
E) implied-in-law

Question 10

Under the common law,the elements of an offer are intent,definite and certain terms,and communication of the offer to a neutral third party.

Accepted Answer

A) True 
 B)False

Question 11

A contract is ________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

Accepted Answer

A) voidable 
B) executory 
C) implied-in-law 
D) implied-in-fact 
E) void 
A) voidable 
B) executory 
C) implied-in-law 
D) implied-in-fact 
E) void

Question 12

A(n)________ contract is,in effect,not a contract at all.

Accepted Answer

A) voidable 
B) executory 
C) implied 
D) executed 
E) void 
A) voidable 
B) executory 
C) implied 
D) executed 
E) void

Question 13

An offeror can revoke the offer at any time unless the offeror says he or she will hold the offer open for a stated period of time.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ contract is one that contains all the legal elements of a contract.

Accepted Answer

A) quasi- 
B) voidable 
C) void 
D) valid 
E) illusory 
A) quasi- 
B) voidable 
C) void 
D) valid 
E) illusory

Question 15

Once all of the terms of the contract have been fully performed,the contract is said to be ________.

Accepted Answer

A) executory 
B) executed 
C) implied-in-law 
D) implied-in-fact 
E) illusory 
A) executory 
B) executed 
C) implied-in-law 
D) implied-in-fact 
E) illusory

Question 16

Which of the following is a correct statement regarding the validity of various means of acceptance (assuming no means of communicating the acceptance is specified?)

Accepted Answer

A) Telephone,mail,and e-mail are all valid means of acceptance,while telegraph and fax are not valid means of acceptance. 
B) Telegraph and fax are valid means of acceptance,while telephone,mail,and e-mail are not valid means of acceptance. 
C) Telephone,mail,e-mail,and fax are all valid means of acceptance,while telegraph is not a valid means of acceptance since it is an outdated form of communication. 
D) Telephone,telegraph,mail,fax,and e-mail are all valid means of accepting an offer. 
E) Telephone,telegraph,mail,fax,and e-mail are all invalid means of accepting an offer,since an offer must be accepted either in person or by way of a formal letter of acceptance. 
A) Telephone,mail,and e-mail are all valid means of acceptance,while telegraph and fax are not valid means of acceptance. 
B) Telegraph and fax are valid means of acceptance,while telephone,mail,and e-mail are not valid means of acceptance. 
C) Telephone,mail,e-mail,and fax are all valid means of acceptance,while telegraph is not a valid means of acceptance since it is an outdated form of communication. 
D) Telephone,telegraph,mail,fax,and e-mail are all valid means of accepting an offer. 
E) Telephone,telegraph,mail,fax,and e-mail are all invalid means of accepting an offer,since an offer must be accepted either in person or by way of a formal letter of acceptance.

Question 17

As long as some of the duties under a contract have not yet been performed,the contract is considered ________.

Accepted Answer

A) executory 
B) executed 
C) implied-in-law 
D) implied-in-fact 
E) illusory 
A) executory 
B) executed 
C) implied-in-law 
D) implied-in-fact 
E) illusory

Question 18

Which of the following is a correct statement regarding quasi-contracts?

Accepted Answer

A) They are sometimes called implied-in-law contracts,but they are not actually contracts. 
B) They are sometimes called implied-in-law contracts,and they are actual contracts. 
C) They are sometimes called implied-in-fact contracts,but they are not actually contracts. 
D) They are sometimes called implied-in-fact contracts,and they are actual contracts. 
E) They are sometimes called express contracts,but they are actually implied contracts. 
A) They are sometimes called implied-in-law contracts,but they are not actually contracts. 
B) They are sometimes called implied-in-law contracts,and they are actual contracts. 
C) They are sometimes called implied-in-fact contracts,but they are not actually contracts. 
D) They are sometimes called implied-in-fact contracts,and they are actual contracts. 
E) They are sometimes called express contracts,but they are actually implied contracts.

Question 19

Prominent legal scholars,recruited by the American Law Institute,organized the principles of the common law of contracts into the Restatement of the Law,Contracts.This compilation has been revised and published as:

Accepted Answer

A) The Restatement of the Law Second,Contracts. 
B) The Convention on Contracts for the International Sales of Goods. 
C) The Uniform Commercial Code. 
D) The Uniform Contracts Code. 
E) The Restatement of Torts,Second. 
A) The Restatement of the Law Second,Contracts. 
B) The Convention on Contracts for the International Sales of Goods. 
C) The Uniform Commercial Code. 
D) The Uniform Contracts Code. 
E) The Restatement of Torts,Second.

Question 20

________ contracts arise not from words but from the conduct of the parties.

Accepted Answer

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

Exam 9: Introduction to Contracts and Agreement

Which of the following provides that a revocation is effective only when received by the offeree?

A contract is a set of legally unenforceable statements of intent.

The mirror-image rule says that the terms of the acceptance must mirror the industry-specific terms applicable to the contract.

Some states still allow a contract without consideration to be enforced if it is under seal.

Which of the following is a written document 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?

Which of the following references a contract problem occurring when a buyer and a seller purport to make an agreement,but their preprinted forms do not match?

Quasi-contracts are legally recognized as contracts.

If a person wishes to ensure that an offer will in fact be held open for a set period of time,the person may do so by entering into a(n)________ contract with the offeror.

Under the common law,the elements of an offer are intent,definite and certain terms,and communication of the offer to a neutral third party.

A contract is ________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

A(n)________ contract is,in effect,not a contract at all.

An offeror can revoke the offer at any time unless the offeror says he or she will hold the offer open for a stated period of time.

A(n)________ contract is one that contains all the legal elements of a contract.

Once all of the terms of the contract have been fully performed,the contract is said to be ________.

Which of the following is a correct statement regarding the validity of various means of acceptance (assuming no means of communicating the acceptance is specified?)

As long as some of the duties under a contract have not yet been performed,the contract is considered ________.

Which of the following is a correct statement regarding quasi-contracts?

Prominent legal scholars,recruited by the American Law Institute,organized the principles of the common law of contracts into the Restatement of the Law,Contracts.This compilation has been revised and published as:

________ contracts arise not from words but from the conduct of the parties.

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Uslegal System and Alternative Dispute Resolution

Administrative Law

Constitutional Law

Criminal Law and Business

Tort Law

Real, Personal, and Intellectual Property

Consideration

Capacity and Legality

Reality of Assent

Contracts in Writing and Third-Party Contracts

Discharge and Remedies

Formation and Performance of Sales and Lease Contracts

Sales and Lease Contracts: Performance, Warranties, and Remedies

Negotiable Instruments: Negotiability and Transferability

Holder in Due Course, Liability, and Defenses

Secured Transactions and Bankruptcy

Agency and Liability to Third Parties

Forms of Business Organization

Corporations: Formation and Organization

Securities Regulation

Employment and Discrimination Law

Consumer Law

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