Question 1

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

Accepted Answer

A) Forty-eight hours 
B) Three business days 
C) Seven calendar days 
D) Thirty calendar days 
E) There is no set amount of time; instead,what constitutes a reasonable amount of time varies depending upon the subject matter of the offer. 
A) Forty-eight hours 
B) Three business days 
C) Seven calendar days 
D) Thirty calendar days 
E) There is no set amount of time; instead,what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Question 2

An offer made by one party and accepted by another party is called a(n)________.

Accepted Answer

A) legal object 
B) agreement 
C) coherence 
D) alliance 
E) concurrence 
A) legal object 
B) agreement 
C) coherence 
D) alliance 
E) concurrence

Question 3

Courts interpret contracts using a subjective standard.

Accepted Answer

A) True 
 B)False

Question 4

Explain the effect of auctions held with reserve and without reserve,and discuss what happens if nothing is said regarding whether an auction is being held with reserve or without reserve.

Accepted Answer

In an auction held with reserve,the sell

Question 5

Which of the following contracts are usually voidable?

Accepted Answer

A) Contracts entered into as a result of fraud. 
B) Contracts entered into as a result of duress. 
C) Contracts entered into as a result of undue influence. 
D) Contracts entered into as a result of fraud or duress,but not undue influence. 
E) Contracts entered into as a result of fraud,duress,or undue influence. 
A) Contracts entered into as a result of fraud. 
B) Contracts entered into as a result of duress. 
C) Contracts entered into as a result of undue influence. 
D) Contracts entered into as a result of fraud or duress,but not undue influence. 
E) Contracts entered into as a result of fraud,duress,or undue influence.

Question 6

Saturday Auction.Barry,an auctioneer,was holding an auction on a Saturday morning.At the beginning of the auction,Barry announced that the auction was being held without reserve.Helen,Mary,and Chris were all in attendance.Helen saw an old cash register with a stuck drawer that she thought would look great in her den.The auctioneer put the cash register up for sale,noting that the drawer was stuck and that no one really knew what was inside.Helen bought it for $20.At the same auction,Mary saw a great deal on a used table.She bid $20 on it.No one else bid anything.Barry announced that $20 was clearly insufficient for the table,that it was worth much more than that,and that he was taking it out of the auction.Chris started bidding on a diamond ring for his girlfriend.He bid $2,000.Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend,decided that he was not sure about marriage,and leaped up yelling,"I revoke." Barry,however,immediately yelled "Sold." When she got it home and broke into it,Helen discovered that the cash register actually contained $5,000.Unfortunately,Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune.Barry heard about what had happened and sued Helen for return of the $5,000.Mary sues Barry attempting to obtain possession of the table.Barry sues Chris attempting to enforce a contract for the sale of the engagement ring.In the lawsuit in which Barry sues Helen for return of the $5,000,which of the following is the most likely result?

Accepted Answer

A) Barry will win because when an auction is held without reserve,the auctioneer is entitled to repossess any item at will. 
B) Barry will lose,but only because he was not the actual seller.He was only selling at auction for someone else.The seller,however,would win in an action against Helen. 
C) Barry would win because Helen made an insufficient offer. 
D) Helen will win,but only if she can show that Barry had knowledge that cash was in the drawer before he sold it. 
E) Helen will win because the auction was without reserve and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck. 
A) Barry will win because when an auction is held without reserve,the auctioneer is entitled to repossess any item at will. 
B) Barry will lose,but only because he was not the actual seller.He was only selling at auction for someone else.The seller,however,would win in an action against Helen. 
C) Barry would win because Helen made an insufficient offer. 
D) Helen will win,but only if she can show that Barry had knowledge that cash was in the drawer before he sold it. 
E) Helen will win because the auction was without reserve and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck.

Question 7

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment,or even any mention of payment,you have an express contract for payment for his services.

Accepted Answer

A) True 
 B)False

Question 8

Identify and describe the four elements that are necessary for contract formation.

Accepted Answer

The four elements necessary for a contra

Question 9

What was the result in the Lucy v.Zehmer case (referenced in the textbook)involving whether allegations of joking regarding the sale of land prevented the formation of a contract?

Accepted Answer

A) The court ruled that the contract would not be enforced because one of the parties was subjectively joking. 
B) The court ruled that the contract would not be enforced because one of the parties was joking and a reasonable person should have known that. 
C) The court ruled that the contract would not be enforced because the parties had been consuming alcohol. 
D) The court ruled that the agreement would be enforced because of the outward manifestations of agreement. 
E) The court ruled that the contract would be enforced because of what the parties said,regardless of whether an objective person would have thought joking was involved. 
A) The court ruled that the contract would not be enforced because one of the parties was subjectively joking. 
B) The court ruled that the contract would not be enforced because one of the parties was joking and a reasonable person should have known that. 
C) The court ruled that the contract would not be enforced because the parties had been consuming alcohol. 
D) The court ruled that the agreement would be enforced because of the outward manifestations of agreement. 
E) The court ruled that the contract would be enforced because of what the parties said,regardless of whether an objective person would have thought joking was involved.

Question 10

If the subject matter of an offer is destroyed,the offer ________.

Accepted Answer

A) immediately terminates 
B) applies to other similar property owned by the offeror 
C) becomes the subject of an option contract 
D) is voidable 
E) is still subject to acceptance by the offeree unless the offeror revokes the offer before the offeree accepts it 
A) immediately terminates 
B) applies to other similar property owned by the offeror 
C) becomes the subject of an option contract 
D) is voidable 
E) is still subject to acceptance by the offeree unless the offeror revokes the offer before the offeree accepts it

Question 11

Which of the following is a source of law that has become more important with increasing globalization?

Accepted Answer

A) The International Contracts Code 
B) The International Commercial Code 
C) The Uniform Contracts Code 
D) The Convention on Contracts for the International Sale of Goods 
E) The Convention for the Global Standardization of Commercial Trade and Contract Law 
A) The International Contracts Code 
B) The International Commercial Code 
C) The Uniform Contracts Code 
D) The Convention on Contracts for the International Sale of Goods 
E) The Convention for the Global Standardization of Commercial Trade and Contract Law

Question 12

Define and give an example of an express contract and an implied contract.

Accepted Answer

Express contracts have all their terms c

Question 13

Which of the following are the two primary sources of contract law?

Accepted Answer

A) Case law and the Restatement (Second)of Contracts. 
B) Case law and the Uniform Commercial Code (UC
C) . 
C) The Uniform Commercial Code (UC
C) and the Convention on Contracts for the International Sales of Goods (CISG). 
D) Case law and the Convention on Contracts for the International Sales of Goods (CISG). 
E) The Convention on Contracts for the International Sales of Goods (CISG)and the Restatement (Second)of Contracts. 
A) Case law and the Restatement (Second)of Contracts. 
B) Case law and the Uniform Commercial Code (UC
C) . 
C) The Uniform Commercial Code (UC
C) and the Convention on Contracts for the International Sales of Goods (CISG). 
D) Case law and the Convention on Contracts for the International Sales of Goods (CISG). 
E) The Convention on Contracts for the International Sales of Goods (CISG)and the Restatement (Second)of Contracts.

Question 14

Inez,wishing to sell a used business law book,calls Janice and tells her that if she does not hear from her within twenty-four hours,she will assume that Janice wishes to purchase the book for $50.After the expiration of twenty-four hours,which of the following is correct regarding the status of the proposed book sale?

Accepted Answer

A) There is no contract because silence,as a general rule,cannot be used to form a contract. 
B) There is no contract because the offer was not made in person. 
C) There is no contract because the offer was not made in writing. 
D) Janice can avoid the legal recognition of a contract,but only if she can prove by a preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
E) Janice can avoid the legal recognition of a contract,but only if she can prove beyond reasonable doubt that she did not hear about the offer before the stated expiration time. 
A) There is no contract because silence,as a general rule,cannot be used to form a contract. 
B) There is no contract because the offer was not made in person. 
C) There is no contract because the offer was not made in writing. 
D) Janice can avoid the legal recognition of a contract,but only if she can prove by a preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
E) Janice can avoid the legal recognition of a contract,but only if she can prove beyond reasonable doubt that she did not hear about the offer before the stated expiration time.

Question 15

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 correct regarding Brenda's statement that she was not bound on any contract?

Accepted Answer

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

Question 16

All contracts can be categorized as either ________ or ________ contracts.

Accepted Answer

A) unilateral; equilateral 
B) equilateral; trilateral 
C) bilateral; trilateral 
D) unilateral; bilateral 
E) bilateral; equilateral 
A) unilateral; equilateral 
B) equilateral; trilateral 
C) bilateral; trilateral 
D) unilateral; bilateral 
E) bilateral; equilateral

Question 17

When a bilateral contract is being formed under the common law,________ applies to the acceptance.

Accepted Answer

A) the doctrine of mutual exclusivity 
B) the equal dignities rule 
C) the mirror-image rule 
D) a unilateral promise 
E) an invitation to negotiate 
A) the doctrine of mutual exclusivity 
B) the equal dignities rule 
C) the mirror-image rule 
D) a unilateral promise 
E) an invitation to negotiate

Question 18

Which of the following provides that an acceptance is valid when it is placed in the mailbox?

Accepted Answer

A) The substantial performance doctrine. 
B) The contract integrity rule. 
C) The mirror-image rule. 
D) The mailbox rule. 
E) The contract legality rule. 
A) The substantial performance doctrine. 
B) The contract integrity rule. 
C) The mirror-image rule. 
D) The mailbox rule. 
E) The contract legality rule.

Question 19

What was the result in the Lefkowitz v.Great Minneapolis Surplus Store Inc.case (referenced in the textbook)involving an advertisement for the sale of fur coats?

Accepted Answer

A) The court ruled that the advertisement was not an offer because it involved a luxury good. 
B) The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it. 
C) The court ruled that the advertisement was not an offer because it was a ridiculously low offer that the plaintiff should have known was not to be taken seriously. 
D) The court ruled that the advertisement was not an offer because advertisements are never offers; instead,they are merely invitations for customers to make an offer. 
E) The court ruled that the advertisement was an offer and that the plaintiff properly accepted it. 
A) The court ruled that the advertisement was not an offer because it involved a luxury good. 
B) The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it. 
C) The court ruled that the advertisement was not an offer because it was a ridiculously low offer that the plaintiff should have known was not to be taken seriously. 
D) The court ruled that the advertisement was not an offer because advertisements are never offers; instead,they are merely invitations for customers to make an offer. 
E) The court ruled that the advertisement was an offer and that the plaintiff properly accepted it.

Question 20

________ contracts have all of their terms clearly set forth in either written or spoken words.

Accepted Answer

A) Implied 
B) Express 
C) Quasi- 
D) Illusory 
E) Implied-in-law 
A) Implied 
B) Express 
C) Quasi- 
D) Illusory 
E) Implied-in-law

Exam 9: Introduction to Contracts and Agreement

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

An offer made by one party and accepted by another party is called a(n)________.

Courts interpret contracts using a subjective standard.

Explain the effect of auctions held with reserve and without reserve,and discuss what happens if nothing is said regarding whether an auction is being held with reserve or without reserve.

Which of the following contracts are usually voidable?

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment,or even any mention of payment,you have an express contract for payment for his services.

Identify and describe the four elements that are necessary for contract formation.

What was the result in the Lucy v.Zehmer case (referenced in the textbook)involving whether allegations of joking regarding the sale of land prevented the formation of a contract?

If the subject matter of an offer is destroyed,the offer ________.

Which of the following is a source of law that has become more important with increasing globalization?

Define and give an example of an express contract and an implied contract.

Which of the following are the two primary sources of contract law?

All contracts can be categorized as either ________ or ________ contracts.

When a bilateral contract is being formed under the common law,________ applies to the acceptance.

Which of the following provides that an acceptance is valid when it is placed in the mailbox?

What was the result in the Lefkowitz v.Great Minneapolis Surplus Store Inc.case (referenced in the textbook)involving an advertisement for the sale of fur coats?

________ contracts have all of their terms clearly set forth in either written or spoken words.

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

Filters

All contracts can be categorized as either or contracts.