Question 1

Which of the following modifies the mirror-image rule?

Accepted Answer

A) The Uniform Contracts Code. 
B) The Uniform Commercial Code. 
C) The Restatement of Contracts,Second. 
D) The International Business Code. 
E) The International Commercial Code. 
A) The Uniform Contracts Code. 
B) The Uniform Commercial Code. 
C) The Restatement of Contracts,Second. 
D) The International Business Code. 
E) The International Commercial Code.

Question 2

A bilateral contract is commonly defined as a promise in exchange for an act.

Accepted Answer

A) True 
 B)False

Question 3

The ________ terms of an offer and a resulting contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.

Accepted Answer

A) implied 
B) implied-in-law 
C) material 
D) equitable 
E) illusory 
A) implied 
B) implied-in-law 
C) material 
D) equitable 
E) illusory

Question 4

Which of the following refers to the right of an offeror to revoke his offer,even if the offeror says he will hold the offer open for a stated period of time?

Accepted Answer

A) The offeror is the "originator of his offer." 
B) The offeror is the "master of his offer." 
C) The offeror is the "proponent of his offer." 
D) The offeror is the "adjudicator of his offer." 
E) The offeror is the "arbiter of his offer." 
A) The offeror is the "originator of his offer." 
B) The offeror is the "master of his offer." 
C) The offeror is the "proponent of his offer." 
D) The offeror is the "adjudicator of his offer." 
E) The offeror is the "arbiter of his offer."

Question 5

In 1952,the United States Congress enacted as federal law the Uniform Commercial Code (UCC).

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) commercial bond 
B) letter of credit 
C) letter of acknowledgement 
D) negotiated credit instrument 
E) recognizance 
A) commercial bond 
B) letter of credit 
C) letter of acknowledgement 
D) negotiated credit instrument 
E) recognizance

Question 7

How can an offer terminate?

Accepted Answer

A) Only through the offeror's revocation of the offer. 
B) Only through the offeror's revocation of the offer,the offeree's rejection of the offer,or the offeree's counteroffer. 
C) Through the offeror's revocation of the offer,the offeree's rejection of the offer,or destruction of the subject matter of the offer. 
D) Through the offeror's revocation of the offer,but not before the offer is held open for five days. 
E) Through the offeror's revocation of the offer,but not before the offer is held open for seven days. 
A) Only through the offeror's revocation of the offer. 
B) Only through the offeror's revocation of the offer,the offeree's rejection of the offer,or the offeree's counteroffer. 
C) Through the offeror's revocation of the offer,the offeree's rejection of the offer,or destruction of the subject matter of the offer. 
D) Through the offeror's revocation of the offer,but not before the offer is held open for five days. 
E) Through the offeror's revocation of the offer,but not before the offer is held open for seven days.

Question 8

The Restatement of the Law Second,Contracts is not actually the law itself,so judges rarely cite it in cases since it is not an authoritative statement of what the law is.

Accepted Answer

A) True 
 B)False

Question 9

Which element of a contract requires that the contract not be either illegal or against public policy?

Accepted Answer

A) Consideration 
B) Contractual capacity 
C) Legal object 
D) Agreement 
E) Ethical litmus test 
A) Consideration 
B) Contractual capacity 
C) Legal object 
D) Agreement 
E) Ethical litmus test

Question 10

Consideration is defined as ________.

Accepted Answer

A) being cordial in the negotiation of contracts 
B) refraining from unethical behavior in the negotiation of contracts 
C) being both cordial and refraining from unethical behavior in the negotiation of contracts 
D) a bargained-for exchange 
E) a contract negotiated in person rather than 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 both cordial and refraining from unethical behavior in the negotiation of contracts 
D) a bargained-for exchange 
E) a contract negotiated in person rather than by telephone or e-mail

Question 11

Which of the following describes a contract as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty"?

Accepted Answer

A) The Restatement (Second)of Contracts 
B) The Uniform Contracts Code 
C) The United States Constitution 
D) The International Commercial Code 
E) The Restatement of Torts 
A) The Restatement (Second)of Contracts 
B) The Uniform Contracts Code 
C) The United States Constitution 
D) The International Commercial Code 
E) The Restatement of Torts

Question 12

The term ________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

Accepted Answer

A) implied-in-fact 
B) implied-in-law 
C) under wax 
D) under seal 
E) in the King's hand 
A) implied-in-fact 
B) implied-in-law 
C) under wax 
D) under seal 
E) in the King's hand

Question 13

If an acceptance is received after a rejection is received,the acceptance is not valid.

Accepted Answer

A) True 
 B)False

Question 14

An offeror is the party making an offer and the offeree is the party receiving the offer.

Accepted Answer

A) True 
 B)False

Question 15

Wrong Deck.Penny hires Jackson to paint the back deck on her house.She agrees to pay him $200 for the job and he accepts,sight unseen.They enter into the agreement on Tuesday,and he is to paint the deck on Saturday.When Jackson arrives,neither Penny nor her neighbor is at home.He mistakenly paints the neighbor's deck.Penny calls him the next day and asks him why he did not paint her deck.He informs her that he did paint the deck.It is then realized that he mistakenly painted the neighbor's deck.Penny tells him not to worry because the neighbor will be required to pay him.Jackson says that if the neighbor does not pay,he expects all of his funds from Penny.Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?

Accepted Answer

A) She is correct.The neighbor will be required to pay Jackson under a theory of quasi-contract. 
B) She is correct.The neighbor will be required to pay Jackson based upon an implied-in-fact contract. 
C) She is correct.The neighbor will be required to pay Jackson based upon an implied-in-law contract. 
D) She is correct.The neighbor will be required to pay Jackson based upon an express contract. 
E) She is incorrect.The neighbor will not be required to pay Jackson. 
A) She is correct.The neighbor will be required to pay Jackson under a theory of quasi-contract. 
B) She is correct.The neighbor will be required to pay Jackson based upon an implied-in-fact contract. 
C) She is correct.The neighbor will be required to pay Jackson based upon an implied-in-law contract. 
D) She is correct.The neighbor will be required to pay Jackson based upon an express contract. 
E) She is incorrect.The neighbor will not be required to pay Jackson.

Question 16

The mailbox rule provides that an acceptance is valid when it is received by the offeror.

Accepted Answer

A) True 
 B)False

Question 17

In an auction ________,the seller is treated as making an offer to accept the highest bid.

Accepted Answer

A) for the sale of real estate 
B) for the sale of personal property 
C) without reserve 
D) with reserve 
E) per se 
A) for the sale of real estate 
B) for the sale of personal property 
C) without reserve 
D) with reserve 
E) per se

Question 18

Define a bilateral contract and a unilateral contract,and give an example of each.

Accepted Answer

A bilateral contract is commonly defined

Question 19

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

Accepted Answer

A) Those over the age of majority and those suffering from a mental illness. 
B) People suffering from physical illness and intoxicated persons. 
C) Intoxicated persons and those over the age of majority. 
D) Those under the age of 21 and those over the age of 70. 
E) People under the age of majority,people suffering from mental illness,and intoxicated persons. 
A) Those over the age of majority and those suffering from a mental illness. 
B) People suffering from physical illness and intoxicated persons. 
C) Intoxicated persons and those over the age of majority. 
D) Those under the age of 21 and those over the age of 70. 
E) People under the age of majority,people suffering from mental illness,and intoxicated persons.

Exam 9: Introduction to Contracts and Agreement

Which of the following modifies the mirror-image rule?

A bilateral contract is commonly defined as a promise in exchange for an act.

The ________ terms of an offer and a resulting contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.

Which of the following refers to the right of an offeror to revoke his offer,even if the offeror says he will hold the offer open for a stated period of time?

In 1952,the United States Congress enacted as federal law the Uniform Commercial Code (UCC).

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

How can an offer terminate?

The Restatement of the Law Second,Contracts is not actually the law itself,so judges rarely cite it in cases since it is not an authoritative statement of what the law is.

Which element of a contract requires that the contract not be either illegal or against public policy?

Consideration is defined as ________.

Which of the following describes a contract as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty"?

The term ________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

If an acceptance is received after a rejection is received,the acceptance is not valid.

An offeror is the party making an offer and the offeree is the party receiving the offer.

The mailbox rule provides that an acceptance is valid when it is received by the offeror.

In an auction ________,the seller is treated as making an offer to accept the highest bid.

Define a bilateral contract and a unilateral contract,and give an example of each.

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

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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