Question 1

Explain the mailbox rule.

Accepted Answer

Unless the offeror specifies a particula

Question 2

There must be some incentive or inducement for a person's promise or it is not binding. The legal mechanism for evaluating the existence of this incentive is "_____" which refers to the receipt of a legal benefit or the suffering of a legal detriment.

Accepted Answer

A)  collusion 
B)  promissory estoppel 
C)  consideration 
D)  reversion 
E)  novation 
A)  collusion 
B)  promissory estoppel 
C)  consideration 
D)  reversion 
E)  novation

Question 3

Which of the following involves an intentional misstatement of a material fact that induces one to rely justifiably to his or her injury?

Accepted Answer

A)  Duress 
B)  Misrepresentation 
C)  Undue influence 
D)  Mutual mistake 
E)  Fraud 
A)  Duress 
B)  Misrepresentation 
C)  Undue influence 
D)  Mutual mistake 
E)  Fraud

Question 4

According to the mailbox rule:

Accepted Answer

A)  a contract is formed when the offer is mailed. 
B)  a contract is formed when the offer is received. 
C)  a contract is formed when the acceptance is received. 
D)  a contract is formed when the acceptance is mailed. 
E)  a contract is formed when the offer is converted in a written document. 
A)  a contract is formed when the offer is mailed. 
B)  a contract is formed when the offer is received. 
C)  a contract is formed when the acceptance is received. 
D)  a contract is formed when the acceptance is mailed. 
E)  a contract is formed when the offer is converted in a written document.

Question 5

Josh's dog, Ginger, has run away so Josh places reward posters throughout the neighborhood offering $500 for anyone who brings Ginger home safely. Amanda, Josh's colleague sees Ginger and brings her back to Josh without ever seeing a poster. After returning the dog, Amanda then sees one of the reward posters and returns to claim the money. Which of the following is true of this situation?

Accepted Answer

A)  Amanda is not entitled to the money because the offer was not communicated to her. 
B)  Amanda is not entitled to the money because she is Josh's colleague and acted in good faith. 
C)  Amanda is entitled to the money because the poster constituted an offer and is effective for the entire neighborhood. 
D)  Amanda is entitled to the money since performance of the requested act in the poster indicates acceptance. 
E)  Amanda is not entitled to the money since she did not communicate the acceptance of offer in writing. 
A)  Amanda is not entitled to the money because the offer was not communicated to her. 
B)  Amanda is not entitled to the money because she is Josh's colleague and acted in good faith. 
C)  Amanda is entitled to the money because the poster constituted an offer and is effective for the entire neighborhood. 
D)  Amanda is entitled to the money since performance of the requested act in the poster indicates acceptance. 
E)  Amanda is not entitled to the money since she did not communicate the acceptance of offer in writing.

Question 6

Hume hired a security services agency to guard his warehouse. The arrangement of the security was such that Jim's house, located next to Hume's warehouse, was also protected. On one day, the security personnel don't show up, and Jim's house is burglarized. Jim files a lawsuit against the security services agency. Discuss the case.

Accepted Answer

Jim is an incidental beneficia

Question 7

Promises to make gifts are not binding because there is no bargained for exchange.

Accepted Answer

A) True 
 B)False

Question 8

Dustin, aged 17, purchased a car from Speed Auto Sales for $1,000. The following year, his father gifted him a brand new car on Dustin's 18th birthday. Dustin returned the car to Speed Auto Sales the next day, and demanded his money back. At the time of disaffirmance, Dustin was 18, the age at which he was considered an adult in his jurisdiction. Will this disaffirmance be enforceable in the court of law?

Accepted Answer

A)  No, since Dustin did not give Speed a signed revocation. 
B)  Yes, since Dustin disaffirmed during the year he reached his adulthood. 
C)  No, since the disaffirmance must be written when the price exceeds $500. 
D)  Yes, since the courts and laws always rule in the favor of minors. 
E)  No, since Dustin has reached adulthood and disaffirmance can be expressed only by a minor. 
A)  No, since Dustin did not give Speed a signed revocation. 
B)  Yes, since Dustin disaffirmed during the year he reached his adulthood. 
C)  No, since the disaffirmance must be written when the price exceeds $500. 
D)  Yes, since the courts and laws always rule in the favor of minors. 
E)  No, since Dustin has reached adulthood and disaffirmance can be expressed only by a minor.

Question 9

The courts enforce the concept of _____ to remedy situations of unjust enrichment.

Accepted Answer

A)  quasi-contracts 
B)  implied-in-law 
C)  divisible contracts 
D)  bilateral contracts 
E)  unilateral contracts 
A)  quasi-contracts 
B)  implied-in-law 
C)  divisible contracts 
D)  bilateral contracts 
E)  unilateral contracts

Question 10

A(n) _____ contract is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Accepted Answer

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

Question 11

Explain the doctrine of promissory estoppel.

Accepted Answer

An important exception to the rule requi

Question 12

Ajax Pvt. Ltd. made a promise to Garrett offering a job with an annual salary of $150,000, and at least two years employment. Since Garrett would have to move to New York for the new job, Ajax Pvt. Ltd. also offered to reimburse all moving expenses. Based on this promise, Garrett resigned from his $100,000 annual salary job at Dab Pvt. Ltd., San Francisco. However, once Garrett moved to New York, his employment with Ajax was terminated because the company found a candidate who was willing to work for a lesser salary. Which of the following is true of this situation?

Accepted Answer

A)  Garrett cannot sue Ajax since the promise was oral. 
B)  Garrett can sue Ajax under promissory estoppel. 
C)  Garrett cannot file a lawsuit since a promise of employment is always subject to market conditions. 
D)  Garrett can sue Ajax, but only for the moving expenses that Garrett can prove he incurred. 
E)  Garrett cannot sue Ajax since the reasons for termination will be accepted in court as legal detriment. 
A)  Garrett cannot sue Ajax since the promise was oral. 
B)  Garrett can sue Ajax under promissory estoppel. 
C)  Garrett cannot file a lawsuit since a promise of employment is always subject to market conditions. 
D)  Garrett can sue Ajax, but only for the moving expenses that Garrett can prove he incurred. 
E)  Garrett cannot sue Ajax since the reasons for termination will be accepted in court as legal detriment.

Question 13

Electronics, Inc., sells 250 radios on credit at $20 apiece to Radio Land Retail. Electronics then sells its rights under the contract to Manufacturers' Credit Co. When the payment becomes due, Manufacturers' Credit collects the $5,000 owed to Electronics by Radio Land. This transaction is controlled by the law of _____.

Accepted Answer

A)  negotiation 
B)  agreement 
C)  assignment 
D)  novation 
E)  representation 
A)  negotiation 
B)  agreement 
C)  assignment 
D)  novation 
E)  representation

Question 14

Jacob and Janice enter into an oral contract, stating that Janice will sell her house to Jacob. Jacob makes the part payment to Janice as per the contract. During the time that Janice is vacating the house, Jacob hires a contractor to build a fence around the backyard to ensure security. However, Janice revokes her offer saying that a third party is paying a higher price for the house, and her offer to Jacob was not in written form. Jacob, who has spent $5,000 on the fencing, decides to sue Janice. Analyze the case.

Accepted Answer

The doctrine of part performance creates

Question 15

An executed contract is one that is fully performed.

Accepted Answer

A) True 
 B)False

Question 16

What are the five essential elements of a valid contract?

Accepted Answer

The five essential elements of

Question 17

Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Accepted Answer

The statute of frauds applies

Question 18

Which statement is true concerning silence as a method of acceptance?

Accepted Answer

A)  An offeree's silence implies that the offree will make a counter offer. 
B)  Parties' prior course of dealing may allow silence as a valid acceptance. 
C)  If the offer states that silence means acceptance, then the offeree must respond or there will be a valid contract. 
D)  Silence alone can be acceptance and basis of a binding contract. 
E)  Silence leads to acceptance of an offer due to the mirror image rule. 
A)  An offeree's silence implies that the offree will make a counter offer. 
B)  Parties' prior course of dealing may allow silence as a valid acceptance. 
C)  If the offer states that silence means acceptance, then the offeree must respond or there will be a valid contract. 
D)  Silence alone can be acceptance and basis of a binding contract. 
E)  Silence leads to acceptance of an offer due to the mirror image rule.

Question 19

Miguel asks Alicia, an accountant, for her professional advice regarding his portfolio, Miguel is not obligated to pay Alicia since he did not express a promise to pay for her advice.

Accepted Answer

A) True 
 B)False

Question 20

Under the UCC, all contracts and contract offers must have consideration.

Accepted Answer

A) True 
 B)False

Explain the mailbox rule.

There must be some incentive or inducement for a person's promise or it is not binding. The legal mechanism for evaluating the existence of this incentive is "_____" which refers to the receipt of a legal benefit or the suffering of a legal detriment.

Which of the following involves an intentional misstatement of a material fact that induces one to rely justifiably to his or her injury?

According to the mailbox rule:

Promises to make gifts are not binding because there is no bargained for exchange.

The courts enforce the concept of _____ to remedy situations of unjust enrichment.

A(n) _____ contract is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Explain the doctrine of promissory estoppel.

An executed contract is one that is fully performed.

What are the five essential elements of a valid contract?

Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Which statement is true concerning silence as a method of acceptance?

Miguel asks Alicia, an accountant, for her professional advice regarding his portfolio, Miguel is not obligated to pay Alicia since he did not express a promise to pay for her advice.

Under the UCC, all contracts and contract offers must have consideration.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competition_Antitrust Laws

Financial and Securities Regulations

Privacy and Consumer Protection

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

Filters

Exam 8: Contract Formation

Explain the mailbox rule.

There must be some incentive or inducement for a person's promise or it is not binding. The legal mechanism for evaluating the existence of this incentive is "_____" which refers to the receipt of a legal benefit or the suffering of a legal detriment.

Which of the following involves an intentional misstatement of a material fact that induces one to rely justifiably to his or her injury?

According to the mailbox rule:

Promises to make gifts are not binding because there is no bargained for exchange.

The courts enforce the concept of _____ to remedy situations of unjust enrichment.

A(n) _____ contract is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Explain the doctrine of promissory estoppel.

An executed contract is one that is fully performed.

What are the five essential elements of a valid contract?

Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Which statement is true concerning silence as a method of acceptance?

Miguel asks Alicia, an accountant, for her professional advice regarding his portfolio, Miguel is not obligated to pay Alicia since he did not express a promise to pay for her advice.

Under the UCC, all contracts and contract offers must have consideration.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competition_Antitrust Laws

Financial and Securities Regulations

Privacy and Consumer Protection

Environmental Regulation and Resource Sustainability

Discrimination in Employment

Employment Laws

Labor-Management Relationship

Filters