Question 1

What is a covenant not to compete and under what conditions are they valid?

Accepted Answer

A covenant not to compete is an agreemen

Question 2

Aria phones Jessica and asks if she can borrow one of her dresses for an office party that weekend. Jessica agrees to this. However, when Aria goes to pick up the dress, Jessica refuses to give it to her. Which of the following statements is true of this situation?

Accepted Answer

A)  Jessica has committed a breach of contract. 
B)  A bargained-for exchange has not occurred, so Jessica does not have to loan Aria the dress. 
C)  Jessica has promised Aria something of value, so she must loan her the dress. 
D)  A bargained-for exchange has occurred, so Jessica must loan Aria the dress. 
E)  Jessica has given a valid consideration, making the agreement between her and Aria a binding contract. 
A)  Jessica has committed a breach of contract. 
B)  A bargained-for exchange has not occurred, so Jessica does not have to loan Aria the dress. 
C)  Jessica has promised Aria something of value, so she must loan her the dress. 
D)  A bargained-for exchange has occurred, so Jessica must loan Aria the dress. 
E)  Jessica has given a valid consideration, making the agreement between her and Aria a binding contract.

Question 3

Kevin has been offered the position of vice-president by the Earnest Group Pvt. Ltd. at their head office in Washington
D.C. Earnest Group has also offered to provide Kevin and his family with a house, and an annual salary of $100,000. Kevin replied stating that he would accept the offer if the company would pay him an annual salary of $150,000, and relocation expenses. Analyze the agreements between the parties.
Kevin and Earnest Group have not created a contract yet. Kevin has not accepted the offer but has made a counteroffer when he asked Earnest an annual salary of $150,000 and relocation expenses. Hence, Earnest's original offer is now terminated. For a contract to exist, the offeree has to express acceptance. If Earnest accepts Kevin's counteroffer, the contract would be valid.

Accepted Answer

Kevin and Earnest Group have not created

Question 4

Which of the following terms refers to force or threat of force?

Accepted Answer

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

Question 5

Vanessa has assigned Leslie her rights to collect payments from Laura. Later, Vanessa assigned the same rights to collect her payments from Laura to Danielle. Discuss the legality of the case, and which assignee can claim rights to payments from Laura.

Accepted Answer

A dishonest or careless assignor may ass

Question 6

Juan offers to sell his cycle to Charles for $1000. Charles agrees saying, "I will pay you $1000, if you give me an extra tire with the cycle." This is an example, a binding contract is created between Juan and Charles as a result of the mirror image rule.

Accepted Answer

A) True 
 B)False

Question 7

If an assignor assigns the same rights to two different assignees:

Accepted Answer

A)  the assignee who first received the assignment has priority in receiving payment from the obligor. 
B)  the assignee who first notifies the obligor of the assignment has priority in receiving payment from the obligor. 
C)  the obligor must pay both assignees equal amounts but no more than what would have been paid had there only been one assignment. 
D)  the assignment becomes void and the original contract remains in force. 
E)  the original contract and the assignments, thereafter, will be declared void since assigning the same rights to two assignees is illegal. 
A)  the assignee who first received the assignment has priority in receiving payment from the obligor. 
B)  the assignee who first notifies the obligor of the assignment has priority in receiving payment from the obligor. 
C)  the obligor must pay both assignees equal amounts but no more than what would have been paid had there only been one assignment. 
D)  the assignment becomes void and the original contract remains in force. 
E)  the original contract and the assignments, thereafter, will be declared void since assigning the same rights to two assignees is illegal.

Question 8

Robert is about to graduate from his university and his parents tell him that because he is the first member of the family to graduate college, they want to buy him a new but inexpensive car. They have the money to buy the car and Robert is excited to get his gift. On graduation day, his parents tell him that they have decided to use the car money for a vacation and there will be no car.

Accepted Answer

A)  Robert can successfully sue based on promissory estoppel. 
B)  Robert can successfully sue based on the promise of a gift. 
C)  Robert cannot sue because the promise was not reasonable and would not support promissory estoppel. 
D)  Robert cannot sue because he did not suffer any legal detriment in the receipt of the promise. 
E)  Robert can sue since the promise is his legal benefit and he suffered legal detriments. 
A)  Robert can successfully sue based on promissory estoppel. 
B)  Robert can successfully sue based on the promise of a gift. 
C)  Robert cannot sue because the promise was not reasonable and would not support promissory estoppel. 
D)  Robert cannot sue because he did not suffer any legal detriment in the receipt of the promise. 
E)  Robert can sue since the promise is his legal benefit and he suffered legal detriments.

Question 9

In case an offeror withdraws his/her offer, it is called _____.

Accepted Answer

A)  rejection 
B)  reversion 
C)  novation 
D)  revocation 
E)  triangulation 
A)  rejection 
B)  reversion 
C)  novation 
D)  revocation 
E)  triangulation

Question 10

According to the UCC, a contract for the sale of goods can be valid even when the acceptance proposes new or different nonquantity terms.

Accepted Answer

A) True 
 B)False

Question 11

Without permission, a duty that involves skill, character, or training cannot be delegated. Explain why.

Accepted Answer

A duty requiring skill and expertise is

Question 12

Brandie is facing financial difficulties. Warren wants to help Brandie and tells her that he will pay her $1,000. But afterwards Warren refuses to pay the promised money to Brandie. Which of the following statements is correct?

Accepted Answer

A)  Brandie is entitled to the payment because a promise is made and consideration has nothing to do with the agreement. 
B)  Warren need not pay Brandie because Brandie did not promise anything in return. 
C)  Warren must pay the money to Brandie because by promising her the money he has entered into an implied-in-fact contract. 
D)  Warren does not have to pay because of the mirror image rule. 
E)  Warren must pay the money to Brandie because by promising her the money he has entered into an executory contract. 
A)  Brandie is entitled to the payment because a promise is made and consideration has nothing to do with the agreement. 
B)  Warren need not pay Brandie because Brandie did not promise anything in return. 
C)  Warren must pay the money to Brandie because by promising her the money he has entered into an implied-in-fact contract. 
D)  Warren does not have to pay because of the mirror image rule. 
E)  Warren must pay the money to Brandie because by promising her the money he has entered into an executory contract.

Question 13

Discuss how undue influence creates voidable contracts.

Accepted Answer

Undue influence occurs when one is taken

Question 14

Madison promises Grace $10 if Grace will pick-up her dry cleaning for her. This is an example of a _____ contract.

Accepted Answer

A)  bilateral 
B)  unilateral 
C)  voidable 
D)  void 
E)  unenforceable 
A)  bilateral 
B)  unilateral 
C)  voidable 
D)  void 
E)  unenforceable

Question 15

Hailey and Ellen met with an auto accident, as a result of Ellen's over speeding. Hailey has suffered injuries, and due to an aftershock and trauma, 'cannot remember' what caused the accident. Ellen, who has suffered injuries herself, takes advantage of the situation and convinces Hailey that the accident was no one's fault. They sign a contract agreeing that neither will sue the other for damages. Analyze the case if the contract is challenged in court.

Accepted Answer

The court is most likely to judge that H

Question 16

In contracts that are not between merchants selling goods, a promise to keep an offer open for a certain time period must be supported by the offeree's consideration. Such an agreement to not revoke an offer is called a(n) _____.

Accepted Answer

A)  firm offer 
B)  option 
C)  promissory estoppel 
D)  novation 
E)  assignment 
A)  firm offer 
B)  option 
C)  promissory estoppel 
D)  novation 
E)  assignment

Question 17

Stanley offers Rachel $60 to take care of his dog when he is traveling. Rachel accepts Stanley's offer, but delegates the duty to her neighbor, Ashley. In this assignment, Rachel is the _____.

Accepted Answer

A)  assignee 
B)  obligee 
C)  obligor 
D)  beneficiary 
E)  assignor 
A)  assignee 
B)  obligee 
C)  obligor 
D)  beneficiary 
E)  assignor

Question 18

Victor Enterprise Inc. writes a letter dated August 1 to Hallway Stores, offering to sell table lamps to Hallway Stores at $80 each for the next one month. In mid August, Victor Enterprises receives an offer from Shine Retailers to purchase the table lamps at a price of $85 each. Can Victor withdraw its offer to Hallway Stores?

Accepted Answer

A)  Yes, as this is only an option. 
B)  No, since the doctrine of promissory estoppel is applicable. 
C)  Yes, the offer was simply an invitation to negotiate. 
D)  No, as this is a firm offer. 
E)  Yes, the offer may be withdrawn since it lacks consideration. 
A)  Yes, as this is only an option. 
B)  No, since the doctrine of promissory estoppel is applicable. 
C)  Yes, the offer was simply an invitation to negotiate. 
D)  No, as this is a firm offer. 
E)  Yes, the offer may be withdrawn since it lacks consideration.

Question 19

Shane wants to sell his car. He accepts Layla's offer and sells the car at $15,000. Layla is the offeree.

Accepted Answer

A) True 
 B)False

Question 20

An _____ contract is one that is partially or completely unperformed.

Accepted Answer

A)  executed 
B)  executory 
C)  express 
D)  exculpatory 
E)  unenforceable 
A)  executed 
B)  executory 
C)  express 
D)  exculpatory 
E)  unenforceable

What is a covenant not to compete and under what conditions are they valid?

Aria phones Jessica and asks if she can borrow one of her dresses for an office party that weekend. Jessica agrees to this. However, when Aria goes to pick up the dress, Jessica refuses to give it to her. Which of the following statements is true of this situation?

Which of the following terms refers to force or threat of force?

Vanessa has assigned Leslie her rights to collect payments from Laura. Later, Vanessa assigned the same rights to collect her payments from Laura to Danielle. Discuss the legality of the case, and which assignee can claim rights to payments from Laura.

Juan offers to sell his cycle to Charles for $1000. Charles agrees saying, "I will pay you $1000, if you give me an extra tire with the cycle." This is an example, a binding contract is created between Juan and Charles as a result of the mirror image rule.

If an assignor assigns the same rights to two different assignees:

In case an offeror withdraws his/her offer, it is called _____.

According to the UCC, a contract for the sale of goods can be valid even when the acceptance proposes new or different nonquantity terms.

Without permission, a duty that involves skill, character, or training cannot be delegated. Explain why.

Brandie is facing financial difficulties. Warren wants to help Brandie and tells her that he will pay her $1,000. But afterwards Warren refuses to pay the promised money to Brandie. Which of the following statements is correct?

Discuss how undue influence creates voidable contracts.

Madison promises Grace $10 if Grace will pick-up her dry cleaning for her. This is an example of a _____ contract.

In contracts that are not between merchants selling goods, a promise to keep an offer open for a certain time period must be supported by the offeree's consideration. Such an agreement to not revoke an offer is called a(n) _____.

Stanley offers Rachel $60 to take care of his dog when he is traveling. Rachel accepts Stanley's offer, but delegates the duty to her neighbor, Ashley. In this assignment, Rachel is the _____.

Shane wants to sell his car. He accepts Layla's offer and sells the car at $15,000. Layla is the offeree.

An _____ contract is one that is partially or completely unperformed.

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

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Exam 8: Contract Formation

What is a covenant not to compete and under what conditions are they valid?

Aria phones Jessica and asks if she can borrow one of her dresses for an office party that weekend. Jessica agrees to this. However, when Aria goes to pick up the dress, Jessica refuses to give it to her. Which of the following statements is true of this situation?

Which of the following terms refers to force or threat of force?

Vanessa has assigned Leslie her rights to collect payments from Laura. Later, Vanessa assigned the same rights to collect her payments from Laura to Danielle. Discuss the legality of the case, and which assignee can claim rights to payments from Laura.

Juan offers to sell his cycle to Charles for $1000. Charles agrees saying, "I will pay you $1000, if you give me an extra tire with the cycle." This is an example, a binding contract is created between Juan and Charles as a result of the mirror image rule.

If an assignor assigns the same rights to two different assignees:

In case an offeror withdraws his/her offer, it is called _____.

According to the UCC, a contract for the sale of goods can be valid even when the acceptance proposes new or different nonquantity terms.

Without permission, a duty that involves skill, character, or training cannot be delegated. Explain why.

Brandie is facing financial difficulties. Warren wants to help Brandie and tells her that he will pay her $1,000. But afterwards Warren refuses to pay the promised money to Brandie. Which of the following statements is correct?

Discuss how undue influence creates voidable contracts.

Madison promises Grace $10 if Grace will pick-up her dry cleaning for her. This is an example of a _____ contract.

In contracts that are not between merchants selling goods, a promise to keep an offer open for a certain time period must be supported by the offeree's consideration. Such an agreement to not revoke an offer is called a(n) _____.

Stanley offers Rachel $60 to take care of his dog when he is traveling. Rachel accepts Stanley's offer, but delegates the duty to her neighbor, Ashley. In this assignment, Rachel is the _____.

Shane wants to sell his car. He accepts Layla's offer and sells the car at $15,000. Layla is the offeree.

An _____ contract is one that is partially or completely unperformed.

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