Question 1

An option contract has to do with a contract that gives one of the parties a choice of consideration to accept.

Accepted Answer

A) True 
 B)False

Question 2

Hillary is a nerdy bookworm couch potato who rarely goes out of her home except to go to work as a deskbound CPA.She wears a sweater almost every day including during the summer and is always complaining about being cold.Edmund,a coworker,tells Hillary that he will give her $1M if she climbs Mt.Everest.Edmund doesn't believe that she'd even give the offer a second thought.Hillary,without saying anything to anyone,starts an intensive training program to whip herself into shape and six months later,during her vacation,in fact,climbs Mt.Everest.Upon returning to work,she presents Edmund a picture of herself on the summit of Mt.Everest and demands her $1M.Edmund tells her that they never had a contract so he owes her nothing and Hillary claims that the money is owed based on promissory estoppel.

Accepted Answer

A)  promissory estoppel only applies if Edmund was very rich because $1M is a lot of money 
B)  promissory estoppel applies whether Edmund was rich or not 
C)  promissory estoppel does not apply because Edmond had no reason to believe that Mary would rely on his promise 
D)  promissory estoppel does not apply because Mary must announce that she accepts his offer for it to create an obligation to pay 
A)  promissory estoppel only applies if Edmund was very rich because $1M is a lot of money 
B)  promissory estoppel applies whether Edmund was rich or not 
C)  promissory estoppel does not apply because Edmond had no reason to believe that Mary would rely on his promise 
D)  promissory estoppel does not apply because Mary must announce that she accepts his offer for it to create an obligation to pay

Question 3

After an offer is made,the offeror may revoke that offer at any time,even if the offeree has not been given a reasonable period of time to decide whether or not to accept.

Accepted Answer

A) True 
 B)False

Question 4

If the offer specifies no time limit in which to accept:

Accepted Answer

A)  the offeree has 10 days to accept. 
B)  the offeree has 30 days to accept. 
C)  the offeree has an unlimited time to accept as long as a revocation has not been made. 
D)  the offeree has a reasonable time to accept 
A)  the offeree has 10 days to accept. 
B)  the offeree has 30 days to accept. 
C)  the offeree has an unlimited time to accept as long as a revocation has not been made. 
D)  the offeree has a reasonable time to accept

Question 5

In Harley-Davidson Motor Co.,v.PowerSports,Inc.,the court permitted PowerSports to retain their Harley-Davidson franchise because their decision to become a publicly owned corporation had nothing to do with their commitment to sales and service so it was deemed not material to the negotiations so no fraud occurred.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is formed to remedy unjust enrichment?

Accepted Answer

A)  implied contracts. 
B)  contracts based on promissory estoppel. 
C)  express contracts. 
D)  quasi contracts 
A)  implied contracts. 
B)  contracts based on promissory estoppel. 
C)  express contracts. 
D)  quasi contracts

Question 7

Brandi orally tells landscaper Mike "If you trim my bush I'll pay you $50.00." Mike trims her bush.Which of the following is correct?

Accepted Answer

A)  this was a unilateral contract 
B)  this was a bilateral contract 
C)  this was an implied contract 
D)  this was a quasi contract 
A)  this was a unilateral contract 
B)  this was a bilateral contract 
C)  this was an implied contract 
D)  this was a quasi contract

Question 8

Jeff goes to a car dealership and the salesman tells him that the car he's looking at is a great car and an excellent value.The statements made by the salesman,if untrue,will not be adequate to create either an innocent misrepresentation or a fraudulent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 9

A professor tells a student that if she writes a 5,000 word paper on the evils of plagiarism by May 13th,he will pay the student $750.00.

Accepted Answer

A)  the offer is for a unilateral contract 
B)  if the student gives the paper to the professor on May 14th, the money is owed because the student came close and did get the paper done 
C)  this contract is only enforceable if it's in writing 
D)  this contract is only enforceable if the student verbally or in writing accepts the offer prior to beginning the paper 
A)  the offer is for a unilateral contract 
B)  if the student gives the paper to the professor on May 14th, the money is owed because the student came close and did get the paper done 
C)  this contract is only enforceable if it's in writing 
D)  this contract is only enforceable if the student verbally or in writing accepts the offer prior to beginning the paper

Question 10

The legal term for guilty knowledge that is an element of fraudulent misrepresentation is _______.

Accepted Answer

The answer of The legal term for guilty knowledge that...

Question 11

April is at work when a commercial painter's truck pulls up in front of her house.After checking the address on his assignment sheet the painter starts erecting ladders against April's house and starts unloading brushes,rollers and cans of paint.April has not contracted with this company and the company has made a mistake putting the wrong address on the assignment sheet the painter took the address off of.When April arrives home,the painter is just finishing and he presents her with a bill.Is she obligated to pay? Why or why not?

Accepted Answer

Under these circumstances April will hav

Question 12

An option contract refers to the choices that one has when entering into a contract.

Accepted Answer

A) True 
 B)False

Question 13

Duress must be based on a physical threat and not an economic one.

Accepted Answer

A) True 
 B)False

Question 14

Under a bilateral contract,there is no contract until the offeree performs the requested act.

Accepted Answer

A) True 
 B)False

Question 15

Applying the parole evidence rule:

Accepted Answer

A)  written contracts with ambiguous terms are automatically void and cannot be corrected. 
B)  oral agreements may be used to change a final written contract if the final written contract isn't exactly conforming to the pre-contract agreements. 
C)  written agreements may be used to change a final written contract if the final written contract isn't exactly conforming to the pre-contract agreements. 
D)  a written contract is the final expression of the party's agreement and may not be contradicted by oral or written agreements made prior to the writing 
A)  written contracts with ambiguous terms are automatically void and cannot be corrected. 
B)  oral agreements may be used to change a final written contract if the final written contract isn't exactly conforming to the pre-contract agreements. 
C)  written agreements may be used to change a final written contract if the final written contract isn't exactly conforming to the pre-contract agreements. 
D)  a written contract is the final expression of the party's agreement and may not be contradicted by oral or written agreements made prior to the writing

Question 16

Robert is about to graduate college 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.Robert owns a used car but he as never owned a new car so this will be his first.He decides to keep his used car because he had been promised a new car by his parents for his high school graduation and never got it.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 successfully sue because he did not rely to his detriment on the promise 
D)  Robert cannot successfully sue because the promise was not reasonable and would not support promissory estoppel 
A)  Robert can successfully sue based on promissory estoppel 
B)  Robert can successfully sue based on the promise of a gift 
C)  Robert cannot successfully sue because he did not rely to his detriment on the promise 
D)  Robert cannot successfully sue because the promise was not reasonable and would not support promissory estoppel

Question 17

Ike has orally agreed to paint Tina's portrait.The oral agreement is for the portrait to be completed in nine months.Even if the portrait actually takes thirteen months to complete,the agreement will be enforceable.

Accepted Answer

A) True 
 B)False

Question 18

Should an adult find out that they have entered into a contract with a minor,the adult may disaffirm the contract if they do so before the minor reaches the legal age.

Accepted Answer

A) True 
 B)False

Question 19

If Bill Gates goes into a car dealership and buys every car on the lot for sticker price,the dealer has suffered no contractual detriment because he's in the business of selling cars and got full price.

Accepted Answer

A) True 
 B)False

Question 20

Jon owns two cars.He says to Rachel,"I'll sell you either car for $8,000".This would be a valid offer.

Accepted Answer

A) True 
 B)False

Exam 6: Overview and Formation of Contracts

An option contract has to do with a contract that gives one of the parties a choice of consideration to accept.

After an offer is made,the offeror may revoke that offer at any time,even if the offeree has not been given a reasonable period of time to decide whether or not to accept.

If the offer specifies no time limit in which to accept:

Which of the following is formed to remedy unjust enrichment?

Brandi orally tells landscaper Mike "If you trim my bush I'll pay you $50.00." Mike trims her bush.Which of the following is correct?

Jeff goes to a car dealership and the salesman tells him that the car he's looking at is a great car and an excellent value.The statements made by the salesman,if untrue,will not be adequate to create either an innocent misrepresentation or a fraudulent misrepresentation.

A professor tells a student that if she writes a 5,000 word paper on the evils of plagiarism by May 13th,he will pay the student $750.00.

The legal term for guilty knowledge that is an element of fraudulent misrepresentation is _______.

An option contract refers to the choices that one has when entering into a contract.

Duress must be based on a physical threat and not an economic one.

Under a bilateral contract,there is no contract until the offeree performs the requested act.

Applying the parole evidence rule:

Ike has orally agreed to paint Tina's portrait.The oral agreement is for the portrait to be completed in nine months.Even if the portrait actually takes thirteen months to complete,the agreement will be enforceable.

Should an adult find out that they have entered into a contract with a minor,the adult may disaffirm the contract if they do so before the minor reaches the legal age.

If Bill Gates goes into a car dealership and buys every car on the lot for sticker price,the dealer has suffered no contractual detriment because he's in the business of selling cars and got full price.

Jon owns two cars.He says to Rachel,"I'll sell you either car for $8,000".This would be a valid offer.

Legal Foundations

Business and the Constitution

The American Judicial System,Jurisdiction,and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution Options

Business,Societal,and Ethical Contexts of Law

Contract Performance: Conditions, Breach, and Remedies

Contracts for the Sale of Goods

Torts and Product Liability

Agency and Employment Relationships

Employment Regulation and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Partnerships, limited Liability Companies, and Other Business Arrangements

Corporations

Regulation of Securities, corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

Filters

A professor tells a student that if she writes a 5,000 word paper on the evils of plagiarism by May 13^th,he will pay the student $750.00.