Question 1

Which of the following is what a person will receive in return for performing a contractual obligation?

Accepted Answer

A)  Consideration 
B)  Acknowledgement 
C)  Approval 
D)  Accord 
E)  Accession 
A)  Consideration 
B)  Acknowledgement 
C)  Approval 
D)  Accord 
E)  Accession

Question 2

Which of the following occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise?

Accepted Answer

A)  Promissory agreement. 
B)  Promissory estoppel. 
C)  Quasi estoppel. 
D)  Quasi agreement. 
E)  Promissory performance. 
A)  Promissory agreement. 
B)  Promissory estoppel. 
C)  Quasi estoppel. 
D)  Quasi agreement. 
E)  Promissory performance.

Question 3

In a unilateral contract, the consideration for a promise is _____________.

Accepted Answer

A)  An Act. 
B)  A return promise. 
C)  An acknowledgement. 
D)  A Consideration. 
E)  An agreement. 
A)  An Act. 
B)  A return promise. 
C)  An acknowledgement. 
D)  A Consideration. 
E)  An agreement.

Question 4

An illusory promise is not consideration.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of an output contract under the UCC?

Accepted Answer

A)  It is valid so long as the output is made in good faith. 
B)  It is valid so long as there is a writing setting forth the terms signed by the offeree. 
C)  It is valid so long as there is a writing setting forth the terms signed by the offeror and the offeree. 
D)  It is valid so long as more than nominal consideration is provided. 
E)  It is not valid because of the lack of consideration. 
A)  It is valid so long as the output is made in good faith. 
B)  It is valid so long as there is a writing setting forth the terms signed by the offeree. 
C)  It is valid so long as there is a writing setting forth the terms signed by the offeror and the offeree. 
D)  It is valid so long as more than nominal consideration is provided. 
E)  It is not valid because of the lack of consideration.

Question 6

Which of the following consists of something of value given to another party in exchange for something else of value?

Accepted Answer

A)  Consideration. 
B)  Acknowledgement. 
C)  Approval. 
D)  Discharge. 
E)  Accession. 
A)  Consideration. 
B)  Acknowledgement. 
C)  Approval. 
D)  Discharge. 
E)  Accession.

Question 7

What did the court in the case in the text, Labriola v. Pollard Group, Inc., rule regarding whether the noncompete agreement at issue in the case was enforceable?

Accepted Answer

A)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of increased wages. 
B)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of a fixed term of employment. 
C)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of a promotion. 
D)  The court ruled that the noncompete agreement was unenforceable because the employee did not have sufficient education to understand it. 
E)  The court ruled that the noncompete agreement was not enforceable because of a lack of consideration. 
A)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of increased wages. 
B)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of a fixed term of employment. 
C)  The court ruled that the noncompete agreement was enforceable because the employee received independent consideration for it in the form of a promotion. 
D)  The court ruled that the noncompete agreement was unenforceable because the employee did not have sufficient education to understand it. 
E)  The court ruled that the noncompete agreement was not enforceable because of a lack of consideration.

Question 8

A promise to do something that you are already obligated to do is generally valid consideration.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an exception to the rule requiring consideration?

Accepted Answer

A)  Promissory agreement. 
B)  Promissory estoppel. 
C)  Quasi estoppel. 
D)  Quasi agreement. 
E)  Promissory performance. 
A)  Promissory agreement. 
B)  Promissory estoppel. 
C)  Quasi estoppel. 
D)  Quasi agreement. 
E)  Promissory performance.

Question 10

Courtney, who does not keep up with the price of current technology, agrees to buy a used computer from Jake for $2,500. Later, Brice tells Courtney that she made a really bad deal and that she could get an even better new computer for no more than $1,000. Courtney tells Jake that she is not giving him any money because he was not fair with her. Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?

Accepted Answer

A)  Brice will win only if he can establish that Brice is wrong and that the deal was actually reasonable. 
B)  Brice will win because the court would not weigh whether a good bargain was made. 
C)  Courtney will win if she can establish that she paid at least 75% more than the computer was actually worth. 
D)  Courtney will win if she can establish that she paid at least 50% more than the computer was actually worth. 
E)  Courtney will win if she can establish that she made a bad deal and that truly she was not aware of current prices of computers. 
A)  Brice will win only if he can establish that Brice is wrong and that the deal was actually reasonable. 
B)  Brice will win because the court would not weigh whether a good bargain was made. 
C)  Courtney will win if she can establish that she paid at least 75% more than the computer was actually worth. 
D)  Courtney will win if she can establish that she paid at least 50% more than the computer was actually worth. 
E)  Courtney will win if she can establish that she made a bad deal and that truly she was not aware of current prices of computers.

Question 11

Which of the following is true regarding whether an accepted offer to satisfy a debt by paying only part is consideration?

Accepted Answer

A)  Partial payment is consideration under all circumstances. 
B)  Partial payment is not consideration under any circumstances. 
C)  Partial payment is consideration if a liquidated debt is involved. 
D)  Partial payment is consideration if an unliquidated debt is involved. 
E)  Partial payment is consideration only if a liquidated or unliquidated debt is involved. 
A)  Partial payment is consideration under all circumstances. 
B)  Partial payment is not consideration under any circumstances. 
C)  Partial payment is consideration if a liquidated debt is involved. 
D)  Partial payment is consideration if an unliquidated debt is involved. 
E)  Partial payment is consideration only if a liquidated or unliquidated debt is involved.

Question 12

In the case of Smith v. Riley, referenced in the text, what did the court rule in regard to whether a purchase in the amount of "the sum of One Dollar ($1.00) and other good and valuable consideration" was sufficient consideration to support an agreement?

Accepted Answer

A)  The Court ruled that the purchase amount was sufficient consideration. 
B)  The Court ruled that the purchase amount was insufficient consideration only because the sale of an interest in a lease was involved. 
C)  The Court ruled that the purchase amount was insufficient consideration only because a sale of goods was involved. 
D)  The Court ruled that the purchase amount was insufficient consideration only because a domestic partnership was involved. 
E)  The Court ruled that the purchase amount was insufficient consideration because over $50,000 was at issue. 
A)  The Court ruled that the purchase amount was sufficient consideration. 
B)  The Court ruled that the purchase amount was insufficient consideration only because the sale of an interest in a lease was involved. 
C)  The Court ruled that the purchase amount was insufficient consideration only because a sale of goods was involved. 
D)  The Court ruled that the purchase amount was insufficient consideration only because a domestic partnership was involved. 
E)  The Court ruled that the purchase amount was insufficient consideration because over $50,000 was at issue.

Question 13

Which of the following is true regarding illusory promises?

Accepted Answer

A)  Illusory promises are not consideration. 
B)  Illusory promises are consideration. 
C)  Illusory promises qualify as consideration when past consideration is at issue. 
D)  Illusory promises qualify as consideration when promissory estoppel is at issue. 
E)  Illusory promises are consideration only when a sale of goods is involved. 
A)  Illusory promises are not consideration. 
B)  Illusory promises are consideration. 
C)  Illusory promises qualify as consideration when past consideration is at issue. 
D)  Illusory promises qualify as consideration when promissory estoppel is at issue. 
E)  Illusory promises are consideration only when a sale of goods is involved.

Question 14

Define and discuss promissory estoppel, and give an example of when it would be applied.

Accepted Answer

Promissory estoppel occurs when one part

Question 15

In a bilateral contract, the consideration for a promise is a completed act.

Accepted Answer

A) True 
 B)False

Question 16

A[n] _____________ contract is an agreement whereby the buyer agrees to purchase all his goods from one seller.

Accepted Answer

A)  Supply 
B)  Use 
C)  Requirement 
D)  Output 
E)  Arranged 
A)  Supply 
B)  Use 
C)  Requirement 
D)  Output 
E)  Arranged

Question 17

Sam offers Betty his bicycle for $75. Which of the following is an example of an illusory promise on the part of Betty?

Accepted Answer

A)  "I'll take it." 
B)  "I'll take it if I decide to do so." 
C)  "I won't pay $75, but I will pay $50." 
D)  "I'll take it if you will let me try it out first and the brakes work well." 
E)  "I'll take it if you will buy new tires." 
A)  "I'll take it." 
B)  "I'll take it if I decide to do so." 
C)  "I won't pay $75, but I will pay $50." 
D)  "I'll take it if you will let me try it out first and the brakes work well." 
E)  "I'll take it if you will buy new tires."

Question 18

Which of the following would not be considered an example of consideration?

Accepted Answer

A)  A promise to stay in a job until a particular project is completed. 
B)  A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it. 
C)  A promise to cook dinner for your roommate for the next six months. 
D)  A promise to stop drinking alcohol during exam week. 
E)  A promise to pay your employees as required by law. 
A)  A promise to stay in a job until a particular project is completed. 
B)  A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it. 
C)  A promise to cook dinner for your roommate for the next six months. 
D)  A promise to stop drinking alcohol during exam week. 
E)  A promise to pay your employees as required by law.

Question 19

A[n] _____________ contract is an agreement whereby the seller guarantees to sell everything she produces to one buyer.

Accepted Answer

A)  Supply 
B)  Use 
C)  Requirement 
D)  Output 
E)  Arranged 
A)  Supply 
B)  Use 
C)  Requirement 
D)  Output 
E)  Arranged

Question 20

In a[n] _____________ debt, the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

Accepted Answer

A)  Disputed 
B)  Unacknowledged 
C)  Uncertain 
D)  Liquidated 
E)  Unliquidated 
A)  Disputed 
B)  Unacknowledged 
C)  Uncertain 
D)  Liquidated 
E)  Unliquidated

Exam 9: Introduction to Contracts and Agreement

Which of the following is what a person will receive in return for performing a contractual obligation?

Which of the following occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise?

In a unilateral contract, the consideration for a promise is _____________.

An illusory promise is not consideration.

Which of the following is true of an output contract under the UCC?

Which of the following consists of something of value given to another party in exchange for something else of value?

What did the court in the case in the text, Labriola v. Pollard Group, Inc., rule regarding whether the noncompete agreement at issue in the case was enforceable?

A promise to do something that you are already obligated to do is generally valid consideration.

Which of the following is an exception to the rule requiring consideration?

Which of the following is true regarding whether an accepted offer to satisfy a debt by paying only part is consideration?

In the case of Smith v. Riley, referenced in the text, what did the court rule in regard to whether a purchase in the amount of "the sum of One Dollar ($1.00) and other good and valuable consideration" was sufficient consideration to support an agreement?

Which of the following is true regarding illusory promises?

Define and discuss promissory estoppel, and give an example of when it would be applied.

In a bilateral contract, the consideration for a promise is a completed act.

A[n] _____________ contract is an agreement whereby the buyer agrees to purchase all his goods from one seller.

Sam offers Betty his bicycle for $75. Which of the following is an example of an illusory promise on the part of Betty?

Which of the following would not be considered an example of consideration?

A[n] _____________ contract is an agreement whereby the seller guarantees to sell everything she produces to one buyer.

In a[n] _____________ debt, the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Us Legal 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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