Question 1

The law of contracts is primarily _______________ law.

Accepted Answer

A)  Civil. 
B)  Statutory. 
C)  Common. 
D)  Restated. 
E)  Modified. 
A)  Civil. 
B)  Statutory. 
C)  Common. 
D)  Restated. 
E)  Modified.

Question 2

Today's law of contracts originated from judicial decisions in ________.

Accepted Answer

A)  France. 
B)  Italy. 
C)  Spain. 
D)  England. 
E)  Switzerland. 
A)  France. 
B)  Italy. 
C)  Spain. 
D)  England. 
E)  Switzerland.

Question 3

Define and give an example of an express contract and an implied contract.

Accepted Answer

Express contracts have all their terms c

Question 4

Courts interpret contracts using an objective standard.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following represents the legal ability to enter into a binding agreement?

Accepted Answer

A)  Majority. 
B)  Emancipation. 
C)  Contractual knowledge. 
D)  Contractual capacity. 
E)  Informed consent. 
A)  Majority. 
B)  Emancipation. 
C)  Contractual knowledge. 
D)  Contractual capacity. 
E)  Informed consent.

Question 6

A contract is _______________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

Accepted Answer

A)  Voidable. 
B)  Executory. 
C)  Implied. 
D)  Executed. 
E)  Void. 
A)  Voidable. 
B)  Executory. 
C)  Implied. 
D)  Executed. 
E)  Void.

Question 7

What was the result in Janky v. Batistatos, Lake County Conventions & Visitations Bureau, the case in the text in which it was claimed that an e-mail constituted acceptance of a settlement offer?

Accepted Answer

A)  That the e-mail was insufficient to constitute an acceptance because of its electronic nature. 
B)  That the e-mail was insufficient to constitute an acceptance because no settlement funds were forwarded in conjunction with the e-mail. 
C)  That the e-mail was insufficient to constitute an acceptance because the parties had not specifically agreed that acceptance could be made in that manner. 
D)  That the e-mail was insufficient to constitute an acceptance because it was insufficiently specific. 
E)  That the e-mail was sufficient to constitute an acceptance. 
A)  That the e-mail was insufficient to constitute an acceptance because of its electronic nature. 
B)  That the e-mail was insufficient to constitute an acceptance because no settlement funds were forwarded in conjunction with the e-mail. 
C)  That the e-mail was insufficient to constitute an acceptance because the parties had not specifically agreed that acceptance could be made in that manner. 
D)  That the e-mail was insufficient to constitute an acceptance because it was insufficiently specific. 
E)  That the e-mail was sufficient to constitute an acceptance.

Question 8

An offeror has no right to terminate an offer.

Accepted Answer

A) True 
 B)False

Question 9

If the subject matter of an offer becomes illegal, what is the result?

Accepted Answer

A)  The offer immediately terminates. 
B)  There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal. 
C)  There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal. 
D)  There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal. 
E)  There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal. 
A)  The offer immediately terminates. 
B)  There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal. 
C)  There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal. 
D)  There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal. 
E)  There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.

Question 10

Set forth the ways in which an offer can terminate.

Accepted Answer

An offer can terminate in the following

Question 11

Which of the following is the first element of a contract?

Accepted Answer

A)  An agreement. 
B)  Intent. 
C)  An offer. 
D)  An acceptance. 
E)  A writing. 
A)  An agreement. 
B)  Intent. 
C)  An offer. 
D)  An acceptance. 
E)  A writing.

Question 12

Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale?

Accepted Answer

A)  There is no contract because silence, as a general rule, cannot be used to form a contract. 
B)  There is no contract because the offer was not made in person. 
C)  There is no contract because the offer was not made in writing. 
D)  Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
E)  Janice can avoid this being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time. 
A)  There is no contract because silence, as a general rule, cannot be used to form a contract. 
B)  There is no contract because the offer was not made in person. 
C)  There is no contract because the offer was not made in writing. 
D)  Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
E)  Janice can avoid this being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.

Question 13

What was the result in the case nugget, Lefkowitz v. Great Minneapolis Surplus Store, Inc., involving an advertisement for the sale of fur coats?

Accepted Answer

A)  The court ruled that the advertisement was not an offer because it involved a luxury good. 
B)  The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it. 
C)  The court ruled that the advertisement was not an offer because it was a ridiculously low offer which the plaintiff should have known was not to be taken seriously. 
D)  The court ruled that the ad was not an offer because ads are never offers, only invitations for customers to make an offer. 
E)  The court ruled that the ad was an offer and that the plaintiff properly accepted it. 
A)  The court ruled that the advertisement was not an offer because it involved a luxury good. 
B)  The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it. 
C)  The court ruled that the advertisement was not an offer because it was a ridiculously low offer which the plaintiff should have known was not to be taken seriously. 
D)  The court ruled that the ad was not an offer because ads are never offers, only invitations for customers to make an offer. 
E)  The court ruled that the ad was an offer and that the plaintiff properly accepted it.

Question 14

Which of the following is false regarding how the Japanese tend to view contracts?

Accepted Answer

A)  The Japanese tend to view contracts as ongoing relationships. 
B)  The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. 
C)  The Japanese tend to be suspicious of long, detailed contracts. 
D)  The Japanese have a preference for flexible contracts. 
E)  The Japanese do not desire that any terms be left to be decided later. 
A)  The Japanese tend to view contracts as ongoing relationships. 
B)  The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. 
C)  The Japanese tend to be suspicious of long, detailed contracts. 
D)  The Japanese have a preference for flexible contracts. 
E)  The Japanese do not desire that any terms be left to be decided later.

Question 15

Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is voidable after one party has fully or partially performed.

Accepted Answer

A void contract is, in effect, not a con

Question 16

In a _____________ contract, the offeror wants a performance to form the contract.

Accepted Answer

A)  Trilateral. 
B)  Bilateral. 
C)  Unilateral. 
D)  Complete. 
E)  Anticipatory. 
A)  Trilateral. 
B)  Bilateral. 
C)  Unilateral. 
D)  Complete. 
E)  Anticipatory.

Question 17

In which of the following does a contract arise not from words but from the conduct of the parties?

Accepted Answer

A)  Implied contracts. 
B)  Express contracts. 
C)  Liquidated contracts. 
D)  Bilateral contracts. 
E)  Unilateral contracts. 
A)  Implied contracts. 
B)  Express contracts. 
C)  Liquidated contracts. 
D)  Bilateral contracts. 
E)  Unilateral contracts.

Question 18

Reference - Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit Barry brought against Chris?

Accepted Answer

A)  Chris will win because he properly revoked his bid before it was accepted. 
B)  Chris will win because bids made at an auction may be revoked at anytime within ten days after the auction. 
C)  Chris will win because bids made at an auction may be revoked at anytime within five days after the auction. 
D)  Chris will win because bids made at an auction may be revoked at anytime within one day after the auction. 
E)  Barry will win because Chris had no right to revoke the bid. 
A)  Chris will win because he properly revoked his bid before it was accepted. 
B)  Chris will win because bids made at an auction may be revoked at anytime within ten days after the auction. 
C)  Chris will win because bids made at an auction may be revoked at anytime within five days after the auction. 
D)  Chris will win because bids made at an auction may be revoked at anytime within one day after the auction. 
E)  Barry will win because Chris had no right to revoke the bid.

Question 19

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

Accepted Answer

A)  Forty-eight hours. 
B)  Seven days. 
C)  Thirty days. 
D)  Forty-five days. 
E)  There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer. 
A)  Forty-eight hours. 
B)  Seven days. 
C)  Thirty days. 
D)  Forty-five days. 
E)  There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Question 20

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 contracts. 
B)  Implied-in-law contracts. 
C)  Contracts under wax. 
D)  Contracts under seal. 
E)  Contracts under pressure. 
A)  Implied-in-fact contracts. 
B)  Implied-in-law contracts. 
C)  Contracts under wax. 
D)  Contracts under seal. 
E)  Contracts under pressure.

Exam 8: Real, Personal, and Intellectual Property

The law of contracts is primarily _______________ law.

Today's law of contracts originated from judicial decisions in ________.

Define and give an example of an express contract and an implied contract.

Courts interpret contracts using an objective standard.

Which of the following represents the legal ability to enter into a binding agreement?

A contract is _______________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

What was the result in Janky v. Batistatos, Lake County Conventions & Visitations Bureau, the case in the text in which it was claimed that an e-mail constituted acceptance of a settlement offer?

An offeror has no right to terminate an offer.

If the subject matter of an offer becomes illegal, what is the result?

Set forth the ways in which an offer can terminate.

Which of the following is the first element of a contract?

What was the result in the case nugget, Lefkowitz v. Great Minneapolis Surplus Store, Inc., involving an advertisement for the sale of fur coats?

Which of the following is false regarding how the Japanese tend to view contracts?

Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is voidable after one party has fully or partially performed.

In a _____________ contract, the offeror wants a performance to form the contract.

In which of the following does a contract arise not from words but from the conduct of the parties?

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

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

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

Introduction to Contracts and Agreement

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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