Question 1

The mutual agreement necessary to create an express contract is evidenced by writing.

Accepted Answer

A) True 
 B)False  False

Question 2

If no Code rule applies to an issue regarding a sale of goods contract, the common law rules apply.

Accepted Answer

A) True 
 B)False  True

Question 3

Speaking generally, a quasi-contract applies where there has been foreseeable reliance on an express promise.

Accepted Answer

A) True 
 B)False  False

Question 4

Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?

Accepted Answer

A)  A unilateral contract 
B)  A quasi-contract 
C)  A bilateral contract 
D)  A promissory estoppel contract 
A)  A unilateral contract 
B)  A quasi-contract 
C)  A bilateral contract 
D)  A promissory estoppel contract

Question 5

Why did the Restatement not have the force of law?

Accepted Answer

A)  It was the product of a private organization. 
B)  It had conflicting perspectives. 
C)  It was deemed significantly inferior to the common law. 
D)  It was deemed significantly inferior to the UCC. 
A)  It was the product of a private organization. 
B)  It had conflicting perspectives. 
C)  It was deemed significantly inferior to the common law. 
D)  It was deemed significantly inferior to the UCC.

Question 6

A void contract is:

Accepted Answer

A)  a contract that one or both parties can cancel at their convenience. 
B)  a contract, even though the courts will not enforce it. 
C)  an agreement that creates no legal obligations. 
D)  created by operation of law rather than by the agreement of the parties. 
A)  a contract that one or both parties can cancel at their convenience. 
B)  a contract, even though the courts will not enforce it. 
C)  an agreement that creates no legal obligations. 
D)  created by operation of law rather than by the agreement of the parties.

Question 7

Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:

Accepted Answer

A)  bilateral and executed. 
B)  bilateral and executory. 
C)  unilateral and executed. 
D)  unilateral and executory. 
A)  bilateral and executed. 
B)  bilateral and executory. 
C)  unilateral and executed. 
D)  unilateral and executory.

Question 8

Generally, the terms of a standardized contract are negotiable.

Accepted Answer

A) True 
 B)False

Question 9

John, a house painter, enters into a contract with Robert under which he promises to paint Robert's house for which Robert promises to pay $1,000 at the completion of work. John mistakenly paints Mary's house next door. Mary returns from vacation, surprised to see her house beautifully painted. John asks Mary to pay for the work. Mary refuses. Under what theory may John attempt to recover from Mary? Will he be successful? Explain.

Accepted Answer

John may try to recover the reasonable v

Question 10

A contract is _____ when all of the parties have fully performed their contractual duties.

Accepted Answer

A)  void 
B)  executed 
C)  contingent 
D)  ineffective 
A)  void 
B)  executed 
C)  contingent 
D)  ineffective

Question 11

When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _____ has been created.

Accepted Answer

A)  implied contract 
B)  quasi-contract 
C)  void contract 
D)  unenforceable contract 
A)  implied contract 
B)  quasi-contract 
C)  void contract 
D)  unenforceable contract

Question 12

Sometimes, Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Accepted Answer

A) True 
 B)False

Question 13

Dawson entered into a contract with Jensen for the sale of Dawson's boat. Which set of legal rules governs this transaction?

Accepted Answer

A)  Contract rules of the common law 
B)  Contract rules of the Uniform Commercial Code 
C)  Equity rules that ensure fairness in transactions 
D)  Marine law 
A)  Contract rules of the common law 
B)  Contract rules of the Uniform Commercial Code 
C)  Equity rules that ensure fairness in transactions 
D)  Marine law

Question 14

Article 2 of the UCC does NOT apply to a sale of:

Accepted Answer

A)  baseball bats. 
B)  harvested wheat. 
C)  corporate stock. 
D)  a new car. 
A)  baseball bats. 
B)  harvested wheat. 
C)  corporate stock. 
D)  a new car.

Question 15

Which of the following is NOT a basic element of a contract?

Accepted Answer

A)  Offer 
B)  Consideration 
C)  Capacity 
D)  Goods 
A)  Offer 
B)  Consideration 
C)  Capacity 
D)  Goods

Question 16

An executed contract is one that has been:

Accepted Answer

A)  terminated by operation of law. 
B)  terminated by the parties' voluntary agreement. 
C)  fully performed by one or both parties. 
D)  fully performed by both parties. 
A)  terminated by operation of law. 
B)  terminated by the parties' voluntary agreement. 
C)  fully performed by one or both parties. 
D)  fully performed by both parties.

Question 17

The rules promulgated by the Restatement (Second) of Contracts often resemble the rules created by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding promissory estoppel?

Accepted Answer

A)  It requires reasonable reliance on the promisee's promise. 
B)  It requires a written promise. 
C)  It requires consideration. 
D)  It applies only when one party is a merchant. 
A)  It requires reasonable reliance on the promisee's promise. 
B)  It requires a written promise. 
C)  It requires consideration. 
D)  It applies only when one party is a merchant.

Question 19

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true?

Accepted Answer

A)  The dentist can recover under quasi-contract. 
B)  The dentist cannot recover under an implied contract theory. 
C)  The dentist can recover under the doctrine of promissory estoppel. 
D)  The dentist cannot recover because there was no express contract here. 
A)  The dentist can recover under quasi-contract. 
B)  The dentist cannot recover under an implied contract theory. 
C)  The dentist can recover under the doctrine of promissory estoppel. 
D)  The dentist cannot recover because there was no express contract here.

Question 20

Pratt, owner of an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor, Stacey. Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

The mutual agreement necessary to create an express contract is evidenced by writing.

If no Code rule applies to an issue regarding a sale of goods contract, the common law rules apply.

Speaking generally, a quasi-contract applies where there has been foreseeable reliance on an express promise.

Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?

Why did the Restatement not have the force of law?

A void contract is:

Generally, the terms of a standardized contract are negotiable.

A contract is _____ when all of the parties have fully performed their contractual duties.

When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _____ has been created.

Sometimes, Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Dawson entered into a contract with Jensen for the sale of Dawson's boat. Which set of legal rules governs this transaction?

Article 2 of the UCC does NOT apply to a sale of:

Which of the following is NOT a basic element of a contract?

An executed contract is one that has been:

The rules promulgated by the Restatement (Second) of Contracts often resemble the rules created by Article 2 of the UCC.

Which of the following is true regarding promissory estoppel?

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true?

Pratt, owner of an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor, Stacey. Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Crimes

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business Andformation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Agencies

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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