Question 1

What is the test frequently used to determine "hybrid" contracts?

Accepted Answer

A)  Determining the value of the contract. 
B)  Determining the party to benefit. 
C)  Determine which element predominates. 
D)  Determining the validity of the contract. 
A)  Determining the value of the contract. 
B)  Determining the party to benefit. 
C)  Determine which element predominates. 
D)  Determining the validity of the contract.

Question 2

Ann wants to download the Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called:

Accepted Answer

A)  clickwrap contracts. 
B)  shrinkwrap contracts. 
C)  click-off contracts. 
D)  unenforceable contracts. 
A)  clickwrap contracts. 
B)  shrinkwrap contracts. 
C)  click-off contracts. 
D)  unenforceable contracts.

Question 3

A contract whose formation is induced by duress is an example of a contract that is:

Accepted Answer

A)  void. 
B)  voidable. 
C)  unenforceable. 
D)  executory. 
A)  void. 
B)  voidable. 
C)  unenforceable. 
D)  executory.

Question 4

Greg signed a contract to work as an auto-parts manager for Jones Chevrolet. This contract is governed by:

Accepted Answer

A)  Article 2 of the UCC. 
B)  state common law. 
C)  the doctrine of promissory estoppel. 
D)  the law of quasi-contract. 
A)  Article 2 of the UCC. 
B)  state common law. 
C)  the doctrine of promissory estoppel. 
D)  the law of quasi-contract.

Question 5

A contract must be between parties who have _____ to contract.

Accepted Answer

A)  knowledge 
B)  capacity 
C)  resources 
D)  intention 
A)  knowledge 
B)  capacity 
C)  resources 
D)  intention

Question 6

Article 2 of the UCC never applies to mixed goods-services contracts; instead, it treats them as pure service contracts.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about standardized form contracts is false?

Accepted Answer

A)  Frequently, the terms of standardized contracts are negotiable. 
B)  They are used both online and offline. 
C)  They are contracts that are preprinted by one party and presented to the other party for signing. 
D)  In most situations, the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction. 
A)  Frequently, the terms of standardized contracts are negotiable. 
B)  They are used both online and offline. 
C)  They are contracts that are preprinted by one party and presented to the other party for signing. 
D)  In most situations, the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction.

Question 8

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

Accepted Answer

A)  Valid contracts 
B)  Unenforceable contracts 
C)  Void contracts 
D)  Voidable contracts 
A)  Valid contracts 
B)  Unenforceable contracts 
C)  Void contracts 
D)  Voidable contracts

Question 9

Amy bought Mississippi State Lottery tickets. Several days later, she learned that someone had won the lottery but that the winner had not yet come forward. She searched for her ticket to see if she had selected the winning numbers, but was unable to find it.
Although the lottery ticket was gone, Amy still possessed the play slip she had used when she purchased the ticket. She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery.
Reasoning that the play slip would satisfy the Lottery office, Amy laid her claim. The Lottery Office took the position that Amy needed to produce the actual winning ticket as per the rules, and hence denied her claim. Amy sued the Lottery Office for breach of contract and unjust enrichment. Will she succeed?

Accepted Answer

A)  Yes, because the play slip should be proof enough to substantiate her claim on the prize money. 
B)  Yes, because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. 
C)  No, because Amy had made a mistake in losing the original ticket. 
D)  No, because the rules of the contract prescribed the ticket must be shown to claim the money. Amy had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money. 
A)  Yes, because the play slip should be proof enough to substantiate her claim on the prize money. 
B)  Yes, because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. 
C)  No, because Amy had made a mistake in losing the original ticket. 
D)  No, because the rules of the contract prescribed the ticket must be shown to claim the money. Amy had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Question 10

The CISG:

Accepted Answer

A)  provides uniformity for transactions among contracting parties in different states in the United States. 
B)  applies only to consumers, not commercial parties. 
C)  applies only to services, not sales of goods. 
D)  does not have provisions to cover every contract problem that might occur. 
A)  provides uniformity for transactions among contracting parties in different states in the United States. 
B)  applies only to consumers, not commercial parties. 
C)  applies only to services, not sales of goods. 
D)  does not have provisions to cover every contract problem that might occur.

Question 11

Alana, who runs a flower shop, sells Jose a shotgun. Jose is unemployed, and Alana has never before sold a firearm in her life. Which of the following is true?

Accepted Answer

A)  Article 2 of the UCC applies because Alana is a merchant. 
B)  Article 2 of the UCC applies because a shotgun is a movable thing. 
C)  Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. 
D)  Article 2 of the UCC does not apply because Jose is not a merchant. 
A)  Article 2 of the UCC applies because Alana is a merchant. 
B)  Article 2 of the UCC applies because a shotgun is a movable thing. 
C)  Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. 
D)  Article 2 of the UCC does not apply because Jose is not a merchant.

Question 12

Mark, an attorney, accepts an offer for an attorney position at The Firm. Prior to Mark's first day at work, Harold, a managing partner, sends Mark an Employment Policy Manual which contains policies regarding attendance and confidentiality. Harold includes a note advising Mark to carefully review the manual as he would be expected to adhere to its policies. During his first week at The Firm, Mark is seen leaving the office at noon with copies of files tucked under his arm. He is also observed giving the copied files to a man not associated with The Firm. At the end of the week, Mark is terminated for violating the terms of the Employment Policy Manual. Which of the following is true?

Accepted Answer

A)  Mark may recover his moving expenses under the doctrine of promissory estoppel. 
B)  The Firm breached its express contract with Mark by terminating him. 
C)  The Employment Policy Manual is part of the implied contract between Mark and The Firm. 
D)  The Firm may recover Mark's salary under the doctrine of quasi-contract. 
A)  Mark may recover his moving expenses under the doctrine of promissory estoppel. 
B)  The Firm breached its express contract with Mark by terminating him. 
C)  The Employment Policy Manual is part of the implied contract between Mark and The Firm. 
D)  The Firm may recover Mark's salary under the doctrine of quasi-contract.

Question 13

Which is the only state to have adopted the Uniform Commercial Code (UCC) only partially?

Accepted Answer

A)  Arizona 
B)  Connecticut 
C)  Louisiana 
D)  Wisconsin 
A)  Arizona 
B)  Connecticut 
C)  Louisiana 
D)  Wisconsin

Question 14

A contract in which the parties have not yet fully performed their obligations is called a(n):

Accepted Answer

A)  executed contract. 
B)  executory contract. 
C)  quasi-contract. 
D)  bilateral contract. 
A)  executed contract. 
B)  executory contract. 
C)  quasi-contract. 
D)  bilateral contract.

Question 15

What is the main difference between a void contract and a voidable contract? Give examples of each.

Accepted Answer

The main difference between a void contr

Question 16

The UCC imposes a duty of good faith in the performance and enforcement of every contract it covers.

Accepted Answer

A) True 
 B)False

Question 17

CISG applies only to sale of goods and commercial parties.

Accepted Answer

A) True 
 B)False

Question 18

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):

Accepted Answer

A)  void contract. 
B)  valid contract. 
C)  voidable contract. 
D)  unenforceable contract. 
A)  void contract. 
B)  valid contract. 
C)  voidable contract. 
D)  unenforceable contract.

Question 19

Abby promises to pay Brian $50 if he will mow Abby's lawn. Brian does not promise to mow Abby's lawn; however, later that day, Brian completely and satisfactorily does mow Abby's lawn. This is an example of a unilateral contract.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

What is the test frequently used to determine "hybrid" contracts?

Ann wants to download the Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called:

A contract whose formation is induced by duress is an example of a contract that is:

Greg signed a contract to work as an auto-parts manager for Jones Chevrolet. This contract is governed by:

A contract must be between parties who have _____ to contract.

Article 2 of the UCC never applies to mixed goods-services contracts; instead, it treats them as pure service contracts.

Which of the following statements about standardized form contracts is false?

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

The CISG:

Alana, who runs a flower shop, sells Jose a shotgun. Jose is unemployed, and Alana has never before sold a firearm in her life. Which of the following is true?

Which is the only state to have adopted the Uniform Commercial Code (UCC) only partially?

A contract in which the parties have not yet fully performed their obligations is called a(n):

What is the main difference between a void contract and a voidable contract? Give examples of each.

The UCC imposes a duty of good faith in the performance and enforcement of every contract it covers.

CISG applies only to sale of goods and commercial parties.

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):

Abby promises to pay Brian $50 if he will mow Abby's lawn. Brian does not promise to mow Abby's lawn; however, later that day, Brian completely and satisfactorily does mow Abby's lawn. This is an example of a unilateral contract.

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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