Question 1

An obligation is enforceable only if it is supported by past consideration.

Accepted Answer

A) True 
 B)False  False

Question 2

George and Hildy disagree as to the exact amount one owes the other.They form a new agreement that,on fulfillment,will discharge the prior obli?gation.This is

Accepted Answer

A) a covenant not to sue. 
B) an accord and satisfaction. 
C) a release. 
D) promissory estoppel. 
A) a covenant not to sue. 
B) an accord and satisfaction. 
C) a release. 
D) promissory estoppel. B

Question 3

Rollo promises to perform,for a price,shoe repair services in affiliation with Togs 'n Things,a clothing store.To support a contract,the consid?eration ex?changed by the parties must be

Accepted Answer

A) adequately considerate. 
B) equally valuable. 
C) legally sufficient. 
D) wisely priced. 
A) adequately considerate. 
B) equally valuable. 
C) legally sufficient. 
D) wisely priced. C

Question 4

The doctrine of promissory estoppel does not apply unless there is a clear and definite promise.

Accepted Answer

A) True 
 B)False

Question 5

A promise to do something that one has a prior legal duty to do is not consideration.

Accepted Answer

A) True 
 B)False

Question 6

A bargained-for exchange is one of the elements of consideration.

Accepted Answer

A) True 
 B)False

Question 7

Jeff offers Kelly $500 for her three-year-old laptop computer.Kelly ac?cepts.If a dispute arises,a court would likely

Accepted Answer

A) enforce the deal after questioning the adequacy of consideration. 
B) not question the adequacy of the consideration. 
C) rewrite the deal after questioning the adequacy of consideration. 
D) set aside the deal after questioning the adequacy of consideration. 
A) enforce the deal after questioning the adequacy of consideration. 
B) not question the adequacy of the consideration. 
C) rewrite the deal after questioning the adequacy of consideration. 
D) set aside the deal after questioning the adequacy of consideration.

Question 8

Quinn promises to sell his recreational vehicle (RV)to Sid,who builds a structure behind his house in which to keep it.Quinn's later attempt to renege on the promise is

Accepted Answer

A) effective if Quinn did not ask Sid to build anything. 
B) effective if Quinn wants to sell the RV to someone else. 
C) not effective if Sid cannot obtain a similar RV for a similar price. 
D) not effective if Sid detrimentally relied on Quinn's promise. 
A) effective if Quinn did not ask Sid to build anything. 
B) effective if Quinn wants to sell the RV to someone else. 
C) not effective if Sid cannot obtain a similar RV for a similar price. 
D) not effective if Sid detrimentally relied on Quinn's promise.

Question 9

In contract law,"consideration" refers to the time that a party takes to evaluate a deal.

Accepted Answer

A) True 
 B)False

Question 10

Todos Ltd.agrees to supply United Steel,Inc. ,with minerals from Venezuela.When the gov?ern?ment is unexpectedly overthrown in a revolution,Todos can obtain the goods only at a much higher price.United agrees to pay but later files a suit to recover the difference.The court will most likely rule that

Accepted Answer

A) a change in government is a risk ordinarily assumed in business. 
B) an unforeseen difficulty supported the contract modification here. 
C) Todos engaged in extortion or the so-called holdup game. 
D) Todos had a preexisting duty to supply the goods at the initial price. 
A) a change in government is a risk ordinarily assumed in business. 
B) an unforeseen difficulty supported the contract modification here. 
C) Todos engaged in extortion or the so-called holdup game. 
D) Todos had a preexisting duty to supply the goods at the initial price.

Question 11

Mei writes a check to Nat in an amount that represents half of her debt to him.On the back of the check,Mei includes the words "payment in full." Nat cashes the check.This dis?charges the entire debt

Accepted Answer

A) if the debt is liquidated. 
B) if the debt is past due. 
C) if the debt is unliquidated. 
D) under no circumstances. 
A) if the debt is liquidated. 
B) if the debt is past due. 
C) if the debt is unliquidated. 
D) under no circumstances.

Question 12

Gino files a suit against Free-Flo Plumbing Corporation under the doctrine of prom?issory estoppel.Gino must show that

Accepted Answer

A) he justifiably refused to fulfill a promise to Free-Flo. 
B) he justifiably relied on Free-Flo's promise to his detriment. 
C) Free-Flo justifiably refused to fulfill a promise to him. 
D) Free-Flo justifiably relied on his promise to its detriment. 
A) he justifiably refused to fulfill a promise to Free-Flo. 
B) he justifiably relied on Free-Flo's promise to his detriment. 
C) Free-Flo justifiably refused to fulfill a promise to him. 
D) Free-Flo justifiably relied on his promise to its detriment.

Question 13

A covenant not to sue always bars further recovery.

Accepted Answer

A) True 
 B)False

Question 14

Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work.This promise is

Accepted Answer

A) enforceable. 
B) illusory. 
C) unliquidated. 
D) unforeseen. 
A) enforceable. 
B) illusory. 
C) unliquidated. 
D) unforeseen.

Question 15

Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted.Speedy must

Accepted Answer

A) do nothing. 
B) give the employees a 10-percent raise only at the end of the year. 
C) give the employees a 10-percent raise only if produc?tivity increases. 
D) give the employees a 10-percent raise under any circumstances. 
A) do nothing. 
B) give the employees a 10-percent raise only at the end of the year. 
C) give the employees a 10-percent raise only if produc?tivity increases. 
D) give the employees a 10-percent raise under any circumstances.

Question 16

Shila promises to pay Blaine $500 because "he does not have as much money as other people." Shila's promise is

Accepted Answer

A) enforceable because society wants people to keep their promises. 
B) enforceable because the redistribution of wealth is a valid social goal. 
C) not enforceable because Shila could have given more. 
D) not enforceable because Blaine has not given consideration in return. 
A) enforceable because society wants people to keep their promises. 
B) enforceable because the redistribution of wealth is a valid social goal. 
C) not enforceable because Shila could have given more. 
D) not enforceable because Blaine has not given consideration in return.

Question 17

Failing to use the word consideration in an agreement means that no consideration has been given.

Accepted Answer

A) True 
 B)False

Question 18

Rescission is the substitution of one party to a contract for a third party,who agrees to assume the contractual duties.

Accepted Answer

A) True 
 B)False

Question 19

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Accepted Answer

A) True 
 B)False

Question 20

Any promise made with respect to a past event is enforceable because the event is cer?tain-it has already occurred.

Accepted Answer

A) True 
 B)False

Exam 12: A: Consideration

An obligation is enforceable only if it is supported by past consideration.

George and Hildy disagree as to the exact amount one owes the other.They form a new agreement that,on fulfillment,will discharge the prior obli?gation.This is

Rollo promises to perform,for a price,shoe repair services in affiliation with Togs 'n Things,a clothing store.To support a contract,the consid?eration ex?changed by the parties must be

The doctrine of promissory estoppel does not apply unless there is a clear and definite promise.

A promise to do something that one has a prior legal duty to do is not consideration.

A bargained-for exchange is one of the elements of consideration.

Jeff offers Kelly $500 for her three-year-old laptop computer.Kelly ac?cepts.If a dispute arises,a court would likely

Quinn promises to sell his recreational vehicle (RV)to Sid,who builds a structure behind his house in which to keep it.Quinn's later attempt to renege on the promise is

In contract law,"consideration" refers to the time that a party takes to evaluate a deal.

Mei writes a check to Nat in an amount that represents half of her debt to him.On the back of the check,Mei includes the words "payment in full." Nat cashes the check.This dis?charges the entire debt

Gino files a suit against Free-Flo Plumbing Corporation under the doctrine of prom?issory estoppel.Gino must show that

A covenant not to sue always bars further recovery.

Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work.This promise is

Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted.Speedy must

Shila promises to pay Blaine $500 because "he does not have as much money as other people." Shila's promise is

Failing to use the word consideration in an agreement means that no consideration has been given.

Rescission is the substitution of one party to a contract for a third party,who agrees to assume the contractual duties.

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Any promise made with respect to a past event is enforceable because the event is cer?tain-it has already occurred.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge