Question 1

Inadequate consideration may indicate undue influence.

Accepted Answer

A) True 
 B)False

Question 2

Kelsey promises to pay Jon,her son,$15,000 if he obtains his degree at Ivy University,where he is currently in his second year.Jon graduates.Kelsey is

Accepted Answer

A) not required to pay,because Jon was already at Ivy. 
B) not required to pay,because obtaining a degree benefits Jon. 
C) required to pay,because a job can be hard to find after college. 
D) required to pay,because Jon obtained a degree at Ivy. 
A) not required to pay,because Jon was already at Ivy. 
B) not required to pay,because obtaining a degree benefits Jon. 
C) required to pay,because a job can be hard to find after college. 
D) required to pay,because Jon obtained a degree at Ivy.

Question 3

Cherry is injured in an accident caused by Bronco.Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability.Cherry agrees.If Cherry's damages ultimately exceed $2,500,she can

Accepted Answer

A) collect the balance from Bronco in a breach-of-contract suit. 
B) collect the balance from Bronco in a tort suit. 
C) collect the balance from Bronco on the ground of unforeseen events. 
D) not collect the balance from Bronco. 
A) collect the balance from Bronco in a breach-of-contract suit. 
B) collect the balance from Bronco in a tort suit. 
C) collect the balance from Bronco on the ground of unforeseen events. 
D) not collect the balance from Bronco.

Question 4

Real Estate Investments,Inc. ,owns and manages an office building.Secure Insurance Company agrees to lease the building for five years.Un?der the lease,Secure is obligated to pay all of the utility costs.Two years into the term,Secure asks Real Estate to modify the lease to provide that the utility costs be split equally between them.Real Estate agrees,but later decides it does not want to share the costs and refuses to pay.Is the landlord bound to its agreement to share the utility costs? Why or why not?

Accepted Answer

Real Estate Investments,Inc. ,the landlo

Question 5

Fact Pattern 12-A2 
Cut-Rate Construction Company (CCC)begins building a restaurant for Diners Restaurants,Inc. ,but after two months demands an extra $100,000.Diners agrees to pay.
-Refer to Fact Pattern 12-A2.If CCC offers,as a reason for the extra $100,000,that ordinary business expenses have increased,the agree?ment is

Accepted Answer

A) enforceable as an accord and satisfaction. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule. 
A) enforceable as an accord and satisfaction. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule.

Question 6

Mary promises to pay her assistant Ned $10,000 in consideration of the ser?vices he provided over the years.Mary never pays Ned.Mary is

Accepted Answer

A) liable for payment of the $10,000. 
B) liable only if Ned still works for Mary. 
C) not liable,because the consideration is in the past. 
D) not liable,because the consideration was unintentional. 
A) liable for payment of the $10,000. 
B) liable only if Ned still works for Mary. 
C) not liable,because the consideration is in the past. 
D) not liable,because the consideration was unintentional.

Question 7

Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount.To constitute consideration,the value of whatever is exchanged must be

Accepted Answer

A) objectively worthy. 
B) grossly inadequate. 
C) legally sufficient. 
D) practically sound. 
A) objectively worthy. 
B) grossly inadequate. 
C) legally sufficient. 
D) practically sound.

Question 8

Rescission is the dissolution of a contract that returns the parties to the positions they held before the contract.

Accepted Answer

A) True 
 B)False

Question 9

Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores.Nixie agrees and quits her job with Pic-U Grocery,but Herm does not hire her.Herm is most likely liable to Nixie under

Accepted Answer

A) the concept of accord and satisfaction. 
B) the doctrine of promissory estoppel. 
C) the preexisting duty rule. 
D) no circumstances. 
A) the concept of accord and satisfaction. 
B) the doctrine of promissory estoppel. 
C) the preexisting duty rule. 
D) no circumstances.

Question 10

An illusory promise is a promise that is enforceable without consideration.

Accepted Answer

A) True 
 B)False

Question 11

Venture Capital Corporation loans Wally $15,000 to start a new business.Wally does not pay,but Venture fails to sue within the time prescribed by the applicable statute of limitations.Wally's promise to pay the debt even though recovery is barred

Accepted Answer

A) needs new consideration. 
B) needs no consideration. 
C) is unenforceable regardless of any consideration. 
D) needs legally sufficient and adequate consideration. 
A) needs new consideration. 
B) needs no consideration. 
C) is unenforceable regardless of any consideration. 
D) needs legally sufficient and adequate consideration.

Question 12

Auto Body Repair Shop (ABRS)promises to pay Ben $1,000 a week to work for ABRS.Ben accepts and quits his job with Car Care Service.ABRS fails to provide a job for Ben.Ben has a cause of action based on

Accepted Answer

A) an illusory promise. 
B) a release. 
C) past consideration. 
D) promissory estoppel. 
A) an illusory promise. 
B) a release. 
C) past consideration. 
D) promissory estoppel.

Question 13

Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it.She accepts and hands the book to Vince.Sun-Hi's delivery of the book is

Accepted Answer

A) not consideration because its transfer is a preexisting duty. 
B) not consideration because its exchange is not a bargain. 
C) consideration. 
D) not consideration because its value is legally insufficient. 
A) not consideration because its transfer is a preexisting duty. 
B) not consideration because its exchange is not a bargain. 
C) consideration. 
D) not consideration because its value is legally insufficient.

Question 14

A contract that one party retains the exclusive right to cancel at any time is unenforceable.

Accepted Answer

A) True 
 B)False

Question 15

Panini Vittles,Inc. ,contracts with Qino to deliver its sandwiches.Later,the parties decide to cancel their contract.They can

Accepted Answer

A) rescind their entire contract. 
B) rescind their contract to the extent that it is executory. 
C) rescind their contract if they make a new contract at the same time. 
D) not rescind their contract. 
A) rescind their entire contract. 
B) rescind their contract to the extent that it is executory. 
C) rescind their contract if they make a new contract at the same time. 
D) not rescind their contract.

Question 16

If a debt is liquidated,an accord and satisfaction cannot take place.

Accepted Answer

A) True 
 B)False

Question 17

Fact Pattern 12-A1
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 12-A1.A court is most likely to evaluate the adequacy of consid?era?tion if

Accepted Answer

A) a thing exchanged has no intangible value to one of the parties. 
B) something exchanged is not of direct economic or financial value. 
C) the items exchanged were of unequal value. 
D) there is a gross disparity in the value of the consideration exchanged. 
A) a thing exchanged has no intangible value to one of the parties. 
B) something exchanged is not of direct economic or financial value. 
C) the items exchanged were of unequal value. 
D) there is a gross disparity in the value of the consideration exchanged.

Question 18

Domestic Auto Sales,Inc. ,promises its salaried employees a bonus at the end of the year if management thinks it is warranted.This promise is

Accepted Answer

A) enforce?able. 
B) unenforce?able because it is not supported by consideration. 
C) unenforce?able because the dollar amount is missing. 
D) unenforce?able because the employees are paid salaries. 
A) enforce?able. 
B) unenforce?able because it is not supported by consideration. 
C) unenforce?able because the dollar amount is missing. 
D) unenforce?able because the employees are paid salaries.

Question 19

Betty pledges to donate $1,000 to the Children's Hospital.On the basis of the pledge,the hospital orders additional equipment.Betty reneges on the pledge.The hospital sues Betty.If the court enforces the pledge,it will be

Accepted Answer

A) because Betty's performance is uncertain. 
B) because of the unforeseen difficulties. 
C) because the pledge is a gift. 
D) under the doctrine of promissory estoppel. 
A) because Betty's performance is uncertain. 
B) because of the unforeseen difficulties. 
C) because the pledge is a gift. 
D) under the doctrine of promissory estoppel.

Question 20

Fact Pattern 12-A2 
Cut-Rate Construction Company (CCC)begins building a restaurant for Diners Restaurants,Inc. ,but after two months demands an extra $100,000.Diners agrees to pay.
-Refer to Fact Pattern 12-A2.If CCC offers no reason for the extra $100,000,but says only that it will otherwise stop construction,the agreement is

Accepted Answer

A) enforceable as an accord and satisfaction. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule. 
A) enforceable as an accord and satisfaction. 
B) enforceable because of unforeseen difficulties. 
C) unenforceable as an illusory promise. 
D) unenforceable due to the preexisting duty rule.

Exam 12: B: Consideration

Inadequate consideration may indicate undue influence.

Kelsey promises to pay Jon,her son,$15,000 if he obtains his degree at Ivy University,where he is currently in his second year.Jon graduates.Kelsey is

Cherry is injured in an accident caused by Bronco.Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability.Cherry agrees.If Cherry's damages ultimately exceed $2,500,she can

Mary promises to pay her assistant Ned $10,000 in consideration of the ser?vices he provided over the years.Mary never pays Ned.Mary is

Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount.To constitute consideration,the value of whatever is exchanged must be

Rescission is the dissolution of a contract that returns the parties to the positions they held before the contract.

Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores.Nixie agrees and quits her job with Pic-U Grocery,but Herm does not hire her.Herm is most likely liable to Nixie under

An illusory promise is a promise that is enforceable without consideration.

Venture Capital Corporation loans Wally $15,000 to start a new business.Wally does not pay,but Venture fails to sue within the time prescribed by the applicable statute of limitations.Wally's promise to pay the debt even though recovery is barred

Auto Body Repair Shop (ABRS)promises to pay Ben $1,000 a week to work for ABRS.Ben accepts and quits his job with Car Care Service.ABRS fails to provide a job for Ben.Ben has a cause of action based on

Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it.She accepts and hands the book to Vince.Sun-Hi's delivery of the book is

A contract that one party retains the exclusive right to cancel at any time is unenforceable.

Panini Vittles,Inc. ,contracts with Qino to deliver its sandwiches.Later,the parties decide to cancel their contract.They can

If a debt is liquidated,an accord and satisfaction cannot take place.

Domestic Auto Sales,Inc. ,promises its salaried employees a bonus at the end of the year if management thinks it is warranted.This promise is

Betty pledges to donate $1,000 to the Children's Hospital.On the basis of the pledge,the hospital orders additional equipment.Betty reneges on the pledge.The hospital sues Betty.If the court enforces the pledge,it will be

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

A: 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

B: Liability,defenses,and Discharge

A: Checks,the Banking System,and E-Money

B: Checks and Banking in the Digital Age