Deck 9: Nature of Traditional and E-Contracts

Question 1

Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of ________.

A) contracts for the sale of goods
B) all contracts
C) contracts for the lease of goods
D) service contracts

Answer 1

C

Question 2

Which of the following statements best describes the Restatement of the Law of Contracts?

A) It is the supreme legal authority for contract law.
B) It is a law which has been adopted, at least in part, by every state.
C) It is a compilation of contract law principles, as agreed upon by its drafters.
D) It is a compilation of law pertaining exclusively to the Uniform Commercial Code.

Answer 2

C

Question 3

The ________ states that the intent to enter into a contract is judged by the reasonable person standard and not by the subjective intent of the parties.

A) objective theory of contracts
B) Restatement (Second) of Contracts
C) Restatement of the Law of Contracts
D) common law of contracts

Answer 3

A

Question 4

Which of the following is a characteristic of a valid contract?

A) A valid contract cannot contain promises.
B) The parties must have the contract's terms approved by the appropriate court for it to be valid.
C) A court will enforce a contract if a party does not voluntarily perform.
D) There need not be mutual assent by all the parties involved in a contract.

Question 5

In a unilateral contract,the offeror ________.

A) must accept the promise extended by the offeree to create the contract
B) can revoke the offer at any point of time after performance
C) will treat either a promise to perform or the actual performance of the act as acceptance of his or her offer
D) cannot revoke the offer once the offeree has begun performance or has substantially completed performance of the act

Question 6

Which of the following is one of the four basic requirements for contract formation and enforcement?

A) A promise must be supported by a signed written document and an advance payment.
B) The parties must have contractual capacity.
C) The object of the contract must be ethical.
D) Both parties to the contract must be at least 21 years old.

Question 7

Mike is a painter who makes a verbal offer to paint Betty's house for $2,000 by May 1??.Betty verbally promises to pay Mike $2,000 for the paint job if he completes it by May 1??.This is an example of a(n)________.

A) void contract
B) quasi-contract
C) executed contract
D) bilateral contract

Question 8

Which of the following is true of the Restatement of the Law of Contracts?

A) It serves as a reference for guidance in contract disputes.
B) It does not identify negotiable instruments as formal contracts.
C) Its goal is to create a uniform system of commercial law among the 50 states.
D) It is the absolute federal law for contracts drafted in the U.S.

Question 9

A unilateral contract is ________.

A) a promise for an act
B) a promise for a promise
C) an act for an act
D) an exchange of money

Question 10

Which of the following is true of the equity doctrine?

A) Equity is resorted to when an award of money damages would not be the proper remedy.
B) In an equitable action, the jury decides on the issue.
C) An equitable action could be tried with a judge or a jury.
D) The doctrine of equity cannot be applied in contract cases.

Question 11

Under the objective theory of contracts,the subjective intent of a party to enter into a contract is ________.

A) determinative
B) minimally important
C) as important as the intent of a reasonable person
D) irrelevant

Question 12

Equity was resorted to when ________ would not be the proper remedy.

A) the application of natural law
B) an award that is morally just
C) an award of money damages
D) maxims based on fairness

Question 13

The court of equity that was developed in England was called ________.

A) quasi-court
B) criminal court
C) common court
D) Chancery Court

Question 14

Which of the following is true of the Uniform Commercial Code (UCC)?

A) The UCC has never been amended since it was first drafted.
B) The UCC is not considered as law, but rather as a guide to lawyers and judges.
C) The provisions of the UCC normally take precedence over the common law of contracts.
D) The UCC has been adopted in its entirety by all states.

Question 15

Which of the following is true of contracts?

A) Contracts can be classified as either voluntary or involuntary.
B) All contracts are legally enforceable.
C) The terms of a valid contract become private law between the parties.
D) Courts of law usually do not enforce the promises made as part of contracts.

Question 16

The ________ establishes common legal rules for the formation and enforcement of electronic contracts and licenses.

A) Digital Millennium Copyright Act (DMCA)
B) Uniform Computer Information Transactions Act (UCITA)
C) Electronic Communication Privacy Act
D) Computer Misuse Act of 1990

Question 17

Lori just purchased a brand new lawnmower for $500.When she got home and tried to use it,it would not work.She became angry and shouted,"I'd sell this thing for $50." Her neighbor heard her and said,"I'll take it," and offered Lori the $50 in cash.Which of the following best describes this situation?

A) This is an enforceable bilateral contract.
B) This is an express contract.
C) This situation does not result in the creation of a contract.
D) Contract formation in this case depends on whether the neighbor subjectively thought Lori was serious.

Question 18

According to the objective theory of contracts,the intent to enter into an express or implied-in-fact contract is judged by the ________.

A) reasonable person standard
B) Supremacy Clause
C) doctrine of equity
D) common law of contracts

Question 19

The consent of the parties to create a valid contract must be obtained by ________.

A) duress
B) undue influence
C) fraud
D) genuine means

Question 20

A major source of contract law is the ________,which developed from early court decisions that became precedent for later decisions.

A) civil law
B) the Restatement of the Law of Contracts
C) Uniform Commercial Code
D) common law of contracts

Question 21

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following will hold true?

A) Martha can sue the baker to recover $150 in damages.
B) Martha can sue the baker but cannot recover damages.
C) The baker has to pay $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her.
D) Martha cannot sue the baker.

Question 22

Which of the following is not a type of formal contract recognized by the Restatement (Second)of Contracts?

A) negotiable instrument
B) letter of credit
C) lease
D) contract under seal

Question 23

Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for three hours.After Mike has done the three hours of tutoring,but before Ike pays him,this contract is ________.

A) executed
B) implied-in-fact
C) executory
D) performed

Question 24

A contract is formed only by the performance of the requested act in a(n)________ contract.

A) bilateral
B) unilateral
C) void
D) unconscionable

Question 25

An offeree can respond with a promise of acceptance to an offeror's promise to form a ________ contract.

A) bilateral
B) unilateral
C) quasi-contractual
D) void

Question 26

An offer to form a unilateral contract can be revoked ________.

A) before the offeree begins performance
B) after the offeree begins performance, but before the performance is completed
C) after completion of performance
D) only by the offeree

Question 27

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

A) unilateral
B) bilateral
C) implied-in-law
D) executory

Question 28

Windsor,the owner of Windsor's Sandwiches,contacts a new supplier Gary.He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese.Gary promises to make the delivery as requested by Windsor.This creates a ________ contract between them.

A) unilateral
B) bilateral
C) implied-in-law
D) executory

Question 29

Jean says to Joan,"If you promise to feed my dog each day while I am out of town next week,I'll pay you $100." Joan replies,"I'll absolutely do that,I hope you have a nice trip." Joan then feeds the dog,after which Jean paid her.At what point did a contract come into existence?

A) when Jean made the offer to Joan
B) when Joan said that she would feed Jean's dog
C) when Joan completed the final feeding of Jean's dog
D) when Jean paid the $100 to Joan

Question 30

What is the distinguishing characteristic that makes a contract a formal contract?

A) it requires a signature by both parties
B) it requires the contract to be orally agreed upon
C) it requires a special form or method of creation
D) it addresses all possible scenarios in the contract

Question 31

An actual contract may be either ________.

A) quasi-contractual or implied-in-law
B) quasi-contractual or implied-in-equity
C) express or implied-in-fact
D) express or implied-in-law

Question 32

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

A) can revoke the contract as informal verbal agreements are not binding
B) cannot revoke the contract
C) can reduce the money on offer
D) can only increase the money on offer

Question 33

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday,she would pay him $1,000.This offer creates a(n)________ contract.

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

Question 34

As applied to a contract,the terms "bilateral" and "unilateral" are based on ________.

A) the goods or services involved in the contract
B) the number of attempts made to form a contract
C) the number of parties who make a promise in the formation of a contract
D) the number of attempts it took for a contract to be successfully performed

Question 35

Which of the following is an informal contract?

A) contract under seal
B) recognizance
C) negotiable instrument
D) purchase contract

Question 36

Frank says to Stella,"If you wash every window in my house today,I'll pay you $200." Stella washes 12 of the 20 windows in Frank's house by 2:00 p.m.At this point,________.

A) Frank can revoke his offer to pay Stella the $200 for washing the windows
B) Stella is obligated to finish washing the windows
C) Frank cannot revoke his offer to pay Stella $200 for washing all the windows
D) Frank and Stella have a formal, executed contract

Question 37

Otto approaches Mary and says,"If you pick up my new suit for me at the mall tomorrow,I'll pay you $20." Mary replies,"I don't know if I'll have time to get it,but I'll see if I get a chance." As a result of this conversation ________.

A) Otto and Mary have formed a bilateral contract
B) Mary has a legal obligation to use her best efforts to pick up the suit
C) a contract will be formed only if Mary picks up the suit
D) the contract Otto and Mary have formed is void because Mary did not promise a performance

Question 38

An informal contract is also known as a(n)________ contract.

A) unilateral
B) bilateral
C) executed
D) simple

Question 39

A contract is ________ if the offeror's promise is answered with the offeree's promise of acceptance.

A) unilateral
B) bilateral
C) executed
D) void

Question 40

Stella is injured in a motor accident and is brought to the hospital by a passerby.Stella subsequently slips into a coma.The doctors perform the necessary medical procedures to save her life.Stella comes out of her coma after two months and is released from the hospital after the doctors are satisfied with her recovery.Under the doctrine of ________,Stella has to pay the hospital for its services.

A) express contract
B) quasi-contract
C) implied-in-fact contract
D) formal contract

Question 41

Which of the following elements must be established to create an implied-in-fact contract?

A) The plaintiff provided the property or services gratuitously.
B) The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied."
C) The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
D) The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.

Question 42

An oral agreement to purchase a neighbor's bicycle is a(n)________ contract

A) voidable
B) void
C) express
D) implied

Question 43

A(n)________ contract is inferred from the conduct of the parties.

A) express
B) action-oriented
C) implied-in-fact
D) implied-in-law

Question 44

A ________ contract has no legal effect.

A) unilateral
B) bilateral
C) voidable
D) void

Question 45

Which of the following is true of contracts?

A) A void contract is one where a party has the option to avoid his or her contractual liability.
B) A voidable contract is one in which a party has the option to nullify his or her obligation under the contract.
C) A voidable contract is one that has no legal effect because one of the essential elements is missing.
D) An executory contract is considered unenforceable.

Question 46

A contract under seal is considered a(n)________.

A) formal contract
B) informal contract
C) void contract
D) quasi-contract

Question 47

Which of the following classifications of contracts is based on formation?

A) express contracts
B) valid contracts
C) unenforceable contracts
D) executory contracts

Question 48

Ben was talking to Harry who was drunk.Harry agreed to give his car to Ben as a token of friendship.Once sober,Harry asks Ben to return his car.This contract is considered ________.

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

Question 49

Which of the following classifications of contracts is based on enforceability?

A) formal contracts
B) void contracts
C) quasi-contracts
D) executed contracts

Question 50

Elizabeth signs a contract to purchase a new car from Spadace Motors.She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

A) void
B) unenforceable
C) executed
D) executory

Question 51

Kyle goes to a used-car showroom to buy a sedan.He signs an agreement with the store which bears the name of the car,price,and other details.This is an example of a(n)________ contract.

A) unilateral
B) implied-in-law
C) implied-in-fact
D) express

Question 52

Which of the following classifications of contacts is based on performance?

A) informal contracts
B) unilateral contracts
C) voidable contracts
D) executory contracts

Question 53

A(n)________ contract consists of an agreement between the parties,is supported by legally sufficient consideration,is between parties with contractual capacity,and accomplishes a lawful object.

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

Question 54

Janet pulls her car into a car wash line.She quietly sees her car getting washed by the employees.She then refuses to pay for the service,stating that there was no contract.If a lawsuit is filed,what would the result be?

A) Janet wins; there can be no contract as she didn't ask them for their service.
B) The car wash wins; this is an express, unilateral contract that has been accepted.
C) Janet wins; there is no contract because the car wash made no promise to wash her car.
D) The car wash wins; this is an implied-in-fact contract.

Question 55

A(n)________ contract is based on an equitable doctrine.

A) implied-in-law
B) executory
C) informal
D) formal

Question 56

A contract that has been fully performed on both sides is called a(n)________ contract.

A) void
B) executed
C) executory
D) implied-in-law

Question 57

Which of the following is required of a contract for it to be considered an express contract?

A) It must be either oral or written.
B) It must be implied-in-law.
C) It must be voidable.
D) It must always be in writing to be enforceable.

Question 58

The doctrine that is imposed when one person confers a benefit on another,who retains the benefit,and when it is unjust to allow the recipient to retain the benefit without paying for it is known as ________.

A) quasi-contract
B) pseudo-contract
C) unilateral contract
D) bilateral contract

Question 59

Lou writes a check to Bud but leaves out some essential components that are required on the check.This check would be described as ________.

A) valid
B) executed
C) executory
D) unenforceable

Question 60

Which of the following pairs of terms describes the same concept or situation?

A) implied-in-law contract and implied-in-fact contract
B) implied-in-law contract and quasi-contract
C) implied-in-fact contract and quasi-contract
D) formal contract and implied-in-law contract

Question 61

A contract is an agreement that is enforceable by a court of law or equity.

Question 62

Parties to a contract must have contractual capacity for the contract to be enforceable against them.

Question 63

A promise must be supported by a bargained-for consideration that is legally sufficient.

Question 64

Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods.

Question 65

The offeree is the party who makes an offer to enter into a contract.

Question 66

A court may resort to the application of equitable principles when an award of money damages "at law" would not be the proper remedy.

Question 67

Ross makes an offer to Elizabeth to sell his automobile to her for $10,000.In this case,Ross is the offeree and Elizabeth is the offeror.

Question 68

Personal property and the provision of services do not qualify as consideration.

Question 69

According to the Restatement (Second)of Contracts: "A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty."

Question 70

The Restatement of the Law of Contracts is the agreed upon federal law in the United States.

Question 71

Today,in most states of the United States,the courts of law and equity have been merged into one court.

Question 72

There is no variation in common law of contracts from state to state.

Question 73

Contracts are either bilateral or unilateral,depending on what the offeree must do to accept the offeror's offer.

Question 74

In order for an agreement to be valid,there must be mutual assent by the parties.

Question 75

In applying the objective theory of contracts,the pertinent question to ask is: "Would a hypothetical reasonable person conclude that the parties intended to create a contract after considering the words and conduct of the parties and the surrounding circumstances?"

Question 76

The objective theory of contracts holds that the intent to enter into an express or implied-in-fact contract is judged by the subjective person standard.

Question 77

The offeror is the party to whom the offer is made.

Question 78

Genuineness of assent means that either party's consent is obtained by duress.

Question 79

The Uniform Computer Information Transactions Act was passed by the U.S.Congress and is the exclusive law in the area of electronic contracts and licenses,preempting state law.

Question 80

Common law of contracts refers to contract law developed primarily by state courts.