Deck 9: Nature of Traditional and E-Contracts

Question 1

In order for an offer to be valid,an offeror must promise to undertake some affirmative action.

Answer 1

False

Question 2

An offer for a unilateral contract can always be revoked at any time prior to the offeree's completion of the requested act.

Answer 2

False

Question 3

There must be at least three parties in order for a contract to be valid.

Answer 3

False

Question 4

The fact that a contract is legally enforceable means that the police can be called to make the other party live up to the terms of the contract.

Question 5

An offer for a unilateral contract cannot be accepted by a mere promise to perform.

Question 6

Quasi-contracts and implied-in-law contracts are two terms for the same situation.

Question 7

The objective theory of contracts is judged by the reasonable person standard.

Question 8

A contract may be enforceable by a court of law or equity.

Question 9

Offers for both bilateral and unilateral contracts involve a promise by the offeror.

Question 10

There is some variation in contract law from state to state.

Question 11

One requirement of an express contract is that it be in writing.

Question 12

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

Question 13

Quasi-contract law attempts to prevent unjust enrichment where no contract actually existed.

Question 14

In the early days of our nation's history,contracting was largely left up to the individual parties with little government regulation or oversight.

Question 15

The Restatement of the Law of Contracts is the highest priority source of contract law.

Question 16

The federal common law of contracts is the most important common law source,with state common law relative to contracts filling in gaps in the federal common law.

Question 17

An implied-in-fact contract is one based on the conduct of the parties.

Question 18

Two of the four basic contract requirements are agreement and signatures of the parties.

Question 19

Under the modern law of contracts,there is substantial government regulation of the right to contract.

Question 20

The Uniform Commercial Code is a source of contract law that has been adopted by only a minority of the states.

Question 21

What is the name of the act recently drafted by the National Conference of Commissioners on Uniform State Laws in response to the growth in business conducted over the Internet?

A) The Uniform Computer Information Transactions Act
B) The Standard Internet Commerce Act
C) The Uniform Computer Transaction Code
D) The New Millennium E-Commerce Act

Question 22

Which of the following are valid informal contracts?

A) leases
B) sales contracts
C) service contracts
D) All of these are correct.

Question 23

The original source of the Uniform Commercial Code was:

A) the U.S. Constitution
B) Congress
C) the state legislature of Delaware
D) the United Nations
E) the National Conference of Commissioners on Uniform State Laws

Question 24

Every contract has both:

A) a buyer and seller
B) an offeror and offeree
C) a breaching party and a nonbreaching party
D) an initiator and a responder

Question 25

To create an enforceable contract,which of the following is(are)needed?

A) agreement
B) agreement and consideration
C) agreement,consideration,and contractual capacity
D) agreement,consideration,contractual capacity,and a lawful objective

Question 26

Common law as a source of law for contracts:

A) comes primarily from federal law
B) comes exclusively from state law
C) comes exclusively from federal law
D) comes primarily from state law
E) comes equally from state and federal law

Question 27

A contract is created regardless of the offer being accepted or not.

Question 28

What is the purpose of the Uniform Computer Information Transactions Act?

A) to ensure that credit card companies process transactions promptly
B) to establish uniform rules for the formation and enforcement of electronic contracts and licenses
C) to convert existing contract law so that all contracts are interpreted as if they were negotiated over the Internet
D) to provide consumers certain rights in their contracts with Internet service providers

Question 29

Which of the following is NOT needed in order to have a valid contract?

A) contractual capacity
B) an agreement
C) a signed written document
D) consideration
E) a legal object

Question 30

The Uniform Commercial Code was first drafted in:

A) 1910
B) 1933
C) 1945
D) 1952
E) 1976

Question 31

How has the government role in contract regulation changed since the founding of the United States?

A) There is greater state and federal government involvement today than in the past.
B) There is less state and federal government involvement today than in the past.
C) There is approximately the same degree of state and federal government involvement today as in the past.
D) There is less state,but more federal involvement today than in the past.
E) There is less federal,but more state involvement today than in the past.

Question 32

A 1-year lease for an apartment that is 12 pages long,printed,covers all details of the parties' obligations,and contains the dated signature of each party is a formal contract.

Question 33

Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no contract exists?

A) an express contract
B) the doctrine of formal contracts
C) implied-in-law contract
D) quantum meruit

Question 34

The United Nations Convention on Contracts for the International Sale of Goods applies to any contract that involves a buyer and seller in different nations.

Question 35

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

A) It is the supreme legal authority for contract law.
B) A law which has been adopted,at least in part,by every state.
C) A summary of the constitutional provisions affecting contract law.
D) A compilation of contract law that is not itself contract law,but is often referred to by judges.

Question 36

Equity courts,whether separate or merged into law courts,can decide contract disputes.

Question 37

Which of the following is NOT characteristic of a valid contract?

A) It can be viewed as private law between the parties.
B) The parties must have the contract's terms approved by the appropriate court.
C) A court will enforce its terms if the parties do not voluntarily perform.
D) It will have at least two parties.

Question 38

A voidable contract is one that neither party can perform.

Question 39

A contract remains executory as long as any party to the contract has not fully performed.

Question 40

The Uniform Commercial Code has been adopted by:

A) fewer than half of the states
B) most,but not all,states
C) at least in part by all states
D) in its entirety by all states

Question 41

Which of the following is true in a unilateral contract?

A) The offeror requests an act as acceptance of his offer.
B) The offeror cannot revoke the offer once the offeree has begun performance or has substantially completed performance.
C) The offeror will treat either a promise to perform or the actual performance of the act as acceptance of his offer.
D) A and B only are true.
E) B and C only are true.

Question 42

Which of the following are two terms for 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) unilateral contract and informal contract
E) formal contract and implied-in-law contract

Question 43

What is required for a contract to be an express contract?

A) It is stated in words.
B) It is written.
C) It is written and signed.
D) It is performed immediately after formation.
E) It is performed for mutual benefit.

Question 44

Which of the following is NOT a formal contract?

A) contract under seal
B) recognizance
C) negotiable instrument
D) letter of credit
E) new car purchase contract

Question 45

What kind of contract is based on the conduct of the parties?

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

Question 46

When can an offer to form a unilateral contract 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) both A and B
E) A,B,and C

Question 47

A contract is formed by the performance of the requested act in what kind(s)of contract?

A) bilateral
B) unilateral
C) both A and B
D) neither A nor B

Question 48

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

A) a signature by both parties
B) the contract being in writing
C) a legal requirement that the contract be in a specific form
D) all possible scenarios are addressed in the contract terms

Question 49

The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it,is known as:

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

Question 50

Which of the following is needed to impose a quasi-contract?

A) a benefit having been conferred and injustice if the benefit were not paid for
B) actions implying a contract and an agreement as to the price
C) a promise asking for action and the requested action having been completed
D) a benefit having been conferred and objective intent that it be conferred

Question 51

Otto approaches Edie and says,"If you pick up my new suit for me at the mall tomorrow,I'll pay you $20." Edie 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,which of the following is true?

A) Otto and Edie have formed a bilateral contract.
B) Edie has a legal obligation to use her best efforts to pick up the suit.
C) A contract will be formed only if Edie picks up the suit.
D) The contract which they have formed is voidable because Edie did not obligate herself.

Question 52

The reasonable person standard is used to decide whether an express contract exists under the:

A) quasi-contract rules
B) objective theory of contracts
C) standard offer requirements
D) contract existence standard guidelines
E) nondisclosure rules

Question 53

Over time,most contracts are:

A) executory at one time and executed at another
B) bilateral at one time and unilateral at another
C) valid at one time and void at another
D) implied at one time and express at another

Question 54

Which of the following is true regarding contract validity?

A) A void contract is one where a party has the option to avoid his/her contractual liability.
B) A voidable contract is one in which a party may avoid his/her obligation under that 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 also unenforceable.
E) A unilateral contract is unenforceable.

Question 55

Which of the following does not need to be proven by a plaintiff who is claiming that an implied-in-fact contract exists?

A) The plaintiff provided property or services to the defendant.
B) The plaintiff and defendant communicated with each other about the property or services.
C) The plaintiff expected to be paid by the defendant for the property or services and did not intend to provide the property or services gratuitously.
D) The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.

Question 56

A bail bond is an example of what type of formal contract?

A) letters of credit
B) contracts under seal
C) negotiable instrument
D) recognizances
E) simple contract

Question 57

The terms "bilateral" and "unilateral" as applied to contracts are based on:

A) the number of parties in a 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 promises that are made in connection with a contract
E) the number of attempts it took for a contract to be successfully performed

Question 58

Under the objective theory of contracts,a contract could result from an offer made:

A) in jest
B) in anger
C) due to a need to sell an item quickly
D) due to undue excitement

Question 59

Which of the following is NOT a basic requirement to be an enforceable contract?

A) There must be an agreement between the parties.
B) The promise must be supported by a bargained-for exchange.
C) The parties must have contractual capacity.
D) The parties need not have assent.
E) The object of the contract must be lawful.

Question 60

An offeree can form a contract by making a promise if the offer to form the contract is:

A) bilateral
B) unilateral
C) trilateral
D) either A or B
E) neither A,B,nor C

Question 61

Frank says to Mary,"If you wash every window in my house today,I'll pay you $200.I don't care if you do it,but there is $200 in it for you if you do." Mary washes 12 of the 20 windows in Frank's house by 2: 00 p.m.At this point,which of the following is true?

A) Frank can revoke his offer to pay Mary the $200 for washing the windows.
B) Mary is obligated to finish washing the windows.
C) Mary has formed a contract by beginning to wash the windows.
D) There is no contract yet in this situation.

Question 62

Wilma tells Sidney that she will buy his house from him.Before any paperwork is signed,Sidney backs out of the deal.Wilma sues Sidney for breach of contract.What is Sidney's best defense?

A) The contract is void.
B) The contract is voidable.
C) The contract is unenforceable.
D) The contract is illegal.

Question 63

Mr.Smith awakens one morning to the sound of construction in his back yard.When he looks out the window,he sees Ajax Construction Co.apparently erecting a garage on his property.He had not spoken or contracted with Ajax for this service.However,Mr.Smith really wanted a new garage,so he let them continue.Later,it was discovered that the garage was intended to go next door.Ajax sues Mr.Smith for the value of the garage.What is the probable result?

A) Ajax wins; this is a case of a contract implied-in-fact,and Mr. Smith implicitly agreed to pay for the garage.
B) Smith wins; there was no contract upon which Ajax could recover,and people are not liable for benefits that are thrust upon them.
C) Ajax wins; although there is no real contract,this is a case of unjust enrichment,and because Mr. Smith accepted the garage,he must pay for it.
D) Smith wins; unjust enrichment does not apply here because Mr. Smith had no duty to tell Ajax that it had the wrong house.

Question 64

Jean says to Joan,"If you'll 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 pays 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 started feeding Jean's dog.
D) When Joan completed the final feeding of Jean's dog.
E) When Jean paid the $100 to Joan.

Question 65

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) If Lori sells the lawnmower for $50,it would be a case of unjust enrichment.
D) This situation does not result in the creation of a contract.

Question 66

Tim and his boss conspire by contract to cheat the IRS out of money.The boss later changes her mind.What is the status of the contract with respect to Tim?

A) It is a valid contract.
B) It is a void contract.
C) It is a voidable contract.
D) It is a unenforceable contract.

Question 67

Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000.There is adequate consideration,the contract is legal,and both parties have contractual capacity.The contract is fully performed by both parties on January 1.Which of the following best describes this contract as of January 2?

A) bilateral,express,executed,valid
B) unilateral,express,executed,valid
C) unilateral,express,executory,valid
D) unilateral,implied,executory,valid

Question 68

Janet pulls her car into a line for a car wash.Janet says nothing and her car is washed by the employees there.Janet then refuses to pay for the car wash,stating that there is no contract.What would the results be in a lawsuit over this situation?

A) Janet wins; because she said nothing,there can be no contract.
B) Car wash wins; this is an express,unilateral contract that has been accepted.
C) Janet wins; because the car wash made no promise to wash her car,there is no contract.
D) Car wash wins; this is an implied-in-fact contract that has been accepted.

Question 69

Under the objective theory of contracts it is possible that one can be in a contract against his/her will.What are the advantages of the objective theory of contract formation?

Question 70

Ron took his car to the muffler shop to have the left muffler of his dual exhaust system replaced.From the waiting room he sees that the worker is preparing to remove the right muffler.Ron says nothing,hoping that he'll get a free muffler for the right side.Discuss this situation.

Question 71

Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for 3 hours.After Mike has done the 3 hours of tutoring,but before Ike pays him next week,this contract is:

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

Question 72

Which type of contract,bilateral or unilateral,is more common in business? Why? Under what circumstance would someone prefer one or the other? What are the advantages of each type for the offeror? For the offeree?

Question 73

Chad is sixteen years old.He went to a local used-car dealership and looked at an automobile.The salesperson never asked Chad his age,nor asked for identification.Chad agreed to purchase the vehicle,and then shortly thereafter changed his mind.What is the status of the contract with respect to Chad?

A) It is an illegal contract.
B) It is a void contract.
C) It is a voidable contract.
D) It is a valid contract.

Question 74

Hilda Homeowner said to her neighbor,Paulette Painter,"If you paint my house,I'll pay you $1,500.All you must do is finish by the end of the next month.My price assumes that you will pay for all of the paint and any needed supplies." Paulette decided to paint the house.She purchased some supplies as well as enough custom-colored paint to complete the job.On the morning that Paulette was about to begin painting,Hilda told her that she had changed her mind and would not pay Paulette to paint the house.Discuss the rights of the parties in this situation.