Deck 9: Introduction to Contracts

Question 1

Ms.White hired Mr.Blue to steal from Ms.Yellow.Ms.White is upset with how everything turned out and wants to sue Mr.Blue for breach of contract.But the court will refuse to recognize the contract and subsequently a breach of it because the contract is void.

Answer 1

True
Explanation: Void contracts are agreements that create no legal obligations and for which no remedy will be given.Contracts to commit crimes,such as "hit" contracts,are classic examples of void contracts.

Question 2

Promissory estoppel protects reliance on a promise from one party to another.

Answer 2

True
Explanation: Contracts are thought of as protecting agreements while promissory estoppel protects reliance on promises.

Question 3

Sometimes,Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Answer 3

True
Explanation: The Code recognizes that buyers tend to place more reliance on professional sellers and that professionals are generally more knowledgeable and better able to protect themselves than nonprofessionals.So,it distinguishes between merchants and nonmerchants by holding merchants to a higher standard in some cases.

Question 4

Generally,the terms of a standardized contract are negotiable.

Question 5

Speaking generally,a quasi-contract applies where there has been foreseeable reliance on an express promise.

Question 6

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

Question 7

Contracts must always be in writing to be enforceable.

Question 8

The essence of a contract is that it is a legally enforceable promise or set of promises.

Question 9

The rules promulgated by the Restatement (Second)of Contracts often resemble the rules created by Article 2 of the UCC.

Question 10

If no Code rule applies to an issue regarding a sale of goods contract,the common law rules apply.

Question 11

Not every promise is legally enforceable.

Question 12

The CISG applies only to sales of goods and commercial parties.

Question 13

Pratt,an owner of an appliance store,has a garage sale at his home where he sells old furniture and books.He sells a set of books to his neighbor,Stacey.Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

Question 14

The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

Question 15

A voidable contract creates no obligation and is not enforceable by any party.

Question 16

Alan and Ben have a contract.Alan has performed 100 percent and Ben has performed 50 percent of it.This contract is now executory.

Question 17

The mutual agreement necessary to create an express contract must be evidenced by a writing.

Question 18

Article 2 of the UCC never applies to mixed goods-services contracts.

Question 19

When contracting,one party is entering into an agreement with the federal government to enforce behavior on another party.

Question 20

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

Question 21

An executed contract is one that has been:

A)terminated by operation of law.
B)terminated by the parties' voluntary agreement.
C)fully performed by one or both parties.
D)fully performed by both parties.

Question 22

Ann wants to download 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)clickwrap contracts.
B)shrinkwrap contracts.
C)browse-wrap contracts.
D)unenforceable contracts.

Question 23

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

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

Question 24

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

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

Question 25

Jimmy and Pat had a long-standing professional relationship.In 2001,Jimmy's business began experiencing financial strain.The two friends discussed Jimmy's personal problems and financial difficulties,and Pat was concerned about his friend's depressed mental state.In 2003,Pat flew from Atlanta to New York to meet with Jimmy.Prior to Pat's flight,Jimmy's employee faxed copies of various construction contracts and correspondence relating to Jimmy's controversial projects for Pat to review.In late 2005,Pat billed Jimmy for a $40,000 balance that Jimmy owed on the alleged oral contract for consulting services.In a letter to Pat,Jimmy stated: "I have paid you plenty and will not pay you any more.I have not called for any professional advice since then." Pat filed suit against Jimmy for breach of contract.Will Pat succeed?

A)Yes,because Pat was offering his friend professional consultation.
B)Yes,because there is a valid contract formed,since Jimmy had sought Pat's advice.
C)No,because it was a friendly advice and not an actual contract.
D)No,because Pat never entered into an oral contract and only written contracts are enforceable.

Question 26

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

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 27

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):

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

Question 28

An otherwise valid contract whose enforcement is barred by the applicable statute of limitations is an example of a(n):

A)voidable contract.
B)quasi-contract.
C)bilateral contract.
D)unenforceable contract.

Question 29

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

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

Question 30

Reggie went to the Napa Valley Harvest Festival,when he stopped at Tracy's booth where she was selling paintings of vineyards.Reggie admired a painting of vineyards,which did not appear to be for sale.Reggie said to Tracy,"I will give you $200 if you give me that painting right now." Tracy said nothing in response,but she gave Reggie the painting,and Reggie gave her $200 in cash.This is an example of a contract that is now:

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

Question 31

When the surrounding facts and circumstances indicate that an agreement has in fact been reached,a(n)________ has been created.

A)implied contract
B)quasi-contract
C)void contract
D)unenforceable contract

Question 32

A contract is ________ when all of the parties have fully performed their contractual duties.

A)void
B)executed
C)contingent
D)ineffective

Question 33

Calvin tells Sara that he will sell her his car for $5,000.Sara agrees.The exchange is to take place in 10 days.The contract between Calvin and Sara is now:

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

Question 34

Which of the following is NOT a basic element of a contract?

A)Offer
B)Consideration
C)Capacity
D)Goods

Question 35

A void contract is:

A)a contract that one or both parties can cancel at their convenience.
B)a contract,even though the courts will not enforce it.
C)an agreement that creates no legal obligations.
D)created by operation of law rather than by the agreement of the parties.

Question 36

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

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

Question 37

Aaron promises to sell his boat to Matt,and Matt promises to buy it from Aaron.What type of contract is this?

A)A unilateral contract
B)A quasi-contract
C)A bilateral contract
D)A promissory estoppel contract

Question 38

An oral contract that is covered by the statute of frauds is:

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

Question 39

To qualify as a contract,a set of promises must be based on a voluntary agreement,which is made up of an offer and a(n)________ of that offer.

A)understanding
B)writing
C)assumption
D)acceptance

Question 40

Contracts are typically between one party and:

A)the federal government
B)the state government
C)another private party
D)an international agency on commerce

Question 41

Why does Article 2 hold merchants to a higher standard than nonmerchants?

A)Because buyers tend to place more reliance on merchants.
B)Because merchants are not required to observe reasonable commercial standards of fair dealing.
C)Because the Code gives more weight to technical requirements such as consideration.
D)Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

Question 42

Which types of transactions are governed by the Uniform Commercial Code?

A)Contracts for the sale of goods.
B)Contracts for services.
C)Contracts for the sale of land.
D)Any commercial contract,whether for goods,services,or land.

Question 43

Dawson entered into a contract with Jensen for the sale of Dawson's boat.Which set of legal rules governs this transaction?

A)Contract rules of the common law
B)Contract rules of the Uniform Commercial Code
C)Equity rules that ensure fairness in transactions
D)Marine law

Question 44

The CISG:

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 45

Article 2 of the UCC does NOT apply to a sale of:

A)baseball bats.
B)harvested wheat.
C)corporate stock.
D)a new car.

Question 46

Which of the following is NOT covered by Article 2 of the UCC?

A)Vehicles
B)Appliances
C)Stocks
D)Books

Question 47

The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of:

A)good faith.
B)unconscionable contract.
C)quasi-contract.
D)implied contract.

Question 48

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

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

Question 49

What bodies of law govern contracts in the United State?

A)Article 2 of the UCC
B)Common law related to contracts
C)The United Nations Declaration on Human Rights
D)Both A & B

Question 50

James goes to a dentist to have a tooth extracted.James never signs a written contract for this service,and he and the dentist never made an oral agreement either.Later,the dentist bills James who refuses to pay.The dentist sues James.Which of the following is true?

A)The dentist can recover under a theory of quasi-contract liability.
B)The dentist cannot recover under an implied contract theory.
C)The dentist can recover under the doctrine of promissory estoppel.
D)The dentist cannot recover because there was no express contract.

Question 51

Mr.Green enters into a contract with Mr.Blue who is a crab fisherman.Mr.Green and Mr.Blue know that Mr.Blue has already caught the number of crabs allowed for the season.But Mr.Green and Mr.Blue agree to a contract to exceed the quota.What is the status of the contract between Mr.Green and Mr.Blue?

A)The contract is voidable,and is enforceable till Mr.Blue cancels it.
B)The contract is void since it attempts to contract for services that are illegal.
C)The contract is valid and enforceable.
D)The contract will be valid if registered with the Secretary of State.

Question 52

Mr.White enters into a contract to sell a car to Joe Jr.who is 15 years old and is considered a minor in the state where he lives.What is the status of the contract that Mr.White and Joe Jr.entered into?

A)The contract is voidable and enforceable until Joe Jr.cancels it.
B)The contract is void and unenforceable.
C)The contract is enforceable and valid.
D)If the contract is registered with the Secretary of State's office it will become enforceable.

Question 53

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

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 54

Why did the Restatement of Contracts not have the force of law?

A)It was the product of a private organization.
B)It had conflicting perspectives.
C)It was deemed significantly inferior to the common law.
D)It was deemed significantly inferior to the UCC.

Question 55

How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace?

A)By applying stringent technicalities to contracts.
B)By recognizing void contracts.
C)By discriminating between merchants and nonmerchants.
D)By imposing the doctrine of good faith.

Question 56

Linda wanted to replace the old carpet in her home.She entered into a contract with Carpet Co. ,for the purchase and installation of a new carpet.The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150.Later,Linda became dissatisfied with this transaction and now wants to sue Carpet Co.Linda wants to apply the contract rules of the UCC,but Carpet Co. ,wants to apply the contract rules of the common law.Which source of law should govern this case?

A)The contract rules of the UCC apply,because the contract included the sale of goods.
B)The contract rules of the UCC apply,because the predominant purpose of the contract was for the sale of goods.
C)The contract rules of the common law apply,because the contract included services,which are governed by the common law.
D)The contract rules of the common law apply,because all contracts are governed by the common law.

Question 57

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

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

Question 58

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

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

Question 59

Amy bought Mississippi State Lottery tickets.Several days later,she learned that someone 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 presented 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?

A)Yes,because the play slip should be enough proof 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 the court will find that Amy was not in good faith when she lost the original ticket.
D)No,because the rules of the contract prescribed that the ticket must be shown to claim the money.Amy accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Question 60

The UCC differs from the common law of contracts in that the UCC:

A)is less concerned with technical rules.
B)deals with the sale of intangibles.
C)deals with service contracts.
D)is less concerned with the "good faith" doctrine.

Question 61

Which article of the UCC deals with the sale of goods?

A)Article 4
B)Article 2
C)Article 7
D)Article 6

Question 62

Standardized contracts present the dangers that the party who signs the contract:

A)will not know what he is agreeing to.
B)will be defrauded.
C)will not have enough time to read the agreement as a whole.
D)will not understand he is signing a binding agreement.

Question 63

What is the term for being equitably prevented from raising a legal defense?

A)Quid pro quo
B)Estoppel
C)Breach of Contract
D)International Subsidy Agent

Question 64

Which of the following terms refers to legal value that is bargained for and given in exchange for an act or promise?

A)Capacity
B)Consideration
C)Legality
D)Promissory estoppel

Question 65

A(n)________ is a proposal by one person to another that is intended to create legal relations on acceptance by the person to whom it is made.

A)negotiation
B)offer
C)settlement
D)agreement

Question 66

A(n)________ contract is a contract where its terms are included as a hyperlink on a page,and the indication of agreement is purportedly the use of the product or service.

A)browse-wrap
B)shrinkwrap
C)clickwrap
D)e-mail

Question 67

Which of the following is true regarding promissory estoppel?

A)It requires reasonable reliance on the promisor's promise.
B)It requires a written promise.
C)It requires consideration.
D)It applies only when one party is a merchant.

Question 68

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 that 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?

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 69

The text discusses that the drafters of the Uniform Commercial Code had several purposes in mind.Which of the following was not one of those purposes?

A)Protect the innocent consumer from fraudulent activity in the marketplace.
B)Establish a uniform set of rules to govern commercial transactions.
C)Create a body of rules that would realistically and fairly solve common problems occurring in everyday commercial transactions.
D)Formulate rules that would promote fair dealing and higher standards in the marketplace.

Question 70

Jim purchased software on a CD-ROM disc to complete his taxes.The CD-ROM was bundled in a sealed package with a notice that stated that the consumer was agreeing to the terms of the proposed standardized license agreement when he broke the seal on the packaging.This is called a(n)________ contract.

A)shrinkwrap
B)browse-wrap
C)clickwrap
D)e-mail

Question 71

________ is the ability to incur legal obligations and acquire legal rights.

A)Legality
B)Consideration
C)Freedom of contract
D)Capacity

Question 72

In the case in the text,Trapani Construction Co.v.Elliot Group,Inc. ,the court held that:

A)There was a contract implied in fact because the circumstances and behaviors of the parties demonstrated a general course of dealing and a mutual intent to contract.
B)There was no contract implied in fact because the defendant never accepted the plaintiff's offer.
C)There was no contract implied in fact because no consideration was provided to defendant.
D)There was no contract implied in fact because there was no meeting of the minds or mutual assent.

Question 73

A fundamental difference between promissory estoppel and traditional contract principles is that promissory estoppel protects:

A)reliance.
B)bargains.
C)agreements.
D)consideration.

Question 74

Pancake House,a local breakfast diner,issues "frequent buyer" cards to its customers and stamps the card each time a customer buys a stack of pancakes.Pancake House promises to give any customer a free stack of pancakes if the customer buys 10 stacks of pancakes and has his "frequent buyer" card stamped 10 times.This is an example of a(n)________ contract.

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

Question 75

Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees.She discovers the misrepresentation after she resold some products that she received but before she has paid Fun Foods for the products.Holly wants to cancel the franchise contract on the basis of fraud.What is the remedy available to her?

A)Promissory estoppel
B)Duty of good faith
C)Executory contract
D)Quasi-contract

Question 76

The ________ of contracts is court-made law that is in a constant state of evolution.

A)Common law
B)Statutory law
C)The Uniform Commercial Code
D)Administrative law.

Question 77

In Audio Visual Artistry v.Tanzer,the case in the text,the court looked to the factors discussed in the Pass case when it applied the predominant purpose test.Which of the following was not one of those factors?

A)The language of the contract
B)The nature of the business of the supplier of goods and services
C)The reason the parties entered into the contract
D)The intention of the parties

Question 78

Explanation: The court looked to the following four factors from the Pass case: (1)the language of the contract;(2)the nature of the business of the supplier of goods and services;(3)the reason the parties entered into the contract;and (4)the amounts paid for the rendition of the services and goods,respectively.
Difficulty: 3 Hard
Topic: Sources of Law Governing Contracts
Learning Objective: 09-03 Distinguish the applicability of the common law of contracts and Article 2 of the Uniform Commercial Code and identify which one governs a given contract.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
A contract that "shocks the conscience of the court" is:

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

Question 79

________ is the actual or implied receipt and retention of that which is tendered or offered.

A)Consideration
B)Capacity
C)Acceptance
D)Quasi-contract

Question 80

________ is the idea that contracts should be enforced because they are the products of the free wills of their creators,who should,within broad limits,be free to determine the extent of their obligations.

A)Quasi-contract
B)Promissory estoppel
C)Capacity
D)Freedom of contract