Deck 9: The Nature and Origins of Contracts

Question 1

Traditional contract law is basically designed to protect bargains that people make and that satisfy all the legal requirements for a binding contract.

Answer 1

True

Question 2

Article 3 of the Uniform Commercial Code applies to all contracts for the sale of goods.

Answer 2

False

Question 3

A void contract is enforceable against both parties unless a party with the right to cancel the contract has done so.

Answer 3

False

Question 4

A contract is a legally enforceable promise or set of promises.

Question 5

Which of the following is true of the laissez-faire economic theories that were prevalent in the 19^th century?

A) People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts.
B) The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization.
C) These theories were never considered a part of the public policy in the 19^th century.
D) People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required.

Question 6

Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:

A) liquidation of assets.
B) sale of goods.
C) sale of securities.
D) transfer of money between banks.

Question 7

Not all promises are contracts.

Question 8

An unenforceable contract is one that meets the basic legal requirements for a contract but will not be enforced due to some other legal rule.

Question 9

The biggest reform of contract law has resulted from the adoption of the Multilateral Contracts Code (MCC).

Question 10

The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.

Question 11

A contract is implied when the parties directly state its terms at the time the contract is formed.

Question 12

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

A) The main purpose of the UCC was to enable private parties to enter into commercial transactions regulated by tariffs and government restrictions.
B) The most obvious purpose of the UCC was to establish a uniform law to govern commercial transactions that often take place within the state.
C) The drafters were successful in achieving complete uniformity.
D) The UCC is adopted by all states except Louisiana, which has adopted only part of the code.

Question 13

A contract that has been fully performed is an executory contract.

Question 14

Which of the following is a change that took place in the legal system that led to the development of contract law in the process?

A) Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization.
B) Courts today are not willing to consider defenses based on inequality of bargaining power between the parties.
C) Courts tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract.
D) Courts are not given the authority to control any contractual relationships as they are left to private bargaining.

Question 15

Written evidence of some kinds of contracts is required.

Question 16

The Restatement (Second) of Contracts carries the force of law.

Question 17

Ingrid and Michael want to buy a house. As they don't have sufficient money, they plan to steal their neighbor's car and sell it to make money. This is a valid contract.

Question 18

The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.

Question 19

In a bilateral contract, both parties make a promise.

Question 20

Which of the following is true about a contract?

A) It need not necessarily be an agreement.
B) It need not necessarily be entered into by parties having capacity to contract.
C) It must be voluntarily entered into, and it is to perform a legal act.
D) It must always be supported by consideration.

Question 21

Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is _____.

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

Question 22

The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:

A) UCC does not require contracts to be in writing, while CISG requires contracts for the sale of goods in excess of $300 to be in writing.
B) CISG applies to the sale of consumer transactions, while the UCC governs both consumer and commercial transactions.
C) UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants.
D) CISG applies to both consumer and commercial transactions, while the UCC applies only to commercial sales of goods.

Question 23

As used in the Uniform Commercial Code (UCC), the concept "reasonable":

A) is a practical standard used to gauge what people really do in the marketplace.
B) is a theoretical concept based on the "reasonable person standard" of tort law.
C) refers to the capacity to contract.
D) refers to what a reasonable person would do in the marketplace.

Question 24

A promise exchanged for a promise is an example of:

A) a bilateral contract.
B) a unilateral contract.
C) an implied contract.
D) promissory estoppel.

Question 25

Article 2 of the UCC applies to which of the following contracts?

A) a contract for the sale of real estate
B) a contract for the sale of appliances
C) a contract for the sale of stocks
D) a contract for the sale of information

Question 26

Which of the following is intended to avoid unjust enrichment?

A) Bilateral contract
B) Quasi contract
C) Void contract
D) Express contract

Question 27

If Frank buys a used car from Honest Bob's Used Cars, and Frank is a minor, the parties have a(n) _____ contract.

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

Question 28

Which of the following is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?

A) It requires contracts for the sale of goods in excess of $300 to be in writing.
B) It mainly aims to unify and codify an international law of sales.
C) It focuses on which terms of the offer and acceptance are the same.
D) It applies to commercial and consumer transactions.

Question 29

Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract.

A) quasi
B) implied
C) bilateral
D) unilateral

Question 30

Which of the following statements is true of Article 2?

A) Article 2 does not apply to contracts for the sale of goods.
B) Article 2 applies to bonds, information, and other intangibles.
C) Article 2 does not apply to service contracts.
D) Article 2 applies to contracts for the sale of real estate or stocks.

Question 31

When compared with traditional contract law, the Uniform Commercial Code (UCC):

A) reflects a less flexible attitude.
B) is more likely to find that parties have a contract.
C) gives more weight to technical requirements such as consideration.
D) is less concerned with rewarding people's legitimate expectations.

Question 32

When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have:

A) executed a contract.
B) made an express contract.
C) made an implied contract.
D) not made an enforceable contract.

Question 33

In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:

A) asking which element predominates in the contract.
B) balancing the need to apply a uniform standard with the interest of justice.
C) asking if the contract is barred by public policy.
D) using the criteria of reasonableness.

Question 34

Umi enters into an agreement with Sheng to sell her farm to him. They shake hands to "seal the deal," but do not put the agreement in writing. The contract is:

A) voidable but enforceable.
B) bilateral.
C) valid.
D) unenforceable.

Question 35

Yuan writes to Rita saying that he would sell her his car for $1,000. Rita writes back agreeing to buy the car on Yuan's terms. Given this information, the contract between Yuan and Rita is:

A) unilateral and executory.
B) bilateral and unenforceable.
C) bilateral and executory.
D) unilateral and implied.

Question 36

Sue Smith, the owner of Hi-Fi heaven, orders 100 stereo receivers from Steve Jones, a salesman for Slick Sound Manufacturing Company. Sue has made a promise to pay for the receivers in exchange for Slick Sound's promise to deliver them. This is a(n) _____ contract.

A) unilateral
B) bilateral
C) implied
D) quasi

Question 37

An executory contract is a contract:

A) that has been fully performed by all parties.
B) where executive privileges are implied.
C) that has not yet been fully performed by all parties.
D) where one party performs on the basis of a promise made by the other.

Question 38

Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:

A) good.
B) service.
C) good-faith warranty.
D) mixture of goods and services.

Question 39

Which of the following statements is true of a quasi contract?

A) A quasi contract is a legal fiction created by the court to avoid just enrichment.
B) A person is not held liable under quasi contract for benefits he or she received unknowingly.
C) A person is held liable under quasi contract for benefits he or she reasonably believed were given as a gift.
D) A quasi contract does not involve contract-like duties imposed by the court.

Question 40

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

A) It expressly recognizes the concept of an unconscionable contract.
B) It always imposes the same standards on merchants and nonmerchants.
C) It regards everyone covered by the UCC as a merchant.
D) It has no writing requirement unless the contract contains a provision requiring that modifications for terminations be in writing.

Question 41

Lorenzo offered Ida a job at his new law firm. In anticipation, Ida quit her job at Mega Firm, bought a new computer, and invested in a new set of law books. Shortly before her anticipated first day at Lorenzo's firm, Lorenzo informed Ida that he had changed his mind, and no longer wanted her to work for him. Ida may recover under the doctrine of _____.

A) unjust enrichment
B) promissory estoppel
C) unilateral contract
D) express contract

Question 42

What is a quasi contract?

Question 43

Joe pays Ann to mow his lawn, but Ann mows Donna's lawn by mistake. Donna peeps out her window and sees Ann mowing, yet says nothing to Ann about her mistake as Donna needs to have her lawn mowed. When Ann approaches Donna for payment, Donna refuses, arguing that she had never asked Ann to mow her lawn. Under these circumstances, Ann can recover payment from Donna on a(n) _____ contract basis.

A) void
B) quasi
C) executory
D) express

Question 44

Explain the differences between and similarities of the categories used to classify contracts by their enforceability: valid, unenforceable, voidable, and void.

Question 45

Marge Corp., a supermarket, sends Valerie Orchard Inc. an order for 80 cases of apples at $180 per case. Valerie Orchard sends an acknowledgement form to Marge, accepting the order. Describe the type of contract between Marge and Valerie Orchard.

Question 46

The doctrine of promissory estoppel:

A) makes the contracts unenforceable.
B) does not make promises enforceable.
C) protects bargains, not reliance.
D) protects reliance, not bargains.

Question 47

What is a contract?

Question 48

A quasi contract can be best described as:

A) a contract that has been fully performed.
B) a contract where terms are stated orally only.
C) contract-like duties imposed by the court to prevent unjust enrichment.
D) an agreement that contains all but one of the basic elements needed to form an enforceable contract.

Question 49

According to the Restatement (Second) of Contracts, promissory estoppel requires:

A) one party to perform an act in exchange for the other party's promise.
B) that one or both parties may cancel the subject contract.
C) that at least one party give money or any other tangible, physical property as consideration.
D) a promise that the promisor should foresee is likely to induce reliance.

Question 50

How does the Uniform Commercial Code (UCC) define merchant? Why does the UCC distinguish between merchants and nonmerchants?