Question 1

Identify and briefly describe the objectives that owners and managers should keep in mind when dealing with a customer who is attempting to expand or restrict an existing contract.

Accepted Answer

The answer of Identify and briefly describe the objectives that...

Question 2

Which of the following would lend undisputable support for the use of a contract as opposed to a casual understanding?

Accepted Answer

A)  Casual understandings require lengthy negotiations and time to perform. 
B)  All contracts typically involve arrangements that are unlikely to be repeated. 
C)  Casual understandings are casually conducted and completed instantly. 
D)  All contracts are subject to the same set of compulsory legal rules.

Question 3

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Accepted Answer

A) True 
 B)False

Question 4

Where a manufacturer has been discovered to have knowingly produced and sold a defective product to the public,which of the following would offer the most favourable remedy for salvaging that company's business reputation?

Accepted Answer

A)  Deny any wrongdoing and obtain top lawyers to defend against litigation. 
B)  Take ownership for the problem and voluntarily compensate affected customers. 
C)  Hire bloggers to create confusion of the facts on social networking websites. 
D)  Have a top executive issue an official apology presented on national television.

Question 5

If one of the parties to a contract fails to perform his obligations under that agreement,which of the following will be the most likely result?

Accepted Answer

A)  The offending party is legally obligated to renegotiate the terms of the contract. 
B)  Both parties must adhere to a mandatory requirement to renegotiate their contract. 
C)  A court will generally award damages to the innocent party to cover resulting losses. 
D)  A court will order each party to return whatever consideration has been received.

Question 6

Explain how the operation of contract law makes it possible for the wheels of commerce to turn efficiently and effectively.

Accepted Answer

The answer of Explain how the operation of contract law...

Question 7

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side? Provide an example and a possible alternative to an outright breach of existing contractual obligations.

Accepted Answer

The answer of Identify and briefly explain the circumstances where...

Question 8

Where a court is asked to resolve a dispute involving parties that have reached an incomplete agreement,which of the following could you most reasonably expect a judge to determine as the outcome?

Accepted Answer

A)  The court will decline jurisdiction to provide a remedy derived under contract law. 
B)  The court will refer to statute law that will be applied to formulate a binding contract 
C)  The court will lack jurisdiction to refer the issue to alternative dispute resolution. 
D)  The court will apply the principles of the common law to constitute a binding contract

Question 9

An incomplete agreement is not contractual because its content is not sufficiently comprehensive.

Accepted Answer

A) True 
 B)False

Question 10

Most contractual business relationships are initiated through an offer and acceptance of that offer.Acceptance is typically followed by communications to fill in the details of the arrangement.

Accepted Answer

A) True 
 B)False

Question 11

A Canadian court hearing a disputed matter involving parties to a contract will rely on past decisions to determine a remedy for the dispute.Why is the court's reliance on past decisions considered to be an effective manner for it to determine an appropriate legal remedy?

Accepted Answer

A)  Precedents support the parties' respective disputed positions. 
B)  Precedents are derived from statue laws that guide the court's deliberations. 
C)  Precedents contain legal principals determined from similar past litigation. 
D)  Precedents provide supporting evidence of applicable common law rules of contract.

Question 12

Down the legal road,one faces an ultimate settlement based on a correct answer ultimately derived from the court's interpretation of the contract.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following factors would have the greatest degree of influence regarding a retailer's decision concerning the commencement of a lawsuit against a supplier for breach of a business contract?

Accepted Answer

A)  the significance of the economic harm caused by the defaulting party's breach 
B)  the ability to secure an adequate supply of the stock from another supplier 
C)  the costs associated with obtaining the stock from a different supplier 
D)  the impact of the lawsuit on the reputation of the defaulting company

Question 14

A court has been asked to determine a matter involving a contractual dispute between two large corporations.Which of the following sequences of procedures will the judge apply to arrive at the court's decision?

Accepted Answer

A)  review the conduct of the parties, evaluate the relevant law and the contract terms, then reach a decision 
B)  evaluate contract terms and conduct of the parties, then apply relevant law to arrive at a determination 
C)  review the relevant law, evaluate conduct of parties, then apply the contract terms to arrive at a decision 
D)  evaluate conduct of the parties, review contract terms, then apply rules of law to arrive at a decision

Question 15

With respect to a contractual business relationship,which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach?

Accepted Answer

A)  seeking methods of maintaining profits when entering into new business relationships 
B)  taking an intractable position and forcing an ultimate favourable settlement. 
C)  finding practical ways of interpreting contracts to arrive at higher profit margins 
D)  deciding to secure greater profits through non-performance of an existing contract

Question 16

Which of the following would a lawyer most likely say is the reason that contractual relationships are preferable over casual forms of business arrangements?

Accepted Answer

A)  They envision business commitments or promises. 
B)  They solidly prove the parties' relationship is voluntary. 
C)  They readily provide the means for legal enforceability. 
D)  They must be expressed in writing using legal terminology.

Question 17

With respect to disparity in the bargaining power between the parties to a contract,which of the following would exemplify the circumstances that will most likely lead a court to set a contract aside?

Accepted Answer

A)  a lack of sufficient equality of the benefits received by each party 
B)  an attempt to take advantage of a handicapped, vulnerable person 
C)  whether the contract was entered into after October 1, 2008 
D)  whether the contract was entered into before October 1, 2008

Question 18

In reaching his or her decision regarding a contractual dispute,a judge will always apply the objective standard test.

Accepted Answer

A) True 
 B)False

Question 19

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

Accepted Answer

A) True 
 B)False

Question 20

In order for a court to recognize a contract as a binding agreement between the contracting parties,there must be clear evidence of each party having given something of value in exchange for receiving something of value.

Accepted Answer

A) True 
 B)False

Exam 5: An Introduction to Contracts

Identify and briefly describe the objectives that owners and managers should keep in mind when dealing with a customer who is attempting to expand or restrict an existing contract.

Which of the following would lend undisputable support for the use of a contract as opposed to a casual understanding?

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Where a manufacturer has been discovered to have knowingly produced and sold a defective product to the public,which of the following would offer the most favourable remedy for salvaging that company's business reputation?

If one of the parties to a contract fails to perform his obligations under that agreement,which of the following will be the most likely result?

Explain how the operation of contract law makes it possible for the wheels of commerce to turn efficiently and effectively.

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side? Provide an example and a possible alternative to an outright breach of existing contractual obligations.

Where a court is asked to resolve a dispute involving parties that have reached an incomplete agreement,which of the following could you most reasonably expect a judge to determine as the outcome?

An incomplete agreement is not contractual because its content is not sufficiently comprehensive.

Most contractual business relationships are initiated through an offer and acceptance of that offer.Acceptance is typically followed by communications to fill in the details of the arrangement.

A Canadian court hearing a disputed matter involving parties to a contract will rely on past decisions to determine a remedy for the dispute.Why is the court's reliance on past decisions considered to be an effective manner for it to determine an appropriate legal remedy?

Down the legal road,one faces an ultimate settlement based on a correct answer ultimately derived from the court's interpretation of the contract.

Which of the following factors would have the greatest degree of influence regarding a retailer's decision concerning the commencement of a lawsuit against a supplier for breach of a business contract?

A court has been asked to determine a matter involving a contractual dispute between two large corporations.Which of the following sequences of procedures will the judge apply to arrive at the court's decision?

With respect to a contractual business relationship,which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach?

Which of the following would a lawyer most likely say is the reason that contractual relationships are preferable over casual forms of business arrangements?

With respect to disparity in the bargaining power between the parties to a contract,which of the following would exemplify the circumstances that will most likely lead a court to set a contract aside?

In reaching his or her decision regarding a contractual dispute,a judge will always apply the objective standard test.

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

In order for a court to recognize a contract as a binding agreement between the contracting parties,there must be clear evidence of each party having given something of value in exchange for receiving something of value.