Question 1

If a contract is required to be in writing under the Statute of Frauds but is not,then the contract is ________.

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Which of these is an instance of a quasi contract?

Accepted Answer

A) an employee receiving his or her paycheck every month 
B) an unconscious man being nursed at a hospital, having been brought in by a passer-by 
C) two companies signing a business agreement that spans an undefined duration 
D) a woman hiring a caterer only after the caterer promises to deliver the food on time

Question 5

Michael Harrison opens an online store where people from all over the world can purchase and download iPhone apps.Which of the following should Michael consult to know the rules of trading through his online store?

Accepted Answer

A) the common law of contracts 
B) the objective law of contracts 
C) the Uniform Computer Information Transactions Act 
D) the Uniform Commercial Code

Question 6

Which of the following is an informal contract?

Accepted Answer

A) check 
B) bank draft 
C) lease 
D) recognizance

Question 7

To create an implied-in-fact contract,it must be established that a plaintiff provided a property or services gratuitously.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of the Uniform Computer Information Transactions Act?

Accepted Answer

A) It establishes the rules for operation of franchises in the U.S.A. 
B) It does not become law until a state adopts it as a statute. 
C) It solely deals with the formation of electronic contracts, not licenses. 
D) It addresses most of the legal issues that are encountered while starting an entrepreneurial venture.

Question 9

The goal of the Uniform Commercial Code (UCC)is to regularize foreign trade norms among the 50 states of the U.S.A.

Accepted Answer

A) True 
 B)False

Question 10

A letter of credit is considered an informal contract as it does not have a special method of creation.

Accepted Answer

A) True 
 B)False

Question 11

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) reasonable person standard 
B) legality of the contract 
C) doctrine of equity 
D) common law of contracts

Question 13

An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house.The contract is ________.

Accepted Answer

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

Question 14

A voidable contract is also termed as an unenforceable contract.

Accepted Answer

A) True 
 B)False

Question 15

An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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.A.

Question 17

Traditional contract rules do not apply to e-contracts.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) common law of contracts 
B) Restatement of the Law of Contracts 
C) Uniform Computer Information Transactions Act 
D) Uniform Commercial Code

Question 20

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 the following morning.Gary promises to make the delivery as requested by Windsor.This creates a(n)________ contract between them.

Accepted Answer

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

Exam 9: Nature of Traditional and E-Contracts

If a contract is required to be in writing under the Statute of Frauds but is not,then the contract is ________.

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

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

Which of these is an instance of a quasi contract?

Michael Harrison opens an online store where people from all over the world can purchase and download iPhone apps.Which of the following should Michael consult to know the rules of trading through his online store?

Which of the following is an informal contract?

To create an implied-in-fact contract,it must be established that a plaintiff provided a property or services gratuitously.

Which of the following is true of the Uniform Computer Information Transactions Act?

The goal of the Uniform Commercial Code (UCC)is to regularize foreign trade norms among the 50 states of the U.S.A.

A letter of credit is considered an informal contract as it does not have a special method of creation.

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

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

An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house.The contract is ________.

A voidable contract is also termed as an unenforceable contract.

An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.

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

Traditional contract rules do not apply to e-contracts.

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.

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

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 the following morning.Gary promises to make the delivery as requested by Windsor.This creates a(n) ________ contract between them.