Question 1

228. _____ In order for a contract to be valid, it must:  a. be made by a writing signed by adults  b. be fully performed on both sides  c. contain an offer, acceptance, and consideration  d. be properly filed

Accepted Answer

c. contain an offer, acceptance, and consideration

Question 2

229. _____ Consideration can best be described as:  a. Something of legal value  b. Thinking about entering into a contract  c. A counteroffer  d. A signature on a contract

Accepted Answer

a. Something of legal value

Question 3

230. _____ In order for someone to avoid a contract on the grounds of intoxication, the level of intoxication must have been:  a. At or above the legal limit  b. Only high enough that he was able to notice it  c. At least as high as that of the other party  d. So great that he didn\'t comprehend the nature of the agreement he was entering into

Accepted Answer

d. So great that he didn\'t comprehend the nature of the agreement he was entering into

Question 4

231. _____ Jill, aged 30, enters into a written contract for the sale of her car with Ginny, aged 17. Under these facts:  a. Jill may disaffirm the contact since Ginny is a minor  b. Ginny can disaffirm the contract but only until a reasonable time after she turns 18  c. The contract is void  d. The contract is illegal

Accepted Answer

b. Ginny can disaffirm the contract but only until a reasonable time after she turns 18

Question 5

232. _____ If a contract or contract clause is found to be unconscionable, the courts can do which of the following?  a. Refuse to enforce the contract  b. Refuse to enforce only the unconscionable portion  c. Limit the application of the unconscionable portion  d. a, b, and c

Accepted Answer

d. a, b, and c (a.)Refuse to enforce the contract (b.) Refuse to enforce only the unconscionable portion - (c.) Limit the application of the unconscionable portion

Question 6

233. _____ George and Martha enter into an oral contract for the sale of George\'s office building. Before Martha takes possession, this contract is:  a. Enforceable by George only  b. Enforceable by Martha only  c. Enforceable by either party  d. Not enforceable

Accepted Answer

d. Not enforceable

Question 7

234. _____ Mike makes a contract with Rich with the intent to benefit Mary. This is:  a. An assignment  b. A delegation  c. A third party beneficiary contract  d. None of the above

Accepted Answer

c. A third party beneficiary contract

Question 8

235. _____ Sue makes a contract with Tom that indirectly benefits Judy, although neither Sue nor Tom intended that result. Judy is:  a. An assignee  b. An assignor  c. An intended beneficiary  d. An incidental beneficiary

Accepted Answer

d. An incidental beneficiary

Question 9

236. _____ John offers to pay Mary $100 if she can drive at 100 miles per hour on Interstate 95 for at least five minutes. If Mary drives her Mustang at 100 miles per hour on Interstate 95 for six minutes, she and John will have formed    a. A bilateral contract  b. A unilateral contract  c. A performance contract  d. No contract

Accepted Answer

d. No contract

Question 10

237. _____ Al tells Barb that he will buy her textbooks from the previous semester for $75. Barb agrees. Al and Barb have:  a. An express contract  b. An implied-in-fact contract  c. An implied-in-law contract  d. A quasi contract

Accepted Answer

a. An express contract

Question 11

238. _____ One often hears the expression \"time is of the essence\" which suggests that doing things in a timely fashion is important. If that is the case, which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?  a. Forty-eight hours  b. Seven days  c. Thirty days  d. Forty-five days  e. There is no set amount of time and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Accepted Answer

e. There is no set amount of time and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Question 12

239. _____ U.S. Stone promises to pay its employees a year-end bonus \"if it seems like a good idea at the time.\" This is an example of:  a. an enforceable promise  b. an unconscionable promise  c. an illusory promise  d. a unilateral contract

Accepted Answer

c. an illusory promise

Question 13

240. _____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. This contract may be classified as:  a. a bilateral contract  b. a unilateral contract  c. a voidable contract  d. none of the above

Accepted Answer

a. a bilateral contract

Question 14

241. _____ To be enforceable, a non-competition clause in an employment agreement must:  a. be jus terci  b. be notarized  c. be reasonable in scope, time and geographical limitations  d. all of the above

Accepted Answer

c. be reasonable in scope, time and geographical limitations

Question 15

242. _____ The elements of a valid contract include:  a. Agreement  b. Consideration  c. Legality  d. Capacity  e. All of the above

Accepted Answer

e. All of the above (a.) Agreement (b.) Consideration (c.) Legality (d.) Capacity

Question 16

243. _____ Usually, quasi contracts are imposed by the court:  a. On parties who would not otherwise enter into valid contracts  b. To avoid the unjust enrichment of one party at the expense of another  c. When the amount of the contract is for $499 or less  d. If a formal seal on the contract is required

Accepted Answer

b. To avoid the unjust enrichment of one party at the expense of another

Question 17

244. _____ If Harry promises to pay Larry not to park in a no-parking zone in front of Harry\'s house, then the agreement is:  a. Enforceable because Larry is giving up the right to do something that he could otherwise do in the absence of the agreement  b. Enforceable because the agreement accomplishes Larry\'s goal that the no-parking zone in front of his house be kept clear  c. Not enforceable because Larry has no legal right to park in the no-parking zone  d. Not enforceable because the no-parking zone is owned by the city

Accepted Answer

c. Not enforceable because Larry has no legal right to park in the no-parking zone

Question 18

245. _____ U.S. Brokerage promises to pay its employees a year-end bonus \"if it seems like a good idea at the time.\" This is an example of:  a. An enforceable contract  b. An unconscionable contract  c. An illusory contract  d. A unilateral contract

Accepted Answer

c. An illusory contract

Question 19

246. _____ Joe has made an offer to Frank. Joe is therefore an offeror and Frank an offeree. Which of the following is a way in which Frank can manifest intent to enter into a contract with Joe?  a. By performance only  b. By a return promise only  c. By performance or by a return promise  d. By performance, by a return promise or by a counteroffer  e. By a signed writing only

Accepted Answer

c. By performance or by a return promise

Question 20

247. _____ You offer $1000 to anyone who can return your lost cat, Kitty. John returns Kitty and requests the money, you however refuse to pay and argue that there is no binding contract. Which of the following is true regarding your position?  a. You are incorrect because there is a binding bilateral contract  b. You are incorrect because there is a binding unilateral contract which John accepted by performing  c. You are correct because there is no binding bilateral contract  d. You are correct because there is no binding unilateral contract  e. You are correct because John acted incorrectly by the manner of attempted acceptance

Accepted Answer

b. You are incorrect because there is a binding unilateral contract which John accepted by performing

Question 21

248. _____ Allison wishes to ensure that an offer from Jason to sell him (Allison) his speedboat is held open for a set period of time. Allison may do so by entering into a[n] ______________ contract with the Jason.  a. Clear  b. Explicit  c. Unrevokable  d. Option  e. None of the above

Accepted Answer

d. Option

Question 22

249. _____ Jim who is in declining health believed that he had only a few months to live. Not wanting to die alone, Jim asked Jane to quit her job in New York City and move down to South Florida to look after him until his death. He promised to leave his house for Jane after his death. Jane according quit her job and moved to South Florida to take care of Jim. Three weeks after Jane\'s move, Jim died. Unfortunately, there was not written agreements etc. and Jim\'s relatives wanted Jane out. The only way to avoid injustice here is to enforce the promise?  a. Promissory agreement  b. Promissory estoppel  c. Quasi estoppel  d. Quasi agreement   e. Promissory performance

Accepted Answer

b. Promissory estoppel

Question 23

250. _____ Joey went to the Harvest Festival, where he stopped at Anderson\'s booth where she was selling landscape paintings. Joey admired one of the paintings which did not appear to be for sale. Joey said to Anderson, \"I will give you $200 if you give me that painting right now.\" Anderson said nothing in response, but she gave Joey the painting, and Joey 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

Accepted Answer

c. Unilateral and executed

Question 24

251. _____ Joe goes to the dentist to have a tooth extracted. Joe never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later the dentist bills Joe, and Joe refuses to pay. After that, the dentist sues Joe. Which of the following is true?  a. The dentist can recover under quasi-contract  b. The dentist can recover under an implied contract theory  c. a and b are true  d. The dentist cannot recover because there was no express contract here

Accepted Answer

c. a and b are true (a.) The dentist can recover under quasi-contract (b.) The dentist can recover under an implied contract theory

Question 25

252. _____ A makes an offer to sell B some land, using a normal letter. The offer says nothing about an authorized or stipulated means of acceptance. B accepts using a normal letter. Which of the following is true?  a. The acceptance is effective upon dispatch  b. The acceptance is effective when it is received  c. The acceptance would be effective upon dispatch regardless of the means of communication used  d. Two of the above are correct

Accepted Answer

a. The acceptance is effective upon dispatch

Question 26

253. _____ Carlos has entered into a contract to sell his house to Juan. Carlos knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and Carlos did not volunteer any information about the termites. Juan is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?  a. no, because Carlos made no statement that was false  b. no, because a seller does not have a duty to reveal all faults  c. yes, because a seller must always inform a buyer about defects that are not obvious  d. yes, because this involved a latent defect in real estate

Accepted Answer

d. yes, because this involved a latent defect in real estate

Question 27

254. _____ Punitive damages are most likely to be awarded in which of the following contract cases?  a. Jack was not satisfied with the goods he purchased from Acme Company  b. Jill rejected the portrait Hansel painted of her because it did not meet her satisfaction  c. Big Insurance Company acted in bad faith in denying Pete\'s claim  d. Henry breached his promise to Kate to perform accounting services

Accepted Answer

c. Big Insurance Company acted in bad faith in denying Pete\'s claim

Question 28

255. _____ Paul promises to marry Sarah who in turn promises to marry Paul. The consideration for each promise is ______.  a. A completed act, in this case the marriage  b. The beginning of action in acceptance, even if it is not complete  c. An acknowledgement of each party\'s promise  d. A return promise  e. An agreement to marry

Accepted Answer

d. A return promise

Question 29

257. _____ The elements of promissory estoppel include all of the following except:  a. Agreement  b. Consideration  c. Capacity  d. none of the above

Accepted Answer

d. none of the above (a.) Agreement (b.) Consideration (c.) Capacity

Question 30

258. _____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. The parties have not yet performed their respective promises. This contract may be classified as:  a. an executed, bilateral contract  b. an executory, unilateral contract  c. an executory, bilateral contract  d. an executed, unilateral contract

Accepted Answer

c. an executory, bilateral contract

Question 31

259. _____ May tried to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick\'s Pre-owned Autos, hands May $10. This is:  a. a valid acceptance because May is seriously frustrated  b. a valid acceptance because Nick is a car dealer  c. not a valid acceptance because May does not seriously intend to sell  d. not a valid acceptance because Nick is a car dealer

Accepted Answer

c. not a valid acceptance because May does not seriously intend to sell

Question 32

260. _____ Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if:  a. Alan does not communicate it to Carol  b. Alan secretly does not intend to be bound by the offer  c. Carol is not capable of accepting the offer  d. the terms of the offer are not reasonably definite

Accepted Answer

b. Alan secretly does not intend to be bound by the offer

Question 33

261. _____ Owen announces that he plans to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc., gives Owen a check for the stated amount. Owen:  a. Is bound to sell PSC to Quality Bookkeeping  b. May refuse to accept the check, because he only expressed an intent to do something in the future  c. May refuse to accept the check, because he only expressed an opinion as to the worth of the business  d. May refuse to accept the check because he only expressed a willingness to discuss a possibility of entering into a contract

Accepted Answer

b. May refuse to accept the check, because he only expressed an intent to do something in the future

Question 34

262. _____ Ellen is selling her classic cars in an auction \"without reserve.\" During the auction, Ellen can withdraw the cars:  a. at no time  b. before the auctioneer announces that the cars have been sold  c. before the cars are delivered to the buyers  d. only if the bids are extremely low

Accepted Answer

a. at no time

Question 35

263. _____ Which of the following is true regarding promissory estoppel?  a. it requires that the promisor should reasonably expect to induct the promisee\'s action or forbearance  b. damages awarded for promissory estoppel always equal the value of the promise relied upon by the promise  c. it requires consideration  d. it applies only when one or both parties is a merchant

Accepted Answer

a. it requires that the promisor should reasonably expect to induct the promisee\'s action or forbearance

Question 36

264. _____ An oral contract that is covered by the statute of frauds is:  a. Voidable  b. Void  c. Unenforceable  d. Executory

Accepted Answer

c. Unenforceable

Question 37

265. _____ An executed contract is one that:  a. Has been terminated by operation of law  b. Has been terminated by the parties voluntary agreement  c. Has been fully performed by one or both parties  d. Has been fully performed by both parties

Accepted Answer

d. Has been fully performed by both parties

Question 38

266. _____ An executed contract is one that:  a. Has been terminated by operation of law  b. Has been terminated by the parties voluntary agreement  c. Has been fully performed by one or both parties  d. Has been fully performed by both parties

Accepted Answer

d. Has been fully performed by both parties

Question 39

267. _____ A contract whose formation is induced by duress (force or compulsion) is:  a. Void  b. Voidable  c. Unenforceable  d. Executory

Accepted Answer

b. Voidable

Question 40

268. _____ A void contract:  a. Is a contract that one or both parties can cancel at their option  b. Is a contract, even though the courts will not enforce it  c. Creates no legal obligations  d. Is a contract that is created by operation of law rather than by the agreement of the parties

Accepted Answer

c. Creates no legal obligations

Question 41

269. _____ Which of the following cannot be disaffirmed until after the age of majority?  a. A contract that affects title to real estate  b. A contract for a necessary  c. A contract that is fully executed  d. A contract for the sale of goods

Accepted Answer

a. A contract that affects title to real estate

Question 42

270. _____ Contracts made by severely intoxicated people:  a. Are void rather than voidable  b. Cannot be disaffirmed until the person has regained his mental faculties  c. Cannot be ratified until the person has regained his mental faculties  d. Are always binding, because the law does not want to reward drug or alcohol abuse

Accepted Answer

c. Cannot be ratified until the person has regained his mental faculties

Question 43

271. _____ In order to satisfy the Statute of Frauds, the parties\' writing must:  a. Be signed by both parties  b. Be notarized  c. Be signed by the party to be charged with enforcement of the contract (the person using the statute of frauds as a defense) or his agent  d. Contain all the necessary contract terms in one document

Accepted Answer

c. Be signed by the party to be charged with enforcement of the contract (the person using the statute of frauds as a defense) or his agent

Question 44

272. _____ First National Bank offers to lend money to Todd at 15% interest. Before Todd accepts the offer, a statute is enacted prohibiting loans at interest rates greater than 12%. According to common law, Todd and the bank have:  a. A contract for a loan at 15% interest  b. A contract for a loan at 12% interest  c. A contract for a loan at no interest  d. No contract for a loan

Accepted Answer

d. No contract for a loan

Question 45

273. _____ Bill contracts to repair a computer for National Distributors. Bill knows that without the computer, National will lose an important sale. Bill does not repair the computer on time, and National files suit against him. As consequential damages, National might be able to recover:  a. The loss of profit National experienced as a result of the computer not being repaired on time  b. The cost of a replacement computer  c. The difference between Bill\'s quote to repair the computer and what it actually costs National to have the computer repaired  d. Nothing

Accepted Answer

a. The loss of profit National experienced as a result of the computer not being repaired on time

Question 46

274. _____ The Statute of Frauds is:  a. A defense to prevent the enforcement of an oral contract  b. A claim stated by the nonbreaching party  c. A criminal wrong that requires intent  d. A civil wrong under the theory of negligence

Accepted Answer

a. A defense to prevent the enforcement of an oral contract

Question 47

275. _____ Edgar promises Alice that a certain used car is a \"real gem.\" Edgar offers to let Alice take the car for a test drive, but Alice declines. She pays for the car and drives off but soon realizes that the car\'s suspension system is in poor condition. Alice:  a. May rescind the contract on the grounds of unilateral mistake  b. May rescind the contract on the grounds of fraud  c. May rescind the contract on the grounds of misrepresentation  d. Was not defrauded

Accepted Answer

d. Was not defrauded

Question 48

276. _____ George and Martha enter into an oral contract for a sale of George\'s tree farm. Before Martha takes possession, under the Statute of Frauds this contract is:  a. Enforceable by George only  b. Enforceable by Martha only  c. Enforceable by either party  d. Not enforceable

Accepted Answer

d. Not enforceable

Question 49

277. _____ Each of the following is a requirement, or an element, for a contract to be valid except:  a. Capacity  b. Agreement  c. Legality  d. Offer  e. Consideration

Accepted Answer

d. Offer

Question 50

278. _____ Acceptance of a bilateral contract occurs:  a. When there is an exchange of a promise for an act  b. Only if there is no detrimental reliance  c. At the time of actual performance  d. By the exchange of promises

Accepted Answer

d. By the exchange of promises

Question 51

279. _____ The day before the final exam, Professor Jones tells the class: \"I promise to give everyone an \"A\" on this exam, and you don\'t have to do a thing for it!\" Upon hearing this, Christopher yells \"yippee!!\" and throws his textbook out the window (where it is promptly set upon and completely destroyed by the FAU owl!). When the grades come out, Christopher receives an \"F.\" Christopher\'s best argument to enforce Professor Jones\' promise would probably be:  a. res ipsa loquitor  b. quasi-contract  c. impossibility (it was impossible for him to pass)  d. implied-in-fact contract  e. promissory estoppel

Accepted Answer

e. promissory estoppel

Question 52

280. _____ Trevor offers a reward for the return of his golden retriever, \"Six.\" He posts signs all over the neighborhood, but not on his own block. Justin, his 15-year old next door neighbor, finds Six at the park, and delivers him to Trevor without seeing the reward signs or knowing about the reward offer! Trevor is happy to get Six back, but refuses to pay Justin any reward. If they go to court and litigate the matter, what will each likely argue?  a. Justin will argue promissory estoppel; Trevor will argue that the contract it is voidable due to Justin\'s obvious lack of capacity  b. Trevor will argue that his offer to pay the reward was not effective as to Justin, as Justin did not know of the offer; Justin will seek relief for unjust enrichment under a quasi-contract theory  c. Trevor will argue lack of capacity; Justin will claim \"implied promissory estoppel\"  d. none of the above

Accepted Answer

b. Trevor will argue that his offer to pay the reward was not effective as to Justin, as Justin did not know of the offer; Justin will seek relief for unjust enrichment under a quasi-contract theory

Question 53

281. _____ The mailbox rule means the:  a. Offers and acceptances must be communicated in a certain way to be effective  b. Offers and acceptances are effective at the time they are mailed  c. In some cases, a properly dispatched, or sent, acceptance is effective even if the offeror never received it  d. A properly dispatched, or sent, revocation of an offer is effective when mailed even if the offeree never received it

Accepted Answer

c. In some cases, a properly dispatched, or sent, acceptance is effective even if the offeror never received it

Question 54

282. _____ A contract in which both parties exchange promises is a(n):  a. A voidable contract  b. Bilateral contract  c. Unilateral contract  d. Quasi contract

Accepted Answer

b. Bilateral contract

Question 55

283. _____ A person who makes a promise is a(n):  a. Promisor  b. Promise  c. Offeror  d. Executor

Accepted Answer

a. Promisor

Question 56

284. _____ Which of the following is not generally required in order to have a valid contract?  a. Mutual assent  b. A lawful purpose  c. A fair bargain  d. Parties who have contractual capacity

Accepted Answer

c. A fair bargain

Question 57

285. _____ Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. What is the effect of the court decision on the offer?  a. The court decision automatically terminates the offer  b. The court decision has no effect on the offer  c. The court decision acts as a condition on the offer  d. The court decision acts as a rejection of the offer by the offeree

Accepted Answer

a. The court decision automatically terminates the offer

Question 58

286. _____ In general, which of the following will not terminate an offer to purchase real property?  a. The death of the offeree  b. The death of the offeror  c. An inquiry by the offeree as to size of the lot  d. An acceptance that adds a material item

Accepted Answer

c. An inquiry by the offeree as to size of the lot

Question 59

287. _____ Lynn offers to sell his house to Dennis for $50,000. Dennis responds, \"I will pay you $50,000 if you will paint the second floor.\" This response could be described as:  a. An acceptance  b. A counteroffer  c. A rejection  d. An invitation

Accepted Answer

b. A counteroffer

Question 60

288. _____ Eddie agreed to sell stolen bicycles to Foster for $500 and Foster agreed to buy them. Which statement accurately describes their agreement?  a. The agreement is a voidable contract, which the parties may later affirm  b. The agreement is void and unenforceable  c. The agreement is enforceable if it is stated in writing  d. The agreement is a valid contract

Accepted Answer

b. The agreement is void and unenforceable

Question 61

289. _____ Roger promised to sell his car to Reggie and Reggie promised to pay Roger $3,000 for the car. The parties have not yet performed their respective promises. This contract may be classified as:  a. An executed, bilateral contract  b. An executory, bilateral contract  c. An executed, unilateral contract  d. An executory, unilateral contract

Accepted Answer

b. An executory, bilateral contract

Question 62

290. _____ Jackie offered to pay Glen $500 in consideration for Glen\'s complete trimming of all trees located on Jackie\'s property. This offer is an offer for a unilateral contract. Under these facts:  a. Glen can accept the offer by promising to trim the trees  b. Glen can accept the offer by completely trimming the trees  c. Glen can accept the offer by promising to trim the trees or by completely trimming the trees  d. Glen cannot accept the offer, offers for unilateral contracts are illegal

Accepted Answer

b. Glen can accept the offer by completely trimming the trees

Question 63

291. _____ Gordon promises to pay Joseph $150 if Joseph promises to take notes for him next week in Business Law. Joseph agrees, and takes the notes. On Friday, he delivers the notes to Gordon, who pays him the $150. This contract is:  a. voidable and unilateral  b. bilateral and executed  c. void and executory  d. voidable and executed

Accepted Answer

b. bilateral and executed

Question 64

292. _____ Under the terms of a written contract, Jillian delivers certain goods to Mary with the agreement that she may use and test them for the purpose of determining whether she wishes to buy them. The title and risk of loss to the goods is to remain with Jillian until Mary calls and agrees to the sale. The best way to describe this transaction is as:  a. a \"merchant\'s\" firm offer  b. a sale on approval  c. an entrustment  d. a consignment  e. none of the above

Accepted Answer

b. a sale on approval

Business Law Final 228 – 328 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards