Bus Law Ex 3

Question 1 of 184

Medal-premium 1

To make an offer, the offeror must appear to intend to create a binding obligation

Select one of the following:

  • True
  • False

Question 2 of 184

Medal-premium 1

Generally, advertisements, catalog prices, and circulars are offers that can be accepted

Select one of the following:

  • True
  • False

Question 3 of 184

Medal-premium 1

Social invitations can be offers

Select one of the following:

  • True
  • False

Question 4 of 184

Medal-premium 1

Advertisements that call for an act may be deemed to be a unilateral contract

Select one of the following:

  • True
  • False

Question 5 of 184

Medal-premium 1

If an offer is indefinite or vague, no contract arises from an attempt to accept it

Select one of the following:

  • True
  • False

Question 6 of 184

Medal-premium 1

Contractual intention is determined by objective standards

Select one of the following:

  • True
  • False

Question 7 of 184

Medal-premium 1

An otherwise vague contract may be clarified by references in the contract to other documents or agreements

Select one of the following:

  • True
  • False

Question 8 of 184

Medal-premium 1

An agreement cannot be enforced if it does not set forth every contractual detail

Select one of the following:

  • True
  • False

Question 9 of 184

Medal-premium 1

Contract terms may not be implied from conduct

Select one of the following:

  • True
  • False

Question 10 of 184

Medal-premium 1

When it is claimed that a contract is too indefinite to be enforced, a court will do its best to find the intent of the parties and thereby reach the conclusion that the contract is not too indefinite

Select one of the following:

  • True
  • False

Question 11 of 184

Medal-premium 1

A "best efforts" clause is always deemed too indefinite to be enforceable

Select one of the following:

  • True
  • False

Question 12 of 184

Medal-premium 1

A requirements contract is too vague to be a legally-enforceable agreement

Select one of the following:

  • True
  • False

Question 13 of 184

Medal-premium 1

An output contract is too vague to be a legally-enforceable agreement

Select one of the following:

  • True
  • False

Question 14 of 184

Medal-premium 1

An offer is effective only if it is communicated by the offeror in person

Select one of the following:

  • True
  • False

Question 15 of 184

Medal-premium 1

An offer gives the offeror the power to bind the offeree by contract

Select one of the following:

  • True
  • False

Question 16 of 184

Medal-premium 1

A revocation of an offer is ordinarily effective only when it is communicated to the offeree

Select one of the following:

  • True
  • False

Question 17 of 184

Medal-premium 1

Offers, acceptances of offers, and revocations of offers are all effective when mailed in a properly addressed envelope bearing the proper amount of postage

Select one of the following:

  • True
  • False

Question 18 of 184

Medal-premium 1

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date

Select one of the following:

  • True
  • False

Question 19 of 184

Medal-premium 1

An option is itself a contract to refrain from revoking an offer

Select one of the following:

  • True
  • False

Question 20 of 184

Medal-premium 1

A firm offer is an offer that states that it is to irrevocable, or irrevocable for a stated period of time

Select one of the following:

  • True
  • False

Question 21 of 184

Medal-premium 1

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer, such action is a counteroffer that rejects the original offer

Select one of the following:

  • True
  • False

Question 22 of 184

Medal-premium 1

If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land

Select one of the following:

  • True
  • False

Question 23 of 184

Medal-premium 1

If an offer does not state how long it shall remain open, it remains open for ten days

Select one of the following:

  • True
  • False

Question 24 of 184

Medal-premium 1

If either the offeror or offeree dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated

Select one of the following:

  • True
  • False

Question 25 of 184

Medal-premium 1

An acceptance must be absolute and unconditional

Select one of the following:

  • True
  • False

Question 26 of 184

Medal-premium 1

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers

Select one of the following:

  • True
  • False

Question 27 of 184

Medal-premium 1

A party to existing contract can modify the agreement without the other party's actual acceptance or approval

Select one of the following:

  • True
  • False

Question 28 of 184

Medal-premium 1

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective

Select one of the following:

  • True
  • False

Question 29 of 184

Medal-premium 1

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror

Select one of the following:

  • True
  • False

Question 30 of 184

Medal-premium 1

At an auction sale, a statement made by the auctioneer to draw forth bids constitutes an offer

Select one of the following:

  • True
  • False

Question 31 of 184

Medal-premium 1

The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n)

Select one of the following:

  • offer

  • acceptance

  • contract

  • agreement

Question 32 of 184

Medal-premium 1

If not an offer, the first statement made by one of two persons is most properly termed a(n):

Select one of the following:

  • option

  • acceptance

  • invitation to negotiate

  • contract

Question 33 of 184

Medal-premium 1

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cahsier a $50 bill and said, "I accept, We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:

Select one of the following:

  • the customer validly accepted the stores offer

  • the price tag was a firm offer

  • no contract was formed because the customer's offer was refused

  • the customer is the offeree

Question 34 of 184

Medal-premium 1

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications. Because teak wood is difficult to obtain, the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it. Which of the following is correct?

Select one of the following:

  • Although the price is somewhat unclear, the parties have entered into a contract

  • This is an agreement to agree, and is not binding

  • This agreement fails for indefiniteness

  • The carpenter is bound by the agreement, but not the customer

Question 35 of 184

Medal-premium 1

An offer that is indefinite may be clarified by reference to another writing through

Select one of the following:

  • incorporation

  • reference

  • annotation

  • indexing

Question 36 of 184

Medal-premium 1

An agreement that consists of two or more parts and calls for corresponding performance of each part by the parties is called a

Select one of the following:

  • partial contract

  • divisible contract

  • performance contract

  • divided

Question 37 of 184

Medal-premium 1

If an offeree accepts an offer before it is effectively revoked

Select one of the following:

  • a void contract is formed

  • a voidable contract is formed

  • an unenforceable contract is formed

  • a valid contract is formed

Question 38 of 184

Medal-premium 1

A(n) ___________ contract is a contract to buy all requirements of the buyer from the seller

Select one of the following:

  • output

  • essentials

  • necessaries

  • requirements

Question 39 of 184

Medal-premium 1

Under the Uniform Commercial Code (UCC); a firm offer applies to:

Select one of the following:

  • a written, signed offer by a merchant to buy or sell goods

  • an unwritten but definite offer to buy or sell goods

  • a written, signed offer by anyone to buy or sell goods

  • an unlimited, stipulated period of time

Question 40 of 184

Medal-premium 1

A counteroffer is a(n):

Select one of the following:

  • acceptance of the original offer

  • rejection of the original offer

  • acceptance of the original offer and invitation to further negotiate

  • a revocation of the original offer

Question 41 of 184

Medal-premium 1

A said to B, "I'll give you $100 for that bracelet." B replied, "$135." A said, "no thanks." B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?

Select one of the following:

  • A's offer of $100 was open and accepted by B, thereby forming a contract

  • B's counteroffer of $135 terminated A's offer of $100

  • B's statement, "$135." was a negotiating statement that did not terminate A's original offer of $100

  • A's offer of $100 was irrevocable

Question 42 of 184

Medal-premium 1

An offer is terminated upon rejection by the offeree unless

Select one of the following:

  • the period of time for which the offeror agreed to keep the offer open has not yet expired

  • the offeror renews the offer

  • the offeree revokes the rejection

  • the offeree makes a counteroffer

Question 43 of 184

Medal-premium 1

If no termination date is specified for an offer, the offer will remain open

Select one of the following:

  • for one year

  • for six months

  • for a reasonable period of time

  • until someone accepts the offer

Question 44 of 184

Medal-premium 1

If an offeree dies before the offer has been accepted, the offer:

Select one of the following:

  • may be rejected by the surviving spouse of the offeree

  • may be accepted by the surviving spouse of the offeree

  • is automatically revoked by the death of the offeree

  • may be accepted by the guardian appointed for any minor children of the offeree

Question 45 of 184

Medal-premium 1

In general, an acceptance occurs when:

Select one of the following:

  • A particular form of words is stated to the offeror

  • a particular mode of expression is made to the offeror

  • the offeree reserves the right to reject the offer

  • a clear expression of the offeree's agreement to be bound by the terms of the offer occurs

Question 46 of 184

Medal-premium 1

When an offer has been accepted:

Select one of the following:

  • a subsequent revocation of the offer may serve to nullify the resulting contract

  • a contract is formed, assuming that all of the other elements of a contract are present

  • either party may withdraw from the resulting contract without consent

  • the acceptance is executory

Question 47 of 184

Medal-premium 1

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

Select one of the following:

  • no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance

  • a contract is formed, but the contract is voidable at the election of the offeror

  • the acceptance is timely and a contract is formed, even though the offeror actually receives the acceptance by the deadline specified for acceptance

  • the acceptance is timely and a contract is formed, but only if the offeror actually receives the acceptance by the deadline specified for an acceptance

Question 48 of 184

Medal-premium 1

In an auction _________, the auctioneer takes bids as a gent for the seller with the understanding that no contract is formed until the seller accepts the transaction

Select one of the following:

  • without reserve

  • with reserve

  • without preserve

  • with preserve

Question 49 of 184

Medal-premium 1

At an auction sale, each bid is:

Select one of the following:

  • a counteroffer to the auctioneer's offer of the merchandise

  • an acceptance of the auctioneer's offer

  • an invitation to negotiate

  • an offer

Question 50 of 184

Medal-premium 1

Arthur made a bid at an auction by calling out of the amount of $250. The auctioneer ackowledged Arthur's bid. There were no higher bids, and before the fall of the auctioneer's hammer, Arthur announced that he was withdrawing the bid. The auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had already been acknowledged. What is the result?

Select one of the following:

  • Arthur's bid is an ordinary offer that can be revoked

  • Arthur's bid is firm and cannot be withdrawn

  • Since the auctioneer had in fact acknowledged Arthur's bid, the bid became an option exercisable at the election of the seller

  • Since the auctioneer had in fact acknowledged Arthur's bid, a contract had been formed by way of offer and acceptance; accordingly, Arthur's subsequent attempt to withdraw his bid was ineffective

Question 51 of 184

Medal-premium 1

Certain persons cannot make contracts that will bind them

Select one of the following:

  • True
  • False

Question 52 of 184

Medal-premium 1

Contractual capacity can exist even though a party does not understand every provision of the contract

Select one of the following:

  • True
  • False

Question 53 of 184

Medal-premium 1

Ordinarily, every party to a contract is presumed to have a contractual capacity until the contrary is shown

Select one of the following:

  • True
  • False

Question 54 of 184

Medal-premium 1

Discriminatory and punitive in-capacities have largely disappeared

Select one of the following:

  • True
  • False

Question 55 of 184

Medal-premium 1

Factual incapacity is imposed because of the class or group to which a person belongs

Select one of the following:

  • True
  • False

Question 56 of 184

Medal-premium 1

A factual incapacity may exist when, because of a mental condition caused by medication, drugs, alcohol, illness, or age, a person does not understand that a contract is being made or understand its general nature

Select one of the following:

  • True
  • False

Question 57 of 184

Medal-premium 1

Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party

Select one of the following:

  • True
  • False

Question 58 of 184

Medal-premium 1

When a minor avoids contracts, the minor always must return the other contracting parties to their original financial positions

Select one of the following:

  • True
  • False

Question 59 of 184

Medal-premium 1

The "necessaries" of minors are precisely defined by law

Select one of the following:

  • True
  • False

Question 60 of 184

Medal-premium 1

When necessary medical care is provided to a minor, a parent is liable at common law for the medical expenses provided the minor child

Select one of the following:

  • True
  • False

Question 61 of 184

Medal-premium 1

At common law, a minor cannot be held contractually liable for his or her necessary medical expenses when the parent is unable or unwilling to pay

Select one of the following:

  • True
  • False

Question 62 of 184

Medal-premium 1

Ratification consists of any words or conduct of a former minor manifesting an intent to be bound by the terms of a contract made while a minor

Select one of the following:

  • True
  • False

Question 63 of 184

Medal-premium 1

A contract made by an incompetent person after a guardian has been appointed is voidable

Select one of the following:

  • True
  • False

Question 64 of 184

Medal-premium 1

An incompetent person may ordinarily avoid a contract in the same manner as a minor

Select one of the following:

  • True
  • False

Question 65 of 184

Medal-premium 1

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract

Select one of the following:

  • True
  • False

Question 66 of 184

Medal-premium 1

A unilateral mistake as to a fact does not affect the contract when the mistake is unknown to the other contracting party

Select one of the following:

  • True
  • False

Question 67 of 184

Medal-premium 1

The seller of a painting is not bound by the sales contract if the painting purchased was considered of little value and only later discovered to be valuable to the surprise of both buyer and seller

Select one of the following:

  • True
  • False

Question 68 of 184

Medal-premium 1

A party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud

Select one of the following:

  • True
  • False

Question 69 of 184

Medal-premium 1

Fraud requires a misstatement of either a fact or an option

Select one of the following:

  • True
  • False

Question 70 of 184

Medal-premium 1

Fraud requires intent that the listener rely on the false statement of fact

Select one of the following:

  • True
  • False

Question 71 of 184

Medal-premium 1

In order for fraud liability to arise, the listener must actually rely on the false statement of fact

Select one of the following:

  • True
  • False

Question 72 of 184

Medal-premium 1

Ordinarily, a party to a contract has no duty to volunteer information to the other party

Select one of the following:

  • True
  • False

Question 73 of 184

Medal-premium 1

As a general rule, the nondisclosure of information that is not asked for does not impose fraud liability or impair the validity of a contract

Select one of the following:

  • True
  • False

Question 74 of 184

Medal-premium 1

A claim of undue influence will be unsuccessful unless the contracting parties have a close relationship of trust

Select one of the following:

  • True
  • False

Question 75 of 184

Medal-premium 1

A contract obtained by physical duress is void

Select one of the following:

  • True
  • False

Question 76 of 184

Medal-premium 1

Contractual capacity is the ability to

Select one of the following:

  • read and write

  • sign a written contract

  • understand that a contract is being made and to understand its general nature

  • understand the legal meaning of the contract being made

Question 77 of 184

Medal-premium 1

A person lacks contractual capacity if

Select one of the following:

  • the person is a chronic alcoholic

  • the person is a drug addict

  • because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences

  • all of the above

Question 78 of 184

Medal-premium 1

The key time for determining whether a party lacked contractual capacity is

Select one of the following:

  • the time the contract was made

  • the time the value of the bargain becomes clear

  • the time set for performance of the contract

  • the time the plaintiff expresses dissatisfaction with the contract terms

Question 79 of 184

Medal-premium 1

The maximum amount of time that a minor has to disaffirm a contract is

Select one of the following:

  • one year from the date of agreement

  • 30 days from learning of his or her right to disaffirm

  • the age of majority

  • a reasonable period of time after reaching the age of majority

Question 80 of 184

Medal-premium 1

A minor cannot avoid a contract to purchase a car if the:

Select one of the following:

  • car has been destroyed

  • car has been damaged

  • car is used for non-commercial purposes

  • minor is able to return the car but does not do so

Question 81 of 184

Medal-premium 1

A minor cannot avoid a contract that has been

Select one of the following:

  • ratified

  • signed

  • processed

  • disallowed by the court

Question 82 of 184

Medal-premium 1

When a minor avoids a contract to purchase a car

Select one of the following:

  • the parents of the minor are liable for the purchase price

  • a relative who cosigned the contract is liable for the purchase price

  • a friend to whom the minor loaned the car is liable for thepurchase price

  • the automobile insurance company is liable for the purchase price

Question 83 of 184

Medal-premium 1

The obligation of a cosigner is discharged by:

Select one of the following:

  • the minority status of one of the parties

  • the majority status of one of the parties

  • the courts declaration of the contract's provision of necessaries

  • the payment of the debt

Question 84 of 184

Medal-premium 1

In which of the following cases is a contract between A and B binding?

Select one of the following:

  • A makes a mistake of material fact, and the mistake is unknown by B

  • A and B make the same mistake of the material fact

  • A recklessly but honestly misrepresents a material fact

  • A innocently misrepresents a material fact

Question 85 of 184

Medal-premium 1

An agreement is not binding when:

Select one of the following:

  • one party makes a mistake regarding a material fact

  • both parties make a mistake regarding a material fact

  • one party makes a mistake of law

  • all of the above

Question 86 of 184

Medal-premium 1

A contract based on a mutual mistake in judgement is:

Select one of the following:

  • voidable by the adversely affected party

  • not voidable by the adversely affected party

  • void ab initio

  • none of the above

Question 87 of 184

Medal-premium 1

All of the following statements refer to an element of fraud except:

Select one of the following:

  • the defendant desired to obtain a financial benefit

  • the defendant made a false statement

  • the defendant knew that the statement was false or was recklessly indifferent regarding its truth

  • the defendant intended for the other party to rely on the false statement

Question 88 of 184

Medal-premium 1

Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:

Select one of the following:

  • Jim bought the car solely because of its color

  • Jim knew that the mileage was more than 12,000 miles

  • Jim relied upon Jack's statement

  • Jack is a merchant

Question 89 of 184

Medal-premium 1

I believe that I own a very valuable vase. I tell you this information and state that I will sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth only $200. Fraud:

Select one of the following:

  • has occurred

  • has not occurred

  • can always be based upon a statement of opinion or value

  • none of the above

Question 90 of 184

Medal-premium 1

A finding of undue influence would most likely not occur in a contract between

Select one of the following:

  • parent and child

  • attorney and client

  • neighbor and neighbor

  • guardian and ward

Question 91 of 184

Medal-premium 1

An apparently voluntary agreement may in fact not be voluntary if:

Select one of the following:

  • undue influence is present

  • physical duress is present

  • economic duress is present

  • all of the above

Question 92 of 184

Medal-premium 1

Generally, a promise is legally enforceable even if nothing is given or received for the promise

Select one of the following:

  • True
  • False

Question 93 of 184

Medal-premium 1

Consideration is what a promisor demands and receives as the price for a promise

Select one of the following:

  • True
  • False

Question 94 of 184

Medal-premium 1

The fact that the consideration supplied by one party is slight when compared with the burden undertaken by the other party is immaterial

Select one of the following:

  • True
  • False

Question 95 of 184

Medal-premium 1

Consideration always must be an act or the promise to perform an act

Select one of the following:

  • True
  • False

Question 96 of 184

Medal-premium 1

Consideration is the bargained-for exchange between the parties to a contract

Select one of the following:

  • True
  • False

Question 97 of 184

Medal-premium 1

One promise may serve as consideration for many return promises

Select one of the following:

  • True
  • False

Question 98 of 184

Medal-premium 1

A promise to make a gift is enforceable

Select one of the following:

  • True
  • False

Question 99 of 184

Medal-premium 1

Charitable subscriptions by which individuals make pledges to finance the construction of a college building, a church or another structure for charitable purposes are binding to the extent that the donor should have reasonably realized that the charity was relying on the promise in undertaking the building program

Select one of the following:

  • True
  • False

Question 100 of 184

Medal-premium 1

True considerations occurs only when the value of one promise is equal to the value of the promise given by the other party

Select one of the following:

  • True
  • False

Question 101 of 184

Medal-premium 1

The promise of a creditor to refrain from collecting a debt is consideration for a promise by the debtor to modify the terms of the transaction

Select one of the following:

  • True
  • False

Question 102 of 184

Medal-premium 1

Forbearance may constitute consideration

Select one of the following:

  • True
  • False

Question 103 of 184

Medal-premium 1

An illusory promise creates a bilateral contract

Select one of the following:

  • True
  • False

Question 104 of 184

Medal-premium 1

A promise that in fact does not impose any obligation on the promisor is known as an elusive promise

Select one of the following:

  • True
  • False

Question 105 of 184

Medal-premium 1

A binding contract cannot contain a cancellation provision

Select one of the following:

  • True
  • False

Question 106 of 184

Medal-premium 1

Ordinarily, doing or promising to do what one is already under legal obligation to do is not consideration

Select one of the following:

  • True
  • False

Question 107 of 184

Medal-premium 1

A second promise to pay a contractor a higher amount on the original contract may be enforceable

Select one of the following:

  • True
  • False

Question 108 of 184

Medal-premium 1

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding

Select one of the following:

  • True
  • False

Question 109 of 184

Medal-premium 1

With regard to an unliquidated debt, payment by the debtor of less than the amount claimed by the creditor is consideration for the latter's agreement to release or settle the claim

Select one of the following:

  • True
  • False

Question 110 of 184

Medal-premium 1

If a merchant receives and cashes a check for partial payment of a debt and the check bears the notation that the amount is in full payment of a disputed sum, the total debt is released

Select one of the following:

  • True
  • False

Question 111 of 184

Medal-premium 1

Sara Student wished to pay off her $5,000 student loan. If she sends in a check for $3,000 and the creditor cashes the check, the debt will be fully satisfied provided the check is marked "paid in full."

Select one of the following:

  • True
  • False

Question 112 of 184

Medal-premium 1

In a composition of creditors, the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims

Select one of the following:

  • True
  • False

Question 113 of 184

Medal-premium 1

Past benefits already received by a promisor cannot be consideration for a later promise

Select one of the following:

  • True
  • False

Question 114 of 184

Medal-premium 1

In most states, promises made to another based on moral obligation lack consideration and are not enforceable

Select one of the following:

  • True
  • False

Question 115 of 184

Medal-premium 1

The doctrine of promissory estoppel is also known as the doctrine of beneficial reliance

Select one of the following:

  • True
  • False

Question 116 of 184

Medal-premium 1

Under the doctrine of promissory estoppel, a promisor may be prevented from asserting that his or her promise is unenforceable because the promisee gave no consideration for the promise

Select one of the following:

  • True
  • False

Question 117 of 184

Medal-premium 1

Damages recoverable in a case of promissory estoppel are determined by the profits that the promisee expected

Select one of the following:

  • True
  • False

Question 118 of 184

Medal-premium 1

Will the law enforce every promise

Select one of the following:

  • Yes, in all cases

  • Yes, with or without consideration

  • Generally yes, if consideration is given for the promise

  • Yes, but only if there is no consideration

Question 119 of 184

Medal-premium 1

Consideration is:

Select one of the following:

  • the concern shown by the other contracting party

  • what is demanded by the promisor as the price for the promise

  • a stand number of dollars

  • the concern of both contracting parties for the protection of the environment

Question 120 of 184

Medal-premium 1

Under the ______ approach, consideration is defined as a benefit received by the promisor or detriment incurred by the promisee

Select one of the following:

  • pro-con

  • I win, you lose

  • gain-loss

  • benefit-detriment

Question 121 of 184

Medal-premium 1

When there is no consideration for a promise, the agreement is:

Select one of the following:

  • a quasi contract

  • equitable

  • not binding

  • unethical

Question 122 of 184

Medal-premium 1

Courts will consider the adequacy of consideration when:

Select one of the following:

  • one party clearly has the better of the deal

  • one party has more business experience than the other

  • one party claims to have been defrauded

  • one party shows a much lower price nationally-advertised on television

Question 123 of 184

Medal-premium 1

Which of the following can be consideration for a promise?

Select one of the following:

  • Refraining from beating one's spouse

  • Promising to refrain from beating one's spouse

  • Refraining from smoking cigarettes

  • Refraining from using cocaine

Question 124 of 184

Medal-premium 1

For a bilateral contract to be enforceable there must be:

Select one of the following:

  • mutuality of obligation

  • an illusory promise

  • forbearance

  • adequacy of consideration

Question 125 of 184

Medal-premium 1

Examples of illusory promises include:

Select one of the following:

  • cancellation provisions

  • apparent promises

  • conditional obligations

  • real obligations

Question 126 of 184

Medal-premium 1

A cancellation provision:

Select one of the following:

  • makes a promise illusory

  • gives a person a free way out

  • is limited to the terms set forth by the provision

  • none of the above

Question 127 of 184

Medal-premium 1

A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to

Select one of the following:

  • be illegal

  • result from undue influence

  • contain a waiver

  • contain a conditional promise

Question 128 of 184

Medal-premium 1

Ordinarily, a promise to perform an existing legal obligation is:

Select one of the following:

  • not consideration

  • binding if the promisor promises to perform with extra care

  • binding if the promisor promises to perform to suit the personal satisfaction of the promisee

  • binding if the promisee would experience substantial loss due to breach of the promise

Question 129 of 184

Medal-premium 1

Which of the following is not consideration for a present promise

Select one of the following:

  • a good faith adjustment

  • compromise and release of claims

  • the promise to pay one's child support obligation, consistent with pre-existing court order

  • the performance of requested act

Question 130 of 184

Medal-premium 1

A landowner's promise to p ay a contractor a bonus to complete construction of a building according to the terms of a pre-existing contract between the landowner and the contractor is:

Select one of the following:

  • binding if the promise is in writing

  • binding, since the promise is made by a non-merchant

  • binding, since the promise is made to a merchant

  • ordinarily not binding on the promisor

Question 131 of 184

Medal-premium 1

An agreement to pay reasonable additional compensation to a contractor for the performance of pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

Select one of the following:

  • good-faith adjustment

  • bribe

  • compensatory allowance

  • relief payment

Question 132 of 184

Medal-premium 1

The effect of the making of a partial payment to satisfy an admitted debt is an example of the rule that:

Select one of the following:

  • past benefits cannot be consideration for a later promise

  • a conditional promise may be consideration

  • doing what one is already under a legal obligation to do is not consideration

  • consideration must be adequate to be binding

Question 133 of 184

Medal-premium 1

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to part payment made in satisfaction of a(n) ______ debt

Select one of the following:

  • unliquidated

  • superfluous

  • non-superfluous

  • liquidated

Question 134 of 184

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Consideration is not required in

Select one of the following:

  • contracts for the sale of goods

  • employment contracts

  • agreements to modify employment contracts

  • agreements to modify contracts for the sale of goods

Question 135 of 184

Medal-premium 1

When a debtor tender a check stating "paid in full" and the creditor cashes the check, the debt:

Select one of the following:

  • is always discharged

  • may be discharged if it is a liquidated debt

  • may be discharged if it is an unliquidated debt

  • is never discharged

Question 136 of 184

Medal-premium 1

Which of the following is not a necessary element of promissory estoppel?

Select one of the following:

  • The promisor and the promisee must engage in a bargained-for exchange

  • The promisor must intend or should reasonably expect that the promisee will rely on the promise

  • The promisee must in fact rely on the promise in some definite and substantial manner

  • Enforcement of the promise is the only way to avoid injustice

Question 137 of 184

Medal-premium 1

What damages are recoverable in a case of promissory estoppel

Select one of the following:

  • profits that the promisor expected

  • profits that the promisee expected

  • an amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise

  • an amount necessary to restore the promisor to the position he or she would have been in had the promisor not relied on the promise

Question 138 of 184

Medal-premium 1

An agreement is illegal when either its formation or performance is a crime or tort, or its contrary to public policy

Select one of the following:

  • True
  • False

Question 139 of 184

Medal-premium 1

When an agreement is illegal, parties are usually not entitled to help from the courts

Select one of the following:

  • True
  • False

Question 140 of 184

Medal-premium 1

If an illegal agreement has already been performed parties can sue for damages

Select one of the following:

  • True
  • False

Question 141 of 184

Medal-premium 1

If a contract appears to be legal on its face, it will be enforceable even if it was entered into for an illegal purpose

Select one of the following:

  • True
  • False

Question 142 of 184

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When parties are not equally guilty, the least guilty party is granted relief when it is in the public interest

Select one of the following:

  • True
  • False

Question 143 of 184

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Even if part of a contract is illegal, the court may enforce a divisible, legal part of the contract

Select one of the following:

  • True
  • False

Question 144 of 184

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If a contract can be interpreted in two ways, one legal and the other illegal, the court will assume that the legal meaning was intended unless the contrary is clearly indicated

Select one of the following:

  • True
  • False

Question 145 of 184

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An agreement that calls for the comission of a civil wrong is illegal and void

Select one of the following:

  • True
  • False

Question 146 of 184

Medal-premium 1

In every contract there exists an expressed covenant of good faith and fair dealing

Select one of the following:

  • True
  • False

Question 147 of 184

Medal-premium 1

A provision in a contract that gives what the court believes is too much of an advantage over a buyer may be held void as unconscionable

Select one of the following:

  • True
  • False

Question 148 of 184

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Ordinarily, a court will not consider whether a contract is fair or unfair

Select one of the following:

  • True
  • False

Question 149 of 184

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Company wide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion

Select one of the following:

  • True
  • False

Question 150 of 184

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Substantive unconscionability has to do with matters of freedom of assent

Select one of the following:

  • True
  • False

Question 151 of 184

Medal-premium 1

When a court finds a clause of a contract unconscionable at the time it was made, it may enforce the remainder of the contract

Select one of the following:

  • True
  • False

Question 152 of 184

Medal-premium 1

Agreements that are contrary to public policy are not binding

Select one of the following:

  • True
  • False

Question 153 of 184

Medal-premium 1

Courts are quick to invalidate contracts on the ground that they are contrary to public policy because such contracts are so offensive to society

Select one of the following:

  • True
  • False

Question 154 of 184

Medal-premium 1

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges and insurance costs

Select one of the following:

  • True
  • False

Question 155 of 184

Medal-premium 1

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges and insurance costs

Select one of the following:

  • True
  • False

Question 156 of 184

Medal-premium 1

An unlicensed insurance broker who cannot personally recover a fee because of the absence of a license can effectively circumvent the statutory requirements by having a friend who is a licensed broker bill for the services and collect the payment for him

Select one of the following:

  • True
  • False

Question 157 of 184

Medal-premium 1

To stabilize the industry, manufacturers of the same or similar products may agree that each will market to its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Select one of the following:

  • True
  • False

Question 158 of 184

Medal-premium 1

Agreements not to compete are void

Select one of the following:

  • True
  • False

Question 159 of 184

Medal-premium 1

A non-competition covenant may be held invalid because of vagueness concerning the duration and geographic area of restriction

Select one of the following:

  • True
  • False

Question 160 of 184

Medal-premium 1

When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year

Select one of the following:

  • True
  • False

Question 161 of 184

Medal-premium 1

Fees charged by a lender for the reasonable expense of making a loan, such as the cost of appraising property, are treated as interest for purposes of usury law

Select one of the following:

  • True
  • False

Question 162 of 184

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In most states the usury laws apply to loans made to both individuals and corporations

Select one of the following:

  • True
  • False

Question 163 of 184

Medal-premium 1

In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts

Select one of the following:

  • if the illegal contract has not been performed

  • if the contract has been partially performed

  • if the contract has been fully performed

  • all of the above

Question 164 of 184

Medal-premium 1

Agreement that are illegal are

Select one of the following:

  • enforceable if one party acted in good faith

  • voidable by one of the parties

  • void

  • voidable by either party

Question 165 of 184

Medal-premium 1

Which party to an illegal agreement may get relief from the court

Select one of the following:

  • Plaintiff

  • Defendant

  • the less-guilty party, when public interest is advanced by granting relief

  • a doctor who was unlicensed at the time of the making of an agreement for the provision of medical services, but who later obtained a proper license

Question 166 of 184

Medal-premium 1

An illegal provision in a contract

Select one of the following:

  • causes the entire contract to be voidable

  • causes the entire contract to be rescinded

  • can be ignored by the parties in their performance of the remaining provisions of the contract, assuming that the remaining portions of the contract can stand on their own

  • can be ignored by the parties, because an illegal provision in a contract is not deemed substantial

Question 167 of 184

Medal-premium 1

An agreement to slander a third person would not be enforceable because slander is a(n)

Select one of the following:

  • crime

  • civil wrong

  • infringement of privacy

  • assualt

Question 168 of 184

Medal-premium 1

Dealing honestly, reasonably and in good faith

Select one of the following:

  • is implied in every contract for services

  • is implied in every contract for the sale of goods

  • is an expressed obligation in every contract

  • both a and b

Question 169 of 184

Medal-premium 1

A contract that is deemed to be too harsh or oppressive to one of the contracting parties may be unenforceable under the concept of

Select one of the following:

  • unilateral influence

  • bilateral influence

  • unconscionability

  • conscionability

Question 170 of 184

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One element involved in the determination of unconscionability is

Select one of the following:

  • the comparative bargaining power of the parties

  • the opportunity to make a contract for better terms with someone else

  • the course of the economy after the contract is made

  • whether a loss will be sustained by performance of the contract

Question 171 of 184

Medal-premium 1

The validity of a contract is not affected by

Select one of the following:

  • the effect of the contract on the community

  • unconscionability

  • the absence of good faith

  • the fact that the contract turned out to be a bad bargain for one of the parties

Question 172 of 184

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Today, what is an important element in determining the validity of a contract

Select one of the following:

  • the Uniform Contract Code

  • whether the agreement might harm the public welfare

  • whether the contract is wise or foolish

  • whether the contract operates unequally between the parties

Question 173 of 184

Medal-premium 1

Which of the following types of contracts might be unenforceable as contrary to public policy

Select one of the following:

  • a contract that is contrary to the protection of the public, welfare, health or safety

  • a contract that is contrary to the protection of the person

  • a contract that is contrary to the protection of recognized social institutions

  • all of the above

Question 174 of 184

Medal-premium 1

Public policy

Select one of the following:

  • can be precisely defined

  • is frequently used by the courts as a reason to invalidate contracts

  • is protections from that which violates any established interest of society

  • all of the above

Question 175 of 184

Medal-premium 1

Private lotteries, which generally are held to be illegal, involve three elements

Select one of the following:

  • prize, chance, and consideration

  • return, skill and wager

  • prize, skill and consideration

  • attractive return, minimal involvement and skill

Question 176 of 184

Medal-premium 1

Which of the following is not illegal?

Select one of the following:

  • an office football "pool" with a cash entry fee and cash prize

  • a raffle with an entry fee to win a car

  • a "giveaway" to every tenth person who buys meat at a butcher shop

  • a "giveaway" to every tenth person entering a department store

Question 177 of 184

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The failure to have a license will not render agreements void if the license

Select one of the following:

  • is based on formal education

  • is required for engaging in a particular business or trade

  • is a regulatory license

  • is readily obtainable by anyone who offers payment of a required fee

Question 178 of 184

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Which of the following agreements represent(s) an unreasonable restraint of trade?

Select one of the following:

  • a combination to create a monopoly

  • an agreement to obtain a "corner" on market

  • an association of merchants to increase prices

  • all of the above

Question 179 of 184

Medal-premium 1

An agreement to restrain trade may be void on the grounds that it is

Select one of the following:

  • fraudulent

  • contrary to public policy

  • illegal lobbying

  • unfair to merchants

Question 180 of 184

Medal-premium 1

An agreement to restrain trade may be void on the grounds that it is

Select one of the following:

  • fraudulent

  • contrary to public policy

  • illegal lobbying

  • unfair to merchants

Question 181 of 184

Medal-premium 1

An agreement to compete is enforceable

Select one of the following:

  • in the sale of bussiness

  • between competitors

  • in contracts for the sale of goods

  • in contracts for the sale of securities

Question 182 of 184

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In an employment contract, agreements not to compete are

Select one of the following:

  • illegal

  • uniformly held to be in the public interest and therefore legal

  • valid only if the restriction protects the employee

  • valid, if the restriction is reasonable and necessary for the protection of the former employer

Question 183 of 184

Medal-premium 1

When money is loaned at a greater rate of interest than is allowed by law, ______ is committed

Select one of the following:

  • usury

  • credit misfeasance

  • petty theft

  • credit malfeasance

Question 184 of 184

Medal-premium 1

Which of the following is not an example of a state penalty for violating usury law?

Select one of the following:

  • restricting the lender to the recovery of the loan but no interest whatsoever

  • allowing the lender to recover the loan principal and interest up to the maximum contract rate

  • restricting the lender to the recovery of the loan plus seventy-fifty percent (75%) of the interest

  • requiring the lender to pay as a penalty, double the interest the borrower paid on a usurious loan

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Bus Law Ex 3

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Business Law Exam 3 Review

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Marissa Boretz
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