Environment of Business: Chapter 6
Identify the standard for service contracts, which means that the performing party acted in good faith and conveyed enough benefit of the contract to the other party so that the other party can use it for its intended purpose and that the defects arising under the contract may be remedied by money damages. A) personal satisfaction B) substantial performance C) reasonable person standard D) complete performance E) strict performance standard
B
In common law, the ____ gives the power of acceptance to another party and includes the agreement's essential elements, which must be definite and certain. A) ability B) offer C) consideration D) capacity E) authority
B
Matt promises to pay Ted $100 in exchange for Ted's promise to paint Matt's house. This is an example of: A) unilateral contract B) bilateral contract C) invitation to bargain D) assignment E) illusory promise
B
An adult of sound mind who enters into a contract has shown capacity. True or False
True
Common law governs contracts for services and also contracts not otherwise governed by the Uniform Commercial Code. True or False
True
Contracts are a form of private law because the terms contained within a contract bind the relevant parties, not the public as a whole. True or False
True
In common-law contract formation, void refers to a contract that is not valid on its face because it suffers from some fatal law. True or False
True
In common-law contracts, the acceptance must be a mirror image of the offer to constitute valid acceptance. True or False
True
In common-law contracts, the acceptance must be precisely the same as the offer. True or False
True
Quantum meruit is the name for damages awarded in quasi-contract cases. True or False
True
The Uniform Commercial Code is not a law until state legislatures adopt it as law. True or False
True
When a legally enforceable promise is broken, the injured party can seek damages. True or False
True
When a party fails to perform under the terms of the contract without a legally justifiable reason, the party is said to be in breach of the contract. True or False
True
The implied covenant of good faith and fair dealing is a promise the law requires in most contracts, regardless of whether the parties state it or not. True or False
False
In civil law, contract formation refers to offer, acceptance, and consideration. True or False
False
In common law, the offer and consideration together form mutual assent. True or False
False
In common law, _____ refers to offer, acceptance and consideration. A) formation B) duress C) meruit D) existence E) none of the above
A
The term for awarded damages which are "as much as is deserved" is: A) unjust enrichment B) quantum meruit C) promissory note D) quasi-contract E) equitable remedy
B
Merchants frequently use ____ language in their individual purchase orders and invoices. A) estoppel B) administrative C) boilerplate D) collegiate E) none of the above
C
A minor who enters into a contract with a party who has capacity may not void the contract. True or False
False
A unilateral contract is one in which the accepting party may only accept through a promise. True or False
False
An acceptance is not yet valid when the offeree deposits the acceptance in the mail. True or False
False
An illusory promise can constitute valid consideration. True or False
False
Any contract with a minor is voidable by the minor under the infantry doctrine. True or False
False
Which of the following is NOT a defense to contract performance: A) illegal purpose B) lack of capacity C) statute of limitations has expired D) laziness E) undue influence
D
Which of the following requires certain contracts to be in writing and signed by the defendant to be enforceable against the defendant? A) good samaritan law B) the statute of limitations C) parol evidence D) the statute of fraud E) the mandatory arbitration clause
D
Which of the following statements best describes a quasi-contract? A) it is a type of contract in which the accepting party may only accept through an action. B) it is a type of contract in which both parties make a promise. C) it is an equitable remedy where a court determines the rights of the parties to an action without awarding damages. D) it is a type of equitable remedy that may be imposed on parties to avoid unjust enrichment to one party at the expense of the other. E) it is a type of equitable remedy that may be imposed on parties to avoid injustice, when one party detrimentally relied on another party's promise.
D
A(n) ____ contract refers to the status of a contract that may be terminated due to some defect. A) dominant B) rescissable C) non-negotiable D) inexistent E) voidable
E
Fred offers to sell his scooter to Dan for $400. Dan agrees to buy the scooter for $400, if he does not find one that he likes more. This is an example of a(n): A) noncompete agreement B) unilateral contract C) invitation to bargain D) promissory estoppel E) illusory promise
E
