L201 Exam 2

¡Supera tus tareas y exámenes ahora con Quizwiz!

43) A contract that involves obligations on the part of manufacturers and distributors is called a(n): A) requirements contract. B) composition agreement. C) output contract. D) exclusive dealing contract.

48) Which of the following considers a properly dispatched acceptance sent by any reasonable means of communication within a reasonable time to be effective on dispatch? A) Traditional contract laws B) UCC C) CISG D) Restatement (Second)

74) In Kolodziej v. Mason, the case in the text, the court held that Mason's Dateline statement: A) was an offer because its terms were definite and specific. B) was an offer because there were no terms left to negotiate. C) was an offer because Mason created an escrow account for the funds in anticipation of acceptance. D) was not an offer because he did not have the intent to create an offer.

75) In a(n) ________ contract, the distributor must use her best efforts to sell the goods and the manufacturer must use his best efforts to supply the goods. A) requirements B) output C) implied D) exclusive dealing

84) In the case in the text, D'Agostino v. Federal Insurance Company, the court found in favor of: A) Federal because its response to D'Agostino's offer was timely. B) Federal because the additional terms were not substantive. C) D'Agostino because Federal's response was untimely. D) D'Agostino because Federal's response was a counteroffer.

18) A revocation is effective at the time it is dispatched by the offeror.

FALSE

18) Promissory estoppel cannot be applied in the case of the absence of a binding consideration.

FALSE

19) A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

FALSE

19) Speaking generally, a quasi-contract applies where there has been foreseeable reliance on an express promise.

FALSE

2) Contracts must always be in writing to be enforceable.

FALSE

20) The offeror's death automatically terminates an offer, but the offeree's death does not.

FALSE

3) Generally, the terms of a standardized contract are negotiable.

FALSE

40) Which of the following is true regarding bids? A) Advertisements for bids are treated as offers. B) Promissory estoppel can be used to prevent withdrawal of bids. C) Bids for governmental contracts are covered under contract principles. D) Those that submit a bid are called offerees.

78) An online agreement that presents contract terms and conditions and requires users to click a button to indicate agreement is called a: A) browsewrap agreement. B) shrinkwrap agreement. C) clickwrap agreement. D) webclick agreement.

26) As mentioned in the case in the text, Steinberg v. U.S., in deciding whether consideration to form a contract exists, a court must determine whether: A) the consideration given by each party is of roughly equal value. B) the consideration conforms to the subjective intent of the parties. C) the consideration has sufficient monetary value. D) the benefit was bargained for.

26) Ashley says to Ford, "I'd like to buy your house," and Ford responds, "You've got a deal." This exchange lacks ________. A) partners B) communication C) object D) specificity

1) When determining the presence of the intent to accept, a subjective standard is used.

FALSE

13) Mr. White sends his acceptance for a business contract to Mr. Green. But Mr. White put insufficient postage on the envelope. One day later, Mr. Green revokes the offer through the mail. Mr. White, upon receipt of the undelivered acceptance, overnighted the acceptance letter to Mr. Green. The overnighted acceptance letter reaches Mr. Green before the revocation letter reached Mr. White. If a court finds that the UCC rule applies, a valid acceptance occurred and a contract was created between Mr. White and Mr. Green.

TRUE

13) Sellers at auctions are generally treated as makers of an invitation to offer.

TRUE

8) Kevin offered to mow his Uncle Jordan's lawn for $100. To his offer, Uncle Jordan replied by saying "I know you're taking advantage of me but I accept." Uncle Jordan has indeed accepted the offer made by Kevin.

TRUE

35) A contract is ________ when all of the parties have fully performed their contractual duties. A) void B) executed C) contingent D) ineffective

23) To determine whether a proposal qualifies as an offer, courts first look at: A) the communication to the offeree. B) the definiteness of terms. C) the present intent to contract. D) a description of the parties involved.

23) Which of the following actions is considered to reflect a counteroffer? A) A grumbling acceptance B) An inquiry regarding terms C) A demand for additional terms D) A silent acceptance

62) Which of the following is an exception to the general rule that rejections terminate offers? A) Unilateral contracts B) Bilateral contracts C) Firm offers D) Option contracts

19) A creditor who fails to file suit to collect a debt within the time prescribed by the appropriate statute of limitations loses the right to collect it.

TRUE

4) An offer is the first step in the contract formation process.

TRUE

24) What does "present intent to contract" mean? A) Intent to enter the contract upon acceptance B) Intent to negotiate in case of rejection of offer C) Intent to set contractual conditions D) Intent to engage more than one partner in the deal

84) Which of the following is not an element of promissory estoppel? A) A written contract B) A promise C) Injustice based on reliance D) Promisor should foresee reliance

21) The ________ has the power to bind the person who makes an offer simply by accepting the offer. A) leasor B) offeree C) leasee D) offeror

52) A bilateral contract is accepted when the offeree: A) performs the requested act. B) makes the promise requested by the offer. C) accepts the offer in silence without prior indication. D) makes additional inquiries regarding the terms.

65) What is the term for being equitably prevented from raising a legal defense? A) Quid pro quo B) Estoppel C) Breach of Contract D) International Subsidy Agent

81) A(n) ________ is when a merchant offeror makes written offer to buy or sell goods, giving assurances that the offer will be held open. A) option B) firm offer C) unilateral contract D) bilateral contract

82) Which of the following describes the time period a person has to pursue any legal claim? A) Bargained-for exchange B) Statute of limitations C) Consideration D) Forbearance to sue

21) Historically, free promises were not enforced unless they had which of the following supporting them? A) Witnesses of good character B) A signed statement of the Secretary of State C) Consideration D) Affidavits of profit attached to the promise

29) According to classical contract law, courts are: A) contract makers. B) contract breakers. C) contract enforcers. D) contract negotiators.

36) Advertisements for the sale of goods at specific prices are considered to be: A) bids. B) unenforceable contracts. C) invitations to offer. D) unilateral contracts.

49) What is the test frequently used to determine "hybrid" contracts? A) Determining the value of the contract. B) Determining the party to benefit. C) Determining which element predominates. D) Determining the validity of the contract.

63) Henry agrees to give Beth $100 in exchange for her $50. Which of the following statements is true? A) The agreement violates the parties' freedom of contract. B) The agreement is supported by nominal consideration. C) The inadequacy of consideration is apparent on the face of the agreement. D) The consideration is insufficient because it is based on past performance.

72) Ann receives an advertisement in the mail for Big Box's special edition tablet computers for $500. Ann goes to Big Box's store indicating her acceptance of the advertisement. Ann is informed that Big Box is sold out. Which of the following statements is true? A) Big Box's advertisement constituted an offer because it contained definite terms. B) Big Box's advertisement constituted an offer because it mailed the ad directly to Ann. C) Big Box's advertisement did not constitute an offer, but rather, it was an invitation for an offer. D) Big Box's advertisement constituted an offer because it expressed intent to contract.

38) An executed contract is one that has been: A) terminated by operation of law. B) terminated by the parties' voluntary agreement. C) fully performed by one or both parties. D) fully performed by both parties.

66) The UCC's modified version of the mirror image rule is called the: A) Knock-Out Rule. B) Substantive Form Rule. C) Last Shot Rule. D) Battle of the Forms.

79) In Cordas v. Uber Technologies, Inc., the case in the text, the court held that: A) Uber's terms and conditions constituted an enforceable browsewrap agreement. B) Uber's arbitration clause was unenforceable because it did not require an affirmative assent from its users. C) Uber's arbitration clause was enforceable because Cordas downloaded the app voluntarily. D) Uber's arbitration clause was enforceable because Cordas affirmatively acknowledged it.

83) Once a bankrupt debtor ________, creditors no longer have the legal right to collect discharged debts. A) files his bankruptcy petition B) notifies his creditors of his pending bankruptcy C) is appointed a trustee D) is granted a discharge

85) In Thomas v. Archer, the case in the text, the Alaska Supreme Court held that the trial court erred when it decided that: A) enforcement of the promise was not necessary in the interest of justice. B) there was no actual promise. C) the Thomases change in position was not foreseeable. D) the Thomases failed to show a substantial change in position.

22) Which of the following is NOT a basic element of a contract? A) Offer B) Consideration C) Capacity D) Goods

D' 23) To qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and a(n) ________ of that offer. A) understanding B) writing C) assumption D) acceptance Answer: D

10) A voidable contract creates no obligation and is not enforceable by any party.

FALSE

10) According to the provisions of UCC, an exclusive dealing contract imposes a duty only on the distributor to use its best efforts to sell the goods.

FALSE

10) Generally speaking, advertisements for the sale of goods at specified prices are considered to be offers.

FALSE

10) Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective upon dispatch even if it uses means other than those specified in the offer.

FALSE

11) All terms of contracts, even "fine-print" provisions of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.

FALSE

11) To accept an offer for a unilateral contract, the offeree must make the promise requested by the offer.

FALSE

12) The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

FALSE

12) To accept an offer for a bilateral contract, the offeree must perform the requested act.

FALSE

13) Article 2 of the UCC never applies to mixed goods-services contracts.

FALSE

13) Unlike the UCC, the CISG requires new consideration to modify a contract.

FALSE

14) A promise not to sue another party is not consideration because the promise does not convey any legal value to the other party.

FALSE

14) Mr. Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel. Mr. Blue submits a bid for his work associated with the project. In this instance, Mr. Green was the offeror.

FALSE

14) Transfer of title deeds is a function wherein silence signals acceptance of the offer.

FALSE

15) When Carol Whittaker makes an offer to a contractor, Jacob Phelps, directing him to inform her of his acceptance through registered letter mail, she is making an ambiguous offer.

FALSE

8) The mutual agreement necessary to create an express contract must be evidenced by a writing.

FALSE

8) To meet the requirements to form a contract, the parties must have future intent to agree and form a contract.

FALSE

1) Consideration is what distinguishes enforceable agreements from gratuitous promises.

TRUE

1) The essence of a contract is that it is a legally enforceable promise or set of promises.

TRUE

2) The intent to accept is objectively demonstrated by words or conduct or a combination of the two.

TRUE

20) Mr. Blue gave his favorite nephew Jim Jr., who is a mechanic, $1,000 in January. Later that year, he needed his car repaired. In the sales contract, Mr. Blue indicated that the amount owed should be deducted from the money already paid. A court will find that Mr. Blue failed to give proper consideration for the contract.

TRUE

20) Mr. White contracts with Mr. Green for 100 black coffee mugs. Mr. White decides he needs the mugs faster than the time allotted in the contract and asks for a rush shipment. Mr. Green notifies Mr. White that he will ship 100 coffee mugs but that the only ones available are red. A court will find that the shipment of red mugs under the UCC is not a breach of the original agreement.

TRUE

4) If the offeree accepts the offer's terms while complaining about them, it is called a grumbling acceptance.

TRUE

21) Which of the following statements about standardized form contracts is false? A) Frequently, the terms of standardized contracts are negotiable. B) They are used both online and offline. C) They are contracts that are preprinted by one party and presented to the other party for signing. D) In most situations, the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction.

22) In determining whether an offeree accepted an offer, the court is looking for the same ________ on the part of the offeree that it found on the part of the offeror. A) present intent to contract B) inquiry regarding terms C) subjective standard D) silent acceptance

23) Bill is 25 years old. His uncle promised in writing to pay him $2,000 if Bill would refrain from drinking alcohol for one year. Bill refrained from drinking alcohol for one year. However, his uncle now refuses to pay Bill as they agreed. The uncle claims that because Bill suffered no detriment by refraining from alcohol, his non-drinking does not constitute legal consideration, and, therefore, no contract was formed. If Bill sues his uncle, Bill will: A) win because Bill had a legal right to drink alcohol. B) lose because consideration must have monetary value. C) win because no consideration is needed in this contract. D) lose because refraining from an action can never be considered legal consideration.

25) Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract? A) Common Law B) Constitutional Law C) Natural Law D) Theocratic Law

26) Ann wants to download Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called: A) clickwrap contracts. B) shrinkwrap contracts. C) browse-wrap contracts. D) unenforceable contracts.

30) Which of the following characterizes definiteness standards under classical contract law? A) Courts are contract enforcers. B) Contracts need to contain all the terms. C) Courts should be able to provide "gap fillers" in contracts. D) Courts can take a "hands-on" approach to contracts.

32) When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) ________ has been created. A) implied contract B) quasi-contract C) void contract D) unenforceable contract

32) Which of the following is often used by agreements that try to make gratuitous promises look like true bargains? A) Nominal consideration B) Past consideration C) Composition agreement D) Requirements contract

33) Dan, President of BAZ Co., is happy with the extraordinary performance of Naomi, a BAZ Co. senior accountant. Dan informs Naomi that because of her superlative work in the past fiscal year, he is going to give her a 5 percent raise effective next month. Naomi, who has never heard of anyone at BAZ Co. getting a raise, is thrilled and thanks Dan. Later that day, Dan realizes that giving Naomi this raise might cause all senior accountants to demand salary increases. Dan decides not to give Naomi a raise after all. He believes that his promise to give her a raise is not legally binding. Dan is correct because: A) there was no bargained-for exchange for the raise. B) of the "preexisting duty" rule. C) past consideration is not an act or promise. D) past consideration is not liquidated.

35) For a proposal to be considered a contractual offer, the offeror must have what type of intent? A) Present intent to contract B) Future intent to contract C) No intent to contract D) Past intent to contract

36) Mr. White contracts with his wife Ms. White to watch their kids, Joe and Jimmy, one night for $50. What is the status of the contract between Mr. White and Ms. White? A) There is no contract because there is inadequate consideration. B) There is a contract as long as Mr. White registers the contract with the Secretary of State. C) There is a contract as long as $50 is a reasonable profit for watching the kids. D) There is a contract as long as a court reviews the terms within 30 days.

36) Which of the following describes a stipulation? A) An offeror's right to determine the manner of acceptance B) An offeree's right to determine who to contract with C) The court's right to provide gap-fillers in a contract D) Additional terms in a contract in order to make it binding

37) Ads that (1) limit the power of acceptance to one offeree or a small number of offerees, (2) are highly specific about the nature and number of items offered for sale and what is requested in return, and (3) leave nothing further to be negotiated are considered to be ________. A) offers B) invitations to negotiate C) invitations to offer D) obligations

38) Daniel owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt. The settlement agreement: A) is supported by consideration. B) lacks consideration because Casey is not giving Daniel any legal value. C) lacks consideration because Daniel is promising to perform a preexisting legal obligation. D) is binding under UCC section 2-209 even though there is no consideration.

39) Ian Kendler makes Brian Hyson an offer for a plot of land. In the offer, Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service. Which of the following is true? Assume that the Restatement (Second) of Contracts does not apply. A) There is no acceptance and no contract. B) A contract was formed at the time Hyson dispatched the letter. C) A contract was formed at the time Kendler received the letter. D) The acceptance is invalid because the contract does not relate to sale of goods.

39) James owns Great Expectations, a trendy restaurant in Manhattan. He enters into a contract with Mary, who makes and sells pastries. The contract states that Mary will "supply all of Great Expectation's needs" for pastries for the next year. Is this contract enforceable? A) Yes, because this is a requirements contract. B) Yes, but only if James buys all of the pastries produced by Mary in the next year. C) No, because the promise fails to specify the quantity of goods to be purchased. D) No, because James might not need any pastries in the next year.

41) An agreement in which a party promises to supply all the other party's needs for a particular commodity is called a(n): A) requirements contract. B) composition agreement. C) output contract. D) nominal consideration.

41) Mr. White enters into a contract to sell a car to Joe Jr. who is 15 years old and is considered a minor in the state where he lives. What is the status of the contract that Mr. White and Joe Jr. entered into? A) The contract is voidable and enforceable until Joe Jr. cancels it. B) The contract is void and unenforceable. C) The contract is enforceable and valid. D) If the contract is registered with the Secretary of State's office it will become enforceable.

41) Which party to contract negotiations is the master of the offer and can specify what behavior is necessary to constitute a valid acceptance? A) The Offeror B) The Offeree C) The Secretary of State D) The court

43) Ms. White lost her puppy. She advertises a reward of $50 for the return of her puppy. What is the contractual nature of Ms. White's advertisement? A) An offer for a unilateral contract B) An invitation for an offer C) An invitation for a gift D) An acceptance on a bilateral promise

44) Mr. Green is a local mobster who makes Mr. Blue pay $100 not to have his business burned to the ground. What is the status of the contract between Mr. Green and Mr. Blue? A) There is no contract because Mr. Green gave inadequate consideration B) There is a contract as long as Mr. Green registers the contract with the Secretary of State C) There is a contract as long as $100 is a reasonable profit for not burning down the business D) There is a contract as long as a court reviews the terms within 30 days

47) Patricia is a general contractor performing construction work for ABC Corp. Patricia requested extra payment because abnormal subsurface rock formations made excavation on the construction site far more costly and time-consuming than could have been reasonably expected. The court will: A) enforce such modifications in contract. B) allow the party to rescind such a contract. C) consider the contract voidable. D) consider the contract unenforceable.

47) Which types of transactions are governed by the Uniform Commercial Code? A) Contracts for the sale of goods. B) Contracts for services. C) Contracts for the sale of land. D) Any commercial contract, whether for goods, services, or land.

48) Ron was employed by Mass Co. in 1970. At that time, he was given an employee handbook that described the particular steps that had to be taken before an employee could be fired. Later, in 2000, Mass published a new handbook by which all workers' statuses were changed to at-will employees. Mass then fired Ron. Ron claimed he was terminated without cause and was not afforded procedures described in the 1970 handbook, such as an appeal or review of the decision. He sued Mass under breach of contract based upon the 1970 employee handbook. Will he succeed? A) Yes, because the modifications in 2000 were not by mutual consent and for consideration. B) No, because the employee handbook contains terms and conditions of the employment contract. C) Yes, because Mass Co. has arbitrarily terminated Ron. D) No, because Ron had acquiesced to the modification by not raising any objection.

49) Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes, must respond if she accepts. If Helga accepts the offer 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 offer is invalid because it fails to stipulate the means of acceptance. D) The acceptance would be effective upon dispatch even if the means of acceptance is unreasonable.

50) Under the common law, an offer for a unilateral contract: A) is accepted by full performance of the requested act. B) is accepted either by an appropriate act or an appropriate promise. C) is accepted by whatever means are reasonable under the circumstances. D) is accepted by making the promise requested by the offer.

52) The UCC differs from the common law of contracts in that the UCC: A) is less concerned with technical rules. B) deals with the sale of intangibles. C) deals with service contracts. D) is less concerned with the "good faith" doctrine.

53) In which of the following circumstances are offerors free to revoke their offers? A) In case of common law rule on revocation. B) In case of unilateral contracts. C) In case of the availability of an option. D) In case of a promissory estoppel.

53) Mr. Green creates a unilateral contract with his nephew, Paul. Mr. Green promises to buy Paul a laptop if he gets accepted to college. In order for Paul to accept this contract what must he do? A) Get accepted into college B) Send a certified letter to Mr. Green agreeing to the terms of the contract C) Immediately call and orally accept the terms of the contract with Mr. Green D) Notify the Secretary of State's office that he accepts Mr. Green's contract

54) How does the presence of facts that constitute promissory estoppel make a difference in the law of offers and revocations? A) It makes an offer enforceable, even without consideration. B) It does away with the requirement that rejections and revocations be communicated. C) It makes an offer automatically revocable at any time. D) It does away with the requirement that offers be definite.

56) Why does Article 2 hold merchants to a higher standard than nonmerchants? A) Because buyers tend to place more reliance on merchants. B) Because merchants are not required to observe reasonable commercial standards of fair dealing. C) Because the Code gives more weight to technical requirements such as consideration. D) Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

57) An offer that is unclear about the form of acceptance that is necessary to create a contract, is called a(n) ________ offer. A) ambiguous B) reasonable C) implied D) counter

57) Why did the Restatement of Contracts not have the force of law? A) It was the product of a private organization. B) It had conflicting perspectives. C) It was deemed significantly inferior to the common law. D) It was deemed significantly inferior to the UCC.

59) James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true? A) The dentist can recover under a theory of quasi-contract liability. B) The dentist cannot recover under an implied contract theory. C) The dentist can recover under the doctrine of promissory estoppel. D) The dentist cannot recover because there was no express contract.

62) Arthur offered to sell his house to Mike for $50,000. Even before Mike responded to the offer, Jack learned of the offer and called Arthur to accept the offer. Jack's action represents a(n) ________. A) offer B) promise C) notification D) acceptance

63) What legal effect does death or insanity of the offeror have on the offer? A) It terminates the offer automatically. B) It terminates only the last contract that has been formed with that offeror. C) It has no legal effect unless and until the offeree is notified of the death of the offeror. D) It makes the offer voidable.

63) Which of the following is true regarding promissory estoppel? A) It requires reasonable reliance on the promisor's promise. B) It requires a written promise. C) It requires consideration. D) It applies only when one party is a merchant.

63) Which section of the UCC states that an order to a manufacturer requesting shipment of goods may be accepted by a prompt shipment of the goods? A) 2-206 B) 9-301 C) 1-105 D) 2-345

64) A fundamental difference between promissory estoppel and traditional contract principles is that promissory estoppel protects: A) reliance. B) bargains. C) agreements. D) consideration.

65) In the case in the text, Pena v. Fox, the court held that the release delivered constituted a(n): A) counteroffer because the release did not mirror Pena's offer. B) counteroffer because the release contained a different settlement amount. C) acceptance because the additional terms were not material. D) acceptance because the release mirrored Pena's offer.

65) Mr. Blue gave Mr. Green $1,000 to help his family out. Later, Mr. Blue entered into a sales contract with Mr. Green and wanted the consideration to be, in part, the $1,000. Which of the following describes the $1,000? A) Past consideration B) Future consideration C) Equitable exchange D) Present intent

65) When negotiations occur through the mail, there is usually a limit put on the time: A) the offeree has to accept the offer. B) the offeror has to register the contract with the state. C) the offeror has to register the contract with the federal government. D) to have a judge approve the contract.

66) Early American courts took a subjective approach to contract determination. This was troublesome as it created uncertainty in the enforcement of contracts because: A) every contract was vulnerable to disputes about actual intent. B) the intent of the parties was not required to be in writing. C) no evidence could be admitted as to the parties' intent. D) there was no "meeting of the minds" between parties.

66) Joe promises to give his brother Bill a $30,000 new car for $50. Which of the following best describes the $50? A) Nominal consideration B) Past consideration C) Adequate consideration D) Requirements contract

67) Standardized contracts present the dangers that the party who signs the contract: A) will not know what he is agreeing to. B) will be defrauded. C) will not have enough time to read the agreement as a whole. D) will not understand he is signing a binding agreement.

68) If both parties are not merchants, additional terms contained in the offeree's standardized form are treated as: A) proposals for addition to the contract. B) part of the contract. C) an acceptance. D) a limited acceptance.

69) If both parties are merchants, additional terms contained in the offeree's standardized forms become part of the contract unless an exception applies. Which of the following is not one of those exceptions? A) The offer was for the sale of goods under $500 B) The offer expressly limited acceptance to its own terms C) The new terms would materially alter the offer D) The offeror gives notice of objection to the new terms within a reasonable time after receiving the acceptance.

70) Mel promises to buy all the video games he wants from Bart. This promise is: A) illusory. B) voidable. C) a moral obligation. D) binding.

71) Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), a proposal will be considered an offer if it meets three requirements. Which of the following is not one of those requirements? A) The proposal clearly explains the obligations of the parties. B) The proposal is addressed to one or more specific persons. C) The proposal is sufficiently definite, especially as to quantity and price. D) The proposal indicates the intent of the offeror to be bound in case of acceptance.

71) Which of the following terms in an agreement would not render it illusory? A) A right to cancel a contract after the first 30 days. B) A party to an agreement has a right to cancel or terminate at any time, for any reason, and without any notice. C) A promisee promises to buy "all the tools I want." D) A promise to perform under the contract "if I feel like it."

72) In the case in the text, Trapani Construction Co. v. Elliot Group, Inc., the court held that: A) There was a contract implied in fact because the circumstances and behaviors of the parties demonstrated a general course of dealing and a mutual intent to contract. B) There was no contract implied in fact because the defendant never accepted the plaintiff's offer. C) There was no contract implied in fact because no consideration was provided to defendant. D) There was no contract implied in fact because there was no meeting of the minds or mutual assent.

73) A(n) ________ contract is a contract where its terms are included as a hyperlink on a page, and the indication of agreement is purportedly the use of the product or service. A) browse-wrap B) shrinkwrap C) clickwrap D) e-mail

73) Prior to the enactment of the UCC, common law courts often refused to enforce both output contracts and requirements contracts because they: A) failed to specify the quantity of goods to be produced or purchased. B) lacked legal value to satisfy the consideration requirement. C) failed to specify the amount of money to be exchanged. D) included only nominal consideration.

74) Jim purchased software on a CD-ROM disc to complete his taxes. The CD-ROM was bundled in a sealed package with a notice that stated that the consumer was agreeing to the terms of the proposed standardized license agreement when he broke the seal on the packaging. This is called a(n) ________ contract. A) shrinkwrap B) browse-wrap C) clickwrap D) e-mail

74) Which of the following statements about output contracts is false? A) Output contracts are generally illusory because they fail to specify a quantity of goods to be produced or purchased. B) A party's quantity needs must be made in good faith. C) A party's quantity needs cannot be unreasonably disproportionate to any normal prior output. D) A party may not use an output contract to exploit the other party.

75) At an auction, acceptance occurs when: A) the auctioneer strikes the goods off to the highest bidder. B) an auction begins. C) a bid is placed. D) the auctioneer calls for the last bid.

75) Which of the following would not be used to determine whether an acceptance was communicated by reasonable means? A) Subjective beliefs B) Speed and reliability C) Nature of the transaction D) Trade usage

76) The ________ of contracts is court-made law that is in a constant state of evolution. A) Common law B) Statutory law C) The Uniform Commercial Code D) Administrative law.

77) The text discusses that the drafters of the Uniform Commercial Code had several purposes in mind. Which of the following was not one of those purposes? A) Protect the innocent consumer from fraudulent activity in the marketplace. B) Establish a uniform set of rules to govern commercial transactions. C) Create a body of rules that would realistically and fairly solve common problems occurring in everyday commercial transactions. D) Formulate rules that would promote fair dealing and higher standards in the marketplace.

80) Which of the following offerors is free to revoke his offer? A) An offeror that agreed to keep an offer open without consideration. B) An offeror, who is a merchant, agreed in writing to sell goods and gave assurances that the offer would remain open. C) An offeror of a unilateral contract where the offeree already started performance. D) An offeror who promised to keep an offer open without consideration, but later changed his mind and the offeree foreseeably and reasonable relied on the offeror's promise.

81) If it appears that the parties had concluded their negotiations and reached agreement on all the essential aspects of the transaction, most courts would probably find a contract at the time agreement was reached, even though no formal agreement had been signed. Which of the following is an exception to this rule? A) During the negotiation process, the parties gave a clear expression of intent that prevents the formation of a contract until both parties have signed. B) The parties provide proof of prior dealings that indicate an agreement is usually only reached between the parties when it is put into writing. C) The parties demonstrate that it is customary in their trade to only sign written agreements. D) The parties demonstrate that it was not their intention to be in a binding agreement until it was put into writing and signed.

81) Which of the following is a doctrine by which courts imply, as a matter of law, a promise to pay the reasonable value of goods or services when the party receiving such goods or services has knowingly done so under circumstances that make it unfair to retain them without paying for them? A) Quasi-contract B) Freedom of contract C) Promissory estoppel D) Implied in law contract

83) Which of the following is an equitable doctrine that protects those who foreseeably and reasonably rely on the promises of others by enforcing such promises when enforcement is necessary to avoid injustice, even though one or more of the elements normally required for an enforceable agreement is absent? A) Promissory estoppel B) Quasi-contract C) Freedom of contract D) Implied in law contract

84) Which of the following statements about The United Nations Convention on Contracts for the International Sale of Goods (CISG) and acceptance is false? A) The CISG adopted the Code's Battle of the Forms. B) Statements or other conduct by the offeree that shows assent is an acceptance. C) A contract is concluded when an acceptance of an offer becomes effective. D) Acceptances are effective when they are received.

85) The United Nations Convention on Contracts for the International Sale of Goods (CISG) generally holds acceptances to be effective when: A) they are received. B) they are dispatched. C) the offeror reasonably learns of the acceptance. D) the offeree subjectively decides to accept the offer.

22) For the consideration requirement in contracts to be met: A) the consideration given by each party must be of roughly equal value. B) each party must give consideration. C) the consideration must have monetary value. D) the consideration must consist of some form of property.

22) Which of the following is the first step in the contract formation process? A) Signing the agreement B) An offer in definite terms C) Selection of partners D) Drafting the agreement

24) A contract must be between parties who have ________ to contract. A) knowledge B) capacity C) resources D) intention

25) The term for a person who makes an offer is called? A) Offeree B) Offeror C) Leasor D) Incorporator

26) Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract? A) No, because the offer made by Milner Developers was ambiguous. B) No, because Wright's letter was a counteroffer to the original offer. C) Yes, because Milner Developers did receive a response from Wright. D) Yes, because Wright's silence signaled his acceptance of the offer.

27) Ashburn had a big ranch in Georgia. One day, Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract due to lack of: A) consideration. B) definiteness. C) communication to offeree. D) present intent to contract.

27) In determining whether an offeree accepted an offer and created a contract, a court will look for evidence of three factors. Which of the following is not one of those factors? A) Whether the offeree intended to enter the contract B) Whether the offeree understood the terms of the offer C) Whether the offeree accepted on the terms proposed by the offeror D) Whether the offeree communicated his acceptance to the offeror

29) John promised the other co-owners of the ship Sea Fairy that he would insure the ship for an upcoming voyage. However, John fails to insure the ship. The ship is shipwrecked in a turbulent sea. The co-owners sue John for breach of contract. Will they succeed? A) Yes, because there was a valid and binding contract between the co-owners. B) No, because it was a purely gratuitous promise. C) No, because an intervening cause absolved John's liability. D) Yes, because of promissory estoppel.

29) Which of the following would indicate a rejection under the mirror image rule? A) Inquiry regarding terms B) Material changes to offer C) Grumbling acceptance D) Present intent to accept

31) Consideration can be a(n) ________ in the case of a bilateral contract. A) act B) promise C) exchange D) gift

31) Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract? Assume that Bill did not make his acceptance conditional on Debbie's assent to any additional or different terms. A) Only when Debbie and Bill are merchants. B) When Bill's form is a definite and seasonable expression of acceptance. C) When the conduct of one party recognizes the existence of a contract. D) When the offer expressly limits acceptance to its own terms.

32) Which of the following is true of a sales contract under the UCC? A) The courts cannot fill any "gaps" in the contracts. B) The court needs to determine if the parties intended to make a contract. C) An intent to contract exists even if the parties were unable to reach an agreement. D) All terms of contract need to be clear for the court to decide the case.

34) Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true? A) Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. B) There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. C) Kyle and Tara have a contract for the purchase of Kyle's car. D) Maggie's letter is a valid acceptance of Kyle's offer.

36) A contract in which the parties have not yet fully performed their obligations is called a(n): A) executed contract. B) executory contract. C) quasi-contract. D) bilateral contract.

37) Sigmund enters into a contract with Carl. The terms are that Sigmund will purchase all the gasoline that he wants to purchase in 2011 at a price of $2.50 per gallon, and Carl agrees to sell on those terms. This is an example of a(n): A) valid contract. B) illusory contract. C) voidable contract. D) implied contract.

38) When an auction is advertised as being ________, the seller is treated as having made an offer to sell the goods to the highest bidder. A) without intent B) without reserve C) without price D) without offer

39) A contract where formation was induced by duress is an example of a contract that is: A) void. B) voidable. C) unenforceable. D) executory.

40) What is the term for "a manifestation of assent to the terms made by the offeree"? A) Offer B) Acceptance C) Consideration D) Revocation

42) In general, the mailbox rule is beneficial to: A) the offeror. B) the offeree. C) the courts. D) third-party beneficiaries.

42) Joe and Jack have a written contract whereby Joe agrees to sell Jack a plot of land for $100,000. Later, without terminating the first contract, the parties modify the deal so that Joe sells Jack the same plot of land for $125,000. The second agreement is not a contract because: A) the first contract was not terminated. B) there is no consideration for Jack's promise. C) Joe's promise is illusory. D) written contracts for the sale of land cannot be modified.

42) Mr. Green enters into a contract with Mr. Blue who is a crab fisherman. Mr. Green and Mr. Blue know that Mr. Blue has already caught the number of crabs allowed for the season. But Mr. Green and Mr. Blue agree to a contract to exceed the quota. What is the status of the contract between Mr. Green and Mr. Blue? A) The contract is voidable, and is enforceable till Mr. Blue cancels it. B) The contract is void since it attempts to contract for services that are illegal. C) The contract is valid and enforceable. D) The contract will be valid if registered with the Secretary of State.

43) What can an offeror do to minimize the risk posed by the mailbox rule? A) Include separate additional terms B) Include a receipt stipulation in the contract C) Select only known parties as original offerees D) Revoke the offer before acceptance

44) Greg signed a contract to work as an auto-parts manager for Jones Chevrolet. This contract is governed by: A) Article 2 of the UCC. B) state common law. C) the doctrine of promissory estoppel. D) the law of quasi-contract.

44) Offers that fail to provide a specific time for acceptance are: A) considered to be illegal. B) are valid for a reasonable time. C) are valid but unenforceable. D) can be used to penalize the offeror.

45) Can a local businessman pay a police officer $50 a week to watch his business more closely? A) Yes, as long as the contract is registered with the Secretary of State. B) No, public officials cannot give consideration on duties they are already supposed to perform. C) Yes, as long as $50 is reasonable amount to watch the business. D) Yes, as long as a court reviews the contract within 30 days.

45) On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home at 2:15 p.m. Do Trista and Charlie have a binding contract? A) No, because Trista's purported acceptance was delayed. B) Yes, because Trista dispatched the telegram prior to 2:00 p.m. C) No, because Trista's use of a telegram was not stipulated in the offer. D) Yes, unless Charlie is not home to receive the telegram.

45) When can the offeror effectively revoke his/her offer? A) Only after an effective acceptance. B) Only before an effective acceptance. C) Only before payment for goods or services has been made. D) Only before the parties have completed their obligations under the contract.

46) Alana, who manages a flower shop, sells Jose a shotgun. Jose is unemployed, and Alana has never sold a firearm before. Which of the following statements is true? A) Article 2 of the UCC applies because Alana is a merchant. B) Article 2 of the UCC applies because a shotgun is a movable thing. C) Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. D) Article 2 of the UCC does not apply because Jose is not a merchant.

46) Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise. A) An offer for the sale of land. B) An offer to purchase stock on a stock exchange. C) An offer that says that it will stay open for one week. D) An offer with a valid five-day option attached to it.

48) Dawson entered into a contract with Jensen for the sale of Dawson's boat. Which set of legal rules governs this transaction? A) Contract rules of the common law B) Contract rules of the Uniform Commercial Code C) Equity rules that ensure fairness in transactions D) Marine law

49) A(n) ________ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration. A) offer B) option C) bid D) advertisement

49) X and Y have a contract, which obligated X to sell Y 100 boxes of screws for $100. The parties orally modify the contract so that X will sell Y the same 100 boxes of screws for $125. The second agreement is: A) binding because it is due to unforeseeable situation. B) binding by virtue of being mutually agreed on. C) not binding because it is an outputs contract. D) not binding due to the promise of performing a preexisting legal obligation.

50) Which of the following helps to prevent offerors from revoking their offers prior to acceptance when the offeree relies on it being kept open? A) Option B) Promissory estoppel C) Unilateral contracts D) Firm offer

51) In which of the following circumstances is a debt settlement a binding contract? A) Where the amount of the debt is uncertain or subject to dispute. B) Where the amount of the debt is certain and undisputed. C) Where the only consideration the creditor gives the debtor is his promise not to sue the debtor on the original debt. D) Where the settlement is part of a composition agreement.

51) Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later, Linda became dissatisfied with this transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case? A) The contract rules of the UCC apply, because the contract included the sale of goods. B) The contract rules of the UCC apply, because the predominant purpose of the contract was for the sale of goods. C) The contract rules of the common law apply, because the contract included services, which are governed by the common law. D) The contract rules of the common law apply, because all contracts are governed by the common law.

53) The settlement of an unliquidated debt is called a(n): A) forbearance to sue. B) accord and satisfaction. C) past consideration. D) moral obligation.

54) Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green, without communicating an acceptance, sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green? A) There is no contract because Mr. Green did not expressly accept the offer B) There is a contract because Mr. Green implied acceptance by his action C) There is no contract because the goods are treated as gifts to Mr. Green D) There is no contract because the Secretary of State was not notified

54) Why is past consideration not adequate consideration in a present promise? A) It falls under exceptions to consideration. B) It does not pertain to the present exchange. C) It is not covered under the UCC codes for consideration. D) It involves an issue of moral obligation.

55) The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of: A) good faith. B) unconscionable contract. C) quasi-contract. D) implied contract.

55) Which of the following is true regarding silence as acceptance? A) Contract law explicitly recognizes silence as constituting acceptance. B) An offeree's silence is considered acceptance when he/she indicates so. C) An offeror can impose on the offeree a duty to respond to the offer. D) The Code explicitly recognizes silence as constituting acceptance.

56) Sue Sandon and Joe Rhine concluded their agreement in all substantial matters of their contract for goods, such as price, quantity, and mode of delivery. But the formal written agreement has not been signed yet. Is there a binding contract at present? A) Yes, because an oral contract should suffice. B) Yes, because a contract is formed at the time the agreement is concluded. C) No, because the minor terms also need to be taken care of. D) No, because the agreement is not yet signed and thus, legally unenforceable.

56) The outer limit on a firm offer's irrevocability is: A) 1 month. B) 3 months. C) 6 months. D) 1 year.

56) Which of the following is adequate consideration? A) A preexisting duty B) Agreement to settle an unliquidated debt C) A preexisting moral obligation D) Nominal consideration

59) When is the revocation of an offer effective? A) When received by the offeror B) When received by the offeree C) When sent by the offeree D) When sent by the offeror

60) A newspaper advertisement made to the general public: A) usually is an offer. B) can be revoked by using a similar newspaper advertisement. C) can only be rejected by using a similar newspaper advertisement. D) is a firm offer that cannot be revoked.

60) Which of the following is an exception to a consideration requirement? A) Bargained-for exchange B) Charitable subscription C) Nominal consideration D) Adequacy of consideration

61) An accident on a state highway rendered Jill in a comatose state for nearly a month. There was an old nurse who used to take care of her then. After her recovery, Jill felt so indebted to the nurse that she contracted to transfer all her assets to her to fulfill her (Jill's) moral obligation. Although this contract lacks ________, it can be enforced. A) value B) consideration C) acceptance D) capacity

61) On May 1, Ida makes a written offer to Miranda for the sale of Ida's car. On May 2, Ida mails Miranda a letter revoking the offer. On May 3, Ida telephones Miranda to tell him that he is revoking the offer. On May 4, Miranda learns that Ida sold the car to Chris. On May 5, Ida's letter finally gets to Miranda. Ida's offer terminated on: A) May 2. B) May 3. C) May 4. D) May 5.

61) The original offeree is one who: A) first makes the offer and determines its terms and conditions. B) has the legal power to accept an offer and create a contract. C) hears of the contract indirectly and has an intent to accept. D) first accepts the additional terms presented by the offeree.

62) Which of the following will be legally binding on all parties despite lack of consideration? A) An irrevocable oral promise by a merchant to keep an offer open for 60 days. B) A promise to donate money to a charity, which the charity relied upon in incurring large expenditures. C) A promise to pay for the college education of the child of a person who saved the promisor's life. D) A signed modification to a contract to purchase a parcel of land.

64) Which of the following statements about the mirror image rule is false? A) No rejection is implied if an offeree merely asks about the terms of the offer without indicating its rejection. B) In recent years, the courts tend to apply the mirror image rule in a more liberal fashion. C) The common law rule requires that acceptance be the mirror image of the offer. D) No rejection is implied if an offeree accepts the offer's terms while complaining about them.

68) A(n) ________ is a proposal by one person to another that is intended to create legal relations on acceptance by the person to whom it is made. A) negotiation B) offer C) settlement D) agreement

68) The trend of modern contract law is to tolerate ________ degree of specificity in agreements in comparison to classical contract law. A) a reasonable B) a lower C) a higher D) the same

68) When Oliver Wendell Holmes said, "It is the essence of a consideration that, by the terms of the agreement, it is given and accepted as the motive or inducement of the promise," he was referring to: A) Moral obligations B) Bargained-for exchange C) Nominal consideration D) Past consideration

69) The case in the text, Domingo v. Mitchell, demonstrates that: A) if certain terms are left out of an offer, any subsequent contract is unenforceable. B) important terms of a contract can be implied under certain circumstances. C) omitted terms in a contract are construed against the drafter. D) price must be included in an offer to form a valid contract.

70) Which of the following terms refers to legal value that is bargained for and given in exchange for an act or promise? A) Capacity B) Consideration C) Legality D) Promissory estoppel

72) In the case in the text, Duro Textiles, LLC v. Sunbelt Corporation, the court held that a forum selection clause: A) was incorporated into the parties' contract. B) materially altered the contract within the meaning of the Code. C) was not a material term. D) was prima facie invalid.

74) In The United States Life Insurance Company in the City of New York v. Wilson, the case in the text, the court held that the check was dispatched within the meaning of the mailbox rule when: A) the bank sent the insurance company a letter indicating its intention to send a check. B) the bank sent the insurance company the check. C) Griffith directed the bank to send the insurance company a check. D) the insurance company received the check.

76) Which of the following statements about governmental contracts is true? A) Promissory estoppel can be used to allow a bidder to withdraw a bid but impose a penalty. B) Governmental contracts are generally covered by statute. C) The rules governing governmental contracts give the entity discretion as to who to award the contract to. D) The rules governing governmental contracts allow parties to withdraw bids without penalty.

77) A promisee's promise not to commit a crime can never be consideration because: A) the promise is not bargained for and given in exchange. B) every member of society has a duty to obey the law. C) the promise is illusory. D) it lacks future intent.

77) Janet goes to an electronics store to purchase design software. The software comes in a sealed package and when Janet opens it, she finds that the CD containing the program is sealed in an envelope that states, "By opening this envelope, you are accepting the terms of the license agreement that is contained in this packaging. If you do not want to accept the terms of the license, you can return this product." This method of contracting is referred to as: A) browsewrap contracting. B) shrinkwrap contracting. C) clickwrap contracting. D) software contracting.

78) Grace offers to sell Misti her car for $5,000. Grace tells Misti, "If I don't hear from you in three days, I'll assume you're buying the car." Four days go by and Grace has not heard from Misti. Does Misti's silence amount to acceptance? A) No, because acceptance must be oral or written. B) No, because an offeror cannot impose on the offeree a duty to respond to the offer. C) Yes, because Misti did not reject to the term. D) Yes, because Misti failed to notify Grace of any rejection within three days.

78) Which article of the UCC deals with the sale of goods? A) Article 4 B) Article 2 C) Article 7 D) Article 6

79) Kevin offers to sell Howard his vintage piano for $1,000. Howard tells Kevin, "If you don't hear from me in seven days, I accept." Kevin did not hear from Howard in those seven days. Does Howard's silence amount to acceptance? A) No, because an offeree's silence can never operate as an acceptance. B) Yes, because an offeree's silence can operate as an acceptance if he has indicated that it will. C) No, because Howard did not have the present intent to accept the offer. D) No, because Kevin and Howard did not have a prior course of dealings.

79) Which of the following is an agreement by a promisee to refrain from pursuing a legal claim against a promisor? A) Statute of limitations B) Forbearance to sue C) Past consideration D) Moral obligation

80) A contract that "shocks the conscience of the court" is: A) void. B) unconscionable. C) voidable. D) unenforceable.

80) In Bauer v. Qwest Communications Company, LLC, the case in the text, the court held that Susman's silence: A) amounted to acceptance because he failed to reject the offer within the stated time period. B) amounted to acceptance due to the parties' lengthy relationship and course of dealings. C) did not amount to acceptance because the other parties could not impose a duty for him to respond to the offer. D) did not amount to acceptance because the offer was not communicated by reasonable means.

80) Nancy's car collides with Randy's truck at an intersection. Randy believes the accident is his fault and asks Nancy if she will agree to a settlement of $5,000 for the damage to her vehicle and her promise not to sue him. Nancy believes the accident is her fault, but agrees to Randy's proposal anyway. Which of the following statements is true? A) Nancy's forbearance does not amount to consideration because Randy's promise is illusory. B) Nancy's forbearance does not amount to consideration because she does not have a good faith belief in the validity of her claim against Randy. C) Nancy's forbearance amounts to consideration because she has a good faith belief in the validity of her claim against Randy. D) Nancy's forbearance amounts to consideration because Randy has a moral obligation.

82) In Cabot Oil & Gas Corporation v. Daugherty Petroleum, Inc., the case in the text, the court determined whether the parties intended for a written document to be their formal written contract. Which of the following was not one of the factors the court considered? A) Whether the contract has few or many details B) Whether a reasonable person would believe such a document to be a binding contract C) Whether the contract amount is large or small D) Whether the negotiations themselves indicate that a written draft is contemplated as a final conclusion of the negotiations

82) In Symons v. Heaton, the case in the text, the court held that: A) Symons' unjust enrichment claim was successful because Plachek received a benefit from Symons. B) Symons' unjust enrichment claim failed because, among other things, Symons never expected payment and took care of Plachek because he was his friend. C) an implied in fact contract existed based on the parties' conduct. D) an implied in fact contract existed because Plachek told Symons that he wanted him to have his estate when he died.

83) Which of the following statements about the CISG's rules on revocation is false? A) The CISG states that an offer cannot be revoked if the offer states that it is irrevocable. B) The CISG requires offers to have consideration to make them irrevocable. C) The CISG allows an offer that says it is irrevocable to be revoked if the revocation reaches the offeree before or at the same time as the offer. D) The CISG does not require offers to be in writing to be irrevocable.

84) A promise for a charitable purpose will be enforced, despite the absence of consideration, when the promisee: A) can demonstrate need for the promised gift. B) relied on the promised gift. C) can demonstrate the promisor had a moral obligation. D) put the planned contribution in writing.

85) As discussed in the case in the text, McLellan v. Charly, promissory estoppel: A) applies only when the promisee relied on the promise, even if the reliance was not reasonably expected. B) is used as a consideration substitute. C) is used when there was consideration that was later destroyed. D) applies whether or not the promisee relied on the promise.

85) Which of the following circumstances would not terminate an offer? A) Death of the offerer B) The subject matter of the offer was destroyed by fault of the offeror C) The offeree has been deemed insane D) Intervening illegality

21) Which of the following actions constitutes acceptance of an offer? A) Offeree made material alterations to the terms of the offer B) Offeree intended to enter the contract only if requisite changes were made C) Offeree reflected assent to the terms of the offer in the requisite manner D) Offeree suggested addition of new terms that were earlier not addressed in the offer

24) Which of the following meets the requirements of consideration? A) A promise not to engage in a crime or tort B) A promise without a binding obligation C) A promise that involves the exchange of a legal value D) A promise to do a preexisting duty

24) You wish to download free software from the Internet. The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another webpage. The "download now" page has a button that initiates the download process. You click that button without going to the licensing agreement page. You later learn that the licensing agreement contains an arbitration provision. Are you bound by this provision? A) Yes, because the "please review" statement in the "download now" page informed you of the licensing agreement. B) Yes, because when you clicked the button to initiate the download process you agreed to the provisions in the licensing agreement. C) No, because you did not perform an action that indicated your assent to the licensing agreement. D) No, because laws relating to Internet privacy consider silence to be an acceptance of the offer.

25) Consideration can be a(n) ________ in the case of a unilateral contract. A) security B) guarantee C) act D) promise

25) Jimmy and Pat had a long-standing professional relationship. In 2001, Jimmy's business began experiencing financial strain. The two friends discussed Jimmy's personal problems and financial difficulties, and Pat was concerned about his friend's depressed mental state. In 2003, Pat flew from Atlanta to New York to meet with Jimmy. Prior to Pat's flight, Jimmy's employee faxed copies of various construction contracts and correspondence relating to Jimmy's controversial projects for Pat to review. In late 2005, Pat billed Jimmy for a $40,000 balance that Jimmy owed on the alleged oral contract for consulting services. In a letter to Pat, Jimmy stated: "I have paid you plenty and will not pay you any more. I have not called for any professional advice since then." Pat filed suit against Jimmy for breach of contract. Will Pat succeed? A) Yes, because Pat was offering his friend professional consultation. B) Yes, because there is a valid contract formed, since Jimmy had sought Pat's advice. C) No, because it was a friendly advice and not an actual contract. D) No, because Pat never entered into an oral contract and only written contracts are enforceable.

27) Contracts are typically between one party and: A) the federal government B) the state government C) another private party D) an international agency on commerce

27) To satisfy the consideration requirement to form a contract, the consideration exchanged by the parties must: A) have a monetary value. B) conform to the parties' subjective intent. C) have legal value. D) have approximately the same value.

28) Daniel is a senior at State University. Brian, Daniel's father, is concerned about Daniel's study habits, given that Daniel spends most of his evenings at the campus pub instead of the library. Brian promises Daniel that he will send him on an expense-paid trip to Europe after his graduation if Daniel spends at least five evenings a week studying in the campus library for the remainder of his senior year. After returning home from his graduation, Daniel asks Brian about the European trip. Brian replies, "Your education was your reward. I don't owe you a trip to Europe." Brian is: A) correct: Daniel has already gained the benefit of the bargain. B) correct: Daniel did not give anything of legal value. C) incorrect: Brian owes Daniel a trip to Europe because Daniel's acts are consideration. D) incorrect, but only if Daniel's acts are adequate consideration for such an expensive trip.

28) Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie 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.

28) Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer? A) A material change to an original offer is disfavored by traditional contract law. B) It changes the degree of the offeror's interest to contract. C) Such an action implies a rejection of the offer by the offeree. D) It puts the offeree in a dominant position, which is contrary to traditional contract laws.

30) A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n): A) void contract. B) valid contract. C) voidable contract. D) unenforceable contract.

30) Which of the following is true of consideration? A) A promise cannot be deemed a consideration in a bilateral contract. B) The legal value of a consideration must be equal to the actual value in a consideration. C) Gross inadequacy of consideration can give rise to an inference of fraud for setting aside a contract. D) A preexisting moral obligation is deemed a consideration.

31) Which of the following characterizes the Code's standards of definiteness? A) It sees courts as contract enforcers. B) It requires a high degree of definiteness in contracts. C) It can create contractual liabilities. D) It cannot fill in gaps in contracts.

31) Which of the following contracts are agreements that create no legal obligations and for which no remedy is given? A) Valid contracts B) Unenforceable contracts C) Void contracts D) Voidable contracts

32) Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants? A) There is a grumbling acceptance by both parties. B) The contract is regarding the sale of goods. C) The offer expressly limits acceptance to its own terms. D) The additional terms would not materially alter the contract.

33) Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now: A) unilateral, executory, and valid. B) bilateral, executed, and voidable. C) bilateral, executory, and express. D) bilateral, executory, and implied.

33) Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells John the good news. John immediately calls Sue and accepts her offer. Is there a binding contract? A) Yes, because there is valid consideration. B) Yes, because a third party has communicated the terms of Sue's offer to John and John accepted the same. C) No, because the offeror did not communicate the terms of the offer to the offeree. D) No, because the contract is still not signed by both the parties.

34) Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this? A) A unilateral contract B) A quasi-contract C) A bilateral contract D) A promissory estoppel contract

34) Chica, a women's clothing store, held a "prize drawing" for a $500 shopping spree on Saturday that it advertised throughout the week. Participation in the drawing required being at the store by noon and completing an application form that included personal information. The information would then be put into a database for marketing purposes. Fashion consultants offering merchandise for sale greeted customers arriving at the store on Saturday morning. Joy was the winner of the drawing. Has she given consideration for the prize? A) No, she gave no legal value to Chica. B) No, unless she purchased an item from one of the fashion consultants. C) Yes, she came to the store and gave information that was for the store's use. D) Yes, unless the store was conveniently located.

35) Jack went to the ABC Casino to gamble. ABC offers its customers one free spin of the Million Dollar Wheel if they fill out an application form. Jack filled out the form, spun the Million Dollar Wheel, and won. However, now ABC refuses to pay, claiming that because Jack did not purchase his chance at the Million Dollar Wheel, Jack gave no consideration and therefore, no contract was formed. Identify the accurate statement. A) No contract was formed because Jack paid no money for his chance at the Million Dollar Wheel. B) No contract was formed because ABC did not sign any written contract as an obligation to do so. C) A contract was formed because filling out an application can constitute legal consideration. D) A contract was formed because no consideration is needed when a customer takes advantage of a "free" offer.

37) An oral contract that is covered by the statute of frauds is: A) voidable. B) void. C) unenforceable. D) executory.

37) When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as a(n) ________. A) documentation B) authentication C) stipulation D) notification

39) Which of the following characterizes an auction "without reserve"? A) Bidders must be merchants B) Sellers must be merchants C) Goods cannot be withdrawn after a call for bids D) Buyers are treated as having made an offer to sell

40) A void contract is: A) a contract that one or both parties can cancel at their convenience. B) a contract, even though the courts will not enforce it. C) an agreement that creates no legal obligations. D) created by operation of law rather than by the agreement of the parties.

40) Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a(n): A) requirements contract. B) composition agreement. C) output contract. D) nominal consideration.

42) An online agreement that presents contract terms and conditions but does not require readers to click to indicate agreement is called a: A) clickwrap agreement. B) shrinkwrap agreement. C) browsewrap agreement. D) minimum contracts agreement.

43) Which is the only state to have adopted the Uniform Commercial Code (UCC) only partially? A) Arizona B) Connecticut C) Louisiana D) Wisconsin

44) Under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless: A) both the offeror and offeree are merchants. B) the offer proposes a sale of real estate. C) the acceptance is not in the authorized mode of communication. D) the acceptance is lost or never reaches the offeror.

45) Article 2 of the UCC does NOT apply to a sale of: A) baseball bats. B) harvested wheat. C) corporate stock. D) a new car.

46) The general common law rule on contract modifications holds that an agreement to modify an existing contract requires a(n): A) necessary increase in the value of the exchange. B) inclusion of a new party to the contract. C) new and independent consideration. D) economic exchange of substantial value.

47) Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian's car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate? A) After 5 days, as per the "5 day rule." B) After 10 days, as per the "10 day rule." C) After a "reasonable time." D) When either Ian or Raymond terminates it.

47) Under the common law of contracts, what is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror? A) It is valid but unenforceable. B) It is invalid but enforceable. C) It is effective when received. D) It leads to an immediate revocation.

48) Which of the following is true of a revocation? A) The power of revocation of an offer lies with the offeree. B) Death or insanity cannot be reasons for revocation. C) Promissory estoppel is used to prevent revocations. D) Offers that fail to state a specified time period are considered invalid.

50) Able borrowed $10,000 from Baker, promising to return it with $1,000 interest on January 1, 2006. There is no dispute that Able owes Baker $11,000 due on January 1, 2006. On that day, Able gave Baker a valid check in the amount of $10,500 marked "payment in full for loan due January 1, 2006." Baker accepted that check and deposited it into his account. If Baker then sues Able for the unpaid $500, what would the result be? A) Able wins, because Baker accepted the lesser payment. B) Able wins, because Baker made an implied promise to accept $10,500 as full payment, thereby forgiving $500 of the loan. C) Baker wins, because Able gave no consideration in exchange for Baker's promise to forgive $500 of the loan. D) Baker wins, because marking "payment in full" can never relieve a party of its original obligations under a contract.

50) Which of the following is NOT covered by Article 2 of the UCC? A) Vehicles B) Appliances C) Stocks D) Books

51) A firm offer differs from an option in that, a firm offer: A) is a separate contract by itself. B) is irrevocable for a certain period of time. C) does not require consideration in exchange for the offer. D) is not covered under the UCC.

51) How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance? A) By providing additional terms according to the Code's gap-filling provisions B) By holding that the offeree's acceptance curtailed the power of revocation C) By holding that the offeree's performance made it a bilateral contract D) By making material changes in the terms of the original contract

52) Which of the following is true of preexisting contractual duties and their modification under the UCC? A) There is no provision of modifications due to unforeseen circumstances. B) No modifications can be made to an existing contract that is binding. C) Modification requires "mere agreement" on the part of those involved. D) Rules for contractual modifications are different for the UCC and the CISG.

55) Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is this promise legally enforceable? A) Yes, a contract was formed. B) Yes, promissory estoppel requires enforcement of the promise. C) No, legal consideration is absent. D) No, legal capacity is absent.

57) How can an offeree impliedly reject an offer? A) By indicating that he will not accept it B) By asking for more time to consider it C) By making a counteroffer D) By writing his nonacceptance

58) A reaffirmation promise has to be made prior to the date of the discharge and gives the debtor the right to revoke his promise within 30 days after it becomes enforceable. This is the requirement of: A) charitable subscriptions. B) promises to pay debts barred by statutes of limitations. C) promises to pay debts barred by bankruptcy discharge. D) promissory estoppels.

58) Why does a rejection by the offeree terminate his power to accept the offer? A) It indicates his inability to perform the contract. B) It indicates that the offeree is uninterested. C) It allows the offeror to approach a different offeree. D) It indicates a lack of intent making any future contract illegal.

59) Gift promises are not generally enforceable because they lack: A) legality. B) capacity. C) consideration. D) agreement.

59) The shipment of nonconforming goods intended as an accommodation to the buyer is a(n) ________. A) ambiguous offer B) prompt shipment C) counteroffer D) inquiry regarding terms

60) April Roberts ordered one hundred 19-inch color television sets from Carl Soans and requested prompt shipment of the goods. Carl promptly shipped fifty 21-inch color television sets and fifty 19-inch color television sets without informing April that the shipment of nonconforming television sets was an accommodation. Which of the following is true? A) There is no acceptance because Carl's shipment materially differed from the terms of the offer. B) There is an acceptance and April is bound to pay the reasonable value of the fifty 21-inch television sets she did not ask for. C) There is an acceptance but Carl has breached the contract by shipping nonconforming television sets. D) There is a new offer that Carl has made by sending the nonconforming goods which April can accept or reject.

62) Mark, an attorney, accepts an offer for an attorney position at The Firm. Prior to Mark's first day at work, Harold, a managing partner, sends Mark an Employment Policy Manual that contains policies regarding attendance and confidentiality. Harold includes a note advising Mark to carefully review the manual, as he would be expected to adhere to its policies. During his first week at The Firm, Mark is seen leaving the office at noon with copies of files tucked under his arm. He is also observed giving the copied files to a man not associated with The Firm. At the end of the week, Mark is terminated for violating the terms of the Employment Policy Manual. Which of the following is true? A) Mark may recover his moving expenses under the doctrine of promissory estoppel. B) The Firm breached its express contract with Mark by terminating him. C) The Employment Policy Manual is part of the implied contract between Mark and The Firm. D) The Firm may recover Mark's salary under the doctrine of quasi-contract.

64) A computer manufacturer offered to sell sophisticated computer equipment to another country. Two days later, before the offer was accepted, Congress placed an embargo on all sales to this country: and therefore, the offer was terminated by the embargo. This is an example of: A) promissory estoppel. B) destruction of subject matter. C) intervening illegality. D) revocation.

67) In the case in the text, Franchise Holding II, LLC v. Huntington Restaurants Group, Inc., the court held all of the following, except: A) the plaintiff provided adequate consideration. B) the defendant provided adequate consideration. C) the defendant materially breached the Stay Agreement. D) the Stay Agreement was legally enforceable.

67) Which of the following statements about the objective theory of contracts is false? A) The objective standard looks to the offeror's words, acts, and the circumstances signifying about his intent. B) If a reasonable person familiar with the circumstances would be justified in believing that the offeror intended to contract, the intent requirement is satisfied. C) The objective standard is often unpredictable and creates inconsistent results. D) A court could find that intent existed even if the offeror says that he did not intend to contract.

69) ________ is the actual or implied receipt and retention of that which is tendered or offered. A) Consideration B) Capacity C) Acceptance D) Quasi-contract

71) Which of the following describes the effect of the knock-out rule? A) The contract will consist of those terms on which the parties' writings agree plus any different terms that are reasonable under the circumstances. B) The contract will include the different terms and any appropriate gap-filling presumptions in the Code. C) The contract will consist of those terms on which the parties' writings agree plus any appropriate gap-filling presumptions of the Code. D) No contract exists.

73) A newspaper advertisement for Cashmere Closet states "This Saturday 9 a.m., 1 Red Cashmere Scarf, worth $299.95... $10.00 First Come First Served." Which of the following statements is false? A) The ad is clear and specific about what was being offered and asked for in exchange. B) The number of people who have the power of acceptance is limited. C) The ad lacks intent to constitute an offer. D) There are no terms left open for negotiation.

75) Pancake House, a local breakfast diner, issues "frequent buyer" cards to its customers and stamps the card each time a customer buys a stack of pancakes. Pancake House promises to give any customer a free stack of pancakes if the customer buys 10 stacks of pancakes and has his "frequent buyer" card stamped 10 times. This is an example of a(n) ________ contract. A) executed B) illegal C) unilateral D) bilateral

76) Under the UCC, an acceptance sent by unreasonable means: A) would be effective on dispatch as long as it is actually received by the offeror. B) cannot form a contract. C) would be effective on dispatch if it is received within the time that an acceptance by a reasonable means would normally have arrived. D) would be effective on receipt only.

77) Patrick, a farmer, leaves 10 bushels of corn with Jackie, the owner of a grocery store, saying "Look this corn over. If you want it, it's $5 a bushel." Jackie sells the corn. Which of the following statements is true? A) Jackie is liable for conversion. B) Jackie expressly accepted Patrick's offer. C) Jackie impliedly accepted Patrick's offer. D) Jackie does not owe Patrick any money because he abandoned the corn.

78) In Welsh v. Lithia Vaudm, Inc., the case in the text, the court held that: A) written agreements, such as an invoice, are presumed to be supported by consideration. B) there was adequate consideration, making the arbitration clause enforceable. C) no additional consideration existed where Lithia had a preexisting duty under the oral contract. D) Lithia's modification was a pre-performance, bilateral demand.

81) In the case in the text, Doe v. Roman Catholic Archdiocese of Indianapolis, the court held that: A) the Archdiocese was morally responsible to continue to pay for Doe's therapist and counseling fees. B) the Archdiocese owed Doe a legal duty, as evidenced by her husband's August 2000 letter. C) a moral obligation to perform an agreement is not adequate consideration. D) the letters the Archdiocese mailed to Doe constituted an enforceable contract.

82) Yasmin offers to landscape Bert's property for $2,000. Two days after making the offer, Yasmin changes her mind and mails Bert a letter revoking her offer. The next day, Bert, who has not received Yasmin's letter, calls Yasmin and accepts her offer. Does a contract exist? A) No, because Yasmin mailed her revocation before Bert's acceptance. B) No, because Yasmin can revoke her offer at any time. C) Yes, because Bert was not notified of Yasmin's revocation at the time he accepted. D) Yes, because mail is not a proper method of revoking an offer.

83) Home Décor orders 200 red candlesticks from Scent Co. to be shipped immediately. Scent promptly ships Home Décor 200 red candlesticks, in conformity with its order. That same day, Scent receives an order from a different company to pay double the price Home Décor paid for the same candlesticks. However, Scent is now out of stock and attempts to cancel its shipment to Home Décor. Which of the following statements is true? A) Scent can cancel the shipment because it has not yet been delivered to Home Décor. B) Scent can cancel the shipment because it has not accepted Home Décor's offer. C) Scent cannot cancel the shipment because the shipment amounted to acceptance, which cannot be revoked. D) Scent cannot cancel the shipment because Home Décor requested prompt shipment.

28) Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price. Such pens typically sell for $1 each. Carl orally accepts. Immediately thereafter, Abby tries to back out of the deal. At this point in time, which of the following is most likely to be true? A) There is no offer and no contract because the offer is indefinite. B) There is no offer and no contract because the offer must be in writing. C) There is a contract if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. D) There is a contract because the offer contained all material terms.

29) An otherwise valid contract whose enforcement is barred by the applicable statute of limitations is an example of a(n): A) voidable contract. B) quasi-contract. C) bilateral contract. D) unenforceable contract.

30) What does the term "grumbling acceptance" mean? A) Accepting the offer by maintaining one's silence B) Making material changes to a contract when accepting it C) Inquiring about the terms of the offer without rejecting it D) Accepting an offer while complaining about the terms

33) According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of ________ and the appropriate gap-filling presumptions of the Code. A) an inquiry regarding terms B) notifications to prevent breach of conduct C) counteroffers from either party D) terms on which the parties' writings agree

34) Ian Sanders offered to sell his car to Beth Jones for $5,000. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) ________. A) inquiry regarding terms B) rejection of the offer C) conditional acceptance of the offer D) additional term

35) Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse side of each form, there were minor terms that conflicted with each other. What is impact of these minor differences in terms in the forms on the contract? A) There is no contract because there is a discrepancy between the standard forms used by the two companies. B) There is no contract because there is no "meeting of the minds." C) A contract does exist and is favorable to the third party beneficiaries who can take advantage of the situation. D) A contract does exist and it includes the terms agreed upon plus gap-fillers from the UCC.

38) Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter." This detail is an example of a ________. A) contract B) notification C) rejection D) stipulation

41) Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract would be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? A) Austen should not rely on Bronte's offer to do the electrical work. B) Austen accepted Bronte's offer, thereby forming a contract. C) Austen is not bound by Bronte's bid until he informs her of his intent to accept. D) Bronte has accepted Austen's offer by submitting the lowest bid.

46) Which of the following is true regarding the approach taken by the UCC toward the proper means of acceptance and the implications of using it or not using it? A) If the offer authorizes a certain means of acceptance, the offeree must use that means or else there is a void contract. B) If the offer authorizes a certain means of acceptance and the offeree uses another means, a contract is formed, but never before the offeror receives the acceptance. C) Where the offer stipulates a certain means of acceptance, any reasonable means of acceptance will create a contract. D) The UCC does not change the traditional rule that, where the offer stipulates a certain means of acceptance, the offeree must use that means or there is no contract.

52) Which of the following conditions characterizes a firm offer regarding the sale of goods? A) It must be verbally communicated. B) It can be revoked by the offeror prior to acceptance. C) It must be made in the presence of a government official. D) It must be made by an offeror who is a merchant.

53) The CISG: A) provides uniformity for transactions among contracting parties in different states in the United States. B) applies only to consumers, not commercial parties. C) applies only to services, not sales of goods. D) does not have provisions to cover every contract problem that might occur.

54) How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace? A) By applying stringent technicalities to contracts. B) By recognizing void contracts. C) By discriminating between merchants and nonmerchants. D) By imposing the doctrine of good faith.

55) Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation? A) Yes, because Sara is the master of the offer here. B) Yes, because Sara can revoke the offer any time she feels like. C) No, because this is a valid contract that cannot be revoked. D) No, because this is now a bilateral contract.

57) Which of the following is an element of promissory estoppel? A) The promisee should reasonably expect to induce reliance B) Reliance on the promise by the promisor C) A promise to pay liquidated debts D) Injustice to the promisee as a result of reliance

58) An ambiguous offer may be accepted in any manner that is ________ in light of the circumstances. A) stipulated B) authorized C) recognizable D) reasonable

58) What bodies of law govern contracts in the United State? A) Article 2 of the UCC B) Common law related to contracts C) The United Nations Declaration on Human Rights D) Both A & B

60) Amy bought Mississippi State Lottery tickets. Several days later, she learned that someone won the lottery but that the winner had not yet come forward. She searched for her ticket to see if she had selected the winning numbers, but was unable to find it. Although the lottery ticket was gone, Amy still possessed the play slip she had used when she purchased the ticket. She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery. Reasoning that the play slip would satisfy the Lottery Office, Amy presented her claim. The Lottery Office took the position that Amy needed to produce the actual winning ticket as per the rules, and hence denied her claim. Amy sued the Lottery Office for breach of contract and unjust enrichment. Will she succeed? A) Yes, because the play slip should be enough proof to substantiate her claim on the prize money. B) Yes, because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. C) No, because the court will find that Amy was not in good faith when she lost the original ticket. D) No, because the rules of the contract prescribed that the ticket must be shown to claim the money. Amy accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

61) Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she resold some products that she received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of fraud. What is the remedy available to her? A) Promissory estoppel B) Duty of good faith C) Executory contract D) Quasi-contract

64) To reduce creditor attempts to pressure debtors to reaffirm, which of the following acts requires that a reaffirmation promise be made prior to the date of the discharge and gives the debtor the right to revoke his promise within 30 days after it becomes enforceable? A) The National Labor Relations Act B) The Bankruptcy Abuse Prevention and Consumer Protection Act C) The Uniform Debt-Management Services Act D) The Bankruptcy Reform Act

66) ________ is the idea that contracts should be enforced because they are the products of the free wills of their creators, who should, within broad limits, be free to determine the extent of their obligations. A) Quasi-contract B) Promissory estoppel C) Capacity D) Freedom of contract

67) Which of the following statements about the UCC's Battle of the Forms is false? A) The Battle of the Forms allows the formation of a contract when there is some variance between the terms of the offer and the terms of its acceptance. B) The Battle of the Forms makes it possible, in some circumstances, for a term contained in the acceptance form to become part of the contract. C) The Battle of the Forms provides that a definite and timely expression of acceptance creates a contract, even if it includes terms that are different from those stated in the offer or even if it states additional terms that the offer did not address. D) The Battle of the Forms provides that an acceptance that was expressly conditioned on the offeror's agreement to the offeree's terms would be a valid acceptance.

69) When a promise does not bind the promisee to do or refrain from doing anything, the promise is: A) enforceable. B) voidable. C) terminated. D) illusory.

70) In J.D. Fields & Company, Inc. v. United States Steel International, Inc., the case in the text, the court stated that: A) a price quotation can only ever be an invitation to offer. B) a price quotation on a flyer is always considered to be an offer. C) a price quotation ripens the offer into a contract, regardless of whether it is detailed. D) a detailed price quotation can constitute an offer capable of acceptance.

70) Which of the following is used by the majority of courts when there is an acceptance that contains terms that are different from (not merely additional to) the terms of the offer? A) Battle of the Forms B) Mailbox Rule C) Last Shot Rule D) Knock-Out Rule

71) ________ is the ability to incur legal obligations and acquire legal rights. A) Legality B) Consideration C) Freedom of contract D) Capacity

72) In Day v. Fortune Hi-Tech Marketing, Inc., the case in the text, the court held that: A) the agreement had adequate consideration because there was no modification of the arbitration clause at any point during the relevant time period. B) the agreement had adequate consideration because both parties were bound by the agreement. C) the promise was illusory because it did not have legal value. D) the promise was illusory because the defendant had the option to modify the contract at its discretion.

73) Which of the following stands for the notion that a properly addressed and dispatched acceptance can become effective when it is dispatched, even if it is lost and never received by the offeror? A) Battle of the Forms B) Knock-Out Rule C) Last Shot Rule D) Mailbox Rule

76) A promise to perform a preexisting duty is not consideration because the promise is essentially: A) void. B) voidable. C) implied. D) gratuitous.

79) In Audio Visual Artistry v. Tanzer, the case in the text, the court looked to the factors discussed in the Pass case when it applied the predominant purpose test. Which of the following was not one of those factors? A) The language of the contract B) The nature of the business of the supplier of goods and services C) The reason the parties entered into the contract D) The intention of the parties

16) When an offer is unclear about the form of acceptance it requires, there cannot be a valid acceptance.

FALSE

17) Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite.

FALSE

17) Pratt, an owner of an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor, Stacey. Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

FALSE

17) The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.

FALSE

3) Courts look at the parties' outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

FALSE

5) Gross inadequacy of consideration is, by itself, a sufficient reason to set aside a contract.

FALSE

5) When contracting, one party is entering into an agreement with the federal government to enforce behavior on another party.

FALSE

8) A contract in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a requirements contract.

FALSE

1) The three requirements for a valid offer are: present intent to contract, definiteness, and communication to the offeree.

TRUE

11) If no Code rule applies to an issue regarding a sale of goods contract, the common law rules apply.

TRUE

11) Mr. Green agrees to an offer to drive Ms. White to the airport for $20, but "only if I feel like it". Mr. Green has failed to give sufficient consideration to create a contract with Ms. White.

TRUE

12) An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract.

TRUE

12) Michael and William contracted for Michael to mow William's lawn once a week for 20 weeks, at a price of $20 per week. Later, without terminating the first contract, the parties modify the contract as follows: Michael will mow William's lawn in exactly the same way for exactly the same time period, in exchange for William's promise to pay Michael $22 per week. There is no consideration for William's promise.

TRUE

14) The UCC imposes a duty of good faith in the performance and enforcement of every contract it covers.

TRUE

15) David, a debtor, owes debts to creditors Paul, Mark, and Gary. Paul, Mark, and Gary agree with each other and with David to release him from his debts, in exchange for his promise to pay Paul, Mark, and Gary 75 percent of the amount he owes each of them. This is called a composition agreement, and such agreements generally are binding contracts.

TRUE

15) The CISG applies only to sales of goods and commercial parties.

TRUE

15) The offeror is said to be "the master of the offer." This means that offerors have the power to determine the terms and conditions under which they are bound to a contract.

TRUE

16) An accord and satisfaction prevents a creditor from maintaining an action to recover the remainder of the debt that he alleges is due.

TRUE

16) Bob offers to sell his bike to Sue for $100 and promises to keep his offer open for five days. Sue thanks him and leaves. At this point, Bob still has the power to revoke his offer.

TRUE

16) Sometimes, Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

TRUE

17) In return for services Charles performed for Richard in the past, Richard promises to pay Charles $1,000. There is no consideration for Richard's promise.

TRUE

18) The only person with the legal power to accept an offer and create a contract is the original offeree.

TRUE

18) The rules promulgated by the Restatement (Second) of Contracts often resemble the rules created by Article 2 of the UCC.

TRUE

19) Mr. Blue enters into negotiation with Mr. Green to build a house. Both parties expected a written and signed purchase agreement. After agreeing on the terms, Mr. Green is told by his subcontractors that some of their prices have gone up. Mr. Blue objects and indicates that there was a contract when the parties agreed to the original terms orally. A court will find that no contract existed since the parties expected acceptance to be in written form.

TRUE

2) A promise to refrain from smoking can be legal consideration because refraining from a legal right, the right to smoke, can be consideration.

TRUE

2) Strictly speaking, a contract has nothing to do with the subjective intent of the parties.

TRUE

20) Promissory estoppel protects reliance on a promise from one party to another.

TRUE

3) In determining whether consideration exists, the law is not concerned with any disproportion in value between the things exchanged in a contract.

TRUE

3) In recent times, the mirror image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

TRUE

4) Not every promise is legally enforceable.

TRUE

4) The rule on adequacy of consideration reflects the laissez-faire assumption of freedom of contract.

TRUE

5) Generally speaking, the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

TRUE

5) UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.

TRUE

6) An acceptance is assent to a proposal by the offeree to the offeror.

TRUE

6) If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

TRUE

6) Mr. Green agrees to purchase a lawn mower from Ms. White for $300. The act of payment of $300 by Mr. Green is consideration for the act of passing ownership of the lawn mower from Ms. White to Mr. Green.

TRUE

6) Ms. White hired Mr. Blue to steal from Ms. Yellow. Ms. White is upset with how everything turned out and wants to sue Mr. Blue for breach of contract. But the court will refuse to recognize the contract and subsequently a breach of it because the contract is void.

TRUE

7) Abby promises to pay Brian $50 if he mows her lawn. Brian does not promise to mow Abby's lawn: however, later that day, Brian completely and satisfactorily mowed Abby's lawn. This is an example of a unilateral contract.

TRUE

7) Consideration can be a promise for another promise.

TRUE

7) The UCC often creates contractual liability in situations where no contract would have resulted at common law.

TRUE

7) The intention to accept an offer must be a present intent to contract on the part of the offeree.

TRUE

9) Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

TRUE

9) Alan and Ben have a contract. Alan has performed 100 percent and Ben has performed 50 percent of it. This contract is now executory.

TRUE

9) John promises to pay Robert $100 per week, in exchange for Robert's promise not to beat John up. There is no consideration for John's promise.

TRUE

9) Mr. Blue and Mr. Green are in negotiations for a regular delivery of newspapers to Mr. Blue's business. Mr. Blue did not formally announce his acceptance to the offer. But when Mr. Green sent a shipment of newspapers as they agreed, Mr. Blue accepted the shipment and paid for them. According to the UCC, Mr. Blue and Mr. Green have an enforceable contract.

TRUE

Ver todos los conjuntos de estudio

Conjuntos de estudio relacionados

ch 10 hmwrk

304 proctored exam

Chapter 28: Nervous Systems

Exam 3 Questions

Ultrasound-BLUE

Nutrition During Pregnancy and Breastfeeding Ch.14, HN CH 14 Pregnancy and Breastfeeding Connect, nutrition ch 18, Nutri Sci: Nutrition During Pregnancy and Breastfeeding

L201 Exam 2

Conjuntos de estudio relacionados

ch 10 hmwrk

304 proctored exam

Chapter 28: Nervous Systems

Exam 3 Questions

Ultrasound-BLUE

Nutrition During Pregnancy and Breastfeeding Ch.14, HN CH 14 Pregnancy and Breastfeeding Connect, nutrition ch 18, Nutri Sci: Nutrition During Pregnancy and Breastfeeding

Language Arts - Reading & Writing Persuasive Texts

S63 - Chapter 1

Ch 14

Ch 7 Study Area

Nursing Application: Antitubercular Drugs

Oceanography: Dead Zones

GEL2 Final (part 1)

Mobility/Immobility

Difference Idendities

Research Methods

Econ exam 2

Buis

Accounting Chapter 10

N10-005 Topic 1, Networking Concepts