ACCT 324 Connect Quizzes

Which of the following consists of an offer by one party and an acceptance of the terms by another party? Legal object Agreement Coherence Alliance Concurrence

Agreement

Which of the following was involved when the government, in attempting to help AIG, agreed with AIG to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock? An accord and satisfaction An accord but not a satisfaction A unilateral contract A bilateral contract An unliquidated contract

A bilateral contract

A[n] ______ contract is a contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Substantively unconscionable Adhesion Outrageous Procedurally unreasonable Unreasonable

Adhesion

Sam offers Betty his bicycle for $75. Which of the following is an example of an illusory promise on the part of Betty? "I'll take it." "I'll take it if I decide to do so." "I won't pay $75, but I will pay $50." "I'll take it if you will let me try it out first and the brakes work well." "I'll take it if you will buy new tires."

"I'll take it if I decide to do so."

Which of the following is true regarding the effect of a debtor offering to pay a different type of payment, for example, goods instead of money, on a debt for which there is not a dispute over the amount or existence of the debt, and the creditor agrees? A liquidated debt is involved, and there is an accord and satisfaction. A liquidated debt is involved, and there is an accord but no satisfaction. A liquidated debt is involved, and there is not a satisfaction or an accord. An unliquidated debt is involved, and there is an accord and satisfaction. An unliquidated debt is involved, and there is an accord but not satisfaction.

A liquidated debt is involved, and there is an accord and satisfaction.

Assuming no exception applies, which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt, and the creditor agrees? A liquidated debt is involved, and there is an accord and satisfaction. A liquidated debt is involved, and there is an accord but no satisfaction. A liquidated debt is involved, and there is neither a satisfaction nor an accord. An unliquidated debt is involved, and there is an accord and satisfaction. An unliquidated debt is involved, and there is an accord but not satisfaction.

A liquidated debt is involved, and there is neither a satisfaction nor an accord.

Which of the following is in effect not a contract at all? A voidable contract An executory contract An implied contract An executed contract A void contract

A void contract

Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods? Article 2 Article 3 Article 4 Article 5 Article 7

Article 2

When must a disaffirmance of a contract based on minority occur? Before or within a reasonable time of the minor's reaching the age of majority. Within 30 days of the minor's reaching the age of majority. Within 60 days of the minor's reaching the age of majority. Within 90 days of the minor's reaching the age of majority. Within one year of the minor's reaching the age of majority.

Before or within a reasonable time of the minor's reaching the age of majority.

Which of the following is an element of a legally binding contract? Inquiry Acknowledgement Capacity Knowledge Affirmance

Capacity

Sam promises his uncle, Bob, that he will lose 10 pounds and exercise every day during the spring semester in exchange for having his tuition paid for the fall semester. The uncle agrees; but after Sam has lost 10 pounds and exercised all semester, Bob refuses to pay saying that no contract existed. Which of the following is true? Consideration was present, there was an enforceable contract, and Bob has wrongfully refused to pay. There was no consideration present, and Bob has no obligation to pay. There was no consideration present, but Bob must pay under principles of promissory estoppels. There was consideration present, but Bob is not required to pay because the contract was illusory. There was consideration present, but Bob is not required to pay because Bob did not receive a benefit personally.

Consideration was present, there was an enforceable contract, and Bob has wrongfully refused to pay.

Which of the following contracts are usually voidable? Contracts entered into as a result of fraud, but not duress or undue influence. Contracts entered into as a result of duress or undue influence, but not fraud. Contracts entered into as a result of undue influence or fraud, but not duress. Contracts entered into as a result of fraud or duress, but not undue influence. Contracts entered into as a result of fraud, duress, or undue influence.

Contracts entered into as a result of fraud, duress, or undue influence.

The reference to __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made. Implied-in-fact contracts Implied-in-law contracts Contracts under wax Contracts under seal Contracts under pressure

Contracts under seal

Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within 25 miles for a period of two years. That type of agreement is called a[n] ______. Covenant not to compete Employment covenant Working covenant Termination agreement Public policy agreement

Covenant not to compete

For a court to enforce a promise, ______ must offer consideration. The offeror but not the offeree The offeree but not the offeror The acceptee but not the acceptor The acceptor but not the acceptee Each side to the contract

Each side to the contract

Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contract entered in to as a minor? Implied ratification Express ratification Express novation Implied novation Express ratification if the statement is in writing but nothing if the statement is only oral

Express ratification

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement? Gretchen is incorrect because there is a binding bilateral contract. Gretchen is incorrect because there is a binding unilateral contract which Haley accepted by performing. Gretchen is correct because there is no binding bilateral contract. Gretchen is correct because there is no binding unilateral contract. Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.

Gretchen is incorrect because there is a binding unilateral contract which Haley accepted by performing.

Which of the following is true regarding acceptable means of acceptance if no means of communicating an acceptance is specified in an offer? If no means of communicating an acceptance is specified in an offer, acceptance must be done through the U.S. mail system. If no means of communicating an acceptance is specified in an offer, acceptance must be done either in person or through telephone communication. If no means of communicating an acceptance is specified in an offer, acceptance must be done either through the U.S. mail or through fax transmittal. If no means of communicating an acceptance is specified in an offer, acceptance must be done either through U.S. mail or through e-mail. If no means of communicating the acceptance is specified, any reasonable means is generally acceptable.

If no means of communicating the acceptance is specified, any reasonable means is generally acceptable.

Which of the following is true regarding illusory promises? Illusory promises are not consideration. Illusory promises are consideration. Illusory promises qualify as consideration only when past consideration is at issue. Illusory promises qualify as consideration only when promissory estoppel is at issue. Illusory promises are consideration only when a sale of goods is involved.

Illusory promises are not consideration.

In the law, when both parties are equally responsible for an illegal agreement, it is known as ____. In pari delicto Procedurally unconscionable An adhesion contract A res ipsa contract A stare decisis contract

In pari delicto

A ________________ is an agreement by the person who issues a letter to pay a sum of money on receipt of an invoice and other documents. Letter of agreement Letter of credit Letter of acknowledgement Negotiated credit instrument letter Letter of simple contract

Letter of credit

The person who agrees to the terms of an offer made by the other party is called the _________. Offeree Offeror Agreeor Agree Inquirer

Offeree

Which doctrine may courts use to estop, or prevent, an offeror from revoking an offer based on a party's taking steps in reasonable reliance on an offer? Promissory estoppel Consideration reliance Contract enforcement Ethical reasoning True to form

Promissory estoppel

Which of the following is an exception to the rule requiring consideration? Promissory agreement Promissory estoppel Quasi estoppel Quasi agreement Promissory performance

Promissory estoppel

Which of the following provides that a revocation is effective only when received by the offeree? The Acceptance Rule The Contract Rule The Reasonable Rule The Mailbox Rule The Contract Legality Rule

The Mailbox Rule

Which of the following provides that an acceptance is valid when it is placed in the mailbox? The Acceptance Rule The Contract Rule The Reasonable Rule The Mailbox Rule The Contract Legality Rule

The Mailbox Rule

Which of the following states that if a writing, or term in question, appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to outside evidence, with the words being given their ordinary meaning? The Interpretation Rule The Simple Rule The Understandable Rule The Plain Meaning Rule The Comprehensive Rule

The Plain Meaning Rule

Sue is three months behind on her mortgage, and her lender filed negative information affecting her credit rating. Sue mailed one monthly payment to the lender along with a letter providing that she was making the payment on condition that the lender removes negative material sent to credit reporting agencies affecting her credit rating. The lender cashed the check but did not remove the negative information. Sue sues the bank for breach of contract. Which of the following is the most likely result? The bank will win because under the preexisting duty rule, Sue was already legally obligated to make the payment, and there was no consideration to support the contract. The bank will win because under federal law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful. The bank will win because under state law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful. Sue will win because the bank's cashing the check constituted acceptance of her offer, and a valid contract existed. Sue will win because the bank had an obligation to notify her that it was not accepting her offer before cashing the check.

The bank will win because under the preexisting duty rule, Sue was already legally obligated to make the payment, and there was no consideration to support the contract.

When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare with those for a valid offer? The basic requirements for a valid acceptance are materially different from those for a valid offer. The basic requirements for a valid acceptance parallel those for a valid offer. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be in writing. The basic requirements for a valid acceptance are different from those for a valid offer only because an acceptance must be in writing. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be revoked immediately but acceptance can be withheld for a reasonable period of time.

The basic requirements for a valid acceptance parallel those for a valid offer.

Which of the following is true regarding the obligation of a minor on disaffirmance? In all states, a minor must return any consideration in his control but is entitled to a full refund of any purchase price regardless of the condition of the consideration when returned. In all states, a minor is entitled to a full refund without returning consideration. In all states, a minor must return any consideration in his control, must make restitution, and must pay for any loss in value of the collateral. In all states, a minor only receives a return of half the minor's investment. The obligations of a minor upon disaffirmance vary from state to state.

The obligations of a minor upon disaffirmance vary from state to state.

Which of the following refers to the right of an offeror to revoke an offer? The offeror is the "controller of his offer." The offeror is the "master of his offer." The offeror is the "proponent of his offer." The offeror is the "adjudicator of his offer." The offeror is the "arbiter of his offer."

The offeror is the "master of his offer."

Sally goes to have her hair trimmed and agrees to pay $40 to the stylist. While there, Sally decides that she would also like highlights. The stylist informs her that highlights will cost an additional $30. Sally agrees to the price, gets the highlights, but refuses to pay the extra amount. What is the likely result in a dispute between Sally and the stylist and why? The stylist will win because she did additional work in exchange for the extra payment; and, therefore, Sally's promise was supported by valid consideration. The stylist will win because she did additional work in exchange for the extra payment; and, therefore, a valid unilateral contract existed. The stylist will win unless Sally can show that she had previously received both a trim and highlights for $40. If she can prove that she previously received both for $40, then the past expectations rule applies. Sally will win because the stylist had a preexisting duty to have Sally's hair look as good as possible. Sally will win because there was no valid consideration in exchange for the highlighting.

The stylist will win because she did additional work in exchange for the extra payment; and, therefore, Sally's promise was supported by valid consideration.

A valid contract may be valid but _____________ when there is some law that prohibits the courts from enforcing it. Executed Executory Unenforceable Novated Condoned

Unenforceable

Which of the following occurs when a party gives a loan at an interest rate exceeding the legal maximum? No enforceable legal violation Interest prohibition Principle reduction Usury Plenary

Usury

Because their contracts are ____, minors have the right, until a reasonable time after reaching the age of majority, to _____ or void their contracts. Void; disaffirm Void; affirm Void; resist Voidable; disaffirm Voidable; affirm

Voidable; disaffirm

In an auction _________, the seller is treated as making an offer to accept the highest bid. Without controls With controls Without reserve With reserve Without qualifications

Without reserve