BUS ch. 13
Consideration has two parts, one of which is something of legal value. What is the second part? a. A bargained-for exchange b. Forbearance from legal activity c. A type of coercive behavior d. Something worth at least a minimum amount
a
Liz agrees to cook 20 dinners for Brain, and in exchange, Brian will repair all of the plumbing in Liz's house. Liz has offered legally: a. Sufficient consideration, because Liz has promised something of value b. Insufficient consideration, because there is a clear lack of any bargain c. Insufficient consideration, because this kind of bargain is against public policy d. Insufficient consideration, because cooking 20 dinners is not worth as much as repairing all of the plumbing in Liz's house
a
Rescission can be defined as the: a. Dissolution of a contract that returns the parties to their original positions b. Full performance of a contract c. Revision of a contract's terms to reflect normal terms in trade usage d. Substitution of one contract party for another party, who assumes responsibility
a
For consideration to be present in a contract, the two parties must pay the market value of the goods. For example, if one party is selling a car to another party, the car must be priced as it would at a dealership. True False
False
Consideration can be defined as: a. Away to promote international trade b. An arrangement for transferring and allocating risk c. Something of value given in exchange for a promise d. A legally defined way to make ethical business deals
c
Consideration can be: a. Past or future but not present b. Past, present or future c. Present or future but not past d. Present or past but not future
c
Frankie agrees to sell Louis a computer that she stole from a student in the library for $200. Louis knows that the computer is stolen but accepts the computer because he needs a new one for his Business Law class but does not pay Frankie the $200. In a lawsuit by Frankie against Louis for failure to pay the $200 a court would likely rule that the computer is. b. Not legal consideration c. The promise to pay and was illusory d. Past consideration
d
Which is not a requirement for valid consideration b. Something of value must be involved c. Equal value must be exchanged d. The benefits and detriments promised must be legal
d