BA 325 Practice Questions (Midterm 1-2)

The U.S. Constitution contains ______ amendments. 37 31 21 27

27

A federal system consists of which of the following? (Check all that apply.) a. A central government b. Multiple regional governments c. United Nations membership d. Tribal councils

A central government Multiple regional governments

______ of the Constitution vests general executive power in the president. Article III The Supremacy Clause Article I Article II

Article II

Which article of the U.S. Constitution establishes the relationship between the states and the federal government and describes the power of Congress over territories and the admission of new states into the Union? Article VI Article VII Article V Article IV

Article IV

Which article of the U.S. Constitution describes the process for amending the Constitution in the future? Article VI Article VII Article V Article IV

Article V

The Code of Hammurabi is a Blank______ legal code that dates back to 1754 BC; interestingly, nearly half of that ancient legal code deals with Blank______ law. Mongolian; tort Muslim; tort Babylonian; contract Roman; contract

Babylonian; contract

The ______ is designed to impose firm limits on the powers of the federal government by enumerating in writing ahead of time a specific set of guarantees and individual rights. Declaration of Independence Commerce Clause Ex Post Facto clause Bill of Rights

Bill of Rights

______ is defined as the mutual exchange of benefits and detriments. An offer An acceptance Consideration Mutuality

Consideration

The Negative Commerce Clause is also known as the ______ Commerce Clause. Dormant Foreign Interstate Intrastate

Dormant

______ and ______ are the most basic rights established in our Constitution. Privileges and immunities; health care Health care; Social Security Due process; equal protection Privacy; Social Security

Due process; equal protection

True or false: Contract categories are exclusive and may not overlap.

False

Both the ______ and the ______ Amendments to the U.S. Constitution declare that no person shall be deprived of life, liberty, or property, without due process of law. Fifth; Fourteenth Ninth; Tenth First; Fifth Fifth; Eleventh

Fifth; Fourteenth

Originally, the Bill of Rights applied only to the federal government, but the door for their application upon the states was opened following ratification of the ______ Amendment in 1868. Fifth Fourteenth Tenth Ninth

Fourteenth

The ______ Amendment to the U.S. Constitution prohibits state governments from denying their citizens equal protection of the laws. Seventh Fifth Fourteenth Eleventh

Fourteenth

The Blank______ Amendment prohibits unreasonable searches and seizures. Seventh Fifth Fourth Eighth

Fourth

A valid contract has all but which of the following basic required elements? Invitation to negotiate Legality of purpose Mutual assent Capacity

Invitation to negotiate

Which parties may lack the capacity to enter into contracts, which may result in a voidable contract? (Check all that apply.) Mentally incapacitated Minors Intoxicated Emancipated Individuals over the age of 65

Mentally incapacitated Minors Intoxicated

The ______ Amendment states a fundamental rule of constitutional construction: The federal government may not infringe or take away any rights belonging to the people, regardless of whether those rights are specifically listed or enumerated in the Constitution. Tenth Fifth First Ninth

Ninth

______ attorneys have the skills and qualifications to work with managers to generate opportunities and value. Relational Licensed Transactional Strategically qualified

Strategically qualified

The ______ Clause of the Fifth Amendment limits the power of eminent domain by requiring that "just compensation" be paid when private property is taken for public use. Due Process Takings Necessary and Proper Double Jeopardy

Takings

Which of the following is not a right expressly set forth in the first 10 amendments to the U.S. Constitution (The Bill of Rights)? The right to privacy Freedom of speech The privilege against compulsory self-incrimination The right to bear arms (start of ch 3)

The right to privacy

True or false: Because almost every activity potentially affects commerce in some way or another, the U.S. Congress can use its economic power strategically to regulate almost any aspect of business.

True

True or false: In a bilateral contract, legal detriment is incurred through the mutual promises the parties make to each other.

True

True or false: In a unilateral contract, one party's legal detriment arises from its action or inaction rather than a promise.

True

True or false: Originally, the just compensation provision of the Fifth Amendment did not apply directly to the states, but federal courts have later held that the Takings Clause applies to the states.

True

True or false: Traditionally, advertising has received little or no First Amendment protection, but the Supreme Court has gradually increased the constitutional protections for advertising.

True

______, although rare, may occur in a case where the subject contract is so burdensome to one party that there can be a legal defense to enforcement. Unconscionability Mutuality of promises Past consideration Consideration

Unconscionability

Under Article ______ of the Constitution, a constitutional amendment requires two separate steps, proposal and ratification, along with the approval of ______ at each step. VII; simple majorities VII; supermajorities V; supermajorities V: simple majorities

V; supermajorities

Courts have developed guidelines for determining what constitutes a search or seizure in all but which of the following areas? a. Assumption of the risk by persons b. Physical seizures of persons c. Physical searches d. Physical seizures of property

a. Assumption of the risk by persons

Multiple Select Question Select all that apply A valid contract has which of the following basic elements? (Check all that apply.) a. Capacity b. Legality of purpose c. Illusory promises d. Consideration e. Mutual assent

a. Capacity b. Legality of purpose d. Consideration e. Mutual assent

Which of the following are national powers (i.e., exclusive powers of the federal government)? (Check all that apply.) a. Coin money b. Regulate interstate and foreign trade c. Borrow money d. Declare war e. Levy and collect taxes

a. Coin money b. Regulate interstate and foreign trade d. Declare war

Which of the following is not a happening or an event that will terminate an offer by operation of law? a. Destruction of the contract's subject matter after the contract has been performed b. Lapse of time c. Death or incapacity of the offeror or offeree d. Supervening illegality

a. Destruction of the contract's subject matter after the contract has been performed

The Fifth Amendment to the U.S. Constitution does which of the following? (Check all that apply.) a. It prohibits double jeopardy b. It protects individuals from being compelled to be witnesses against themselves in criminal cases c. It prohibits "cruel and unusual" punishment d. It requires that felonies be tried only upon indictment by a grand jury e. It provides the right to a jury trial in civil cases

a. It prohibits double jeopardy b. It protects individuals from being compelled to be witnesses against themselves in criminal cases d. It requires that felonies be tried only upon indictment by a grand jury

According to the courts, the First Amendment applies to which of the following? (Check all that apply.) a. Pornography b. Campaign financing c. The act of bearing arms d. Anonymous speech

a. Pornography c. The act of bearing arms d. Anonymous speech

An offer may be terminated by action of the parties in which of the following ways? (Check all that apply.) a. Rejection by the offeree b. Expiration of the statute of limitations period c. Revocation by the offeror d. Counteroffer by the offeree

a. Rejection by the offeree c. Revocation by the offeror d. Counteroffer by the offeree

How are offers terminated? (Check all that apply.) a. Through the actions of the parties b. Through invitations to negotiate c. Through automatic application of standards of equity d. Through operation of law

a. Through the actions of the parties d. Through operation of law

Generally, as long as the agreement is voluntary, courts will not inquire as to which of the following? (Check all that apply.) a. Whether there was an offer and an acceptance b. Whether illusory promises were made by the parties c. The relative bargaining power of the parties d. The type of consideration exchanged

a. Whether there was an offer and an acceptance d. The type of consideration exchanged

As the chief executive of the United States, the president has the power to ______ (Check all that apply.) a. appoint federal judges b. divest the federal court system of its judicial authority c. conduct foreign affairs d. divest the Congress of its legislative authority e. enforce the laws made by Congress

a. appoint federal judges c. conduct foreign affairs e. enforce the laws made by Congress

The text of the Constitution gives Congress the enumerated power to regulate commerce, and the U.S. Supreme Court has interpreted this power ______. a. very broadly b. implicitly c. as a component of Congress's inherent executive and judicial powers d. very narrowly

a. very broadly

Which of the following are state powers (i.e., exclusive powers of state governments)? (Check all that apply.) a. Establish courts b. Enact license requirements for professionals c. Regulate alcoholic beverages d. Regulate trade and business within the state e. Raise and maintain armed forces

b. Enact license requirements for professionals c. Regulate alcoholic beverages d. Regulate trade and business within the state

Suppose that on September 11, Tom sends an email to Joe revoking Tom's offer. Joe is away from the office, but Joe's administrative assistant receives the email. Joe never actually sees the email. The next day, from his hotel room in Tokyo, Joe calls Tom to accept Tom's offer made on September 11. Does a contract exist? a. Yes, because Joe was traveling b. No, because Joe's agent received the email c. Yes, because Joe made a counteroffer d. No, because Joe did not make a counteroffer

b. No, because Joe's agent received the email

Contracts can be categorized in which of the following ways? (Check all that apply.) a. Source of equity b. Source of law c. Nature of the business relationship d. Contractual commitment e. Level of explicitness

b. Source of law c. Nature of the business relationship d. Contractual commitment e. Level of explicitness

Among the enumerated powers delegated to the U.S. Congress are the power to ______. (Check all that apply.) a. appoint federal judges b. enact bankruptcy laws c. coin money d. regulate commerce

b. enact bankruptcy laws c. coin money d. regulate commerce

The ______ rule provides that the acceptance of an offer is generally effective upon ______ of the acceptance when sent in a commercially reasonable manner. a. mailbox; the offeror's receipt b. mailbox; dispatch c. common carrier; the offeror's receipt d. common carrier; dispatch

b. mailbox; dispatch

Once a valid offer has been terminated, the offeree ______. a. may still accept the offer, but only if the offer was originally made exclusively to the offeree b. may no longer accept the offer c. must pay for the reasonable value (instead of the contract price) of the goods and/or services offered d. may bind the offeror on a contract, with or without the offeror's consent, by proposing a reasonable counteroffer

b. may no longer accept the offer

As long as the offer has ______, the offeree may accept the terms of the offer, thereby forming an agreement. a. been reduced to writing b. not been terminated c. been ratified by the offeror d. included within its terms an invitation to negotiate

b. not been terminated

If one party justifiably relies on the promise of another to their detriment, under certain circumstances the relying party may recover costs of the reliance from the promisor based on the ______, even though the original promise agreement lacked consideration. a. substantial performance doctrine b. promissory estoppel theory c. frustration of purpose doctrine d. preexisting duty rule

b. promissory estoppel theory

Frequently, mass advertisements do not constitute an offer because they do not contain a(n) ______, a. seller's right of revocation of a buyer's right of rescission b. specific commitment to sell c. invitation to negotiate d. express or implied warranty

b. specific commitment to sell

Consideration requires both sides to obtain something of value (legal Blank______) and to give up something of value (legal Blank______). value, benefit benefit, detriment detriment, benefit purpose, detriment

benefit, detriment

Which of the following are concurrent powers (i.e., powers shared by the federal and state governments)? (Check all that apply.) a. Establish public schools b. Govern U.S. territories and admit new states c. Establish courts d. Claim private property for public use e. Levy and collect taxes

c. Establish courts d. Claim private property for public use e. Levy and collect taxes

Willem and Tobias are heavily intoxicated and after his ninth beer, Willem says to Tobias, "I'll sell you my hunting truck for a six-pack of beer," and they shake hands on it. The next day Tobias comes with a six-pack and asks for the keys. Willem doesn't remember a thing and refuses to turn over the keys. The issue is whether ______. a. Willem accepted Tobias's offer b. Tobias had subjective intent c. Willem had objective intent d. Tobias accepted the offer as an option contract

c. Willem had objective intent

Revocation is consummated through ______ of the offer or by some act ______ with acceptance that would give reasonable notice from the offeror to the offeree that the offer no longer exists. a. implied negotiation; consistent b. constructive negotiation; concordant c. express repudiation; inconsistent d. constructive repudiation; consistent

c. express repudiation; inconsistent

The right to due process is designed to protect one's ______, while the right to equal protection guarantees ______. a. privileges and immunities; life, liberty, and property b. equality before the law; life, liberty, and property c. life, liberty, and property; equality before the law d. privileges and immunities; equality before the law

c. life, liberty, and property; equality before the law

An offer is the expression of a willingness to enter into a contract by the ______ promise to the ______ that they will perform certain obligations in exchange for the Blank______ to perform. a. assignee's; assignor; assignor's counteroffer b. offeree's; offeror; offeror's counteroffer c. offeror's; offeree; offeree's counterpromise d. assignor's; assignee; assignee's counterpromise

c. offeror's; offeree; offeree's counterpromise

The ______ applies in circumstances where one party wishes to ______ an existing contract because of unforeseen difficulties in performing their obligations. a. substantial performance doctrine; enforce b. parol evidence rule; nullify c. preexisting duty rule; modify d. promissory estoppel doctrine; void

c. preexisting duty rule; modify

Regarding the U.S. constitutional system, the complex structure of overlapping powers creates a strategic system of ______. checks and balances efficiency and effectiveness intransigence productivity

checks and balances

Commitment in a contract relates to the required element of ______. assent legality of purpose capacity consideration

consideration

The Blank______ element of contract formation requires both sides to obtain something of value (legal benefit) and to give up something of value (legal detriment). mutual assent capacity consideration correct bilateral

consideration

Proper Blank______ requires that the parties suffer some type of Blank______ that the law recognizes as adequate. promissory estoppel; detriment promissory estoppel; injury consideration; injury consideration; detriment

consideration; detriment

A(n) Blank______ occurs when the offeree rejects the original offer and proposes a new offer with different terms. counteroffer option contract rejection revocation

counteroffer

Which of the following is false regarding mutual assent? a. It is the very foundation of any enforceable agreement. b. It is also referred to as assent or agreement. c. The offeror makes a valid offer to the offeree, who in turn must accept the offer for the parties to be bound by the agreement's terms. d. Although it requires consideration to be pledged by the offeror, no consideration need be given by the offeree for the resulting contract to be enforceable.

d. Although it requires consideration to be pledged by the offeror, no consideration need be given by the offeree for the resulting contract to be enforceable.

Which of the following is false regarding the mailbox rule? a. It is a rule that determines when a contract is considered to be accepted by the offeree, thus depriving the offeror of the right to revoke the offer. b. The time of acceptance depends on whether the offeror has specified a method of acceptance or not. c. It governs common law contracts. d. It provides that the mailed acceptance of an offer is generally effective when the acceptance is received by the offeror.

d. It provides that the mailed acceptance of an offer is generally effective when the acceptance is received by the offeror.

Even when Congress has not enacted legislation, the mere existence of congressional commerce powers under Article I, Section 8 of the Constitution restricts the states from Blank______ or Blank______ interstate commerce. a. ruling in favor of; facilitating b. ruling in favor of; unduly burdening c. discriminating against; facilitating d. discriminating against; unduly burdening

d. discriminating against; unduly burdening

The Fifth Amendment requires that the power of ______ be coupled with "______" for those whose property is taken. a. sovereign immunity; equal protection b. eminent domain; equal protection c. sovereign immunity; just compensation d. eminent domain; just compensation

d. eminent domain; just compensation

Although a contract may have all the required ______ and be considered ______, it may be unenforceable because one party asserts a legal defense to performing the contract. signatures; voidable elements; voidable signatures; valid elements; valid

elements; valid

A contract is a legally Blank______ promise or set of promises. illusory voidable enforceable unilateral (start of ch 8, 9, 10, 11)

enforceable

A(n) ______ is a presidential command addressed to an officer or agency of the federal government. override of a congressional veto ex post facto law executive order bill of attainder

executive order

A mistake is an erroneous belief about a(n) ______ fact, not an erroneous belief as to what will happen in the future. Erroneous beliefs about the future are covered by the doctrines of ______ and impracticability. existing; frustration of purpose existing; impossibility historical; improbability historical; promissory estoppel

existing; impossibility

The U.S. Constitution exemplifies the principle of ______: It divides power along a ______ dimension between the federal government and the states. democratic socialism; parallel democratic socialism; horizontal federalism; vertical federalism; horizontal

federalism; vertical

Every contract is premised on the notion of Blank______. voidability equal consideration illusory promises good faith dealing

good faith dealing

The Uniform Commercial Code defines good faith as ______ in fact and the observance of ______ commercial standards of fair dealing. equal consideration; reasonable honesty; reasonable equal consideration; absolute honesty; absolute

honesty; reasonable

The process of extending the Bill of Rights to the states via the Fourteenth Amendment is known as Blank______. consolidation federalism incorporation nationalism

incorporation

The Affordable Care Act contained a controversial provision known as the Blank______ which required all persons to either purchase health insurance or pay a penalty to the Internal Revenue Service. individual mandate Obamacare directive imprimatur of democratic socialism collective mandate

individual mandate

The first step in determining whether a valid offer exists is analyzing the offeror's objective Blank______ when making the offer. counteroffer actions intent acceptance

intent

Cases involving gender discrimination are subject to the ______ standard of judicial review. strict scrutiny intermediate scrutiny Strict liability rational basis

intermediate scrutiny

The main way the Fourth Amendment is enforce is by the ______-made ______ rule. judge; parol evidence legislature; parol evidence legislature; exclusionary judge; exclusionary

judge; exclusionary

Suppose Demetri was in an accident and has the right to sue the other party, but instead agrees to accept a cash settlement rather than file a lawsuit. This is an example of Demetri's ______ as consideration. nominal detriment legal detriment moral obligation preexisting duty

legal detriment

Mutual assent is typically referred to as a Blank______ because the parties have agreed to certain promises and obligations. unilateral contract meeting of the minds voidable contract substantial performance

meeting of the minds

Under the common law, the offeree's response operates as an acceptance only if it is the precise ______ of the offer. revocation option mirror image rejection

mirror image

Generally, a(n) ______ is defined in contract law as a belief that is not in accord with the facts. invitation to negotiate mistake counteroffer revocation

mistake

Contracts may be based on Blank______, that is, consideration that is stated in a written contract even though it is not actually exchanged. illusory consideration promissory estoppel past consideration nominal consideration

nominal consideration

When a regulated activity is purely ______, the Supreme Court has used increased levels of ______ to be sure that the activity that Congress seeks to regulate has a sufficient ______ to some legitimate economic interest. noncommercial; scrutiny; nexus commercial; deference; nexus commercial; scrutiny; disconnection noncommercial; deference; connection

noncommercial; scrutiny; nexus

Most advertisements appearing in the mass media, in store windows, or in display cases are ______. not invitations to negotiate counteroffers not offers offers

not offers

An ______ is a promise or commitment to do (or refrain from doing) a specified activity such as selling a good at a certain price or offering to provide services at a given rate. invitation to negotiate offer acceptance illusory promise

offer

Article III of the Constitution vests judicial power in ______ and in inferior federal courts established by Congress. two or more Supreme Courts the legislative branch the executive branch one Supreme Court

one Supreme Court

The Commerce Clause not only has a "______" aspect to it that grants broad powers to Congress to regulate interstate and foreign commerce; it also has a "______" side, imposing limits on the general police powers of the states. conditional; unconditional positive; negative primary; secondary express; implied

positive; negative

When one party promises to do what they already legally obligated to do, the law considers this a(n) ______ and not valid consideration. unilateral contract preexisting duty promissory estoppel illusory promise

preexisting duty

A search occurs when a governmental employee or an agent of the government violates an individual's ______ of privacy. subjective expectation reasonable expectation personal expectation reasonable suspicion

reasonable expectation

One of the most significant sources of Congress's powers is its enumerated power to ______. nominate and appoint federal judges issue executive orders regulate free speech regulate commerce

regulate commerce

An offer is terminated by ______ when the offeror decides to withdraw the offer by expressly communicating that to the offeree prior to ______. counteroffer; rescission rejection; acceptance revocation; acceptance counteroffer; acceptance

revocation; acceptance

One important issue with revocation is the ______ of the revocation, since most states follow the rule that revocation is effective only ______ by the offeree. timing; upon receipt timing; on weekdays nature; upon delivery nature; upon mailing

timing; upon receipt

If a contract has all the required elements and be considered valid, it may be still be Blank______ if one party asserts a legal defense to performance of the contract. unenforceable illusory void ab initio voidable

unenforceable

Suppose Willem's beloved German Shepard Max goes missing, and Willem posts a $1,000 reward in his neighborhood for the return of his pet. One day, Mandy, Willem's neighbor, spots Max in her backyard and returns him to Willem. Willem and Mandy have a Blank______ contract, and Willem owes Mandy Blank______. voidable; nothing bilateral; $1,000 void; nothing unilateral; $1,000

unilateral; $1,000

When a contract has the required elements, it is called a(n) Blank______ contract. voidable unilateral unenforceable valid

valid

An agreement is ______ if it lacks one of the required elements or has not been formed in conformance with the law from the outset. void avoidable unenforceable voidable

void

Jamila and Karol agree to rob a bank and equally divide the money they take. This agreement is Blank______. unenforceable incorrect voidable void avoidable

void

A contract is Blank______ when the law gives one or more parties the right to cancel an otherwise valid contract under the circumstances. unenforceable void ab initio voidable correct void

voidable

Josef and Letitia have a Blank______ contract if Josef has a legal right to cancel their otherwise valid contract under the circumstances. void voidable correct void ab initio unenforceable

voidable