BA 330 Legal Environment of Business Module 1 Quiz 3

The term _____ refers to the fact that the agreement in question is so unfair that it is void of conscience.

unconscionable

A contract may not be enforced under which of the following situations?

Genuine assent to the offer does not occur.

To prove that a contract is implied, or implied-in-fact, it is necessary for a plaintiff to establish that a defendant ______

Had an opportunity to reject the property or service received but did not.

Mistakes in contract law

do not result from untrue statements

The essential element of undue influence is the existence of a(n) ______ relationship.

dominant-subservient

A(n) _____ results from a false statement about a fact material to an agreement that the person making it believed to be true.

innocent misrepresentation

A pact entered into before marriage that outlines ownership rights each party has in the other party's property is called a _____ agreement.

prenuptial

Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC) to be recored in a written contract. This writing need only state the

quantity to be sold

Which of the following statements best describes a condition precedent?

A condition on which an entire contract is dependent upon something else occurring first

A quasi-contract is one in which the following happens?

A court may impose contractual obligations on one of the parties as if that party has entered into a contract

_____ as an element of a contract refers to what each party gets in exchange for his or her promise under the contract.

Consideration

How is undue influence different from duress?

Duress is a much more visible and active interference with free will than is undue influence.

A basic test to determine whether a(n) _____ clause is enforceable is to see if the enforcing party engages in a business directly related to the public interest.

Exculpatory

Which of the following is true of an accord and satisfaction?

If a creditor inadvertently cashes a debtor's "paid in full" check, he can repay the debtor the same amount within 90 days to invalidate an accord and satisfaction.

If a contract has an ambiguous provision, the judge should interpret that provision in which of the following ways?

If the contract contains an ambiguity, the judge should interpret it against the interests of the drafter

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?

Louis has not accepted the offer as required by the offeror, and there is no contract

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3,000. Which of the following statements will be true if Maya plans to sue her friend?

Maya cannot sue Jane because the court seldom considers adequacy of consideration

Partial payment of a liquidated debt may be valid consideration if which of the following occurs?

Once the creditor accepts the proposed different performance, the debt is satisfied and the creditor may not collect anything else.

Which os the following statements most accurately reflects the preexisting duty rule?

Performance of a duty you are obligated to do under the law is not good consideration

Kevin is offered a job by a reputable company in a different city. To take the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of

Promissory estoppel

____ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.

Promissory estoppel

_____ occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise.

Promissory estoppel

Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met?

Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.

Freddie offers to sell Lucy five video poker machines. Before Lucy can accept or reject Freddie's offer, the state legislature passes a statute that the purchase, sale, and possession of video poker machines is illegal. In this scenario, Freddie's offer terminates due to which of the following rules?

Subsequent illegality of the subject matter

If a person who suffers from a mental illness or defect yet still understands the nature of the contract and his or her obligation under the contract, which of the following will result?

The contract will be considered valid

When a minor enters into a contract, the minor has which of the following rights?

The minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.

An offer must include all but which of the following elements?

The offer must always be in writing.

Sabbath, Sunday, or blue laws typically restrict which of the following contracts?

These laws typically restrict the types of business activated in which parties can legally engage in on Sundays.

The purpose of parol evidence rule is to prevent which of the following from being admitted to challenge a written agreement as being deficient in some way?

To prevent evidence of prior agreements that seeks to contradict the contract in its written form

_____ can occur in those special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision.

Undue influence

Which of the following statements accurately describes the difference between bilateral and unilateral contracts?

Unilateral contracts call for actions, not promises, whereas bilateral contracts involve promises in exchange for promises.

Under the admission exception to the statue of frauds, a court will consider all but which of the following?

Whether the admission was made before the contract was signed

Which of the following contracts do not "fall within" the statue of frauds writing requirement?

a contract for the sale of goods totaling $50

The elements of a contract include all but which of the following?

a writing

An agreement in which a party is given an offer without the right to negotiate its terms is called a(n) ___ contract.

adhesion

Consideration can be anything, as long as it is the product of a(n) ____.

bargained-for exchange

Contracts that are required to be in writing by the statue of frauds include

contracts to pay the debt of another if that person does not pay

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n)

counteroffer

Written agreements intended to be the complete and final representation of the parties' agreement are called

integrated contracts

According to the _____ rule, an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offeree receives it.

mailbox

In contract law a ____ is an erroneous belief about the facts of the contract _____.

mistake of fact; at the time the contract is concluded

Legal assent does not exist if ____ is proven.

mistake or misrepresentation or duress

A(n) ____ occurs only when the party making a false statement, without the intent to deceive, should have known the truth using the skills and competence required of a person in his position or profession.

negligent misrepresentation

The ____ rule states that if a writing, or a term in question, appears to be ___ on its face, we must determine its meaning from just "the four corners" of the document, without resorting to outside evidence, and give the words their ordinary meaning.

plain meaning; unambiguous

Regarding a liquidated debt, the debtor's payment of the reduced amount of the claimed debt is referred to as the ____

satisfaction

When a court can void the illegal part of an agreement and enforce the rest if the terms represent the main purpose of the original agreement, it is a(n) _______ contract

severable

The original offer is considered _____ if the offeree makes a counteroffer.

terminated

A _____ contract is, in effect, not a contract at all because its object is illegal, or it has a defect so serious that the agreement is not a contact at all.

void

Section 16 of the Restatement of Contracts provides that contracts of an intoxicated person are _____ if the other party had reason to know that intoxication rendered the person unable to understand the nature and consequences of the transaction.

voidable

If nothing is stated to the contrary in the terms of an auction, an auction is presumed to be ______, which means that the seller is merely expressing intent to receive offers.

with reserve