Blaw265 quiz #5

Which of the following statements is true of a quasi contract?

A person is not held liable under quasi contract for benefits he or she received unknowingly.

Marty Minor cancels his contract for the purchase of electronic equipment from Circuit City. This is an example of a voidable contract.

True

Quasi-contract is a legal fiction created by a court to avoid injustice

True

Your car breaks down on a lonely road late at night. You call Tom's Tow on your cell phone and they send a tow truck to pick up you and your car. This is an example of an implied contract.

True

The doctrine of promissory estoppel:

protects reliance, not bargains.

Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:

sale of goods.

Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:

service.

To determine whether the offeror has created a present intent to contract, courts consider

whether the offeror has communicated it to the offeree.

Article 2 of the Uniform Commercial Code covers the sale of services, such as tax preparation services.

False

Even if both parties intend to create a contract, no enforceable contract exists unless expressly created under the U.C.C.

False

If a person voluntarily receives a benefit from another party where it would be unfair to keep the benefit without paying for it, this is a situation where the doctrine of promissory estoppel would apply.

False

The UCC does not apply in cases where both parties are merchants.

False

Courts treat contracts as bilateral rather than unilateral whenever it is possible to do so.

True

Which of the following is true about auctions?

Bidders are treated as offerors, making offers the seller is free to accept or reject.

Sue Smith, the owner of Hi-Fi heaven, orders 100 stereo receivers from Steve Jones, a salesman for Slick Sound Manufacturing Company. Sue has made a promise to pay for the receivers in exchange for Slick Sound's promise to deliver them. This is a(n) _____ contract.

Bilateral. In a bilateral contract, both parties make a promise. Sue promises to pay for the stereos and Jones promises to deliver them.

Which of the following statements is true of Article 2? A) Article 2 does not apply to contracts for the sale of goods. B) Article 2 applies to bonds, information, and other intangibles. C) Article 2 does not apply to service contracts. D) Article 2 applies to contracts for the sale of real estate or stocks.

C) Article 2 does not apply to service contracts.

Which of the following is a change that took place in the legal system that led to the development of contract law in the process? A) Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization. B) Courts today are not willing to consider defenses based on inequality of bargaining power between the parties. C) Courts tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract. D) Courts are not given the authority to control any contractual relationships as they are left to private bargaining.

C) Courts tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract.

Which of the following is true about a contract? A) It need not necessarily be an agreement. B) It need not necessarily be entered into by parties having capacity to contract. C) It must be voluntarily entered into, and it is to perform a legal act. D) It must always be supported by consideration.

C) It must be voluntarily entered into, and it is to perform a legal act.

Which of the following must be present for an offer to have a legal effect?

Definiteness

An express contract must be in writing

False

All United States companies must comply with the Convention on the International Sale of Goods (CISG).

False

Kamal places an ad in the local newspaper as follows: "$500 reward for the return of my gold ring." Mira finds the ring and returns it to Kamal, but he refuses to pay her the $500. Which of the following statements is true regarding this case?

Mira accepted the ad as an offer for a unilateral contract by returning the ring and hence, Kamal is bound to pay her the $500.

Which of the following statements is true about the Uniform Commercial Code (UCC)?

The most obvious purpose of the UCC was to establish a uniform law to govern commercial transactions that often take place within the state.

Bogdan, a painter, offers to sell his painting to Mirka for $90. Mirka responds that she needs more time to think about Bogdan's offer. Then Bogdan dies, and the value of the painting escalates. Mirka calls Bogdan's widow, Gizela, and says "I accept Bogdan's offer." Which of the following statements is true of the case?

There is no binding contract entitling Mirka to the painting under any circumstances.

The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:

UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants.

In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:

asking which element predominates in the contract.

Yuan writes to Rita saying that he would sell her his car for $1,000. Rita writes back agreeing to buy the car on Yuan's terms. Given this information, the contract between Yuan and Rita is:

bilateral and executory.

If an offer does not state a time for acceptance, it is valid:

for a reasonable time, which depends on the circumstances of the offer.

The offeror who makes a firm offer and promises to hold it open for six months:

could revoke after three months, assuming the offeree has not already accepted the offer.

If the offer does not state a time for acceptance, it is valid for thirty (30) days. ⊚ true ⊚ false

false

The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.

false

A counteroffer:

impliedly rejects an offer.

Under the Uniform Commercial Code (UCC), a sales contract can be created:

in any manner sufficient to show agreement.

When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return, his behavior will probably be classed as an:

invitation to negotiate.

Advertisements for the sale of goods at a specified price are considered by the courts as:

invitations to negotiate.

As used in the Uniform Commercial Code (UCC), the concept "reasonable":

is a practical standard used to gauge what people really do in the marketplace.

When parties fail to expressly agree on the terms of a sales contract,

the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, _____.

the offer has not been communicated

According to Article 2 of the Uniform Commercial Code (UCC), a sales contract can be created in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a contract.

true

Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is _____.

void