bus 263 chapters 6-12

According to the federal Electronic Signatures in Global and National Commerce Act: a. signatures on a contract no longer have to be on paper. b. electronic signatures are unenforceable. c. scribbled signatures are unenforceable. d. strike-through signatures needs to be on paper.

aa

is the assent to an offer that results in a contract.

acceptance

"Composition of creditors" refers to a situation when: a. multiple creditors cancel the debt in entirety when debt is evidenced by a note. b. all multiple creditors settle in full for a fraction of the amount owed. c. some multiple creditors accept a gift for the entire amount of the debt. d. some multiple creditors avoid or set aside a contract.

b

The _____ provides that when a contract for the sale of goods is modified by agreement of the parties, no consideration is necessary to make it enforceable. a. Uniform Trust Code b. Uniform Commercial Code c. Uniform Probate Code d. Uniform Common Interest Ownership Act

b

The breach of contractual obligation is called: a. damage. b. default. c. deuce. d. usury.

b

A contract that sets an illegally high interest rate for the use of money is called a(n): a. unilateral contract. b. Sunday contract. c. usurious contract. d. gambling contract

c

A subscription to a charitable association is an offer of a(n) _____ contract. a. bilateral b. void c. unilateral d. unconscionable

c

A(n) _____ arises when two or more people individually agree to perform the same obligation, even though the individual agreements are contained in the same document. a. novation b. assignment c. several contract d. voidable contract

c

The rule which states that a properly mailed acceptance is effective when it is posted, if there is no requirement of delivery, is called the:

mailbox rule

In most states, if a person has been formally adjudicated mentally incompetent, contracts made by that person are _____ without regard to whether they are reasonable or for necessaries.

void

A(n) _____ means that one party conveys rights in a contract to another who is not a party to the original undertaking. a. assignment b. delegation c. defamation d. abatement

a

An agreement to pay a prospective witness a large sum of money to leave the state until a trial is over is null and void, because: a. it obstructs the administration of justice. b. it is a gambling contract. c. it is an unreasonable restraint of trade. d. it is a usurious contract.

a

If a minor contracts for necessaries, the contract is voidable, and the minor is liable for: a. the reasonable value of whatever has been received. b. only those items he or she can afford. c. twice the market value of the goods received. d. none of the goods received.

a

Sandra offered to sell Max four tickets to a baseball game for $50 a piece. Max responded by inquiring about the date and time of the game and asking Sandra if he can pick the tickets up in five days. What effect does Max's inquiry have on the offer? a. The inquiry does not reject the offer. The original offer may still be accepted, if it has not been revoked in the meantime. b. The inquiry alters the offer and rejects the offer. c. The inquiry is a counteroffer and rejects the offer. d. The inquiry is deemed acceptance of the offer.

a

When one refrains or promises to refrain from doing something, this conduct is called: a. forebearance. b. counteroffer. c. recognizance. d. ratification.

a

Which of the following is an exception to the Statute of Frauds and does not have to be in writing? a. An agreement where a promise is an original promise by the promisor rather than a promise to pay the debt of another b. An agreement to become responsible for the debts or default of another c. An agreement of an executor or administrator to pay the debts of the estate from the executor's or the administrator's personal funds d. An agreement with terms which cannot be performed within one year from the time it is made

a

Which of the following is not a requirement of a valid offer? a. The offer must be made in person to the offeree. b. The offer must be definite. c. The offer must be communicated to the offeree. d. The offer must appear to be seriously intended.

a

While notice of an assignment need not be given to the other party in order to make the assignment effective as between the assignor and the assignee, why is it recommended that notice be given to the other party? a. The assignee may not receive payment if notification of the assignment is not given to the original promisor. b. The contract may become one of joint liability. c. Giving notice of the assignment satisfies the Statute of Frauds. d. The original promisor may revoke some of the rights and interests that were assigned

a

_____ is a means of destroying another's free will by one party obtaining consent to a contract as a result of a wrongful threat to do the other person some harm. a. Duress b. Mutual mistake c. Fraud d. Undue influence

a

A complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake exists. This rule is known as the: a. mirror image rule. b. parol evidence rule. c. rule against perpetuities. d. illusory promise rule.

b

A mutual-mistake contract is a(n) _____ contract. a. executory b. unenforceable c. unilateral d. bilateral

b

A(n) _____ is a person to whom the promisee owes an obligation or duty that will be discharged to the extent that the promisor performs the promise. a. donee beneficiary b. creditor beneficiary c. debtor beneficiary d. incidental beneficiary

b

Although there is no consideration, courts will enforce some promises on the basis of _____ when one party acts in reliance on another's promise. a. partial payment b. promissory estoppel c. past performance d. forebearance

b

An assignor is: a. the party to whom the rights in an assignment is transferred. b. the party who makes an assignment. c. the party who unintentionally benefits in an assignment. d. the party to whom the duties in an assignment is transferred.

b

Contracts not to compete are normally void, except when: a. operating as a licensed operator. b. buying a business or making an employment contract. c. fixing the resale price of goods. d. doing business on Sunday.

b

One who intends to and does induce another to enter into a contract as a result of an intentional or reckless false statement of a material fact commits: a. duress. b. fraud. c. blackmail. d. extortion.

b

The term _____ means repudiation of a contract. a. ratification b. disaffirmance c. defamation d. recognizance

b

When during contract negotiations a party makes an innocent misrepresentation upon which it is reasonable for the other party to have relied, the contract is: a. enforceable. b. voidable. c. fraudulent. d. unilateral.

b

Which of the following is not an example of a type of contract that is contrary to public policy? a. A contract injuring the public service. b. A contract of an unlicensed operator c. A contract obstructing the administration of justice d. A contract limiting the freedom of marriage

b

A(n) _____ contract is a transaction wherein the parties stand to win or to lose based on pure chance. a. usurious b. loan-sharking c. gambling d. Sunda

c

A(n) _____ is a contract in which two or more parties have all promised the entire performance, which is the subject of the contract. a. bilateral contract b. unenforceable contract c. joint contract d. several contract

c

Contracts contrary to public policy are: a. executory. b. valid. c. unenforceable. d. voidable.

c

If two parties enter into an oral contract that falls under the Statute of Frauds and both parties have fully performed according to its terms then: a. either party can set aside the transaction on the ground that there was no writing. b. both parties' liabilities to each other become quasi-contractual. c. neither party can set aside the transaction on the ground that there was no writing. d. both parties must make the contract in writing for it to become enforceable.

c

Leslie owns a St. Bernard, which gave birth to five puppies. Leslie offered to sell one of these puppies to Ron for $650. Which of the following statements is true with regard to this scenario? a. This is a void contract. b. Leslie is a tortfeasor. c. Ron is the offeree. d. This offer is quasi-contractual in nature.

c

Ricky drove to a nearby store to buy apples. An employee at the store who disliked Ricky, presented Ricky a box full of old stock without serious intent of selling them. Ricky, unaware of the employee's antipathy, inspected and bought the older apples. Which of the following statements is true with regard to this scenario? a. The contract is invalid as the offeree was unaware of the fact that the offer was not seriously intended. b. The contract is unilateral as it specifies the offeree's duty to act in exchange for the offeror's duty to act. c. The contract is binding as the offer was accepted, though the offer was not seriously intended. d. The contract is void, because the offer was entered in anger, and the offeree was tricked into buying old apples.

c

A(n) _____ is an offeree's response that rejects an offer by varying or qualifying the terms of the offer.

counteroffer

An agreement to _____ comes under the Statute of Frauds and must be in writing. a. sell a vehicle b. sell tickets to a sporting event c. sell food and beverage products d. sell any interest in land

d

Many states now allow convicts the capacity to legally contract, with some limitations, such as: a. forbidding convicts to contract with other convicts. b. banning oral contracts. c. limiting contracting rights to unilateral contracts. d. depriving convicts of contracting rights as needed to provide for the security of the penal institution in which they are confined and for reasonable protection of the publ

d

Rebecca owns a boutique in the downtown area. She displayed a new collection of handbags, each priced at $250, in her store window. Which of the following statements is true with regard to this scenario? a. There is a binding requirement to sell at the displayed price. b. This is a void offer. c. This offer is not seriously intended. d. This is an invitation to make an

d

The law requires a contract that cannot be performed within _____ year(s) of the date of formation to be in writing. a. five b. two c. ten d. one

d

Which of the following demonstrates an advantage of a written contract over an oral contact? a. It is impossible to have mutual mistakes in a written contract. b. Written contracts are generally more enforceable. c. Written contracts can include more than two parties, whereas oral contracts cannot. d. The existence of a contract cannot be denied if it is in writin

d

Which of the following substitutes a new party for one of the original parties in an existing contract at the mutual agreement of the original parties, such that the prior contract terminates, and a new one substitutes for it? a. A ratification b. A delegation c. A defalcation d. A novation

d

_____ is whatever the promisor demands and receives as the price for a promise. a. Accommodation b. Ratification c. Compensation d. Consideration

d

A _____ is a merchant's signed, written offer to sell or purchase goods saying it will not be revoked during the stated time in the contract.

firm offer

In business, apparent offers are in fact often invitations to the public to make an offer at certain terms and prices. If a member of the public accepts the invitation and submits an offer matching the terms of the invitation, most businesses will accept the offer:

maintain goodwill with the public

Two essential elements of a contract are a(n):

offer and acceptance

If an offeror receives something of value in return for a promise to hold an offer open, it is called a(n):

option

With regard to contracts with minors, _____ means indicating one's willingness to be bound by promises made during minority.

ratificatin

Contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts are:

voidable