Business Law Test 2: Chapters 11, 12, 13, 14, 15, and 16

Which of the following distinguishes promissory estoppel cases from quasi-contract cases? a. In promissory estoppel cases there is a promise; in quasi-contract cases there is not. b. In promissory estoppel cases, there is a valid contract but not in a quasi-contract case. c. In promissory estoppel cases there is never a promise, but in quasi-contract cases there are. d. In a quasi-contract case, the plaintiff did not expect to be paid, but in a promissory estoppel case they did.

a. In promissory estoppel cases there is a promise; in quasi-contract cases there is not.

What is the result of a contract in which both parties are wrong about a material fact of the contract? a. The contract is voidable. b. The contract must be nullified and renegotiated. c. The contract is enforceable by both parties as both parties assumed the risk in making the contract. d. The contract is void.

a. The contract is voidable.

A party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract? Choose 3 answers. a. agreements prior to contract formation b. negotiations prior to contract formation c. conditions that must be fulfilled before the contract becomes enforceable d. oral agreements that happened at the same time as contract formation

a. agreements prior to contract formation b. negotiations prior to contract formation d. oral agreements that happened at the same time as contract formation

Which of the following contracts would be enforceable? a. A contract with an unlicensed cosmetologist b. A contract with an unlicensed contractor c. A contract with an unlicensed retail clothing store d. A contract with an unlicensed lawyer

c. A contract with an unlicensed retail clothing store

When might a contract made by a mentally impaired/incompetent person be enforceable? a. The impaired/incompetent person has a court-appointed guardian, and that guardian is aware of the contract. b. The impaired/incompetent person signs a second contract affirming that he understands the nature of the contract. c. The impaired/incompetent person was lucid at the time the contract was made. d. The impaired person has not been declared incompetent by a court. Assessment question

c. The impaired/incompetent person was lucid at the time the contract was made.

Which of the following is a void contract? a. a contract for prostitution b. a contract for the sale of a car to someone who is intoxicated c. a contract in which one party induced the other to enter by undue influence d. a contract for the sale of a house to a minor

a. a contract for prostitution

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have? a. void b. unilateral c. executory d. executed

c. executory

May a writing consistent of multiple separate documents? a. No, all elements of an agreement must be memorialized in one document. b. Yes, even if the documents are not attached or connected in any way. c. No, except for signature pages for which there may be multiple copies. d. Yes, if they are attached together in some manner.

d. Yes, if they are attached together in some manner.

What factors must be present to prove fraudulent misrepresentation in a contract? Choose 3 answers. a. A misrepresentation of a material fact has occurred. b. There has been an intent to deceive. c. The defrauding party must have exerted undue influence on the innocent party. d. The innocent party has justifiably relied on the misrepresentation.

a. A misrepresentation of a material fact has occurred. b. There has been an intent to deceive. d. The innocent party has justifiably relied on the misrepresentation.

Huseyin and Ashish are negotiating the details of a new garage that Ashish plans to build on Huseyin's property. They agree on the building specs, the delivery date, and a price of $25,000. Ashish draws up the contract and sends it to Huseyin to sign. Huseyin reviews the contract and notices the price is listed as $2,500 instead of $25,000. Elated at the unbelievably low price, Huseyin quickly signs the contract and sends it back to Ashish, who signs it as well. If Ashish later tries to rescind the contract due to the mistaken price: a. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of. b. Ashish will be successful, because the parties made a mutual mistake. c. Ashish will not be successful, because a unilateral mistake is not a basis to rescind a contract. d. Ashish will not be successful, because parol evidence is not admissible to disprove the terms of a written contract.

a. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of.

Which is NOT an exception to the parol evidence rule? a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden. b. Jayden has evidence that he and Jayden agreed to move back the boat delivery date from the original date in the contract when Jayden discovered a hole and Jignesh agreed to repair it before delivery. c. Jayden has evidence that Jignesh misrepresented portions of the deal they made and would like to present this evidence to terminate the contract. d. Jayden wants to present evidence that Jignesh agreed to deliver the boat to Jayden before Memorial Day of next year, but the contract incorrectly states the delivery will take place before Memorial Day 2098.

a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices. a. The parties can complete the contract. b. The contract is voidable. c. The contract is illegal. d. The contract is void.

a. The parties can complete the contract. b. The contract is voidable.

What is the primary purpose of the Statute of Frauds? a. requiring written evidence of agreements concerning important transactions b. preventing fraudulent behavior in the formation of contracts c. ensuring that all details of a contract are well defined d. defining who may testify in a dispute over a contract

a. requiring written evidence of agreements concerning important transactions

Under the Uniform Electronic Transactions Act (UETA) an electronic signature can be used for: (Choose 3 answers.) a. sales of real estate. b. wholesale purchase of alcoholic beverages for resale. c. wills and testamentary trusts. d. obtaining a business license.

a. sales of real estate. b. wholesale purchase of alcoholic beverages for resale. d. obtaining a business license.

Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy: a. will be unsuccessful, because Marla never signed the agreement. b. will be successful, because Kennedy signed the agreement. c. will be unsuccessful, because Kennedy signed the agreement. d. will be successful, even though Marla never signed the agreement.

a. will be unsuccessful, because Marla never signed the agreement.

Which of the following words, if added to an offer, will cause the offer to fail for definiteness? (Select two) a. Tomorrow, as in "I will sell you my boat tomorrow for $1000" b. In the future, as in "I will sell you my boat sometime in the future for $1000" c. Might, as in "I might want to sell you my boat for $1000" d. Friday, as in "I will sell you my boat this Friday for $1000"

b. In the future, as in "I will sell you my boat sometime in the future for $1000" c. Might, as in "I might want to sell you my boat for $1000"

Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect: a. Kaylee will not be allowed to introduce the evidence under the parol evidence rule. b. Kaylee will be allowed to introduce the evidence under the parol evidence rule. c. Kaylee will not be allowed to introduce the evidence because oral testimony can never be introduced in court to dispute a written contract. d. Kaylee will only be allowed to introduce evidence under the parol evidence rule if Bryan agrees to allow it.

b. Kaylee will be allowed to introduce the evidence under the parol evidence rule.

What is an exception to the statute of frauds? a. Contracts under the UCC b. Promissory Estoppel c. Collateral Promises d. Contracts dealing with land

b. Promissory Estoppel

What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices. a. The UCC requires that the price be included b. The UCC requires that the quantity be included c. The writing must be signed by both parties at the end of the document d. The writing must provide evidence of agreement

b. The UCC requires that the quantity be included d. The writing must provide evidence of agreement

What must a plaintiff show to be awarded a quasi-contract in a lawsuit? a. The defendant agreed to compensate the plaintiff for the benefit received. b. The defendant was unjustly enriched. c. The defendant expected to be paid. d. The plaintiff received some benefit.

b. The defendant was unjustly enriched.

What type of acceptance requires an affirmative action for the offeree to accept that offer? a. The typical type of acceptance to an offer b. Unilateral contracts c. Offeree's silence in response to an offer d. Browsewrap Agreements

b. Unilateral contracts

Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that: a. e-signatures can only be used in shrinkwrap agreements. b. e-signatures cannot be used on prenuptial agreements. c. e-signatures cannot be used on legally enforceable contracts. d. nothing; Lydia has no defense to the prenuptial agreement.

b. e-signatures cannot be used on prenuptial agreements.

Marie and Molly enter into a written contract to sell Marie's home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they won't; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Marie's children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded: a. only if Marie's children have Marie committed. b. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract. c. under no circumstances, because Marie was not adjudicated insane before she signed the contract. d. by either Marie or Molly.

b. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.

Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract: a. Matilda may rescind the contract on the grounds of unconscionability. b. Matilda may rescind the contract on the grounds of undue influence. c. Matilda may rescind the contract on the grounds that she signed the contract under duress. d. Matilda may not rescind the contract because it has all the elements of a valid contract.

c. Matilda may rescind the contract on the grounds that she signed the contract under duress.

What happens when a party with the right to avoid a contract chooses to not avoid it? a. The contract becomes void. b. The contract becomes a quasi-contract. c. The contract is ratified. d. The contract is rejected.

c. The contract is ratified.

A partially integrated contract means: a. the parties agree to allow evidence of contradictory side agreements as evidence in litigation. b. the parties have failed to memorialize any of the terms of their agreement in writing. c. a contract contains only some terms, to which the parties agree but not others. d. the parties agree to allow evidence of inconsistency as evidence in litigation.

c. a contract contains only some terms, to which the parties agree but not others.

Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land: a. is enforceable because it complies with the statute of frauds. b. is not enforceable because of the theory of promissory estoppel. c. is not enforceable because it violates the statute of frauds. d. is enforceable, because there are witnesses to the deal.

c. is not enforceable because it violates the statute of frauds.

Usury laws prohibit: a. the charging of interest on loan. b. determine what is considered "excessive" interest on loans. c. the charging of excessive interest on loans. d. prohibit credit card companies from charging high interest rates.

c. the charging of excessive interest on loans.

Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by: a. Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car. b. Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car. c. Ruby, because she is a minor, and Ruby may keep the car. d. Ruby, because she is a minor, but Ruby must return the car.

d. Ruby, because she is a minor, but Ruby must return the car.

Which act provides that no contract, record, or signature may be "denied legal effect" solely because it is in electronic form? a. the Digital Signature Act (DSA) b. the Internet Commerce Signature Act (ICSA) c. the Virtual Identification and Signature Act (VISA) d. the Electronic Signatures in Global and National Commerce Act (E-SIGN Act)

d. the Electronic Signatures in Global and National Commerce Act (E-SIGN Act)

Dora has been in a nursing home for three years and rarely has visitors. Vanita works at the nursing home and regularly takes care of Dora. Vanita and Dora have become very close, and Dora depends on Vanita to help her with decisions about her finances. Just before Dora dies, Vanita and Dora enter into a contract to sell Dora's family home to Vanita for $20,000. The home is worth $100,000. If Dora's children try to void the contract between Vanita and Dora: a. the children may be able to void the contract based on illegality. b. the children may be able to void the contract based on fraud. c. the children will not be successful in voiding the contract, because there is valid consideration and the contract is in writing. d. the children may be able to void the contract based on undue influence.

d. the children may be able to void the contract based on undue influence.

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices. a. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. b. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. c. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. d. Christopher agrees to sell his washer and dryer to Ella. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her.

a. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. c. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.

Melissa felt pressured into signing a contract that released her employer from any liability if she is injured on the job. What prohibited behavior under public policy could this be? a. Exculpatory Clause b. Substantive Unconscionability c. Procedural Unconscionability d. Restraint of Trade

a. Exculpatory Clause

Alexander is a resident of Utah, where gambling is illegal. Alexander visits Goldstrike Casino in Reno, Nevada, and loses all the money he brought with him. Frustrated with his losses and determined to win his money back, Alexander writes a check to Goldstrike drawn on his bank in Utah for $5,000 to obtain more cash so that he can keep gambling. Goldstrike also requires him to sign an agreement guaranteeing that he will repay any money advanced to him. Fortunately, Alexander's luck turned; he walks away from Goldstrike with $35,000 in his pocket. As soon as he gets home, Alexander issues a stop payment order on the $5,000 check. If Goldstrike files suit against Alexander in Utah to collect its money: a. Goldstrike will lose because gambling is illegal in Utah. b. Goldstrike will win because it required Alexander to sign a separate agreement guaranteeing payment. c. Goldstrike will win because the full faith and credit clause of the U.S. Constitution requires each state to honor the laws of its sister states. d. Goldstrike will lose because suits over gambling on credit cannot be enforced across state lines.

a. Goldstrike will lose because gambling is illegal in Utah.

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have? a. Implied b. quasi c. Parol d. express

a. Implied

What conditions must be met for an offer to be legally accepted? Choose 2 answers. a. It may only be accepted by the intended offeree or the offeree's agent. b. The offer must be accepted within 24 hours of communication. c. Acceptance must be unequivocal with no requests for changes in the offer. d. Acceptance must be communicated in words, either written or oral.

a. It may only be accepted by the intended offeree or the offeree's agent. c. Acceptance must be unequivocal with no requests for changes in the offer.

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices. a. Lilly's silence is acceptance because of the parties' past dealings. b. Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her. c. Lilly's silence is acceptance because the offeree accepted the benefit offered. d. Lilly's silence is not acceptance in this case because the offeree must affirmatively accept the terms of the offer in full and communicate that acceptance to the offeror.

a. Lilly's silence is acceptance because of the parties' past dealings. c. Lilly's silence is acceptance because the offeree accepted the benefit offered.

What factors may overturn a minor's right to disaffirm a contract? Choose 3 answers. a. The contract is for necessaries. b. The minor ratifies the contract after reaching the age of majority. c. The minor misrepresented the minor's age while engaging in business as an adult. d. The object of the contract has been destroyed.

a. The contract is for necessaries. b. The minor ratifies the contract after reaching the age of majority. c. The minor misrepresented the minor's age while engaging in business as an adult.

What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices. a. The plaintiff was incapable of voluntarily agreeing to the contract. b. The defendant committed a wrongful or illegal act. c. The plaintiff was injured or feared he or she would be injured. d. The defendant intended to harm the plaintiff.

a. The plaintiff was incapable of voluntarily agreeing to the contract. b. The defendant committed a wrongful or illegal act.

What elements are required for courts to apply the doctrine of promissory estoppel? Choose 3 answers. a. The promise must be definite and relied upon. b. Enforcement of the promise is necessary to avoid injustice to the promisee. c. There was a detrimental result from reliance on the promise. d. There must have been consideration given with the promise.

a. The promise must be definite and relied upon. b. Enforcement of the promise is necessary to avoid injustice to the promisee. c. There was a detrimental result from reliance on the promise.

Sarah is shopping at Sylvia's thrift store, and notices that the inside of the store needs repainting. Sarah offers to paint the store for $400. Sylvia does not respond to Sarah's offer. Later that day, Sarah returns to the store with painting supplies in hand and begins painting the store. When Sarah is finished, she demands payment of $400 from Sylvia. Will Sylvia have to pay Sarah for painting the store? a. Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract. b. No, Sylvia will not have to pay Sarah for painting the store because silence can never be an acceptance of an offer. c. No, Sylvia will not have to pay Sarah for painting the store because Sarah did not verbally agree to the contract. d. Yes, Sylvia will have to pay Sarah for painting the store because silence is always an acceptance of an offer.

a. Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract.

Which of the following is a voidable contract? a. a contract in which the parties made a mutual mistake about the terms b. a contract made with someone declared mentally incompetent by a court c. a contract hiring someone to commit arson d. a contract hiring someone to blackmail a public official

a. a contract in which the parties made a mutual mistake about the terms

Which of the following is legally sufficient consideration? (Select all that apply) a. forbearance of a legal act b. forbearance of an illegal act c. a promise maybe pay money in the future d. a promise to do a legal act

a. forbearance of a legal act d. a promise to do a legal act

Zayn boards the Big Rock Metro to ride downtown to his job. Zayn gives his money to the driver and takes his seat. Neither the driver nor Zayn says anything. Zayn and the bus driver: a. have an implied contract. b. have a formal contract. c. have an express contract. d. have no contract.

a. have an implied contract.

Which mistake is likely to be voidable? a. A prediction mistake b. Bilateral mistake c. Mistakes of Value d. Unilateral mistake

b. Bilateral mistake

Adina owns Yogi's Yogurt in Fort Smith, Arkansas. Adina sells the yogurt shop to Dagmar. The contract for the sale of the business includes a clause that prohibits Adina from owning or working in any restaurant in Arkansas for two years from the date of the sale. One year after the sale is completed, Adina opens a steakhouse in West Memphis, Arkansas, which is 300 miles from Fort Smith. If Dagmar sues Adina for breaching the terms of the contract: a. Dagmar will probably lose because covenants not to compete are never enforceable. b. Dagmar will probably lose because the covenant not to compete is too restrictive. c. Dagmar will probably win because covenants not to compete are always enforceable. d. Dagmar will probably win because Adina opened a new restaurant in Arkansas within two years of the sale of Yogi's Yogurt and this was directly prohibited by the contract.

b. Dagmar will probably lose because the covenant not to compete is too restrictive.

Jones Construction Company is building a series of new subdivisions in Newtown over the next two years. Jones enters into a verbal agreement with Harley Concrete Inc. to construct all the driveways and sidewalks in the subdivisions that Jones will be building. Jones and Harley agree on a price of $130 per cubic yard and that Jones will pay Harley at the end of each project. Harley completes the first project, which is four sidewalks and sixteen driveways, and bills Jones for the project. Jones decides that the price is too high and refuses to pay, claiming that they have no obligation to pay because the parties did not have a valid contract. If Harley sues Jones for payment the court would probably: a. apply quasi contract theory and award $130 per cubic feet, the contract price, to Harley. b. apply quasi contract theory and award the fair market value of the work that Harley completed. c. hold that Harley is entitled to nothing because parties are free to terminate contracts if they so choose. d. hold that Harley is entitled to nothing because the contract violates the Statute of Frauds.

b. apply quasi contract theory and award the fair market value of the work that Harley completed.

When party A and B form a contract and both parties fully perform, the contract is considered: a. executory. b. executed. c. invalid. d. valid.

b. executed.

If a law requires a person to have license to operate, any contract with an unlicensed person will be: a. illegal if the license is designed to raise revenue. b. illegal if the license is designed to protect the public. c. legal if the license is designed to protect the public's safety. d. voidable.

b. illegal if the license is designed to protect the public.

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers. a. punitive damages b. rescission c. enforcement d. reformation

b. rescission d. reformation

In a unilateral contract: a. substantially undertaking performance prevents the offeror from revoking the offer. b. the parties exchange a promise for a promise. c. acceptance may occur through a promise or an act. d. the offeror may revoke the offer at any time before performance has been completed.

a. substantially undertaking performance prevents the offeror from revoking the offer.

Which of the following contracts violate public policy? a. A contract for a loan which charges an interest rate of 4% b. A contract for the sale of a business which limits the previous owner's right to operate a similar business for 1 year within a 100 mile radius c. A contract to insure your own life d. A contract for the sale of a kidney

d. A contract for the sale of a kidney

What are the possible remedies for a contract formed under duress? Choose 3 answer choices. a. Allow duress as a defense for breach of contract. b. Make the contract voidable. c. Rescind the contract. d. Enforce the contract.

a. Allow duress as a defense for breach of contract. b. Make the contract voidable. c. Rescind the contract.

Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices. a. Isabel must let gym staff know she is terminating the contract. b. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. c. Isabel can choose to disaffirm the gym membership portion of the contract and retain the employment terms. d. Isabel must wait until she turns 18 to disaffirm the contract.

a. Isabel must let gym staff know she is terminating the contract. b. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract.

How may an offer be terminated? Choose 3 answers. a. A reasonable amount of time has passed. b. The offeree may make a counteroffer. c. An offeror may terminate an offer by revocation. d. A competitor to the offeror can issue a better offer for the same product or service.

a. A reasonable amount of time has passed. b. The offeree may make a counteroffer. c. An offeror may terminate an offer by revocation.

In general, which of these contract terms is NOT required to meet the requirement of definiteness? a. Acceptance b. The parties involved c. The time of payment d. The subject matter of the contract

a. Acceptance

Alfred is having trouble with his car so he visits his friend Glen, who is a mechanic, for some free advice. Alfred asks Glen just to look at the car and determine what is wrong, but not to fix it. Glen looks at the car, determines the problem, and repairs the car using parts and materials he already had in his garage. Alfred takes the car out for a test drive, and it performs better than it ever has. Alfred tells Glen that because Glen fixed his car, when Alfred gets paid again he will buy Glen the new torque wrench that Glen has been wanting. A week later, Glen asks Alfred about the torque wrench, and Alfred tells Glen that he has changed his mind. If Glen sues Alfred to enforce his promise to buy Glen the torque wrench: a. Alfred will win because the act of repairing Alfred's car is past consideration, and therefore no valid contract was formed. b. Glen will win because all the elements required for a valid contract are present. b. Glen will win because consideration flowed from each party, and therefore a valid contract was formed. a. Alfred will win because the contract between Glen and Alfred was not in writing, and therefore not valid.

a. Alfred will win because the act of repairing Alfred's car is past consideration, and therefore no valid contract was formed.

What must be included in a contract to satisfy the requirement that it be in writing? Choose 3 answers. a. All of the parties to the contract must be named in the writing. b. Consideration to be paid must be defined in the contract. c. Both parties to the contract must have signed the writing. d. The subject matter of the contract must be identified.

a. All of the parties to the contract must be named in the writing. b. Consideration to be paid must be defined in the contract. d. The subject matter of the contract must be identified.

Geraldo is the owner/manager of Geraldo's Cleaning Service, a firm that cleans office building. Geraldo has a team of seven employees who do a fantastic job. To encourage them to keep up the good work, Geraldo tells his employees that if they continue to work hard until the end of the quarter and if he is pleased with his profits at the end of the quarter, he will give them each a $100 bonus. At the end of the quarter, the company's profits were extremely high. Will Geraldo have to make good on his promise of a $100 bonus for each employee? a. No, Geraldo will not have to award the bonuses because his offer of a $100 bonus if he is pleased with his profits was an illusory promise. b. No, Geraldo will not have to award the bonuses because the work of the employees is not valid consideration. c. Yes, Geraldo will have to award the bonuses because the work of the employees is valid consideration. d. Yes, Geraldo will have to award the bonuses because profits were extremely high.

a. No, Geraldo will not have to award the bonuses because his offer of a $100 bonus if he is pleased with his profits was an illusory promise.

Before surgery a doctor makes a patient sign a contract with an exculpatory clause. Will it be enforceable if the doctor is negligent? a. No, because non-negligent medical care is in the public's best interest. b. No, because exculpatory clauses may not excuse negligence. c. Yes, because the parties have equal bargaining power and the patient could go to another doctor. d. Yes, because there is freedom of contract.

a. No, because non-negligent medical care is in the public's best interest.

What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers. a. Promises must be made with voluntary consent. b. Consideration must be a promise to pay money. c. Promises exchanged may not be a preexisting duty. d. Items or promises exchanged must be of nearly equal value.

a. Promises must be made with voluntary consent. c. Promises exchanged may not be a preexisting duty.

If the terms of an agreement seem to be very one-sided, which public policy could it be violating? Choose 2 answer choices a. Substantive Unconscionability b. Duress c. Mutual mistake d. Restraint of Trade

a. Substantive Unconscionability d. Restraint of Trade

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? a. The contract must be objectively impossible to perform within one year. b. The contract must be unlikely to be performable in less than one year. c. The contract must be able to be performed in less than one year. d. The contract start date must be more than one year from the date of signing.

a. The contract must be objectively impossible to perform within one year.

Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices. a. The parties might wish to avoid a lawsuit. b. Accord and satisfaction is a legal method to force both parties to perform the terms of the original instrument. c. The parties could wish to end the obligation without further conflict. d. The parties could use it as a first step to filing a lawsuit.

a. The parties might wish to avoid a lawsuit. c. The parties could wish to end the obligation without further conflict.

What elements are required for an offer to be effective under the common law? Choose 3 answers. a. The terms of the offer must be reasonably definite so that all parties understand them. b. The offer must be communicated to the offeree. c. The offeror must intend to be bound by the offer. d. The offer must be irrevocable for a set period of time to allow acceptance.

a. The terms of the offer must be reasonably definite so that all parties understand them. b. The offer must be communicated to the offeree. c. The offeror must intend to be bound by the offer.

In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices. a. When the unjust enrichment is a relatively insignificant amount of money b. When the party provided the services for unwilling recipients c. If the defendant was unjustly enriched and played a part in deceiving the plaintiff d. If the defendant did not know the plaintiff would expect to be paid for the services

a. When the unjust enrichment is a relatively insignificant amount of money c. If the defendant was unjustly enriched and played a part in deceiving the plaintiff

The mirror image rule requires: a. acceptance to be on exactly the same terms as the offer. b. acceptance to be on substantially similar terms as the offer. c. acceptance to be on any terms of the offeree. d. acceptance to be given within one week of the offer.

a. acceptance to be on exactly the same terms as the offer.

What are the elements of consideration? Choose 2 answer choices. a. an exchange to which the parties agree b. past consideration c. a preexisting duty d. something of value from each party

a. an exchange to which the parties agree d. something of value from each party

Owen offers to sell his motorcycle to Julian for $5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his motorcycle to Julian: a. as long as Julian has not yet accepted the offer. b. even after Julian has accepted but before Julian has delivered the money to Owen. c. at no time, because offers to sell merchandise are irrevocable. d. anytime, whether or not Julian has accepted the offer.

a. as long as Julian has not yet accepted the offer.

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. a. contracts for the sales of land b. collateral promises to pay the debt of another person c. promises made in consideration of marriage d. contracts for the sale of goods priced at $1,000 or more

a. contracts for the sales of land b. collateral promises to pay the debt of another person c. promises made in consideration of marriage

The following types of contracts are generally unenforceable: (Choose 2 answers) a. exculpatory clauses for intentional torts b. unconscionable contracts c. contracts with exculpatory clauses for negligence d. adhesion contracts

a. exculpatory clauses for intentional torts b. unconscionable contracts

Carol and Al enter into a contract for the sale of a painting. Carol pays Al the asking price and Al delivers to Carol the painting. This contract is an: a. executed contract. b. executory contract. c. illusory contract. d. implied contract.

a. executed contract.

If the requirements are met, which of the following will allow parties to enforce a promise that is otherwise not supported by consideration? a. promissory estoppel b. accord and satisfaction c. res judicata d. respondeat superior

a. promissory estoppel

To succeed on a promissory estoppel claim, and plaintiff must show: (Select all that apply) a. the defendant made a promise to the plaintiff b. the plaintiff expected payment from the defendant. c. the plaintiff relied on the defendant's promise. d. the plaintiff received a benefit from the defendant e. the defendant knew the plaintiff would rely on the promise.

a. the defendant made a promise to the plaintiff c. the plaintiff relied on the defendant's promise. e. the defendant knew the plaintiff would rely on the promise.

Non-compete agreements which limit an employee's right to obtain employment elsewhere upon leaving are only valid if: (Select two) a. they are limited in time and geographic scope b. they are reasonably necessary for the protection of the employer c. the non-compete clause is contained in the employee handbook and are equally applied to all employees. d. they are not ancillary to employment.

a. they are limited in time and geographic scope b. they are reasonably necessary for the protection of the employer

If Ramona changes her will at age 88 to leave the bulk of her fortune to her home health care nurse instead of her children, what factor will the courts consider in judging whether or not her will is valid? a. undue influence b. duress c. mistake d. fraudulent misrepresentation

a. undue influence

Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets: a. violates the statute of frauds, and is, therefore, unenforceable. b. does not violate the statute of frauds because it is not for the sale of real estate. c. does not violate the statute of frauds because it can be completed within one year. d. does not violate the statute of frauds, and is, therefore, enforceable.

a. violates the statute of frauds, and is, therefore, unenforceable.

A creditor on a liquidated debt of $1 million may agree to take which of the following from the debtor in satisfaction of that debt? (Select all that apply) a. $500,000 b. 100 cents on the dollar c. a horse in exchange for the $1 million that is due d. a promise by the debtor not to engage in any illegal behavior

b. 100 cents on the dollar c. a horse in exchange for the $1 million that is due

Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices. a. Several separate documents written over time b. A check c. An email d. An invoice

b. A check c. An email d. An invoice

Which of the following is a valid offer? a. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. b. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded. c. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. d. Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price.

b. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

Which of the following statements is an offer? a. There is no way I could sell my house for less than $400,000. b. I am thinking about selling my house for $400,000. c. House for sale! Asking $400,000. d. I will sell you my house for $400,000.

d. I will sell you my house for $400,000.

Marco hires Franco to burn down a clothing store that belongs to one of Marco's competitors. Marco pays Franco $1,000 upfront and promises another $3,000 when the job is done. Franco burns down the clothing store and then asks Marco for the rest of the payment. Marco just laughs at Franco and walks away. If Franco sues Marco for payment under the contract: a. Marco will not have to pay because of the lack of competent parties. b. Marco will not have to pay because the subject matter of the contract is illegal. c. Marco will have to pay because all the elements of a contract have been met. d. Marco will not have to pay because the agreement lacks consideration.

b. Marco will not have to pay because the subject matter of the contract is illegal.

Which type of lack of capacity is easiest to prove? a. Mental incompetence b. Minor status c. Intoxication d. Contracting for necessities

b. Minor status

What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers. a. The enriching party is negligent. b. One party is being enriched at the expense of the other. c. The courts determine that an enforceable contract exists. d. The enriched party knows about the benefit and keeps it.

b. One party is being enriched at the expense of the other. d. The enriched party knows about the benefit and keeps it.

How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices. a. Similar to bankruptcy, the debt is forgiven with accord and satisfaction. b. The UCC provides debtors a way to prove accord and satisfaction. c. The parties can agree to discharge the instrument for less than the stated amount. d. Accord and satisfaction offers guidelines regarding how the parties should discharge the debt.

b. The UCC provides debtors a way to prove accord and satisfaction. c. The parties can agree to discharge the instrument for less than the stated amount.

In what situation is a minor most likely to be able to terminate a contract? a. When the minor purchases food b. When a minor orders books for school c. When a minor lied about his or her age when making the contract d. A minor entering into a marriage contract

b. When a minor orders books for school

If a buyer agrees to purchase "all the widgets I require" and the seller agrees to sell him "all the widgets you require" is there sufficient consideration? a. No, this is illusory. b. Yes, because this is a requirements contract. c. Yes, because this is an output contract. d. No, because without knowing the number of widgets, there can be no bargained-for exchange.

b. Yes, because this is a requirements contract.

An agreement will lack consideration if: a. a person settles a disputed claim through an accord and satisfaction. b. a person makes a promise in return for an act which has already taken place. c. a person performs an act required by an offer. d. a person makes a promise in return for an act which is yet to take place.

b. a person makes a promise in return for an act which has already taken place.

Which of the following creates a bilateral contract? a. a competition with prizes b. a sale of goods with payment at delivery c. lottery tickets d. reward posters

b. a sale of goods with payment at delivery

What is the term for the legal ability to enter into a binding contract? a, legal capability b. contractual capacity c. emancipation d. mental competence

b. contractual capacity

A contract for a purpose that causes the parties to violate a law is: a. illegal and dischargeable. b. illegal and void. c. enforceable as a quasi-contract. d. illegal and voidable.

b. illegal and void.

Ellen offers to sell her 1997 Mustang convertible to Fred for $2,000. Fred agrees to pay $2,000 for Ellen's Mustang. Before Fred picks up the Mustang, Ellen discovers that the Mustang is considered a classic car and is worth much more than $2,000. Ellen refuses to sell the Mustang to Fred, stating that the consideration is insufficient. If Fred tries to enforce the deal by taking Ellen to court: a. the court would not enforce the deal because $2,000 is too low to be valid consideration. b. the court would probably enforce the deal because there was valid consideration on both sides. c. the court would probably enforce the deal because the amount of consideration is never an issue. d. the court would probably not enforce the deal because there is no consideration flowing from Ellen to Fred.

b. the court would probably enforce the deal because there was valid consideration on both sides.

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices. a. If the contract is in writing, not all terms are required to be included. b. Courts can rewrite contracts even if the intent is vague. c. Courts can complete a contract to supply some missing items. d. Sales contracts under the UCC

c. Courts can complete a contract to supply some missing items. d. Sales contracts under the UCC

Sophia just moved into her first apartment and has no furniture. Sophia visits The Furniture Showcase and finds some great bedroom and living room furniture. Sophia does not have the money to purchase the furniture, so the sales clerk presents Sophia with a retail installment sales contract. The contract calls for monthly payments until the purchase price is paid in full, and also includes annual interest at a rate of seventeen percent. Sophia knows that interest rates in her state are capped at ten percent by law, but she really needs the furniture so she signs the agreement. If Sophia later contests the amount of interest and wins, The Furniture Store may forfeit: a. the illegal interest. b. the illegal interest, all interest, or, in some states, the entire loan. c. the entire loan. d. all interest.

b. the illegal interest, all interest, or, in some states, the entire loan.

In an auction, the bidder is: a. seller. b. the offeror. c. the offeree. d. counter-offeror.

b. the offeror.

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words? a. bilateral contract b. unilateral contract c. executed contract d. open contract

b. unilateral contract

Contests, lotteries, and competitions with prizes are common examples of: a. bilateral contracts. b. unilateral contracts. c. implied in law contracts. d. void contracts.

b. unilateral contracts.

What type of contract exists when at least one party has the option of canceling it? a. void b. voidable c. bilateral d. unenforceable

b. voidable

Which act or statement is a valid offer? a. A price quote b. A typical advertisement c. A detailed advertisement d. A completed auction with a reserve

c. A detailed advertisement

Which statement is true about the ability of minors to enter into contracts? a. A minor may enter into a contract only if the minor has an adult co-signer. b. A minor cannot legally enter into contracts. c. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors. d. A minor may enter into a contract but must ratify it within one year of the date of the contract.

c. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

A police officer who finds a missing child as part of his duties may not collect any reward for finding the child. Why? a. Because the officer did not accept the offer prior to finding the child. b. Because the officer did not promise to perform the act. c. Because the officer already had a pre-existing duty to do so. d. Because the reward is not a valid offer.

c. Because the officer already had a pre-existing duty to do so.

When may a revocable offer effectively be revoked? a. At any time. b. After a counter offer has been made. c. Before the offeree accepts. d. Anytime after it has been converted into an options contract.

c. Before the offeree accepts.

What is the term for evidence of communication between parties to a contract that is not included in the contract? a. incomplete contracts b. prior dealing c. parol evidence d. promissory estoppel

c. parol evidence

What evidence outside of the written contract is a party allowed to present? Choose 2 answer choices. a. Evidence showing an agreement that is different from the contract that the parties agreed to before the contract was signed b. Verbal negotiations leading to the signing of the contract c. Evidence to prove agreement on an essential element of the contract d. Evidence showing a change to the contract after it is signed

c. Evidence to prove agreement on an essential element of the contract d. Evidence showing a change to the contract after it is signed

Quon decides to sell his antique roadster, so he places an ad on Craigslist. He lists the roadster as a 1957 Mercedes Benz 300SL Roadster, describes it as in good working condition, and states that no reasonable price will be refused. Fern responds to the ad and offers to pay $25,000 to Quon for the car, which Quon agrees to. In this scenario, who is the offeror? a. Neither party is the offeror because there is no agreement to specific terms. b. Quon was the original offeror, but Fern becomes the offeror when she offers $25,000. c. Fern is the offeror. d. Quon is the offeror.

c. Fern is the offeror.

Anna purchases a wedding dress and takes the dress to Jessica for alteration. Anna and Jessica agree that Anna will pay Jessica $75 for the alterations. After Jessica begins working on the dress, she has second thoughts. Jessica contacts Anna and advises her that the alternations will cost $150 instead of $75. Because Anna's wedding is in just two weeks, Anna reluctantly agrees. Once the alterations are completed, Anna pays Jessica the $75 originally agreed on. Is Jessica entitled to the additional $75? a. Yes, Jessica is entitled to the additional $75 because Anna agreed to it, forming a valid contract. b. Yes, Jessica is entitled to the additional $75 because the original contract contained insufficient consideration. c. No, Jessica is not entitled to the additional $75 because there is no additional consideration for the revision to the contract. d. No, Jessica is not entitled to the additional $75 because contracts cannot be altered once the terms are agreed on.

c. No, Jessica is not entitled to the additional $75 because there is no additional consideration for the revision to the contract.

Which situation would be considered sufficient consideration for a contract to exist? a. Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work within a reasonable time if Tonya pays her a bonus. b. Alice promises to give her granddaughter $10,000. c. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore. d. Alice's grandson quit smoking, so Alice promises to give him $5,000.

c. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices. a. The contract is void if Samuel was incompetent at the time the contract was formed. b. The contract is voidable if a court has previously determined Samuel to be mentally incompetent. c. The contract is void if Samuel has been previously determined to be mentally incompetent. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.

c. The contract is void if Samuel has been previously determined to be mentally incompetent. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.

Nadine visits Urban Air, a trampoline park. Before Nadine can enter the trampoline park, Urban Air requires her to sign a release stating that Urban Air will not be held responsible for any injury of any kind that Nadine incurs while on Urban Air property, no matter what the cause of the injury is. While Nadine is jumping on a trampoline, her boyfriend Trevor joins her. Trevor's ex-girlfriend Valarie, who is an Urban Air employee, becomes enraged and pushes Nadine off the trampoline. Nadine breaks an arm in the incident. Who can Nadine sue for her injuries? a. Nadine cannot sue anyone because she signed a release of liability form. b. Urban Air only c. Valarie and Urban Air d. Valarie only

c. Valarie and Urban Air

Robert inherited lots of antique tools when his father died. Because Robert is not interested in woodworking, he decides to sell several of the tools. Robert agrees to sell an antique hand-held wood planer to Geoffrey for $50. After agreeing to the deal, Robert discovers that the planer is a pre-WWII Norris Jointer Planer worth over $5,000, and refuses to sell the planer to Geoffrey. Can Geoffrey enforce the deal? a. Yes, Geoffrey can enforce the deal but only if Geoffrey was not aware of the true value of the planer. b. No, Geoffrey cannot enforce the deal because Robert was unaware of the true value of the planer. c. Yes, Geoffrey can enforce the deal because the contract contained valid consideration. d. No, Geoffrey cannot enforce the deal because the amount of consideration is insufficient.

c. Yes, Geoffrey can enforce the deal because the contract contained valid consideration.

If unforeseen difficulties arise during the performance of a contract, may the parties change the terms of the contract without giving additional consideration? a. Yes, but only if the modification is a rescission of the contract. b. No, at least one of the parties must provide additional consideration. c. Yes, if the modification is fair and equitable. d. No, both parties must provide new consideration.

c. Yes, if the modification is fair and equitable.

Nadia needs help running her bakery. Nadia contacts her friend Zoey, who has baking experience but lives in another state, and offers Zoey a job. Nadia orally promises Zoey that she will employ Zoey for at least two years. Zoey quits her job in the other state, moves her family, and begins to work for Nadia. After three months, Nadia terminates Zoey's employment. Zoey sues Nadia, claiming they had a contract for two years. If Nadia defends the lawsuit by claiming the contract could not be enforced because it violates the statute of frauds, the court will likely hold in favor of: a. Nadia, under the theory of promissory estoppel. b. Zoey, because the agreement violated the statute of frauds. c. Zoey, under the theory of promissory estoppel. d. Nadia, because enforcement of the promise is necessary to avoid injustice.

c. Zoey, under the theory of promissory estoppel.

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called: a. adhesion. b. usury. c. duress. d. undue influence.

c. duress.

If two parties have an on-going oral agreement that one will ship and the other will accept 50 pounds of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce: a. fails as an acceptance for lack of timeliness. b. cannot be held against them as acceptance of an offer. c. qualifies as acceptance of that week's delivery offer. d. does not qualify as a valid acceptance of the offer.

c. qualifies as acceptance of that week's delivery offer.

The weekly Kroger advertisement states that five-pound chubs of ground chuck are available for eighty-nine cents per pound. Arlene sees the advertisement; she realizes that ground chuck has not been priced this low in quite some time, so she hurries to the store to purchase some. Arlene loads seven chubs of ground chuck in her shopping cart. When she goes to the checkout to pay, however, the cashier informs Arlene that the price in the advertisement is a typo and that the correct price is $1.89 per pound. Arlene insists that the store must honor the price listed in the advertisement, because it is an offer that she has just accepted. The cashier calls the store manager for a decision. The store manager will likely explain to Arlene: a. that the advertisement is a valid offer because it is in writing. b. that the advertisement is a valid offer because its terms are definite. c. that advertisements are not offers, but merely a request for offers. d. that the advertisement is a valid offer, and the store must honor the price in the advertisement.

c. that advertisements are not offers, but merely a request for offers.

Milo is the owner of a sporting goods store that has only been open for three months. The holiday season is coming up, and Milo realizes that he will need extra help. Milo asks his friend Jess to help him out at the store. Milo and Jess agree that Jess will work during the months of November and December. However, because Milo is unsure how much help he will need and how much he will be able to pay, they agree to decide each week on the hours that Jess will work for the following week, and to decide the hourly rate after Jess has worked two weeks before she receives her first paycheck. Just before November 1, Jess takes a job at another store. If Milo tries to sue Jess for breach of contract, the court will probably decide: a. that the parties had a contract, and Jess breached the contract. b. that the parties had no contract because the terms were not in writing. c. that the parties had no contract because the terms of the offer were not definite. d. that the parties had a contract, but the damages could not be ascertained because the hourly rate and number of hours had not been determined.

c. that the parties had no contract because the terms of the offer were not definite.

In a contract where the payment is broken down such that 80 percent of the cost is for materials and 20 percent is for installation of those materials, the contract will be governed by: a. both the common law and the UCC. b. neither the common law nor the UCC. c. the UCC. d. the common law.

c. the UCC.

An insurance contract may be unlawful if: a. it is taken out by a person on a business partner. b. it is taken out by a child on the life of their parent. c. the person taking out the policy does not have an insurable interest in the subject of the contract. d. it is for an amount higher than the value of the person's life that is the subject of the policy.

c. the person taking out the policy does not have an insurable interest in the subject of the contract.

Brindley has an old shed on her property that needs to be removed. She posts the following ad on Facebook: "Shed needs to be gone. You take down and haul away. (Much of the wood is reusable.) $100 to the first person to show up and haul this away." This is an example of a(n): a. unconscionable contract. b. bilateral contract. c. unilateral contract. d. illegal contract.

c. unilateral contract.

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? a. fraudulent b. quasi c. voidable d. void

c. voidable

Must all terms of a deal be included in an offer? a. Yes, an offer is not complete unless all terms are included. b. No, unless the offeror purposely leaves terms of the offer ambiguous. c. Yes, unless it is an offer for services in which case some terms can be filled in later. d. No, but the terms required will depend on the type of contract.

d. No, but the terms required will depend on the type of contract.

Are gambling contracts illegal? a. No, and judgments can be enforced in all jurisdictions. b. No, but judgments cannot be enforced out of the state in which the wager was made. c. Yes, unless the gambling takes place across state lines such as online wagers. d. Yes, unless they are specifically authorized by state statute.

d. Yes, unless they are specifically authorized by state statute.

In a bilateral contract, the consideration which supports the forming of the contract is: a. a past act. b. an act. c. a past promise. d. a promise to perform.

d. a promise to perform.

If an individual shopping for groceries opens a bottle of water from their cart and drinks it before they have paid for their items: a. a bilateral contract has been created. b. a voidable contract has been created. c. a unilateral contract has been created. d. a quasi-contract has been created.

d. a quasi-contract has been created.

Maryanne offers to sell her 2015 Mustang convertible to April for $15,000, and April agrees to those terms. April brings the $15,000 to Maryanne, and Maryanne promises to deliver the Mustang to April the next day after she has it detailed. At this point, Maryanne and April have: a. an executed contract. b. no contract. c. a unilateral contract. d. an executory contract.

d. an executory contract.

Don and Kim have entered into a contract for the purchase of a car. Don has paid money for the car, but Kim has not yet delivered it. This is an: a. implied contract. b. executed contract. c. illusory contract. d. executory contract.

d. executory contract.

Substantive unconscionability in a contract means the contract: a. occurs when one side unfairly surprises the other. b. does not allow due process for the parties to the contract. c. is on a "take it or leave it" basis. d. has terms that are unfairly one-side.

d. has terms that are unfairly one-side.

In order for an accord and satisfaction to be valid, the debt must be: a. liquidated. b. over a year old. c. of fair market value for the exchange that took place. d. unliquidated.

d. unliquidated.

A contract for an illegal purpose is: a. dischargeable. b. enforceable as a quasi-contract. c. voidable. d. void.

d. void.