Chapter 9 intro into contracts
CASE STUDY: Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max, one of Debby's students, went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he ended up being more trouble than he was worth, and the contract was not in writing. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.
84. Which of the following is correct regarding Brenda's statement that there was no contract? .B. Betty is incorrect because there was a bilateral, express agreement. 85. Which of the following is an appropriate characterization of the agreement between Debby and Max? D. They had a unilateral, express agreement. 86. Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges? E. He is incorrect because there was a binding implied contract.
CASE STUDY: Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny.
87. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job? A. The contract was executory. 88. Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson? E. She is incorrect. The neighbor will not be required to pay Jackson. 89. Which of the following is true regarding Jackson's assertion that Penny must pay him? . E. He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint.
CASE STUDY: Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars that are under two years old. To spice things up, he also offers to sell any car on the lot that is less than five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person, usually around the waist.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and the hula hoop opportunity in the local newspaper. The promotion went over very well. Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it ran or not. She was going to talk to her parents. Walter eventually approached her, and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. She completed the hula hooping and asked for her car for $1,000. Walter refused saying that the offer was revoked. Barbara sued Walter, and Walter sued Zack and Sally
90. Which of the following is the likely result in the lawsuit brought by Sam complaining that Walter ran out of cars available for a rebate? E. Sam will lose because a court would interpret the intent of Walter as being to invite readers to make an offer that Walter was free to reject. 91. What is the likely result in Walter's lawsuit against Sally in which he claims that she must pay $3,000 for the car at issue? A. Walter will win because Sally made an offer that he properly accepted. B. Walter will win because Sally agreed to pay a reasonable amount for the vehicle. C. Walter will lose because he did not properly accept Sally's offer. D. Sally will win because she merely expressed interest and did not make an offer. E. Sally will win because no contract was in writing 92. What is the likely result in the lawsuit brought by Walter against Zack? A. Walter will win because Zack properly made an offer that Walter accepted. B. Zack will win because he was merely expressing possible interest. C. Zack will win because Walter did not properly accept. D. Zack will win because under a subjective standard he was joking. E. Zack will win because under an objective standard it appears he was joking. 93. What is the most likely result in the lawsuit brought by Barbara against Walter? A. Walter will win because he was only engaged in preliminary negotiations. B. Walter will win because the advertisement was simply inviting customers, such as Barbara, to make an offer. C. Walter will win because he properly revoked the offer. D. Barbara will win because the ad would be treated as an offer that she properly accepted. E. Barbara will win because she properly made an offer that was accepted by Walter when he allowed her to continue hula hooping.
CASE STUDY: Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. When she got it home, she discovered that it actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling "I revoke." Barry, however, immediately after, yelled "Sold." Barry sues Chris attempting to obtain the money for the engagement ring. Mary sues Barry attempting to obtain possession of the table.
94. In the lawsuit in which Barry sues Helen for return of the $5,000 which of the following is the most likely result? A. Barry will win because when an auction is held without reserve, the auctioneer is entitled to repossess any item at will. B. Barry will lose only because he was not the actual seller. He was only selling at auction for someone else. The seller, however, would win in an action against Helen. C. Barry would win because Helen made an insufficient offer. D. Helen will win only if she can show that Barry had knowledge that cash was in the drawer before he sold it. E. Helen will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck 95. What is the likely result in the lawsuit brought by Mary against Barry for the table? A. Barry will win because Mary was simply making an offer that he was free to decline. B. Barry will win because the price was clearly insufficient for the table. C. Barry will win because no acceptance occurred. D. Mary will win because the auction was without reserve, and Barry had agreed to accept the highest bid. E. Barry will win because he did not inform attendees in writing that the auction was without reserve. 96. What is the likely result in the lawsuit Barry brought against Chris? A. Chris will win because he properly revoked his bid before it was accepted. B. Chris will win because bids made at an auction may be revoked at anytime within ten days after the auction. C. Chris will win because bids made at an auction may be revoked at anytime within five days after the auction. D. Chris will win because bids made at an auction may be revoked at anytime within one day after the auction. E. Barry will win because Chris had no right to revoke the bid.
The part of the Uniform Commercial Code that is relevant to contracts is Article ___. A. 2 B. 3 C. 4 D. 5 E. 6
A. 2
Which of the following is true under the UCC regarding an offeror's ability to revoke an offer? A. A promise to hold an offer for the sale of a good open for a specified period cannot be revoked if it is made in writing and signed by a merchant. B. A promise by anyone to hold an offer for the sale of a good open for a specified period cannot be revoked if it is made in writing. C. A promise to hold an offer for the sale of a good open for a specified period cannot be revoked if it is made by a merchant regardless of whether or not a writing is made. D. A promise to hold an offer for the sale of a good open for an indefinite period cannot be revoked under any circumstances because the sale of a good is involved. E. A promise to hold an offer open for a specified time cannot be revoked under any circumstances regardless of whether a good is involved.
A. A promise to hold an offer for the sale of a good open for a specified period cannot be revoked if it is made in writing and signed by a merchant.
Which of the following is the first element of a contract? A. An agreement. B. Intent. C. An offer. D. An acceptance. E. A writing.
A. An agreement.
An ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. A. Contract B. Offer C. Consideration D. Acceptance E. Legal object
A. Contract
Which of the following is the reason the Uniform Commercial Code was drafted? A. Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce. B. Some states had no law governing contracts. C. Federal law governing contracts was difficult to apply. D. The Uniform State Act on laws was not working. E. The Restatement of the Law Second, Contracts was not being evenly and fairly applied.
A. Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce.
As long as some of the duties under a contract have not yet been performed, the contract is considered __________________. A. Executory B. Executed C. Anticipatory D. Ended E. Stopped
A. Executory
If the subject matter of an offer is destroyed, the offer _________. A. Immediately terminates B. Is extended for seven days C. Is extended for fourteen days D. Is extended for twenty-one days E. Is extended for thirty days
A. Immediately terminates
In which of the following does a contract arise not from words but from the conduct of the parties? A. Implied contracts. B. Express contracts. C. Liquidated contracts. D. Bilateral contracts. E. Unilateral contracts.
A. Implied contracts
Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder? A. Negotiable instrument. B. Informal contracts. C. Simple contracts. D. Letters of credit. E. Formal contracts.
A. Negotiable instrument
Constance asks Kathy if Kathy will sell her used business book for $50. What is the status of the negotiations? A. No offer has been made. B. An offer has been made, but it may be revoked. C. An offer has been made that may not be revoked. D. A contract has been entered into. E. A contract has been entered into, but it may be set aside at the option of either party.
A. No offer has been made.
The person who agrees to the terms of an offer by another a party is called the ___________. A. Offeree B. Offeror C. Agreeor D. Agree E. Inquiror
A. Offeree
Which of the following is sometimes referred to as an implied-in-law contract? A. Quasi-contracts. B. Express contracts. C. Implied-in-fact contracts. D. Express contracts and implied-in-fact contracts. E. Express contracts and quasi-contracts
A. Quasi Contracts
Which of the following is true regarding when an offer may be rejected by an offeree? A. Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated. B. An offer must remain open for at least one day before an offeree may reject it. C. An offer must remain open for at least two days before an offeree may reject it. D. An offer must remain open for at least three days before an offeree may reject it. E. An offer must remain open for at least four days before an offeree may reject it.
A. Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.
Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute? A. The Restatement Second of the Law of Contracts. B. The Convention on Contracts for International Sales of Goods. C. Common law. D. Both common law and the Convention on Contracts for International Sales of Goods. E. Both the Convention on Contracts for International Sales of Goods and the Restatement Second of the Law of Contracts.
A. The Restatement Second of the Law of Contracts.
If the subject matter of an offer becomes illegal, what is the result? A. The offer immediately terminates. B. There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal. C. There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal. D. There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal. E. There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.
A. The offer immediately terminates.
Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. Which of the following is correct regarding the status of the proposed book sale? A. There is no contract because silence, as a general rule, cannot be used to form a contract. B. There can be no contract because the offer was not made in person. C. There can be no contract because the offer was not made in writing. D. Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. E. Janice can avoid there being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.
A. There is no contract because silence, as a general rule, cannot be used to form a contract.
A contract is _______________ if one or both of the parties have the ability to either withdraw from the contract or enforce it. A. Voidable B. Executory C. Implied D. Executed E. Void
A. Voidable
Harry promises to pay Frank $2,000 for a used car. At what point is there a binding contract? A. When the agreement is made. B. When the money is paid. C. When the car is delivered. D. Ten days after the car is delivered and approved. E. Twenty days after the car is delivered and approved.
A. When the agreement is made.
Which of the following consists of an offer by one party and an acceptance of the terms by another party? A. Legal object. B. Agreement. C. Coherence. D. Alliance. E. Concurrence
B. Agreement.
Which of the following are the two most important sources of contract law? A. Case law and the Restatement of Law. B. Case law and the Uniform Commercial Code. C. The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods. D. Case law and the Convention on Contracts for International Sales of Goods. E. The Convention on Contracts for International Sales of Goods and the Restatement of the Law, Contracts.
B. Case law and the Uniform Commercial Code.
Once all of the terms of the contract have been fully performed, the contract is said to be _____________. A. Executory B. Executed C. Anticipatory D. Ended E. Stopped
B. Executed
Which of the following have all their terms clearly set forth in either written or spoken words? A. Implied contracts. B. Express contracts. C. Liquidated contracts. D. Bilateral contracts. E. Unilateral contracts.
B. Express contracts.
Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement? A. Gretchen is incorrect because there is a binding bilateral contract. B. Gretchen is incorrect because there is a binding unilateral contract which Haley accepted by performing. C. Gretchen is correct because there is no binding bilateral contract. D. Gretchen is correct because there is no binding unilateral contract. E. Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance
B. Gretchen is incorrect because there is a binding unilateral contract which Haley accepted by performing.
A ________________ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents. A. Letter of agreement B. Letter of credit C. Letter of acknowledgement D. Negotiated credit instrument E. Simple contract
B. Letter of credit
The person who makes an offer is called a _____________. A. Offeree. B. Offeror. C. Agreeor. D. Agree. E. Inquiror
B. Offeror.
Which of the following modifies the Mirror-Image Rule? A. The Absolute Business Code. B. The Uniform Commercial Code. C. The Governing Business Agreement. D. The International Business Code. E. The Corporate Business Arrangement.
B. The Uniform Commercial Code.
When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare with those for a valid offer? A. The basic requirements for a valid acceptance are materially different from those for a valid offer. B. The basic requirements for a valid acceptance parallel those for a valid offer. C. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be in writing. D. The basic requirements for a valid acceptance are different from those for a valid offer only because an acceptance must be in writing E. The basic requirements for a valid acceptance are different form those for a valid offer only because an offer must be revoked immediately but acceptance can be withheld for a reasonable period of time.
B. The basic requirements for a valid acceptance parallel those for a valid offer.
Which of the following is a measure of recovery when a quasi-contract is involved? A. The amount set forth in the contract. B. The fair market value of the matter involved. C. The wholesale price of any good involved. D. The amount sought by the plaintiff in the Complaint. E. Damages will be computed the same as they are computed for any other contract.
B. The fair market value of the matter involved
Which of the following refers to the right of an offeror to revoke an offer? A. The offeror is the "controller of his offer. B. The offeror is the "master of his offer." C. The offeror is the "proponent of his offer." D. The offeror is the "adjudicator of his offer." E. The offeror is the "arbiter of his offer.
B. The offeror is the "master of his offer."
Which of the following is a way in which an offeree can manifest intent to enter into a contract? A. By performance only. B. By a return promise only. C. By performance or by a return promise. D. By performance, by a return promise, or by a counteroffer. E. By a signed writing only
C. By performance or by a return promise.
The law of contracts is primarily _______________ law. A. Civil B. Statutory C. Common D. Restated E. Modified
C. Common
Which of the following is true regarding the Uniform Commercial Code? A. It has been adopted federally and is therefore applicable in all states. B. It has been individually adopted by all states completely and in the same manner. C. It became the law in each state that adopted it in whole or in part, and state laws differ somewhat. D. It was defeated and voted down by an act of Congress. E. It was replaced by the Restatement of the Law Second, Contracts.
C. It became the law in each state that adopted it in whole or in part, and state laws differ somewhat.
Which of the following references the requirement that a contract not be either illegal or against public policy? A. Consideration. B. Capacity. C. Legal object. D. Illegal prohibition. E. Ethical requirement
C. Legal object.
The __________ terms of a contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract. A. Important B. Significant C. Material D. Adequate E. Identifiable
C. Material
In which of the following ways can an offer terminate? A. Revocation by the offeror only. B. Revocation by the offeror, or rejection or counteroffer by the offeree only. C. Revocation by the offeror, rejection or counteroffer by the offeree, or destruction of the subject matter. D. Only by revocation by the offeror after it has been held open for five days. E. Only by revocation by the offeror after it has been held open for ten days.
C. Revocation by the offeror, rejection or counteroffer by the offeree, or destruction of the subject matter.
How many states still allow a contract without consideration to be enforced if it is under seal? A. Five. B. Eight. C. Ten. D. Twenty. E. Thirty.
C. Ten
Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of the offer? A. The Matching Rule. B. The Complete Rule. C. The Mirror Image Rule. D. The Exact Rule. E. The Parallel Rule.
C. The Mirror Image Rule.
Which of the following represents a problem occurring when a buyer and a seller purport to make an agreement, but pre-printed forms do not match? A. The parallel issue. B. The matching issue. C. The battle of the forms. D. The lack of completeness issue. E. The minor deviance issue.
C. The battle of the forms.
A valid contract may be _____________ when there is some law that prohibits the courts from enforcing it. A. Executed B. Executory C. Unenforceable D. Novated E. Condoned
C. Unenforceable
In a _____________ contract, the offeror wants a performance to form the contract. A. Trilateral B. Bilateral C. Unilateral D. Complete E. Anticipatory
C. Unilateral
A _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so. A. Contract under seal B. Voidable contract C. recognizance D. Implied-in-fact E. Informal contract
C. recognizance
In an auction ___________, the seller is treated as making an offer to accept the highest bid. A. Without controls B. With controls C. Without reserve D. With reserve E. Without qualifications
C. without reserve
Which of the following is a definition for consideration? A. Being cordial in the negotiation of contracts. B. Refraining from unethical behavior in the negotiation of contracts. C. Being both cordial and refraining from unethical behavior in the negotiation of contracts. D. A bargained-for exchange. E. A contract negotiated in person as opposed to by telephone or e-mail.
D. A bargained-for exchange.
A ______________ contract is commonly defined as a promise in exchange for a promise. A. Unilateral B. Trilateral C. Complete D. Bilateral E. Classified
D. Bilateral
In which of the following ways may an offeree accept a unilateral contract? A. By making a counteroffer. B. By a signed writing only. C. By either verbal acceptance or a signed writing. D. By performance. E. By performance, by a verbal acceptance, or by a signed writing
D. By performance.
The term __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made. A. Implied-in-fact contracts B. Implied-in-law contracts C. Contracts under wax D. Contracts under seal E. Contracts under pressure
D. Contracts under seal
Which of the following is an example of a formal contract? A. Contracts under seal. B. Executed contracts. C. Letters of credit. D. Contracts under seal and also letters of credit. E. Contracts under seal, letters of credit, and also executed contract
D. Contracts under seal and also letters of credit.
Which of the following represents the legal ability to enter into a binding agreement? A. Majority. B. Emancipation. C. Contractual knowledge. D. Contractual capacity. E. Informed consent
D. Contractual capacity.
Today's law of contracts originated from judicial decisions in ________. A. France B. Italy C. Spain D. England E. Switzerland
D. England
Which of the following provides that a revocation is effective only when received by the offeree? A. The Acceptance Rule. B. The Contract Rule. C. The Reasonable Rule. D. The Mailbox Rule E. The Contract Legality Rule.
D. Mailbox Rule
If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into a[n] ______________ contract with the offeror. A. Clear B. Explicit C. Unrevokable D. Option E. None of the above
D. Option
If a[n] __________ contract exists, the administrator of an offeror's estate must hold an offer open until it expires in accordance with the contract. A. Bilateral B. Unilateral C. Complete D. Option E. Bilateral or option
D. Option
Which of the following provides that an acceptance is valid when it is placed in the mailbox? A. The Acceptance Rule. B. The Contract Rule. C. The Reasonable Rule. D. The Mailbox Rule E. The Contract Legality Rule.
D. The Mailbox Rule
What was the result in the case in the text Lucy v. Zehmer involving whether allegations of joking prevented the formation of a contract? A. The court ruled that the contract would not be enforced because one of the parties was subjectively joking. B. The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that. C. The court ruled that the contract would not be enforced because the parties had been drinking although they were not intoxicated. D. The court ruled that the agreement would be enforced because under the applicable standard, it was not apparent that joking was involved. E. The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved.
D. The court ruled that the agreement would be enforced because under the applicable standard, it was not apparent that joking was involved.
All contracts can be categorized as either ___________ or ____________. A. Unilateral or complete B. Unilateral or trilateral C. Bilateral or trilateral D. Unilateral or bilateral E. Bilateral or complete
D. Unilateral or bilateral
A _____________ contract is one that contains all the legal elements of a contract. A. Voidable B. Executed C. Formal D. Valid E. Approved
D. Valid
If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________. A. Without controls B. With controls C. Without reserve D. With reserve E. Without qualifications
D. with reserve
Which of the following is true if no means of communicating an acceptance is specified in an offer? A. The acceptance must be in writing. B. The acceptance must be made verbally either by telephone or in person. C. No valid contract may be entered into because the offer must specify a means by which to accept. D. Acceptance may be made by any reasonable means. E. Acceptance must be made orally or in writing within twenty-four hours.
DOUBLE CHECK C. No valid contract may be entered into because the offer must specify a means by which to accept.
Which of the following is in effect not a contract at all? A. A voidable contract. B. An executory contract. C. An implied contract. D. An unenforceable contract. E. A void contract.
E. A void contract
Which of the following represents a lack of genuine assent? A. Acceptance secured through fraud. B. Acceptance secured through undue influence. C. Acceptance secured through misrepresentation. D. Acceptance secured through fraud or undue influence but not through misrepresentation. E. Acceptance secured through fraud, undue influence, or misrepresentation.
E. Acceptance secured through fraud, undue influence, or misrepresentation.
In the absence of a time condition in an offer, the offer will expire ___________. A. In forty-eight hours B. In seven days C. In thirty days D. In forty-five days E. After a reasonable amount of time
E. After a reasonable amount of time
Which of the following contracts are usually voidable? A. Contracts entered into as a result of fraud. B. Contracts entered into as a result of duress. C. Contracts entered into as a result of undue influence. D. Contracts entered into as a result of fraud or duress, but not undue influence. E. Contracts entered into as a result of fraud, duress, or undue influence.
E. Contracts entered into as a result of fraud, duress, or undue influence
Which of the following are examples of people who do not have the capacity to enter into legally binding contracts? A. Those under the age of majority. B. People suffering from mental illness. C. Intoxicated persons. D. People under the age of majority and people suffering from mental illness, but not intoxicated persons. E. People under the age of majority, people suffering from mental illness, and intoxicated persons.
E. People under the age of majority, people suffering from mental illness, and intoxicated persons.
Which of the following is false regarding how the Japanese tend to view contracts? A. The Japanese tend to view contracts as ongoing relationships. B. The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. C. The Japanese tend to be suspicious of long, detailed contracts. D. The Japanese have a preference for flexible contracts. E. The Japanese do not desire that any terms be left to be decided later.
E. The Japanese do not desire that any terms be left to be decided later.
What was the result in the case nugget, Lefkowitz v. Great Minneapolis Surplus Store, Inc., involving an advertisement for the sale of fur coats? A. The court ruled that the advertisement was not an offer because it involved a luxury good. B. The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted. C. The court ruled that the advertisement was not an offer because it was a ridiculously low offer which the plaintiff should have known was not to be taken seriously. D. The court ruled that the ad was not an offer because ads are never offers, only invitations for customers to make an offer. E. The court ruled that the ad was an offer and that the plaintiff properly accepted it.
E. The court ruled that the ad was an offer and that the plaintiff properly accepted it.
Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired? A. Forty-eight hours. B. Seven days. C. Thirty days. D. Forty-five days. E. There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer
E. There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer
When does formation of an agreement begin? A. When the offeree makes an offer to the offeror. B. When consideration is provided. C. When funds are transferred. D. When a writing is entered into. E. When the offeror makes an offer to the offeree.
E. When the offeror makes an offer to the offeree.
