Law Midterm

which of the following constitutes valid consideration

a promise to refrain from doing an act that can be lawfully done

which of the following is most likely to be a tort based on negligence

automobile accidents

the failure of a party to perform the obligations assumed under a contract is known as

breach of contract

which of the following statements is true of common law?

cases in common law are decided on the basis of precedents

all agreements are contracts

false

which of the following is true of the US supreme court?

it has appellate jurisdiction in cases based on the US consitution

the purpose of antitrust laws is to

promote competition among businesses

which of the following conditions is a prerequisite for any agreement to be legally enforceable

the parties entering into the agreement must have the mental capacity to contract

which of the following is true of administrative agencies

they can become specialist in a particular area of regulation

which of the following is true of state trial courts

they handle cases that are first instituted in them

advertisements and catalogs are examples of general invitations

true

an offer expresses the willingness of the offeror to enter into a contractual agreement

true

appellate courts include courts of appeals and supreme courts

true

if, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated

true

what is the difference between an agreement and a contract?

an agreement results whenever two people's minds meet on a subject, but a contract only exists when the parties intent to be legally obligated by the terms of the agreement

as a general rule, a promise must be supported by consideration. which of the following is an exception to the rule

an obligation of record such as a judgment

the most common type of relief that courts of equity provide is monetary damages

false

to recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff

false

a state administrative agency affects businesses throughout the country

flase

when one refrains or promises to refrain from doing something this conduct is known as

forbearance

a ___ contract must be in a special form or be created in a certain way

formal

which of the following is true of a binding contract

it is created when an offeree accepts an offer that has been properly communicated

which of the following is true of the doctrine of promissory estoppel

it requires the promisor to reasonably expect the promise to induce action by the promisee

a ___ is a court decision that determines the decision in a subsequent, similar case

precedent

when parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true

to be enforceable, there must be added features in the new contract benefiting both parties

a false statement made in the belief that it is true is known as innocent misrepresentation

true

a minor upon reaching the age of majority, must ratify none or all parts of a contract

true

consideration distinguishes mere agreements from legally enforceable obligations

true

if the supposed considerations consists merely of a promise to do what one is already legally obligated to do, consideration is invalid

true

when a contract is required to be sealed, a substitute for an actual seal may be used

true

contracts which are designed to limit competition are acceptable by law

false

mistakes such as duress and undue influence render contracts void

false

the "mailbox rule" does not apply in situations where the offeror does not receive the acceptance

false

the law states that a unilateral contract can be formed when performance is started

false

which of the following best describes the term "consideration"

it indicated what the promisor demands and receives as the price for a promise

an agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of

power over business practices

kenneth, 16 sells car to robin, 49. Robin sells the car to sarah, an innocent 2rd party, before kenneth can disaffirm the contract. In this case which of the following will hold true?

sarah can obtain good title to the property

the legal rate of interest is a rate

that is applied when no rate is specified

to recover for a tort based on negligence, the plaintiff must show

the breach of the tortfeaor's duty to the injured party

which of the following is true of appeals made to higher courts

the decision of the appellate court is binding on lower courts

the term disaffirmation refers to

the election to avoid a contract or set it aside

administrative agencies primarily set policy through the issuance of rules and regulations

true

an offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances

true

each state is part of the federal court system and has a state court system

true

generally, a part payment of a past-de debt is not consideration to support the creditor's promise to cancel the balance of the debt

true

if the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under common law

true

in the legal system of the US, it is possible for identically worded laws to have different consequences in different states

true

one may have rights and obligations imposed by law even when no real contract exists

true

the doctrine of strict liability can make the manufacturer of a dangerously defective product liable, even if there's no proof of neligence

true

the legal term for one party benefiting unfairly at the expense of another is unjust enrichment

true

which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense

a quasicontract

if a decision of an administrative agency conflicts with a statues enacted by a higher legislative body, the agency decision will prevail

false

if a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be successful

false

performing or promising to perform what one is already obligated to do is a valid consideration

false

ratification to a contract can be made any time before reaching majority

false

the courts will generally still allow a wrongdoer to enforce a contract against an innocent party

false

when one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs

false

which of the following is true of a valid offer?

it is seriously intended

which of the following is true of quasi-contracts?

it prevents the unjust enrichment of a party

which of the following is true of undue influence

it refers to a person in a special relationship causing another's action contrary to free will

in a situation where an injured party in an accident is partly to blame for the accident, which of the following is most likely to be true under contributory negligence system

the injured party cannot recover any damages because it is partially negligent in the case

an offeree's inquiry about the terms of an offer that differ from the offeror's terms will have what effect

the inquiry will not reject the offer, and if the offeror says no, the original offer may still be accepted if it has not been revoked

what is the chief function of the courts

the interpret and apply the law from whatever source to a given situation

if a minor contracts for necessaries, the minors liability is quasi-contractual in nature. this means

the minor is not required to pay the contract price but will be required to pay a reasonable amount to avoid unjust enrichment

what of the following is true of special federal courts

they have jurisdiction limited by congress

silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance

true

the US supreme Court is the highest tribunal in the land, and its decisions are bind on all other courts

true

the promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid

true

which of the following best describes the difference between civil law and criminal law

civil law deals with the enforcement of protection of private rights, whereas criminal law deals with offenses against society

a written request to a court to settle a dispute is called a

complaint or petition

for a promise to constitute consideration, the promise must not impose an obligation on the person making it

false

if an adult purchases personal property from a minor, the minor has only a voidable title to the property

false

ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact

true

statutes are easier to amend than consitutions

true

an offeree's response that rejects an offer by varying its terms in known as

counteroffer

___ is a means of destroying another's free will by one party obtaining consent to a contract as a result of a wrongful threat to do the other person or family members some harm

duress

Judy promises to pay Ashley $50 to babysit her children. After Ashley babysits the children, Judy pays Ashley the $50; thus each party has completed performance of each part of the contract. This is an example of

executed contract

a contract must be for a lawful purpose, which must be achieved in a lawful manor, otherwise the contract is

void

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

voidable

the law considers everyone under the age of twenty-one to be a minor

false

what precaution can a business person take when contracting with a minor

a business person can require an adult to join the contract as a cosigner

an executory contract is defined as

a contract in which the terms have not been fully carried out by all parties

a contract is void if parties to a contract are mutually mistaken about their expectations

false

a person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract

false

a promise to steal a valuable piece of art is valid consideration

false

an antitrust violation occurs when a business firm seeks to have competition within its firm to diminish competition

false

an offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer

false

as a general rule, a unilateral mistake made at the time of contracting has an effect on the validity of a contract

false

which of the following is an example of a contract contrary to public policy

A agrees to appoint B as sheriff, provided he helps him win the local elections

regulatory agencies can use their licensing power to

allow a business to enter the field being regulated

the ___ consists of ten amendments to the US constitution specifically designed to protect the civil rights and liberties of citizens and the states

bill of rights