BLAW 203 FINAL EXAM PREP

Which of the following contracts do not "fall within" the statute of frauds writing requirement? Multiple Choice A contract for one party to pay the debt of another party if the other party fails to pay. A contract for the sale of goods totaling $50. A contract made in consideration of marriage. A contract whose terms cannot be performed within one year from the date of the contract's making.

A contract for the sale of goods totaling $50.

For a mutual mistake to interfere with legal consent it must involve all but which of the following? Multiple Choice A non-material effect on the agreement. All of these would interfere with legal consent. An adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement. A basic assumption about the subject matter of the contract.

A non-material effect on the agreement.

Directors have the right to access which of the following? Multiple Choice All public corporate documents only. Corporate tax returns and employment records only. All corporate books and records. Corporate tax returns only.

All corporate books and records

Corporations have only those powers granted to them in their _______ and through state incorporation statutes. Multiple Choice articles of incorporation articles of agreement articles of authorization articles of corporate authority

Articles of incorporation

According to the _______ rule, directors and officers are not liable for decisions that harm the corporation if they were acting in good faith at the time of the decision. Multiple Choice fair dealing good samaritan business judgment responsible person

Business judgement

A(n) _______ suit is one filed by the shareholders on behalf of the corporation if corporate directors fail to sue when an individual has harmed the corporation, another corporation, or a director. Multiple Choice original elective optional derivative

Derivative

Who among the following plays the role of decision makers? Multiple Choice Directors Shareholders Stakeholders Managers

Directors

The fiduciary _______ means that directors and officers must exercise due care when making decisions for the corporation. Multiple Choice duty of loyalty duty of care obligation proxy

Duty of care

The document a corporation files with the state explaining its organization is known as the articles of _______ Multiple Choice emancipation. confederation. incorporation. organization.

Incorporation

A(n) _______ results from a false statement about a fact material to an agreement that the person making it believed to be true. Multiple Choice intentional misrepresentation negligent misrepresentation innocent misrepresentation fraudulent misrepresentation

Innocent misrepresentation

A certificate of incorporation certifies that a corporation _______ Multiple Choice is limited to two general partners. must pay sales tax on items over $500. is authorized to conduct business. can do business in any state.

Is authorized to conduct business

The recognized purpose of the statute of frauds does not include: Multiple Choice Easing contractual negotiations by requiring sufficiently reliable evidence to prove specific terms of a contract. Preventing unreliable oral evidence from interfering with a contractual relationship. Stopping parties from entering into contracts with which they do not agree in. Legalizing oral agreements for the sale of land.

Legalizing oral agreements for the sale of land.

A failure to provide pertinent information about a projected contract is called Multiple Choice libel. nondisclosure. a mistake. defalcation.

Nondisclosure

All but which of the following demonstrate an acceptance by the offeree? Multiple Choice The offeree makes a return promise to the offeror. The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract. The offeree performs an act the offeror requests. The offeree demonstrates acceptance by completing an action the offer requires.

The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract.

All but which of the following demonstrate an acceptance by the offeree? Multiple Choice The offeree performs an act the offeror requests. The offeree demonstrates acceptance by completing an action the offer requires. The offeree makes a return promise to the offeror. The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract.

The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract.

_______ can occur in those special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision. Multiple Choice Duress Unconscionability Defalcation Undue influence

Undue Influence

If courts determine that the parties have not given legal assent, the contract may be considered _______. Multiple Choice voidable unenforceable void valid if in writing

Voidable

Under the admission exception to the statute of frauds, a court will consider all but which of the following? Multiple Choice Whether the admission was made during a legal proceeding Whether the admission was made in court Whether the admission was made under oath Whether the admission was made before the contract was signed

Whether the admission was made before the contract was signed

Consideration can be anything, as long as it is the product of a(n) _______. Multiple Choice assignment. bargained-for exchange. bilateral contract. unilateral contract.

bargained-for exchange

_______ as an element of a contract refers to what each party gets in exchange for his or her promise under the contract. Multiple Choice Consideration Offer Legal object Contractual capacity

consideration

The _______ states that we base the existence of a contract on the parties' outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it. Multiple Choice efficient theory of contracts objective theory of contracts social contract theory bargain theory of consideration

objective theory of contracts

Legal responsibility without fault is called _______ liability. Multiple Choice intentional express strict criminal

strict

Mary is fired from her job at SUBS Restaurant and Deli. She posts on the internet that her employer serves expired meat and moldy bread. Neither assertion, however, is true. SUBS Restaurant and Deli may be able to pursue an action against Mary for _____ Multiple Choice breach of trust. slander of title. trade libel. defalcation.

trade label

_______ held corporations generally do not offer stock to the general public. Multiple Choice Closely Illegally Publicly Loosely

Closely

Removing 10,000 miles from the odometer on a pre-owned car before selling it is an example of Multiple Choice negligent misrepresentation. mistake of fact. trade libel. concealment.

Concealment

Which of the following falls under Article 2 of the Uniform Commercial Code (UCC)? Multiple Choice Contract between an employer and employee. Contract for the sale of a good. Contract for a joint venture. Contract for an arbitration agreement.

Contract for the sale of a good

_______ is a defense that, if proved, will prevent the plaintiff from recovering any damages regardless of how slight the plaintiff's negligence may be. Multiple Choice Modified comparative negligence Pure comparative negligence Contributory negligence Intentional liability

Contributory negligence

Compensation and participation are two of the four rights that _______ have within a corporation. Multiple Choice corporate directors majority shareholders all shareholders proxy holders

Corporate directors

According to the doctrine of respondeat superior, corporations are liable for which of the following? Multiple Choice Corporations are liable for the torts and crimes committed by their agents during the scope of their employment. Corporations are liable only for the crimes committed by their officers. Corporations are liable for the torts and crimes committed by their agents at any time in any place. Corporations are liable only for the torts committed by their agents.

Corporations are liable for the torts and crimes committed by their agents during the scope of their employment.

A corporation incorporated in another _______ is considered a(n) alien corporation. Multiple Choice state country jurisdiction federal district

Country

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3,000. Which of the following statements will be true if Maya plans to sue her friend? Multiple Choice Maya cannot sue Jane because the court seldom considers adequacy of consideration. The court will hold the contract to be invalid as it involves falsification of data. The court will hold Jane liable as she made an illusory promise. Jane will be held guilty because her action is a breach of promissory estoppel.

Maya cannot sue Jane because the court seldom considers adequacy of consideration.

An erroneous belief about the facts of a contract at the time the contract is concluded is a Multiple Choice implied mistake. mistake of law. mutual mistake. mistake of fact.

Mistake of fact

Legal assent does not exist if _______ is proven. Multiple Choice mistake or misrepresentation misrepresentation only misrepresentation or duress mistake or misrepresentation or duress

Mistake or misrepresentation or duress

All but which of the following are considered types of misrepresentation. Multiple Choice Mistaken misrepresentation Negligent misrepresentation Fraudulent misrepresentation Innocent misrepresentation

Mistaken misrepresentation

______ are executive managers whom the board of directors hires to run the day-to-day business of the corporation. Multiple Choice Employees Shareholders Directors Officers

Officers

All but which of the following would trigger a successful request for rescission based on duress? Multiple Choice One party makes threats to file a criminal lawsuit unless consent is given to the terms of a contract. One party threatens physical harm or extortion to gain consent to a contract. One party bribes the other party to sign a contract. One party threatens the economic interest of the other party.

One party bribes the other party to sign a contract.

The _______ makes oral evidence of an agreement inadmissible if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement. Multiple Choice parol evidence rule equal dignity rule collateral agreement rule mirror-image rule

Parol evidence rule

Which of the following statements most accurately reflects the preexisting duty rule? Multiple Choice An illusory promise is no promise at all. Performance of a duty you are obligated to do under the law is not good consideration. Consideration given before a promise is made is not good consideration. Performance of an act in exchange for a promise is not good consideration.

Performance of a duty you are obligated to do under the law is not good consideration.

_______ obligations are debts incurred in an initial contract. Such obligations are not within the statute of frauds; therefore, they need not be in writing to be enforceable. Multiple Choice Primary Pro forma Preliminary Pro hac vice

Primary

In order for decisions made at a directors' meeting to be valid, a(n) _______ must exist. Multiple Choice proxy conference of directors subcommittee quorum

Quorum

A corporation's shareholders have the goal of: Multiple Choice making certain the institution survives. bringing new products and services to the market. raising the value of the corporation's stock. ensuring the officers and directors keep their jobs.

Raising the value of the corporation's stock

_______ typically approve/disapprove of major decisions of the board. Multiple Choice Officers Proxy representatives Directors Shareholders

Shareholders

A corporation's shareholders are liable for a corporation's debt to what extent? Multiple Choice Shareholders are liable for their proportional share of the corporation's debt. Shareholders are liable for the corporation's debt based upon the corporation's fair market value at the time the shares were purchased. Shareholders are liable for the corporation's debt based upon the fair market value of the corporation at the time the debt was incurred. Shareholders are liable to the extent of their investment in the corporation.

Shareholders are liable to the extent of their investment in the corporation.

Identify the correct statement about the inspection rights of a shareholder. Multiple Choice Shareholders can inspect records and books only if they ask in advance and have a proper purpose. Shareholders have the right to inspection under statutory law but not under common law. Corporations cannot deny shareholders the right to inspect confidential corporate information. Shareholders cannot appoint an agent to conduct an inspection on their behalf.

Shareholders can inspect records and books only if they ask in advance and have a proper purpose.

Damages in tort actions include all but which of the following? Multiple Choice Nominal Supplemental Punitive Compensatory

Supplemental

If a person who suffers from a mental illness or defect yet still understands the nature of the contract and his or her obligations under the contract, which of the following will result? Multiple Choice The contract will be considered valid. The contract will be deemed void by the person who suffers from the mental illness or defect. The contract will be considered voidable by the party who is not mentally ill. The court will have to approve the contract on behalf of the mentally ill person.

The contract will be considered valid

A _______ mistake has occurred if the mistake is the result of an error by one party about a fact that is important in the context of a particular contract. Multiple Choice mutual misrepresentation unilateral bilateral

Unilateral

Which of the following statements accurately describes the difference between bilateral and unilateral contracts? Multiple Choice Unilateral contracts call for actions, not promises, whereas bilateral contracts involve promises in exchange for promises. Bilateral contracts are implied, whereas unilateral contracts are explicitly expressed. Unilateral contracts are made in writing, whereas bilateral contracts are made orally. Bilateral contracts come under the jurisdiction of common law, whereas unilateral contracts come under theUniform Commercial Code (UCC).

Unilateral contracts call for actions, not promises, whereas bilateral contracts involve promises in exchange for promises.

Which of the following is not a characteristic of a corporation? Multiple Choice Creature of the state Unlimited liability of shareholders Separate legal entity Status as a "legal person" and "citizen"

Unlimited liability of shareholders

A shareholder who receives _______ stock is liable for the difference between the price he or she paid for the shares and their stated corporate value. Multiple Choice no-par value par value common watered

Watered

In which of the following cases is parol evidence inadmissible? Multiple Choice When a contract is deemed integrated by the courts. When a contract contains ambiguous terms that significantly affect its interpretation. When a contract contains obvious typographical errors. When certain conditions make an otherwise valid contract void.

When a contract is deemed integrated by the courts.

A(n) _______ is defined as 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. Multiple Choice statute affidavit agreement contract

contract

An offer made by an offeree to the offeror regarding the same matter as the original offer is called a(n) Multiple Choice guarantee. voidable contract. counteroffer. counterclaim.

counteroffer

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n) Multiple Choice addendum. collective bargain. counteroffer. reverse bid.

counteroffer

To establish res ipsa loquitur in negligence cases, the plaintiff must demonstrate that the Multiple Choice indicated negligence is not within the scope of the defendant's duty to the plaintiff. event was a kind that ordinarily does not occur in the absence of negligence. damage or injury would have occurred even if the defendant had fulfilled his or her duty. defendant could not reasonably foresee that his or her actions would cause the harm that plaintiff suffered.

event was a kind that ordinarily does not occur in the absence of negligence.

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n) Multiple Choice recognizance. illusory promise. promissory estoppel. option contract.

illusionary promise

If you have a dental emergency and the dentist pulls your severely infected tooth without prior negotiation of payment or even any mention of payment, a(n) _______ for payment of services rendered exists. Multiple Choice objective implied unenforceable subjective

implied

Common law, one of the two most important sources of contract law, is derived from _______. Multiple Choice the Restatement regulatory law statutory law judicial decisions

judicial decisions

The terms of an acceptance that reflect the terms of an offer are known as the _______ rule. Multiple Choice mailbox transmissions mirror-image near-privity

mirror-image

When deciding whether an offeror intended to be bound by the offer, the courts use the _______ standard. Multiple Choice personal objective judicial subjective

objective

An agreement is based upon Multiple Choice offer and an acceptance. an offer and contractual capacity. contractual capacity and a legal object. an acceptance and a legal object.

offer and an acceptance

Formation of a contract begins when the party initiating the contract, called the _______, makes an offer to another party, called the _______. Multiple Choice offeror; offeree delegator; delegatee transferor; transferee grantor; grantee

offeror; offeree

A pact entered into before marriage that outlines ownership rights each party has in the other party's property is called a _______ agreement. Multiple Choice marital engagement prenuptial nondisclosure

prenuptual

According to the Uniform Commercial Code (UCC), parol evidence is admissible for the sake of clarification if it addresses _______ dealings between the parties or _______ of trade in the business they are operating. Multiple Choice prior; evidence prior; usages subsequent; usages subsequent; evidence

prior; usages

Kevin is offered a job by a reputable company in a different city. To take the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of Multiple Choice preexisting duty. promissory estoppel. illusory promise. recognizance.

promissory estopel

If a plaintiff wishes to recover damages that are meant to punish the defendant and deter future wrongdoers from similar behavior, that plaintiff is seeking _____ damages? Multiple Choice liquidated supplemental nominal punitive

punitive

In situations where a defendant is proved to have committed gross negligence, _______ damages may be awarded to the plaintiff which are not typically awarded in negligence cases. Multiple Choice compensatory nominal punitive foreseeable

punitive

Agreements for a sale of goods in which the total price is $500 or more are required by the Uniform Commercial Code (UCC) to be recorded in a written contract. This writing need only state the Multiple Choice names of the buyer and seller. price of the goods. method of payment. quantity to be sold.

quantity to be sold.

The tort of unfair competition exists when Multiple Choice competitors of a business firm price their products higher than that of the firm. pop-up advertisements for a competing business appear on a company's website. other businesses sell products of higher quality in the same industry in which a firm operates. someone enters an industry with the sole intent of driving another firm out of business.

someone enters an industry with the sole intent of driving another firm out of business.

When the defendant takes an action that is inherently dangerous and cannot be undertaken safely, the defendant commits a(n) Multiple Choice negligent tort. criminal tort. strict-liability tort. intentional tort.

strict-liability tort

A _______ is best described as an unforeseeable event that interrupts the causal chain between the defendant's breach of duty and the damages the plaintiff suffered. Multiple Choice superseding cause intervening cause proximate cause actual cause

superseding cause

Legal capacity is Multiple Choice the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms. sufficient consideration to enter into a contract. the physical ability of a person to understand his or her rights and obligations under a contract and comply with the terms. not required for a valid contract.

the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.

The term _______ refers to the fact that the agreement in question is so unfair that it is void of conscience. Multiple Choice conscionable subconscionable malconscionable unconscionable

unconscionable

A(n) _______ contract represents a situation where the offeror seeks performance from the offeree to form the contract. Multiple Choice void bilateral unilateral voidable

unilateral

If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is Multiple Choice voidable. valid. void. unilateral.

void

When an agreement is deemed illegal, courts will label the contract Multiple Choice conscionable. voidable. exculpatory. void.

void