Midterm Practice Questions

Ratification to a contract can be made any time before reaching majority.

False

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

True

​The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed

True

​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

Which of the following best describes the difference between civil law and criminal law?

Civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offenses against society.

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

True

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

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

​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 novation does not need to be in writing and can be implied from the parties' actions.​

True

When one party wrongly threatens to injure another person financially in order to get agreement to a contract, economic duress occurs.

True

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

the breach of the tortfeasor's duty to the injured party.

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.

A bill of sale cannot serve to prove ownership of a good.

False

A breach of contract by one of the parties bound on a contract immediately terminates the contract.​

False

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

False

The purpose of antitrust laws is to:

promote competition among businesses.

A _______ is a court decision that determines the decision in a subsequent, similar case.

stare decesis

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 tortfeasor's duty to the injured party.

A contract can never be described as being both joint and several.​

False

Failure to disclose information when there is duty to do so is known as passive fraud.

True

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

True

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement. Correct!

True

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

True

When a court orders for specific performance, it is exercising its equity powers.

True

A temporary order that is issued by a court with equity powers forbidding activities that would be detrimental to others is known as:

a restraining order.

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

voidable

Which of the following warranties applies to all sellers?

warranty of title

Which of the following statements best describes a several contract?​

​It is a contract where two or more people individually agree to perform an obligation.

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

False

At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract.​

False

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

False

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

False

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

False

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

False

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

False

When a contract to sell is signed by two parties, a sale is said to have taken place.

False

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

False

What is the Statute of Frauds?

It is a law requiring certain contracts to be put in writing.

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.

Which of the following is true regarding parties who make mutual mistakes of law?

It will generally not invalidate a contract.

Which of the following statements best describes a difference between rules and laws?

Laws are rules that are enacted by the government

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner.​

True

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

True

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

True

Appellate courts include courts of appeals and supreme courts.

True

As a general rule, one's rights under a contract cannot be transferred freely.​

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 intend to be legally obligated by the terms of the agreement.

Which of the following is most likely to be a tort based on negligence?​

Automobile accidents

_____ 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

Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?

Lily must consider the offer automatically revoked and void.

Kenneth, aged sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third 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.

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

The contract is enforceable against the adult but not against the minor.

Generally, people can sell only such interest or title in goods as they possess.

True

If a contract is voidable due to a mistake such as fraud in the inducement, duress or undue influence, a person might elect to rescind the contract.

True

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.​ Correct!

True

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

True

In order to be the subject of a sale, goods must be existing.

True

Statutes are easier to amend than constitutions.

True

The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed

True

A contract must be for a lawful purpose, which must be achieved in a lawful manner, otherwise the contract is:

Void

Which of the following is true of a warranty of merchantability?

Warranty of merchantability relates only to the fitness of the product made or sold.

Regulatory agencies can use their licensing power to:

allow a business to enter the field being regulated.

A joint contract is one in which:

each obligor is bound for the performance of the entire obligation.

Activities that are illegal regardless of their effect are known as _____.

per se violations

The term disaffirmation refers to:

the election to avoid a contract or set it aside.

According to the Statute of Frauds, an agreement to sell goods for $500 or more must be in writing.​

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 quasi contract

As a general rule, one's rights under a contract cannot be transferred freely.

False

Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable.

False

Mistakes such as duress and undue influence render contracts void

False

The Statute of Frauds' requirement of writing applies if the main purpose of the promise is to gain some advantage for the promisor.​

False

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 a contributory negligence system?

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

Which of the following is true of administrative agencies?

They can become specialists 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.

A joint contract is one in which:​

​each obligor is bound for the performance of the entire obligation.

There is no difference between a void contract and an unenforceable contract.

False

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

A debt that has been prohibited from collection by a statute of limitations can never be revived.

False

A lease of real property for less than one year must be in writing in order to be binding.​

False

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

False

If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n) ________, and this type of offer cannot be revoked.

Option

In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?

When the amount of liquidated damages fixed by the contract is unreasonable

Which of the following is true of quasi-contracts?

It prevents the unjust enrichment of a party.

All agreements are contracts.

False

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a _______.

warranty against encumberances

Which of the following is an example of a contract discharged by impossibility of performance?​

​A new law makes the contract illegal.

Which of the following constitutes valid consideration?

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

Which of the following statements is true of common law?

​Cases in common law are decided on the basis of precedents.

Which of the following is true of the United States Supreme Court?

​It has appellate jurisdiction in cases based on the U.S. Constitution.

Which of the following is true of a shipment contract?

​The title and risk of loss pass to the buyer when the goods are delivered to the carrier.

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

Title transfers at the same time in a sale and in a contract to sell.

False

When one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs. You Answered

False

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

False

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

False

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition.

False

Contracts which are designed to limit competition are acceptable by law

False

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

False

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

False

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

False

Land is generally considered as intangible personal property.

False

When one refrains or promises to refrain from doing something, this conduct is known as _____.

Forebearance

Which of the following statements is true of statutes of limitations?

In the case of running accounts, such as purchases from department stores, the statute starts from the date of the last purchase.

Which of the following is true of the Uniform Commercial Code (UCC)?

Individual states may make changes to the portions of the UCC that they have adopted.

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

True

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.

Which of the following acts govern the sales of movable personal property?​

The uniform Commercial Code

Which of the following is true of identified goods?

They are a type of existing goods.

​Which of the following is true of special federal courts?

They have jurisdiction limited by Congress.

Documents that show ownership are called documents of _____.

Title

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.

Consideration distinguishes mere agreements from legally enforceable obligations.​

True

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

True

An offer to pay money in satisfaction of a debt or claim when one has the ability to pay is a ____.​

tender of payment

If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This means that:

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

​What is the chief function of the courts?

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

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