Test 1 Review: Chapters 1-8 True/False
False
All states of the United States have separate equity courts and common law courts.
False
An agreement between two parties to perform an illegal act is a quasi-contract.
True
An offer expresses the willingness of the offeror to enter into a contractual agreement.
False
Appellate court conduct the original trial of cases.
True
Appellate court included court of appeals and supreme courts.
True
As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.
True
Consideration can constitute financial or non-financial items.
True
Consideration distinguishes mere agreements from legally enforceable obligations.
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
An agreement that does not meet all five of the requirements for a valid contract is known as an unenforceable contract.
True
An employee who picks up inventory tools from his office with the intent to deprive the owners of the property is an example of larceny.
False
All agreements are contracts.
False
Payment made to speed up the performance of routine governmental actions are treated as bribes by the Foreign Corrupt Practices Act.
False
Price fixing, group boycotts, and horizontal territorial restraints are known as anti-trust violations.
True
The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones.
False
Felonies refer to crimes that are usually punishable by just a fine.
True
In a small claims court, there is no jury and a judge tries the case
True
In the legal system of the United States, it is possible for the same law to have different consequences in different states.
False
It is simpler to file a suit in a court of record than in an inferior court.
True
A minor has the legal right to disaffirm a voidable contract at any time during minority.
True
A minor must ratify or all parts of a contract.
True
A certificate of deposit is negotiable instrument.
True
A chief officer is known as a judge in a state court of record as well as in a federal court.
False
A contract between two minors gives the person of higher age the right to avoid it.
False
A person who has been legally declared to be a habitual drunkard is not liable for the reasonable value of necessaries furnished.
False
A valid offer is one that is indefinite.
False
According to law, confusion of source can be proved to be a tort only when actual confusion is shown.
False
According to the Uniform Commercial Code, a contract can be formulated only when acceptance to an offer is made.
False
Administrative agencies cannot hire scientists and researchers to study industries on their own accord.
True
Administrative agencies primarily set policy through the issuance of rules and regulations.
True
Advertisements and catalogs are examples of general invitation.
True
Codes of professional responsibility are legally enforceable.
False
For a promise to constitute consideration, the promise must prevent imposing an obligation on the person making it .
True
For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person.
False
Generally, it is the activity itself, not its effect, which is the most important element in deciding whether the Sherman Act has been violated.
True
Government regulates business by means of antitrust laws that seek to promote competition among businesses.
False
If a decision of an administrative agency conflicts with a statute enacted by a higher legislative body, the agency decision will prevail.
False
If a merchant displays a coat at a particular price, he has a binding requirement to sell at that price.
True
If the debt is evidenced by a note or other written evidence, cancellation and return of the written evidence cancels the debt.
True
One may have rights and obligations imposed by law even when no real contract exists.
