Bus Law Ch. 9

Vi offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Vi that she will think about it. While Vi is out of town, Allison paints the apartment. This is best described as: a. a unilateral contract. b. a quasi contract. c. an implied in fact contract. d. a bilateral contract.

a unilateral contract.

Which of the following is NOT always necessary in order for a valid contract to be formed? a. Mutual assent. b. Legality of purpose. c. A writing. d. Competent parties.

A writing.

Contract law is significant in that it is basic to other fields of law such as: a. sales of personal property. b. commercial paper. c. secured transactions. d. All of the above.

All of the above.

Contracts that are implied in law: a. are obligations imposed by law on grounds of justice and equity. b. are intended to prevent unjust enrichment. c. do not rest upon the assent of the contracting parties. d. All of the above.

All of the above.

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise? a. Hal's promise not to foreclose is unsupported by consideration. b. Hal's promise is noncontractual. c. Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. d. All of the above.

All of the above.

The Uniform Commercial Code does NOT apply to: a. employment contracts. b. service contracts. c. insurance contracts. d. All of the above.

All of the above.

Which of the following is NOT an element necessary for recovery in quasi contract? a. A benefit conferred on the defendant by the plaintiff. b. An implied or express promise. c. The defendant's knowledge or appreciation of a benefit. d. The defendant's acceptance or retention of a benefit.

An implied or express promise

Express contracts and implied in fact contracts: a. are both genuine contracts. b. are equally enforceable. c. are not really contracts. d. Both (a) and (b).

Both (a) and (b).

Promissory estoppel is a contractual doctrine that includes which of the following considerations? a. The courts use the doctrine of promissory estoppel to enforce noncontractual promises. b. Under this doctrine, the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action and the promisee does so. c. The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract. d. Both (a) and (b).

Both (a) and (b).

. A __________ is an obligation imposed by law to avoid injustice. a. contract implied in law b. bilateral contract c. quasi contract d. Both (a) and (c).

Both (a) and (c)

__________ is/are any property other than an interest in real property. a. Goods b. Personal property c. Tangible property d. None of the above.

Personal property

Remedies for breach of contract include all but which of the following? a. Compensatory damages. b. Punitive damages. c. Restitution. d. Equitable remedies.

Punitive damages.

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract? a. The agreement must be in writing. b. There must be a promise from both parties. c. There must be an absence of invalidating conduct, such as duress. d. A legal remedy must be available in case there is a breach.

There must be an absence of invalidating conduct, such as duress.

George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 30,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as: a. a void contract. b. a quasi contract. c. a voidable contract. d. an enforceable contract.

a void contract.

The concept of consideration in contract law includes: a. that each party to a contract must unintentionally exchange a legal benefit. b. an inducement to each party to make a return exchange. c. that each party takes out an insurance bond if the possibility of damages is above $500. d. All of the above.

an inducement to each party to make a return exchange.

. A contract in which both parties exchange promises is a. voidable contract. b. bilateral contract. c. unilateral contract. d. quasi contract.

bilateral contract.

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon. a. express b. implied c. written d. formal

express

Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora. Bob: a. can keep the money. b. is under a contractual obligation to return the money. c. has a quasi-contractual obligation to return the money. d. has an implied in fact obligation to return the money.

has a quasi-contractual obligation to return the money.

A person who makes a promise is a(n): a. promisor. b. promisee. c. offeror. d. executor.

promisor.

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): a. implied in fact contract. b. express contract. c. void contract. d. quasi contract.

quasi contract.

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n): a. commercial contract. b. express contract. c. formal contract. d. sale.

sale

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by: a. Article 2 of the UCC. b. state common law. c. federal statute. d. the law of quasi contract.

state common law.

Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Brian accepts, without correcting his earlier misrepresentation of fact. a. Brian may avoid the contract. b. Rosalind may avoid the contract. c. Either or both Brian or Rosalind may avoid the contract. d. Neither Brian nor Rosalind may avoid the contract.

Rosalind may avoid the contract.

Quasi contracts are used to provide a remedy when the parties enter into a(n): a. void contract. b. implied in fact contract. c. situation in which promissory estoppel applies. d. All of the above.

void contract.

Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is: a. void. b. voidable. c. executed. d. unenforceable.

voidable

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence? a. Quasi contract. b. Executed contract. c. Illusory contract. d. Executory contract.

Executory contract.

Which of the following is NOT generally required in order to have a valid contract? a. Mutual assent. b. A lawful purpose. c. Fairness of the bargain. d. Parties who have contractual capacity.

Fairness of the bargain.

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code? a. The sale of a house. b. The sale of a new car. c. An employment agreement. d. A sale of automobile insurance.

The sale of a new car.

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School: a. there is not a contract. b. there is a quasi contract. c. there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. d. there is a voidable contract.

there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog.

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $6,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able: a. has entered into a unilateral contract with the hospital and therefore will have to pay the bill. b. will have to pay the bill, because this is a quasi-contractual agreement. c. has entered into an implied in fact contract with the hospital. d. and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

will have to pay the bill, because this is a quasi-contractual agreement.

The doctrine of promissory estoppel: a. is a doctrine enforcing noncontractual promises. b. includes as a requirement within the doctrine that there has been justifiable reliance on the promise. c. a doctrine relying on justice and not contractual rights. d. All of the above.

All of the above.

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as: a. mutual assent. b. consideration. c. legality of object. d. contractual capacity.

consideration.

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris: a. has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making. b. has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity. c. may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice. d. cannot enforce the contract since she had not actually started working at Northland.

may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.