CHAPTER 9

The ________ establishes common legal rules for the formation and enforcement of electronic contracts and licenses. A) Digital Millennium Copyright Act (DMCA) B) Uniform Computer Information Transactions Act (UCITA) C) Electronic Communication Privacy Act D) Computer Misuse Act of 1990

Uniform Computer Information Transactions Act (UCITA)

A unilateral contract is ________. A) a promise for an act B) a promise for a promise C) an act for an act D) an exchange of money

a promise for an act

Equity was resorted to when ________ would not be the proper remedy. A) the application of natural law B) an award that is morally just C) an award of money damages D) maxims based on fairness

an award of money damages

An offer to form a unilateral contract can be revoked ________. A) before the offeree begins performance B) after the offeree begins performance, but before the performance is completed C) after completion of performance D) only by the offeree

before the offeree begins performance

A contract is ________ if the offeror's promise is answered with the offeree's promise of acceptance. A) unilateral B) bilateral C) executed D) void

bilateral

Mike is a painter who makes a verbal offer to paint Betty's house for $2,000 by May 1st. Betty verbally promises to pay Mike $2,000 for the paint job if he completes it by May 1st. This is an example of a(n) ________. A) void contract B) quasi-contract C) executed contract D) bilateral contract

bilateral contract

In a unilateral contract, the offeror ________. A) must accept the promise extended by the offeree to create the contract B) can revoke the offer at any point of time after performance C) will treat either a promise to perform or the actual performance of the act as acceptance of his or her offer D) cannot revoke the offer once the offeree has begun performance or has substantially completed performance of the act

cannot revoke the offer once the offeree has begun performance or has substantially completed performance of the act

The court of equity that was developed in England was called ________. A) quasi-court B) criminal court C) common court D) Chancery Court

D) Chancery Court

An offeree can respond with a promise of acceptance to an offeror's promise to form a ________ contract. A) bilateral B) unilateral C) quasi-contractual D) void

A) bilateral

An informal contract is also known as a(n) ________ contract. A) unilateral B) bilateral C) executed D) simple

D) simple

The consent of the parties to create a valid contract must be obtained by ________. A) duress B) undue influence C) fraud D) genuine means

genuine means

Which of the following is not a type of formal contract recognized by the Restatement (Second) of Contracts? A) negotiable instrument B) letter of credit C) lease D) contract under seal

lease

According to the objective theory of contracts, the intent to enter into an express or implied-in-fact contract is judged by the ________. A) reasonable person standard B) Supremacy Clause C) doctrine of equity D) common law of contracts

reasonable person standard

Which of the following statements best describes the Restatement of the Law of Contracts? A) It is the supreme legal authority for contract law. B) It is a law which has been adopted, at least in part, by every state. C) It is a compilation of contract law principles, as agreed upon by its drafters. D) It is a compilation of law pertaining exclusively to the Uniform Commercial Code.

It is a compilation of contract law principles, as agreed upon by its drafters.

Which of the following is true of the Restatement of the Law of Contracts? A) It serves as a reference for guidance in contract disputes. B) It does not identify negotiable instruments as formal contracts. C) Its goal is to create a uniform system of commercial law among the 50 states. D) It is the absolute federal law for contracts drafted in the U.S.

It serves as a reference for guidance in contract disputes.

Lori just purchased a brand new lawnmower for $500. When she got home and tried to use it, it would not work. She became angry and shouted, "I'd sell this thing for $50." Her neighbor heard her and said, "I'll take it," and offered Lori the $50 in cash. Which of the following best describes this situation? A) This is an enforceable bilateral contract. B) This is an express contract. C) This situation does not result in the creation of a contract. D) Contract formation in this case depends on whether the neighbor subjectively thought Lori was serious.

This situation does not result in the creation of a contract.

Which of the following is a characteristic of a valid contract? A) A valid contract cannot contain promises. B) The parties must have the contract's terms approved by the appropriate court for it to be valid. C) A court will enforce a contract if a party does not voluntarily perform. D) There need not be mutual assent by all the parties involved in a contract.

A court will enforce a contract if a party does not voluntarily perform.

A contract is formed only by the performance of the requested act in a(n) ________ contract. A) bilateral B) unilateral C) void D) unconscionable

B) unilateral

What is the distinguishing characteristic that makes a contract a formal contract? A) it requires a signature by both parties B) it requires the contract to be orally agreed upon C) it requires a special form or method of creation D) it addresses all possible scenarios in the contract

C) it requires a special form or method of creation

As applied to a contract, the terms "bilateral" and "unilateral" are based on ________. A) the goods or services involved in the contract B) the number of attempts made to form a contract C) the number of parties who make a promise in the formation of a contract D) the number of attempts it took for a contract to be successfully performed

C) the number of parties who make a promise in the formation of a contract

Which of the following is true of the equity doctrine? A) Equity is resorted to when an award of money damages would not be the proper remedy. B) In an equitable action, the jury decides on the issue. C) An equitable action could be tried with a judge or a jury. D) The doctrine of equity cannot be applied in contract cases.

Equity is resorted to when an award of money damages would not be the proper remedy.

Which of the following is one of the four basic requirements for contract formation and enforcement? A) A promise must be supported by a signed written document and an advance payment. B) The parties must have contractual capacity. C) The object of the contract must be ethical. D) Both parties to the contract must be at least 21 years old.

The parties must have contractual capacity.

Which of the following is true of the Uniform Commercial Code (UCC)? A) The UCC has never been amended since it was first drafted. B) The UCC is not considered as law, but rather as a guide to lawyers and judges. C) The provisions of the UCC normally take precedence over the common law of contracts. D) The UCC has been adopted in its entirety by all states.

The provisions of the UCC normally take precedence over the common law of contracts.

Which of the following is true of contracts? A) Contracts can be classified as either voluntary or involuntary. B) All contracts are legally enforceable. C) The terms of a valid contract become private law between the parties. D) Courts of law usually do not enforce the promises made as part of contracts.

The terms of a valid contract become private law between the parties.

A major source of contract law is the ________, which developed from early court decisions that became precedent for later decisions. A) civil law B) the Restatement of the Law of Contracts C) Uniform Commercial Code D) common law of contracts

common law of contracts

Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of ________. A) contracts for the sale of goods B) all contracts C) contracts for the lease of goods D) service contracts

contracts for the lease of goods`

Under the objective theory of contracts, the subjective intent of a party to enter into a contract is ________. A) determinative B) minimally important C) as important as the intent of a reasonable person D) irrelevant

irrelevant

The ________ states that the intent to enter into a contract is judged by the reasonable person standard and not by the subjective intent of the parties. A) objective theory of contracts B) Restatement (Second) of Contracts C) Restatement of the Law of Contracts D) common law of contracts

objective theory of contracts