Reference no: EM131382444

Question 1
Which of the following occurs when a party to a contract transfers his or her rights to a contract to a third party?
assignment
referral
disgorgement
privity transfer

Question 2
Constance asks Kathy if Kathy will sell her used business book for $50. What is the status of the negotiation?
No offer has been made.
An offer has been made, but it may be revoked.
An offer has been made that may not be revoked.
A contract has been entered into.
A contract has been entered into, but it may be set-aside at the option of either party.

Question 3
For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in a powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is true regarding whether Willis breached the contract?
Willis did not breach the contract.
Willis materially breached the contract.
Willis substantially breached the contract.
Willis breached the contract, but the breach was not material.
Willis committed an anticipatory breach of the contract.

Question 4
Distinguishing between unilateral and mutual mistakes is important because the classification bears on which contracts .
are void
are voidable
lack consideration
lack legality
none of these because mutual mistakes are not recognized in the area of contracts

Question 5
Which of the following is necessary to establish that a mutual mistake was made involving a basic assumption about the subject matter of a contract?
That the mistake involved the existence, quality, or quantity of the items to be exchanged
That the mistake involved whether a party could profit from the contract
That the mistake involved whether a party could profit from the contract or whether a party misunderstood the time constraints involved in regard to the contract
That the mistake involved the identity of parties to the contract or whether a party misunderstood the time constraints involved in regard to the contract
That the mistake involved a misunderstanding of law as to whether or not the UCC applied

Question 6
Harry accepts Frank's offer to sell a used car for $2,000. At what point is there a binding contract?
When the agreement is made
When the money is paid
When the car is delivered
10 days after the car is delivered and approved
20 days after the car is delivered and approved

Question 7
Which of the following are the two most important primary sources of contract law?
Case law and the restatement of law
Case law and the Uniform Commercial Code
The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods
Case law and the Convention on Contracts for International Sales of Goods
The Convention on Contracts for International Sales of Goods and the Restatement of the Law Second, Contracts

Question 8
If the plaintiff is seeking legal damages which would put him or her in the same position he or she would have been in had the contract been fully performed, he or she is suing for
damages.
equitable
compensatory deserved
learned punitive

Question 9
Business law teacher, Debby, needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that he did not have a binding, bilateral contract with Debby. Which of the following is an appropriate characterization of the agreement between Debby and Max?
They had a bilateral, express contract.
They had a bilateral, implied contract.
They had a bilateral and unilateral contract.
They had a unilateral contract.
They did not have any type of enforceable agreement.

Question 10
Consideration is defined as .
being cordial in the negotiation of contracts
refraining from unethical behavior in the negotiation of contracts
being both cordial and refraining from unethical behavior in the negotiation of contracts a bargained-for exchange
a contract negotiated in person as opposed to by telephone or e-mail

Question 11
In a contract, the offeror wants a performance to form the contract.
trilateral
bilateral
unilateral
complete
anticipatory

Question 12
In a bilateral contract, the consideration for each promise is .
a completed act
the beginning of action in acceptance, even if it is not complete
an acknowledgement
a return promise
an agreement

Question 13
Which of the following would NOT be viewed as an example of consideration?
A promise to stay in a job until a particular project is completed
A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it
A promise to cook dinner for your roommate for the next six months
A promise to stop drinking alcohol during exam week
A promise to pay your employees as required by law

Question 14
Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all of Marcy's school loans and throw in an extra $50,000. Marcy agreed and stated, "Thanks, Mom; when I graduate, I'm throwing you a big party for all you have done for me!" Sue smiles and hugs Marcy.

Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, "No way-I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation, Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all of the expenses of Marcy's upcoming wedding; Sue also agreed to forget about Marcy throwing a party for her. Was there sufficient consideration to support Marcy's agreement to throw a party for Sue?

Yes, sufficient consideration was present.
No, there was insufficient consideration because Sue did not promise anything in exchange.
No, there was insufficient consideration because Marcy's agreement was illusory.
No, because throwing a party is not of a monetary value such as to constitute consideration.
No, because close relatives are involved.

Question 15
The person who agrees to the terms of an offer by another party is called the .
offeree
offeror
agreeor
agree
inquirer

Question 16
A is a FALSE representation of a material fact that is consciously false and intended to mislead the other party.
negligent misrepresentation
fraudulent misrepresentation scienter misrepresentation
negligent misrepresentation, fraudulent misrepresentation, and scienter misrepresentation
negligent or fraudulent misrepresentation, but not a scienter misrepresentation

Question 17
Which of the following are the two primary kinds of performance?
Partial and significant
Partial and complete Partial and substantial
Complete and substantial
Complete and significant

Question 18
Which of the following occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract?
Material breach
Substantial breach
Immaterial breach
Delineated breach
Crossed breach

Question 19
Which of the following is FALSE regarding rights of an assignee and assignor?
Assignees essentially fill in for the assignor as the legal recipient of contractual duties.
Assignees acquire the same rights as the assignor had.
Assignees are offered additional protection than assignors.
The obligor may raise any of the same defenses for nonperformance to the assignee that he or she would have been able to raise against the assignor.
When an assignor transfers rights to an assignee, the assignor legally gives up all rights he or she previously had to collect on the contract.

Question 20
Which of the following is TRUE regarding illusory promises?
Illusory promises are not consideration.
Illusory promises are consideration.
Illusory promises qualify as consideration when past consideration is at issue.
Illusory promises qualify as consideration when promissory estoppel is at issue.
Illusory promises are consideration only when a sale of goods is involved.

Question 21
Courtney, who does not keep up with the price of current technology, agrees to buy a used computer from Jake for $2,500. Later, Brice tells Courtney that she made a really bad deal and that she could get an even better new computer for no more than $1,000. Courtney tells Jake that she is not giving him any money because he was not fair with her. Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?
Jake will win only if he can establish that Brice is wrong and that the deal was actually reasonable.
Jake will win because the court would not weigh whether a good bargain was made.
Courtney will win if she can establish that she paid at least 75% more than the computer was actually worth.
Courtney will win if she can establish that she paid at least 50% more than the computer was actually worth.
Courtney will win if she can establish that she made a bad deal and that truly she was not aware of current prices of computers.

Question 22
Which of the following is a measure of recovery when a quasi-contract is involved?
The amount set forth in the contract
The fair market value of the matter involved The wholesale price of any good involved
The amount sought by the plaintiff in the complaint
Damages computed the same as they are computed for any other contract

Question 23
Which of the following is an example of consideration?
A benefit to the promisor but not a detriment to the promisee
A detriment to the promisee but not a benefit to the promisor
A promise to do something, a benefit to the promisor, or a detriment to the promisee An accepted offer
A valid counteroffer

Question 24
In Hamer v. Sidway, the New York Court of Appeals found that forbearance:
negates the enforceability of a contract.
is not mandatory for a contract to be binding.
is unconstitutional.
is sufficient consideration for a valid contract.
is insufficient consideration for a valid contract.

Question 25
George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result?
The ring will be returned to George because of mutual mistake.
The ring will be returned to George because of unilateral mistake. The ring will be returned to George because of equity.
The ring will remain with Penelope unless George can establish that she was negligent in not recognizing the ring's true value.
The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.