Reference no: EM131124110

Question  In determining whether a party has given consideration, courts look at whether the promises exchanged were of equal market value.

true
false

Question 2. Offerors have the power to revoke an offer prior to acceptance with the following exception

an option contract
a firm offer
both a and b
neither a nor b

Question 3. A Contract made by a minor

is voidable.
is void.
is forever barred from ratification.
must be performed within 30 days of the signing of the contract.

Question 4. A Delegation transfers

rights.
duties.
neither a nor b.
both a and b.

Question 5. To accept an offer for a bilateral contract

theofferee must perform the act requested by the offeror.
silence never constitutes acceptance of an offer.
acceptance must be communicated to the offeror.
all of the above.

Question 6. Assignors who are paid for making an assignment make the following implied guarantees

the assigned claim is valid.
the assignor has good title to the rights assigned.
neither a nor b.
both a and b.

Question 7. When one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal

courts will not allow recovery to either party.
recovery is allowed for performance rendered before the parties learned of the illegality and only if the illegality does not present a threat to the public welfare.
the bargain is per se unconscionable.
both parties are criminally liable.

Question 8. In an auction

sellers are held to be making offers.
bidders are treated as offerors.
an item cannot be withdrawn from sale prior to acceptance.
any item put up for bid must remain up for bid for a period of at least 30 days.

Question 9. Consequential Damages

arercoverable if the defendant had reason to forsee the damages at the time of the contract formation.
are another name for nominal damages.
are not recoverable unless the contract exceeds 1000 dollars.
none of the above.

Question 10. A person who enters into an illegal contract may recover any consideration tendered when

the illegal act has been performed and the party has reported the illegality to the appropriate authorities.

the party rescinds the contract before any illegal act has been performed.

the illegal act has been performed and the performing party is over 25 years of age.

none of the above.

Question 1 The following is intended to avoid unjust enrichment

bilateral contract

quasi contract

void contract

illusory contract

Question 12. Under the UCC Battle of the Forms

timely expression of acceptance creates a contract even if the acceptance includes terms that are different from those stated in the offer.

timely expression of acceptance creates a contract only if the acceptance includes terms which are identical to those stated in the offer.

the form that contains a notary public stamp will control over the form which is absent a notary public stamp.

the mirror image rule applies.

Question 13. It consitiutes legal value when a promisee agrees not to do something he/she has a legal right to do in exchange for a promisor's promise.

true

false

Question 14. A contract that has been fully performed is an executory contract.

true

false

Question 15. Whether a particular item is considered a "necessary"

is defined in the contractual language as between the parties.

depends upon the minor's station in life.

must be proven beyond a reasonable doubt.

none of the above.

Question 16. Under the UCC, if parties are both merchants, additional terms in the offeree's form may be included in the agreement unless

the offer expressly limited acceptance to its own terms.

the new terms materially alter the offer.

theofferor gives notice of objection to the new terms within a reasonable time after receiving the accceptance.

all of the above.

Question 17. A Counteroffer

rejects the original offer.

terminates the original offer.

is a mirror image of the original offer.

a and b but not c.

Question 18. Consideration is

legal value.

bargained for.

given in exchange for an act or promise.

all of the above.

Question 19. Performing a pre-existing duty is not consideration.

true

false

Question 20. Unconscionable contracts are defined as

those so unfair that the contract "shocks the conscience" of the court.

those contracts in which no sensible person would enter into unless under delusion, duress, or distress.

those contracts in which no honest and fair person would accept.

all of the above.

Question 2 Contracts made by a minor are void.

true

false

Question 22. An executory contract is a contract

which has been fully performed by all parties.

which is implied by executive privilege.

which has not been fully performed by all parties.

none of the above.

Question 23. The duty to perform as a basketball player for a NBA team would be

delegable.

negociable.

not delegable.

none of the above.

Question 24. A donee beneficiary

is a third party beneficiary to whom a gift of performance is given.

is a third party beneficiary who is no longer a part of the agreement.

is a third party beneficiary who incidentally benefits from the contract.

none of the above.

Question 25. When an offeree uses an unauthorized means of acceptance, the acceptance is

effective upon dispatch.

illegal.

unconscionable.

none of the above.

Question 26. Under the Statute of Frauds, contracts for the transfer of ownership of land do not need to be in writing to be enforceable.

true

false

Question 27. A mutual mistake is grounds for rescission.

true

false

Question 28. The following is true of "anticipatory repudiation."

It occurs if promisors, prior to the time for performance, indicate an intent not to perform their duties.

It can arise from express statements.

the breached party can sue immediately for breach of contract.

all of the above.

Question 29. Louise enters into a contract with The Fancy Shop whereby The Fancy Shop would coordinate Louise's June wedding for the sum of 10000 dollars. Prior to June, Louise calls The Fancy Shop and states, "the deal is off, I am going to do it myself." The Fancy Shop sues Louise in contract breach. Louise defends the suit by arguing that The Fancy Shop gave no adequate consideration. Based upon this set of facts, the following is False.....

The Fancy Shop has given adequate consideration.

The Fancy Shop has agreed to do something it had no prior legal to do.

The Fancy Shop can enforce this contract.

none of the above.

Question 30. An unliquidated debt is one that

is not in dispute as to existance of the debt or the amount of the debt.

is deemed illegal.

involves a dispute about the existance of the debt or the amount of the debt.

will expire one year after the date of the original signing.

Question 3 The intent to deceive is known as capacity.

true

false

Question 32. Harriet bought a stylish sports car when she was 16 years old. Two weeks after Harriet turned 18, Harriet sold the car to her neighbor. Under this set of facts

Harriet may disaffirm the contract after the sale of the car to the neighbor.

Harriet may recover the value of the car from the dealser that sold it to Harriet.

Harriet has indicated an intention to be bound to the contract by selling the car to her neighbor and can no longer disaffirm.

both a and c.

Question 33. A fully executory, bilateral contract, that cannot be performed within a year after it is made, must be evidenced by a writing to be enforceable.

true

false

Question 34. Equitable remedies include

specific performance.

an injunction.

money damages.

a and b but not c.

Question 35. People who regain their mental capacity

can disaffirm for a reasonable time after regaining mental capacity.

can ratify their contracts.

are still considered to be insane for a reasonable period of time.

both a and b.

Question 36. Which of the following lacks legal value

a promise not to commit a tort

a promise not to commit a crime.

both a and b

neither a nor b

Question 37. Regarding an Unilateral Contract, there is no enforceable contract until the offeree performs the act requested by the offeror.

true

false

Question 38. Ringo puts an advertisement in the paper as follows...."500 dollar reward for the return of my golden ring." Finder finds the ring and returns it to Ringo. Ringo refuses to pay Finder the 500 dollars. What is the legal result if Finder sues Ringo?

Because the advertisement was merely a solicitation for offers, there was no contract until Finder accepted Ringo's offer to find the ring, which Finder never did. Finder will not recover the 500 dollars.

Finder will not recover the 500 dollars because Finder never notified Ringo that Finder accepted Ringos offer.

The ad was an offer for a unilateral contract which Finder accepted by the completed act of finding Ringo's ring. Ringo must pay Finder the 500 dollars.

Finder may keep the found ring and will, therefore, lose the right to sue Ringo for the 500 dollars.

Question 39. The difference between duress and undue influence is

the remedy.

the interference with a party's ability to resist entering into a agreement.

the relationship as between the parties.

all of the above.

Question 40. When a person is adjudicated insane

a court has determined that the person was of unsound mind.

the court has appointed a guardian or conservator of the person's estate.

the contract of such insane person is void.

all of the above.

Question 4 As a general rule

performing a pre-existing duty is not consideration.

agreeing to perform a pre-existing duty is not consideration.

both a and b.

neither a nor b.

Question 42. Under the UCC, agreements to modify contracts for the sale of goods

need new consideration to be binding.

need no new consideration to be binding.

require the original contract to be terminated and then formulate a new contract.

both a and c.

Question 43. A statement of opinion would form the basis for a misrepredentation action.

true

false

Question 44. Jimmy J sells Mary Q an old station wagon and tells her that the car is in excellent condition. Jimmy J knows that the car leaks oil and backfires often. Under this set of facts

mutual mistake exists.

duress exists.

fraud exists.

Mary Q has no legal remedy.

Question 45. In a guaranty contract, the guarantor's promise must be evidenced by a writing to be enforceable.

true

false

Question 46. Legal value depends upon the adequacy of consideration.

true

false

Question 47. X, a builder, contracts with the city of Y to build a new convention center. Z, a hotel owner, stands to benefit from the completed convention center. X the builder cancels the contract with Y the city. Z is angry. Z wants to sue X. Under this set of facts

Z is a creditor beneficiary and can sue X.

Z is a donee beneficiary and can sue X.

Z can sue X because X failed to build a building that would benefit Z as well as other citizens in Y the city.

Z is an incidental beneficiary and cannot sue X.

Question 48. The following is an element of Fraud.

the elements of promissory estoppel.

proof that the statement was made by mistake.

scienter.

none of the above.

Question 49. An incidential beneficiary can

sue for nonperformance.

acquire rights under the contract.

enforce the contract.

none of the above.

Question 50. The following will terminate an offer

insanity

death

when the performance of a contract becomes illegal after the offer is made, but before the offer is accepted

all of the above.

Question 5 Sunny makes an oral agreement with Scottie which requires that Scottie create and manufacture 100 custom made chairs for Sunny's restaurant for 14000 thousand dollars. Scottie has shifted around his production schedule to accomodate the request in favor of Sunny. Sunny then calls Scottie and says that the deal is off and no longer wants the custom made chairs. Based upon this set of facts,

the parties agreement is unenforceable under the Statute of Frauds.

the agreement falls within the Statute of Frauds exception known as "specially manufactured goods and is, therefore, enforceable.

the chairs must be manufactured by Scottie and re-sold to a third party.

none of the above.

uestion 52. An auction house put a painting up for sale. The auction house represents and believes that the painting is a rare Pablo Picasso entitled "Zeke Blackbeard and the Barnyard Follies." An art collector believed the authenticity of the painting and paid 50 million dollars to buy it. Some time later the buyer had the painting appraised and was informed by the professional appraiser that the painting is a fake and, in fact, is worth under 100 dollars. The buyer wants to rescind the contract based upon mistake. Based upon this set of facts

the buyer cannot rescind because his mistake was negligent; he should have investigated the painting before buying it.

the buyer can rescind on the basis of unilateral mistake.

the buyer cannot rescind because the auction house did not intentionally mislead him about the authenticity of the painting.

the buyer can rescind on the basis of mutual mistake.

Question 53. The difference between a regulatory and a revenue raising statute depends on

legislative intent.

enforceability.

the constitutionality of the statute.

the remedy sought by the harmed victims.

Question 54. Minors who successfully disaffirm a contract are not entitled to the return of any consideration they have given the major party in the contract.

true

false

Question 55. Capacity to contract is presumed and a party claiming incapacity bears the burden of proof regarding the incapacity.

true

false

Question 56. Injunctions are

an equitable remedy.

as a remedy is awarded in addition to a monetary remedy.

used to compel specific performance.

both a and c but not b.

Question 57. Punitive Damages are available in contract actions.

true

false

Question 58. In capacity law, status quo means

"state of age" - a minor can lose the right to disaffirm if they fraudulently misrepresent their age.

"the condition beforehand" - the position a person would be in if the contract had never come into existance.

"the state sets the ante" - the riske encountered when a person enters a contractual obligation.

"community position" - the social standing of a person in his/her local neighborhood.

Question 59. Two classes of beneficiaries that have enforcement rights are

incidential beneficiaries and donee beneficiaries.

creditor beneficiaries and donee beneficiaries.

creditorbenefciaries and incidential beneficiaries.

accidental beneficiaries and creditor beneficiaries.

Question 60. If Sarah promises to give Frankie a stereo and Frankie has done nothing in return for Sarah's promise

Frankie will not be able to enforce Sarah's promise against Sarah.

Frankie has not offered adequate consideration.

both a and b.

neither a nor b.

Question 61. On October 29, 2005 Al agreed to paint Georgia's house during Thanksgiving week for 4000 dollars in exchange for Georgia's promise to pay Al the 4000 dollars immediately upon completion of the painting. Based upon this set of facts, which statement is true?

Georgia could hire another painter on October 31 without legal liability to Al because, until Al has painted the house, Al has not given any consideration for Georgia's promise to pay Al immediately upon completion of the painting.

Al could back out of the painting contract on October 31 without legal liabililty to Georgia because Georgia, until she pays the 4000 dollars, has not given any consideration for Al's promise to paint the house.

Both parties are contractually bound by the October 29 exchange of promises.

Al could back out of the contract to paint Georgi's house if Al could prove that 4000 dollars is insufficient consideration for painting a house the size of Georgia's house.

Question 62. A court will not enforce illegal agreements and will leave the parties where it finds them.

true

false

Question 63. For the purpose of a minor contracting for necessaries, necessaries would include all of the following except

shelter

food

music lessons

medical care

Question 64. On June 1, Fred sends Wilma an e-mail offering to build her a garage for 20000 dollars. In his e-mail, Fred wrote..."acceptance by certified mail." On June 2 at 8AM, Fred sends Wilma a certified letter attempting to revoke his offer. At 10AM the same day, Wilma mails Fred a letter via certified mail to accept the offer. Under this set of facts

the parties do not have a contract until Fred receives Wilma's acceptance.

Fred's revocation is effective and the parties do not have a contract.

Wilma's acceptance is effective upon dispatch.

none of the above.

Question 65. Minors may disaffirm their contracts for a reasonable time after attaining majority.

true

false

Question 66. Which of the following is an example of Scienter?

Defendant admits that he/she made a false statement with the intent to deceive.

Defendant knowlingly made a false statement to a plaintiff who is likely to rely upon the statement.

Defendant remains silent when he/she knows material facts which the other party will not discover and is highly unlikely to inquire about.

all of the above.

Question 67. Consideration must have monetary value to have legal value.

true

false

Question 68. When liquidated damages are enforced, the amount of damages agreed on is

a penalty.

an exclusive remedy.

a remedy that need not be reasonable.

50 % of the orginal contract amount.

Question 69. Oleg's wife promised to give Oleg 100 dollars if Oleg stops biting his nails for a period of one year. Oleg stopped biting his nails for the required period of one year.

Oleg has given adequate consideration.

Oleg can enforce his wife's promise against her.

Oleg has given legal value even though an abatement of nail biting has no readily identifiable monetary value.

all of the above.

Question 70. Mutual mistake may arise when

parties unintentionally use terms in their contract that are ambiguous.

parties are mistaken about the subject matter of their agreement.

neither a nor b.

both a and b.

Question 71. If one or both parties to form a contract are nonmerchants, the additional terms proposed by one of the parties are treated as

void.

proposals for additions to the contract.

revocation.

none of the above.

Question 72. According to the Leading Object Doctrine, promises of third parties to a contract who are primarily motivated by a desire to secure a personal interest from the contract

fall outside of the Statute of Frauds.

are covered by the Statute of Frauds.

are estopped from any recovery.

face criminal charges.

Question 73. The duty to mitigate damages

is an equitable doctrine which is not required by the courts.

requires the breaching and nonbreaching parties party to take steps to keep damages to a minimum.

holds the breaching party strictly liable.

all of the above.

Question 74. Composition Agreements are

binding on the parties to the agreement.

agreements between a debtor and two or more creditors who agree to accept a stated percentage or lesser amount of their liquidated claims against the debtor.

neither a nor b.

both a and b.

Question 75. The doctrine of Promissory Estoppel does not require which of the following

a promise

a significant reliance on a promise

unjust enrichment

equality of consideration from each party

Question 76. Unless the offer states a specific time when it will expire, the offer will remain open indefinitely.

true

false

Question 77. Misrepresentation cannot result from an honest mistake.

true

false

Question 78. A contract must

promise to perform a legal act.

be entered into by parties having capacity.

be voluntarily entered in to.

all of the above.

Question 79. The following is true of guaranty contracts.

They do not need to be evidenced by a writing.

They are covered by the Statute of Frauds.

They are considered as original contracts.

both a and b but not c.

Question 80. An offer made by U.S. mail creates a binding contract the moment it is dropped into the mailbox.

true

false

Question 81. Terry and Melody have an oral contract for the sale of 100 textbooks at 100 dollars per textbook. If Terry delivers the books according to the contract and Melody accepts the delivery and pays for the books according to the contract, select the parties that can raise the Statute of Frauds as a defense.

Terry

Melody

neither a nor b.

both a and b.

Question 82. Misrepresentation is defined as

misrepresentation of a material fact.

misrepresentation of a material fact justifiably relied on.

misrepresentation of a material fact justifiably relied on to the detriment of the person relying.

misrepresentation of a material fact justifiably relied on to the detriment of the person relying and contains an intent to deceive on the part of the promisor.

Question 83. Jim Jones prefers to sign his name using the following symbol $$ When signing his lease, Jim used the $$ symbol. The use of the symbol by Jim satisfied the Statute of Frauds writing requirement.

true

false

Question 84. To determine whether the offeror has created a present intent to contract, courts consider

how definite the offer is.
whether the offeror has communicated the offer to the offeree.
neither a nor b.
both a and b.

Question 85. An acceptance must be in writing.

true
false