BUS 2061 Test #3

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BUS 2061 Test #3

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

A contract is:

a.	a binding agreement.
b.	an agreement creating an obligation.
c.	an agreement that creates enforceable duties and obligations.
d.	all of the above.

The elements of a contract include all of the following except:

a.	an agreement.
b.	two or more competent parties.
c.	consideration.
d.	an illegal purpose.

A party to a contract may be:

a.	an individual.
b.	a partnership.
c.	a corporation.
d.	all of the above.

To have a contract you must have:

a.	an offer.
b.	an acceptance.
c.	both an offer and an acceptance.
d.	an agreement manifested by the written or spoken words of the parties.

A bilateral contract consists of a:

a.	promise for an act.
b.	promise for refraining from acting.
c.	promise for a promise.
d.	promise to contract.

The main thrust of the quasi contract is to:

a.	encourage the making of written contracts.
b.	prevent enrichment.
c.	compensate those who voluntarily help others.
d.	prevent unjust enrichment.

The plaintiff in a quasi-contractual action can recover:

a.	lost profits.
b.	damages for mental distress.
c.	the reasonable value of the benefit conferred upon the defendant.
d.	for all the damages sustained.

The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n):

a.	offer.
b.	acceptance.
c.	contract.
d.	agreement.

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50.00 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:

a.	the customer already had accepted the offer.
b.	the price tag was a firm offer.
c.	no contract was formed because the customer's offer was refused.
d.	the customer is the offeree.

10.

A said to B, "I'll give you $100 for that bracelet." B replied, "$135." A said, "NO thanks." B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?

a.	A's offer of $100 was open and accepted by B forming a contract.
b.	B's counteroffer of $135 terminated A's offer of $100.
c.	B's statement, "$135" was a negotiating statement that did not terminate the offer of $100.
d.	A's offer of $100 was irrevocable.

11.

If an offeree dies before the offer has been accepted, the offer:

a.	may be rejected by the surviving spouse of the offeree.
b.	may be accepted by the surviving spouse of the offeree.
c.	is automatically revoked by the death of the offeree.
d.	may be accepted by the guardian appointed for any minor children of the offeree.

12.

In general, an acceptance occurs when:

a.	a particular form of words is stated to the offeror.
b.	a particular mode of expression is made to the offeror.
c.	the offeree reserves the right to reject the offer.
d.	a clear expression of acceptance occurs.

13.

Contractual capacity is the ability to:

a.	read and write.
b.	sign a written contract.
c.	understand that a contract is being made and to understand its general nature.
d.	understand the legal meaning of the contract being made.

14.

A minor cannot avoid a contract that has been:

a.	ratified.
b.	signed.
c.	processed.
d.	disallowed by the court.

15.

When a minor avoids a contract to purchase a car:

a.	the parents of the minor are liable for the purchase price.
b.	a relative who cosigned the contract is liable for the purchase price.
c.	a friend to whom the minor loaned the car is liable for the purchase price.
d.	the automobile insurance company is liable for the purchase price.

16.

In which of the following cases is a contract between A and B binding?

a.	A makes a mistake of material fact.
b.	A and B make the same mistake of material fact.
c.	A recklessly but honestly misrepresents a material fact.
d.	A innocently misrepresents a material fact.

17.

I believe that I own a very valuable vase. I tell this to you and state that I will sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth only $200. A fraud:

a.	has occurred.
b.	ordinarily has not occurred.
c.	always can be based upon a statement of opinion or value.
d.	none of the above.

18.

Will the law enforce every promise?

a.	Yes.
b.	Yes, with or without consideration.
c.	Generally yes, if consideration amongst other elements is present.
d.	None of the above.

19.

Consideration is:

a.	the concern shown by the other contracting party.
b.	what is demanded by the promisor as the price for the promise.
c.	a stated number of dollars.
d.	the concern of both contracting parties for the protection of the environment.

20.

In a unilateral contract, the consideration for the promise is:

a.	the surrender of a claim against the promisor.
b.	the returning of the promisor's property.
c.	a promise to do the act called for by the promisor.
d.	the doing of the act called for by the promisor.

21.

When there is no consideration for a promise, the agreement is:

a.	illegal.
b.	void.
c.	not binding.
d.	unethical.

22.

Ordinarily, a promise to perform an existing legal obligation is:

a.	not consideration.
b.	binding if the promisor promises to perform with extra care.
c.	binding if the promisor promises to perform to suit the personal satisfaction of the promisee.
d.	binding if substantial loss would be caused the promisee by a breach of the promise.

23.

In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts:

a.	if the illegal contract has not been performed.
b.	if the contract has been partially performed.
c.	if the contract has been fully performed.
d.	all of the above.

24.

An agreement to slander a third person would not be enforceable because slander is a(n):

a.	crime.
b.	civil wrong.
c.	infringement of privacy.
d.	assault.

25.

An agreement to restrain trade may be void on the grounds that it is:

a.	fraudulent.
b.	contrary to public policy.
c.	illegal lobbying.
d.	unfair to merchants.

26.

The standard statute of frauds:

a.	requires full disclosure in the case of consumer sales on credit.
b.	requires a seller of real estate to obtain a broker's license.
c.	specifies the punishment of perjury.
d.	requires that a contract for the sale of land be evidenced by a writing.

27.

The statute of frauds applies to:

a.	the lease of an apartment on a month-to-month basis.
b.	the cancellation of a written agreement for the sale and purchase of land.
c.	an employment agreement.
d.	the sale of goods less than $500.

28.

A promise to pay a debt must be in writing if:

a.	the debt is for more than $500.
b.	the debt is now due and payable.
c.	the promise is to pay the debt of another.
d.	the debt owed is the promisor's.

29.

The statute of frauds applies to:

a.	a contract of indefinite duration that is terminable at will by either party.
b.	a promise made directly to a debtor that the promisor will pay the creditor of the debtor what is owed.
c.	a promise by an executor to pay a claim against the estate out of his or her personal funds.
d.	mutual promises to marry.

30.

The Uniform Commercial Code contains a statute of frauds relating to sales of personal property, specifically:

a.	goods.
b.	chattel paper.
c.	real property.
d.	none of the above.

31.

A writing that satisfies the requirement of a writing under the statute of frauds could be evidenced by:

a.	a note.
b.	a memorandum.
c.	a contract.
d.	all of the above.

32.

The parol evidence rule:

a.	applies to complete written contracts.
b.	prevents proof of fraud.
c.	applies to incomplete contracts.
d.	is not designed to preserve the integrity of written contracts.

33.

Parol evidence generally is admissible to explain:

a.	ambiguous terms.
b.	why signatures are missing.
c.	why a contract was not performed.
d.	implied terms.

34.

Parol evidence may be admitted to show that a provision was omitted as the result of:

a.	fraud.
b.	accident.
c.	mistake.
d.	all of the above.

35.

An oral contract containing a promise by an executor to pay estate debts from estate funds is:

a.	binding.
b.	voidable by the executor or administrator.
c.	enforceable against the executor only if the executor signs written proof of the agreement.
d.	enforceable against the other contracting party only if that party signs a written agreement.

Case

36.

Gerwin's daughter Mary was seeking a position as an associate attorney with Baker, Charles & Dixon, a large metropolitan law firm. The firm, after several meetings with Mary over a two-month period, made Mary an offer of employment on January 15.

Mary accepted the offer that day and immediately left for Cape Cod to celebrate without telling Gerwin or anyone else about her new job. Two days later, Gerwin sent Baker a letter in which she offered to give Baker all of her legal business (approximately $40,000 per year) if Baker would hire Mary. After Gerwin learned that Mary already had been hired by Baker, Gerwin refused to transfer her business to Baker. Baker has brought suit against Gerwin on the grounds that a valid contract exists between them. How will the case be decided?