Question 1

A usurious contract involves the purchase and sale of usable goods.​

Accepted Answer

A) True 
 B)False

Question 2

If a promise is made, it will be enforced.​

Accepted Answer

A) True 
 B)False

Question 3

Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration​

Accepted Answer

A)  ​inadequate. 
B)  ​past. 
C)  ​legally sufficient. 
D)  ​illusory. 
A)  ​inadequate. 
B)  ​past. 
C)  ​legally sufficient. 
D)  ​illusory.

Question 4

A contract that one party retains the exclusive right to cancel at any time is fully enforceable.​

Accepted Answer

A) True 
 B)False

Question 5

​Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for

Accepted Answer

A)  ​the cost of a car of comparable value. 
B)  ​the value of her performance under the contract. 
C)  ​the amount of the buyer's profit on the deal. 
D)  ​nothing. 
A)  ​the cost of a car of comparable value. 
B)  ​the value of her performance under the contract. 
C)  ​the amount of the buyer's profit on the deal. 
D)  ​nothing.

Question 6

A contract between Kim and Larry to lease residential property contains an exculpatory clause. This clause is​

Accepted Answer

A)  enforceable as a matter of public policy.​ 
B)  ​enforceable if either party is in a business important to the public. 
C)  ​enforceable if an event occurs to which the clause applies. 
D)  ​generally unenforceable. 
A)  enforceable as a matter of public policy.​ 
B)  ​enforceable if either party is in a business important to the public. 
C)  ​enforceable if an event occurs to which the clause applies. 
D)  ​generally unenforceable.

Question 7

An illusory promise is an unenforceable promise.​

Accepted Answer

A) True 
 B)False

Question 8

If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.​

Accepted Answer

A) True 
 B)False

Question 9

A contract to commit a tortious act is unenforceable.​

Accepted Answer

A) True 
 B)False

Question 10

An obligation is enforceable only if it is made in return for actions or events that have already taken place.​

Accepted Answer

A) True 
 B)False

Question 11

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may​

Accepted Answer

A)  ​disaffirm the contract. 
B)  ​disaffirm the contract only if she makes full payment. 
C)  ​disaffirm the contract only if she returns the SUV in good condition. 
D)  ​not disaffirm the contract due to the misrepresentation. 
A)  ​disaffirm the contract. 
B)  ​disaffirm the contract only if she makes full payment. 
C)  ​disaffirm the contract only if she returns the SUV in good condition. 
D)  ​not disaffirm the contract due to the misrepresentation.

Question 12

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.​

Accepted Answer

A) True 
 B)False

Question 13

A release bars any further recovery beyond the terms stated in the release.​

Accepted Answer

A) True 
 B)False

Question 14

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely​

Accepted Answer

A)  ​invalid because it is part of a sale of an ongoing business. 
B)  ​invalid because of the unreasonable terms of area and time. 
C)  ​valid because it is part of a sale of an ongoing business. 
D)  ​valid if Reed and Taylor are reasonably intelligent. 
A)  ​invalid because it is part of a sale of an ongoing business. 
B)  ​invalid because of the unreasonable terms of area and time. 
C)  ​valid because it is part of a sale of an ongoing business. 
D)  ​valid if Reed and Taylor are reasonably intelligent.

Question 15

Games Galore Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games Galore for eighteen months. Before beginning work, however, Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Is Games Galore's contract with Haley enforceable? Why or why not?​

Accepted Answer

The contract is not enforceable. Haley i

Question 16

Research Data Corporation sells access to its database of scientific research to users for a certain price per month. Research Data files a suit against its user Tom when, in violation of their contract, he stops making payments. Tom claims that the deal is unconscionable. The court will most likely consider​

Accepted Answer

A)  ​the geographic area of the relevant market. 
B)  ​the parties' relative bargaining power. 
C)  ​the quality of related services in the general market. 
D)  ​the relation of this deal to those of other users. 
A)  ​the geographic area of the relevant market. 
B)  ​the parties' relative bargaining power. 
C)  ​the quality of related services in the general market. 
D)  ​the relation of this deal to those of other users.

Question 17

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.​

Accepted Answer

A) True 
 B)False

Question 18

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.​

Accepted Answer

A) True 
 B)False

Question 19

Contractual capacity includes the financial ability to pay for the benefits of a contract.​

Accepted Answer

A) True 
 B)False

Question 20

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can​

Accepted Answer

A)  ​collect it. 
B)  ​not collect it because she had a preexisting duty to capture Oscar. 
C)  ​not collect it because it is not legally sufficient consideration. 
D)  ​not collect it because it would be unconscionable. 
A)  ​collect it. 
B)  ​not collect it because she had a preexisting duty to capture Oscar. 
C)  ​not collect it because it is not legally sufficient consideration. 
D)  ​not collect it because it would be unconscionable.

A usurious contract involves the purchase and sale of usable goods.

If a promise is made, it will be enforced.

Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration

A contract that one party retains the exclusive right to cancel at any time is fully enforceable.

Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for

A contract between Kim and Larry to lease residential property contains an exculpatory clause. This clause is

An illusory promise is an unenforceable promise.

If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.

A contract to commit a tortious act is unenforceable.

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.

A release bars any further recovery beyond the terms stated in the release.

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Exam 9: Consideration, Capacity, and Legality

A usurious contract involves the purchase and sale of usable goods.​

If a promise is made, it will be enforced.​

Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration​

A contract that one party retains the exclusive right to cancel at any time is fully enforceable.​

​Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for

A contract between Kim and Larry to lease residential property contains an exculpatory clause. This clause is​

An illusory promise is an unenforceable promise.​

If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.​

A contract to commit a tortious act is unenforceable.​

An obligation is enforceable only if it is made in return for actions or events that have already taken place.​

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may​

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.​

A release bars any further recovery beyond the terms stated in the release.​

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely​

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.​

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.​

Contractual capacity includes the financial ability to pay for the benefits of a contract.​

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

A usurious contract involves the purchase and sale of usable goods.

If a promise is made, it will be enforced.

Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration

A contract that one party retains the exclusive right to cancel at any time is fully enforceable.

Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for

A contract between Kim and Larry to lease residential property contains an exculpatory clause. This clause is

An illusory promise is an unenforceable promise.

If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.

A contract to commit a tortious act is unenforceable.

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.

A release bars any further recovery beyond the terms stated in the release.

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can