Question 1

A contract cannot be formed if ____ is lacking.

Accepted Answer

A)  feeling 
B)  friendship 
C)  meaning 
D)  purpose 
E)  none of the other choices are correct 
A)  feeling 
B)  friendship 
C)  meaning 
D)  purpose 
E)  none of the other choices are correct

Question 2

Termination of an offer can only occur through the operation of law.

Accepted Answer

A) True 
 B)False

Question 3

To transfer contract rights to a third party is:

Accepted Answer

A)  assignment 
B)  delegation 
C)  repudiation 
D)  beneficiary 
E)  none of the other choices 
A)  assignment 
B)  delegation 
C)  repudiation 
D)  beneficiary 
E)  none of the other choices

Question 4

A transfer of contract rights to a third party is an assignment.

Accepted Answer

A) True 
 B)False

Question 5

Punitive damages are usually awarded based on malicious conduct.

Accepted Answer

A) True 
 B)False

Question 6

Liquidated damages:

Accepted Answer

A)  must be reasonably related to actual losses that could be suffered 
B)  need not be related to actual losses that could be suffered 
C)  must be less than the actual losses that could be suffered 
D)  are usually much higher than the actual losses that could be suffered 
E)  are only available in some states 
A)  must be reasonably related to actual losses that could be suffered 
B)  need not be related to actual losses that could be suffered 
C)  must be less than the actual losses that could be suffered 
D)  are usually much higher than the actual losses that could be suffered 
E)  are only available in some states

Question 7

The acceptance of an offer to form a contract may be communicated in any "reasonable" way and be effective, in most instances.

Accepted Answer

A) True 
 B)False

Question 8

In Deschamps v. Treasure State Trailer Court, where the buyer of a trailer court said he was promised the water system was in good condition when in fact it was not, the Montana Supreme Court held that the oral promise could amend the contract.

Accepted Answer

A) True 
 B)False

Question 9

A contract is a(n) ____ if there is a written or oral expression of intent by the parties to enter into a legally binding agreement.

Accepted Answer

A)  rapid contract 
B)  fast contract 
C)  explicit contract 
D)  implied contract 
E)  none of the other choices are correct 
A)  rapid contract 
B)  fast contract 
C)  explicit contract 
D)  implied contract 
E)  none of the other choices are correct

Question 10

Nominal damages are usually a trivial sum of money.

Accepted Answer

A) True 
 B)False

Question 11

In Scheerer v. Fisher where Scheerer, a real estate agent, sued Fisher for failing to pay Scheerer for his services in locating property for Fisher, the appeals court held that:

Accepted Answer

A)  there was no contract or basis for payment to Scheerer 
B)  there was an implied contract and so Scheerer must be paid 
C)  there was implied contract, but there was no need to pay Scheerer since the original deal fell through 
D)  there was no contract, but Scheerer should be paid anyway, out of good will 
E)  none of the other choices are correct 
A)  there was no contract or basis for payment to Scheerer 
B)  there was an implied contract and so Scheerer must be paid 
C)  there was implied contract, but there was no need to pay Scheerer since the original deal fell through 
D)  there was no contract, but Scheerer should be paid anyway, out of good will 
E)  none of the other choices are correct

Question 12

Contracts created by those with partial capacity are:

Accepted Answer

A)  not voidable 
B)  illegal 
C)  executory 
D)  exemplary 
E)  none of the other choices are correct 
A)  not voidable 
B)  illegal 
C)  executory 
D)  exemplary 
E)  none of the other choices are correct

Question 13

The parol evidence rule allows oral testimony to help the court understand a contract in which fraud is claimed.

Accepted Answer

A) True 
 B)False

Question 14

An employer can avoid liability for on-the-job injuries so long as fully informed workers sign exculpatory agreements.

Accepted Answer

A) True 
 B)False

Question 15

If you promise to give $1 million to a church, which begins new construction based on your promise, you may be held legally obligated to make the gift even though there is no contract.

Accepted Answer

A) True 
 B)False

Question 16

A void contract never was or will be a valid contract.

Accepted Answer

A) True 
 B)False

Question 17

Twenty years after you leave college you are rich and famous. Your college calls on you for a $5 million gift to renovate a classroom building and name the building in your honor. You tell them you will be glad to give the gift because you learned so much and that is why you are successful. A year later the building is renovated and the college asks for the money. You decide to spend it on a new jet and tell the college to get stuffed. You:

Accepted Answer

A)  do not have to pay the money, promises of gifts do not create contracts 
B)  do not have to pay the money unless your promise was in writing and for a specific date 
C)  have to pay an amount equal to how much has been spent on the renovation work to date, not the full amount 
D)  have to pay the money under the rule of unliquidated debt 
E)  probably none of the other choices 
A)  do not have to pay the money, promises of gifts do not create contracts 
B)  do not have to pay the money unless your promise was in writing and for a specific date 
C)  have to pay an amount equal to how much has been spent on the renovation work to date, not the full amount 
D)  have to pay the money under the rule of unliquidated debt 
E)  probably none of the other choices

Question 18

An effective offer requires a clear manifestation of intent, definite terms and conditions, and communication of the offer.

Accepted Answer

A) True 
 B)False

Question 19

The Uniform Commercial Code has significantly influenced the operation of commercial contract law.

Accepted Answer

A) True 
 B)False

Question 20

Because of the war on terrorism, the U.S. government prohibited doing business with certain countries. Contracts that existed at the time the prohibition was announced were:

Accepted Answer

A)  unenforceable 
B)  unconscionable 
C)  exculpatory 
D)  quasi-contracts 
E)  unilateral 
A)  unenforceable 
B)  unconscionable 
C)  exculpatory 
D)  quasi-contracts 
E)  unilateral

Exam 10: Contracts

A contract cannot be formed if ____ is lacking.

Termination of an offer can only occur through the operation of law.

To transfer contract rights to a third party is:

A transfer of contract rights to a third party is an assignment.

Punitive damages are usually awarded based on malicious conduct.

Liquidated damages:

The acceptance of an offer to form a contract may be communicated in any "reasonable" way and be effective, in most instances.

In Deschamps v. Treasure State Trailer Court, where the buyer of a trailer court said he was promised the water system was in good condition when in fact it was not, the Montana Supreme Court held that the oral promise could amend the contract.

A contract is a(n) ____ if there is a written or oral expression of intent by the parties to enter into a legally binding agreement.

Nominal damages are usually a trivial sum of money.

In Scheerer v. Fisher where Scheerer, a real estate agent, sued Fisher for failing to pay Scheerer for his services in locating property for Fisher, the appeals court held that:

Contracts created by those with partial capacity are:

The parol evidence rule allows oral testimony to help the court understand a contract in which fraud is claimed.

An employer can avoid liability for on-the-job injuries so long as fully informed workers sign exculpatory agreements.

If you promise to give $1 million to a church, which begins new construction based on your promise, you may be held legally obligated to make the gift even though there is no contract.

A void contract never was or will be a valid contract.

An effective offer requires a clear manifestation of intent, definite terms and conditions, and communication of the offer.

The Uniform Commercial Code has significantly influenced the operation of commercial contract law.

Because of the war on terrorism, the U.S. government prohibited doing business with certain countries. Contracts that existed at the time the prohibition was announced were:

Todays Business Environment: Law and Ethics

The Court Systems

Trials and Resolving Disputes

The Constitution: Focus on Application to Business

Criminal Law and Business

Elements of Torts

Business Torts and Product Liability

Real and Personal Property

Intellectual Property

Domestic and International Sales

Business Organizations

Negotiable Instruments, Credit, and Bankruptcy

Agency and the Employment Relationship

Employment and Labor Regulations

Employment Discrimination

The Regulatory Process

Securities Regulation

Consumer Protection

Antitrust Law

Environmental Law

The International Legal Environment of Business

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