Question 1

A promisee's consideration is effective only if given directly to the promisor by the promisee.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would not be a promise statutorily made enforceable without consideration?

Accepted Answer

A) Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. 
B) Jones promises to pay his cousin's past-due cell phone bill. 
C) Dodds signs and delivers a waiver of a claim arising out of a breach of contract by Keys. 
D) A signed, written offer by Marcum Jewelers to sell four dozen 18" gold chains to the Alpha Sorority for $480 within the next 30 days. 
A) Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. 
B) Jones promises to pay his cousin's past-due cell phone bill. 
C) Dodds signs and delivers a waiver of a claim arising out of a breach of contract by Keys. 
D) A signed, written offer by Marcum Jewelers to sell four dozen 18" gold chains to the Alpha Sorority for $480 within the next 30 days.

Question 3

Consideration is the inducement to make a promise enforceable.

Accepted Answer

A) True 
 B)False

Question 4

Roberto obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

Accepted Answer

A) the manufacturer is obligated to use his best efforts to supply the goods even if no such clause appears in the written franchise agreement. 
B) Roberto has an implied obligation to use his best efforts to promote the sale of the widgets. 
C) under the UCC, such an agreement lacks consideration. 
D) Two of the above, (a) and (b). 
A) the manufacturer is obligated to use his best efforts to supply the goods even if no such clause appears in the written franchise agreement. 
B) Roberto has an implied obligation to use his best efforts to promote the sale of the widgets. 
C) under the UCC, such an agreement lacks consideration. 
D) Two of the above, (a) and (b).

Question 5

A debt is disputed only if both the existence and amount are contested.

Accepted Answer

A) True 
 B)False

Question 6

In most,if not all,cases where there is a legal detriment to the promisee,there is also a legal benefit to the promisor.

Accepted Answer

A) True 
 B)False

Question 7

Orwin,owner of a used furniture store,gives Maggie a signed offer to buy her living room furniture for $800.This offer:

Accepted Answer

A) is revocable at any time because no consideration was given. 
B) would have been irrevocable if Orwin were a merchant, but he would not be considered a merchant under the UCC. 
C) is irrevocable for a reasonable time, not to exceed three months, even if there was no consideration. 
D) is revocable without consideration because it is an offer to buy rather than to sell. 
A) is revocable at any time because no consideration was given. 
B) would have been irrevocable if Orwin were a merchant, but he would not be considered a merchant under the UCC. 
C) is irrevocable for a reasonable time, not to exceed three months, even if there was no consideration. 
D) is revocable without consideration because it is an offer to buy rather than to sell.

Question 8

Mary agrees to sew Georgia's prom dress for $50 plus costs.Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60.When Mary finishes the dress (with ruffles),Georgia must pay:

Accepted Answer

A) $50, since that is the original agreement. 
B) $50, since a modification must be in writing. 
C) $60, since the modified agreement is supported by additional consideration. 
D) $60, since any subsequent agreement is enforceable. 
A) $50, since that is the original agreement. 
B) $50, since a modification must be in writing. 
C) $60, since the modified agreement is supported by additional consideration. 
D) $60, since any subsequent agreement is enforceable.

Question 9

Which of the following statements best describes charitable subscription promises?

Accepted Answer

A) They are generally not enforceable. 
B) They are equated by the law with gifts. 
C) They are generally enforceable if there is reliance or a probability of reliance by the charity. 
D) Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them. 
A) They are generally not enforceable. 
B) They are equated by the law with gifts. 
C) They are generally enforceable if there is reliance or a probability of reliance by the charity. 
D) Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them.

Question 10

Sam owes $5,000 to the First National Bank for a student loan which will come due on January 1 next year.He has been offered a two-year graduate fellowship,but he will not be able to pay the loan back if he accepts the fellowship.The bank manager tells Sam that if he pays $3,000 now,they will forgive the loan.Should Sam accept the offer?

Accepted Answer

A) No, because the bank can still sue for the remaining $2,000. 
B) No, because the manager's promise is not binding on the bank. 
C) Yes, because the early payment of the loan is consideration that makes the bank's promise binding. 
D) Yes, because the bank must do whatever the manager says. 
A) No, because the bank can still sue for the remaining $2,000. 
B) No, because the manager's promise is not binding on the bank. 
C) Yes, because the early payment of the loan is consideration that makes the bank's promise binding. 
D) Yes, because the bank must do whatever the manager says.

Question 11

The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

Accepted Answer

A) True 
 B)False

Question 12

The Restatement recognizes moral obligations as consideration.

Accepted Answer

A) True 
 B)False

Question 13

Darla offers to pay Edward $6,000 for Edward's car,provided that Darla receives that much from her uncle's estate,which is currently being probated.She expects to know for sure how much she will receive within a week or so.If Edward agrees:

Accepted Answer

A) there is an illusory contract, because Darla is not certain she will receive the money. 
B) there is no consideration present in this example. 
C) the consideration from Darla to Edward is the promise of $6,000 subject to a condition. 
D) Two of the above. 
A) there is an illusory contract, because Darla is not certain she will receive the money. 
B) there is no consideration present in this example. 
C) the consideration from Darla to Edward is the promise of $6,000 subject to a condition. 
D) Two of the above.

Question 14

Nathan entered a contract while he was seventeen.If,upon reaching the age of majority,he has not avoided the contract and promises to perform those contractual obligations,new consideration is required for the contract to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

In a unilateral contract,a promise is exchanged for an act or forbearance to act.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the concept of adequacy of consideration.

Accepted Answer

Adequacy of consideration is not require

Question 17

A bank robbery has occurred,and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

Accepted Answer

A) The employees of the bank. 
B) An on-duty sheriff's deputy in the county where the arrest occurred. 
C) An off-duty deputy sheriff from a county other than the one where the arrest occurred. 
D) None of the above are eligible. 
A) The employees of the bank. 
B) An on-duty sheriff's deputy in the county where the arrest occurred. 
C) An off-duty deputy sheriff from a county other than the one where the arrest occurred. 
D) None of the above are eligible.

Question 18

Under the common law,a modification of a preexisting contract must be supported by mutual consideration; under the Code,a contract can be modified without new consideration.

Accepted Answer

A) True 
 B)False

Question 19

In a contract for the sale of lawn care services,an issue arises about whether the homeowner would receive disproportionately less in service than the lawn care company would receive in compensation.This disparity may be relevant to the:

Accepted Answer

A) requirement of legally sufficient consideration. 
B) availability of certain defenses. 
C) availability of certain remedies. 
D) All of the above. 
E) Only (b) and (c). 
A) requirement of legally sufficient consideration. 
B) availability of certain defenses. 
C) availability of certain remedies. 
D) All of the above. 
E) Only (b) and (c).

Question 20

The two basic elements to consideration are legal adequacy and a bargained-for exchange.

Accepted Answer

A) True 
 B)False

Exam 12: Consideration

A promisee's consideration is effective only if given directly to the promisor by the promisee.

Which of the following would not be a promise statutorily made enforceable without consideration?

Consideration is the inducement to make a promise enforceable.

Roberto obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

A debt is disputed only if both the existence and amount are contested.

In most,if not all,cases where there is a legal detriment to the promisee,there is also a legal benefit to the promisor.

Orwin,owner of a used furniture store,gives Maggie a signed offer to buy her living room furniture for $800.This offer:

Mary agrees to sew Georgia's prom dress for $50 plus costs.Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60.When Mary finishes the dress (with ruffles),Georgia must pay:

Which of the following statements best describes charitable subscription promises?

The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

The Restatement recognizes moral obligations as consideration.

Darla offers to pay Edward $6,000 for Edward's car,provided that Darla receives that much from her uncle's estate,which is currently being probated.She expects to know for sure how much she will receive within a week or so.If Edward agrees:

Nathan entered a contract while he was seventeen.If,upon reaching the age of majority,he has not avoided the contract and promises to perform those contractual obligations,new consideration is required for the contract to be enforceable.

In a unilateral contract,a promise is exchanged for an act or forbearance to act.

Discuss the concept of adequacy of consideration.

A bank robbery has occurred,and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

Under the common law,a modification of a preexisting contract must be supported by mutual consideration; under the Code,a contract can be modified without new consideration.

In a contract for the sale of lawn care services,an issue arises about whether the homeowner would receive disproportionately less in service than the lawn care company would receive in compensation.This disparity may be relevant to the:

The two basic elements to consideration are legal adequacy and a bargained-for exchange.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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