Question 1

A promise to pay for an act that has yet to occur is unenforceable.

Accepted Answer

A) True 
 B)False

Question 2

Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on

Accepted Answer

A)  an illusory promise. 
B)  a release. 
C)  past consideration. 
D)  promissory estoppel. 
A)  an illusory promise. 
B)  a release. 
C)  past consideration. 
D)  promissory estoppel.

Question 3

Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is

Accepted Answer

A)  liable for payment of the $10,000. 
B)  liable only if Ned still works for Mary. 
C)  not liable, because the consideration is in the past. 
D)  not liable, because the consideration was unintentional. 
A)  liable for payment of the $10,000. 
B)  liable only if Ned still works for Mary. 
C)  not liable, because the consideration is in the past. 
D)  not liable, because the consideration was unintentional.

Question 4

Risks ordinarily assumed in business do not constitute consideration for the modification of a contract.

Accepted Answer

A) True 
 B)False

Question 5

Fact Pattern 12-A2
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 12-A2. If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agreement is

Accepted Answer

A)  enforceable as an accord and satisfaction. 
B)  enforceable because of unforeseen difficulties. 
C)  unenforceable as an illusory promise. 
D)  unenforceable due to the preexisting duty rule. 
A)  enforceable as an accord and satisfaction. 
B)  enforceable because of unforeseen difficulties. 
C)  unenforceable as an illusory promise. 
D)  unenforceable due to the preexisting duty rule.

Question 6

Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is

Accepted Answer

A)  not required to pay, because Jon was already at Ivy. 
B)  not required to pay, because obtaining a degree benefits Jon. 
C)  required to pay, because a job can be hard to find after college. 
D)  required to pay, because Jon obtained a degree at Ivy. 
A)  not required to pay, because Jon was already at Ivy. 
B)  not required to pay, because obtaining a degree benefits Jon. 
C)  required to pay, because a job can be hard to find after college. 
D)  required to pay, because Jon obtained a degree at Ivy.

Question 7

The doctrine of promissory estoppel does not apply if there is a clear and definite promise.

Accepted Answer

A) True 
 B)False

Question 8

Fact Pattern 12-A1
Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 12-A1. If, as Jesse claims, the consideration in this problem is inadequate, it may indicate a lack of

Accepted Answer

A)  accord in Jesse's satisfaction with the value of the deal. 
B)  bargained-for exchange or mutual assent. 
C)  flexibility on the part of College Credit to accommodate Jesse's needs. 
D)  "heft," "substance," or "weight" in the terms of the contract. 
A)  accord in Jesse's satisfaction with the value of the deal. 
B)  bargained-for exchange or mutual assent. 
C)  flexibility on the part of College Credit to accommodate Jesse's needs. 
D)  "heft," "substance," or "weight" in the terms of the contract.

Question 9

Betty pledges to donate $1,000 to the Children's Hospital. On the basis of the pledge, the hospital orders additional equipment. Betty reneges on the pledge. The hospital sues Betty. If the court enforces the pledge, it will be

Accepted Answer

A)  because Betty's performance is uncertain. 
B)  because of the unforeseen difficulties. 
C)  because the pledge is a gift. 
D)  under the doctrine of promissory estoppel. 
A)  because Betty's performance is uncertain. 
B)  because of the unforeseen difficulties. 
C)  because the pledge is a gift. 
D)  under the doctrine of promissory estoppel.

Question 10

Parties are not generally free to bargain as they wish.

Accepted Answer

A) True 
 B)False

Question 11

Rescission is the dissolution of a contract that returns the parties to the positions they held before the contract.

Accepted Answer

A) True 
 B)False

Question 12

For consideration to have "legally sufficient value," it must consist of goods or money.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Accepted Answer

A)  objectively worthy. 
B)  grossly inadequate. 
C)  legally sufficient. 
D)  practically sound. 
A)  objectively worthy. 
B)  grossly inadequate. 
C)  legally sufficient. 
D)  practically sound.

Question 15

Domestic Auto Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is

Accepted Answer

A)  enforceable. 
B)  unenforceable because it is not supported by consideration. 
C)  unenforceable because the dollar amount is missing. 
D)  unenforceable because the employees are paid salaries. 
A)  enforceable. 
B)  unenforceable because it is not supported by consideration. 
C)  unenforceable because the dollar amount is missing. 
D)  unenforceable because the employees are paid salaries.

Question 16

Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is

Accepted Answer

A)  not consideration because its transfer is a preexisting duty. 
B)  not consideration because its exchange is not a bargain. 
C)  consideration. 
D)  not consideration because its value is legally insufficient. 
A)  not consideration because its transfer is a preexisting duty. 
B)  not consideration because its exchange is not a bargain. 
C)  consideration. 
D)  not consideration because its value is legally insufficient.

Question 17

A promise by one party to pay another for refraining from an act is enforceable.

Accepted Answer

A) True 
 B)False

Question 18

An illusory promise is a promise that is enforceable without consideration.

Accepted Answer

A) True 
 B)False

Question 19

A promise to pay a debt for which a statute of limitations bars recovery is an enforceable promise.

Accepted Answer

A) True 
 B)False

Question 20

Flossy promises to pay her cousin Garth, who is dangerously obese, $10,000 if Garth loses 100 pounds within the next two years. Garth agrees, performs his part of the bargain, and asks for the money. Flossy refuses to pay, saying that she forgot about the deal, but that even if she did make such a pledge, there was no valid consideration for it. Garth files a suit against Flossy. In whose favor is the court likely to rule, and why

Accepted Answer

A court is most likely to rule against F

Exam 12: Consideration

A promise to pay for an act that has yet to occur is unenforceable.

Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on

Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary is

Risks ordinarily assumed in business do not constitute consideration for the modification of a contract.

Kelsey promises to pay Jon, her son, $15,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is

The doctrine of promissory estoppel does not apply if there is a clear and definite promise.

Betty pledges to donate $1,000 to the Children's Hospital. On the basis of the pledge, the hospital orders additional equipment. Betty reneges on the pledge. The hospital sues Betty. If the court enforces the pledge, it will be

Parties are not generally free to bargain as they wish.

Rescission is the dissolution of a contract that returns the parties to the positions they held before the contract.

For consideration to have "legally sufficient value," it must consist of goods or money.

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

Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Domestic Auto Sales, Inc., promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is

Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is

A promise by one party to pay another for refraining from an act is enforceable.

An illusory promise is a promise that is enforceable without consideration.

A promise to pay a debt for which a statute of limitations bars recovery is an enforceable promise.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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