Exam 10: Nature and Terminology

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Ed, a businessperson, is a friend of Fran, the owner of a candy store. Every day, Ed spends five minutes in Fran's candy store, looking at the candy and usually buying one or two candy bars. One afternoon, Ed goes into the store, looks at the candy, and picks up a $1 candy bar. Ed waves the candy at Fran without saying a word and walks out. Is there a contract If so, how would it be classified in terms of formation, performance, and enforceability

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Question 1

Correct Answer:

Verified

The facts presented here indicate the presence of all the ele ments necessary for a valid contract. There are a serious offer and accep tance, consideration is ex changed (a candy bar for $1), both parties have capacity, the selling of the candy is legal, and there is no particular form required for this type of contract. Thus, a contract exists and for the rea sons given here is classified as valid, enforce able, and informal. In addi tion, this is a classic case of an implied con tract. There is no ex plicit agreement between the parties. Rather, an agree ment is implied by Ed's action of waving the candy bar and by his past con duct. By his con duct Ed is telling Fran that he will pay for the candy later. The contract is also bilateral (as opposed to uni lateral), because Fran im pliedly promises to sell the candy to Ed in ex change for Ed's implied promise to pay. The contract is partially executory, as Ed has engaged to pay for the candy in the future. Because the contract is for a legal pur pose, both parties have capacity, and voluntariness of consent is not an issue, the con tract is neither voidable nor void.

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

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Question 2

Correct Answer:

Verified

An express contract must be in writing.

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Question 3

Correct Answer:

Verified

False

The intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person.

(True/False)

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Question 4

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

(True/False)

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Question 5

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

(Multiple Choice)

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Question 6

Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because

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Question 7

A check is a formal contract.

(True/False)

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Question 8

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract include

(Multiple Choice)

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Question 9

National Grocers, Inc., enters into a contract with Overland Shipping Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed against

(Multiple Choice)

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Question 10

Plain language laws regulate some types of contracts to require "legalese."

(True/False)

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Question 11

Following negotiations with Merchants Storage Company, Lonny enters into an informal contract to clean the loading dock. This means that the parties' contract

(Multiple Choice)

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Question 12

Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's

(Multiple Choice)

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Question 13

Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel

(Multiple Choice)

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Question 14

On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance in the Quay Club on May 1. Portia, acting for Quay Club, sends a written copy of the agreement to Raul to be signed. Typically, businesspersons put their contracts in writing to

(Multiple Choice)

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Question 15

A unilateral contract is formed when the one receiving the offer completes the requested act or performance.

(True/False)

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Question 16

The only requirement of a valid contract is that it be voluntarily entered into.

(True/False)

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Question 17

The doctrine of quasi contract can be used only when there is an actual contract that covers the matter in controversy.

(True/False)

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Question 18

"Consideration" refers to the voluntary consent of all of the parties to a contract.

(True/False)

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Question 19

Every contract involves at least three parties.

(True/False)

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Question 20

Showing 1 - 20 of 42

Exam 10: Nature and Terminology

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

An express contract must be in writing.

The intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person.

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because

A check is a formal contract.

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract include

National Grocers, Inc., enters into a contract with Overland Shipping Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed against

Plain language laws regulate some types of contracts to require "legalese."

Following negotiations with Merchants Storage Company, Lonny enters into an informal contract to clean the loading dock. This means that the parties' contract

Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's

Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel

On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance in the Quay Club on May 1. Portia, acting for Quay Club, sends a written copy of the agreement to Raul to be signed. Typically, businesspersons put their contracts in writing to

A unilateral contract is formed when the one receiving the offer completes the requested act or performance.

The only requirement of a valid contract is that it be voluntarily entered into.

The doctrine of quasi contract can be used only when there is an actual contract that covers the matter in controversy.

"Consideration" refers to the voluntary consent of all of the parties to a contract.

Every contract involves at least three parties.

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

Agreement in Traditional and E-Contracts

Consideration

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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