Question 1

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan ________.

Accepted Answer

A)  can revoke the contract as informal verbal agreements are not binding 
B)  cannot revoke the contract 
C)  can reduce the money on offer 
D)  can only increase the money on offer 
A)  can revoke the contract as informal verbal agreements are not binding 
B)  cannot revoke the contract 
C)  can reduce the money on offer 
D)  can only increase the money on offer

Question 2

There is no right to a jury trial in an equitable action.

Accepted Answer

A) True 
 B)False

Question 3

Windsor, the owner of Windsor's Sandwiches, contacts a new supplier, Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a(n) ________ contract between them.

Accepted Answer

A)  unilateral 
B)  bilateral 
C)  implied-in-law 
D)  executory 
A)  unilateral 
B)  bilateral 
C)  implied-in-law 
D)  executory

Question 4

Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.

Accepted Answer

A)  executory 
B)  executed 
C)  void 
D)  voidable 
A)  executory 
B)  executed 
C)  void 
D)  voidable

Question 5

Equity is a doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.

Accepted Answer

A) True 
 B)False

Question 6

If one of the parties to a contract can enforce the contract, it is considered valid.

Accepted Answer

A) True 
 B)False

Question 7

Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true?

Accepted Answer

A)  Martha can sue the baker to recover $150 in damages. 
B)  Martha can sue the baker but cannot recover damages. 
C)  The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her. 
D)  Martha cannot sue the baker. 
A)  Martha can sue the baker to recover $150 in damages. 
B)  Martha can sue the baker but cannot recover damages. 
C)  The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her. 
D)  Martha cannot sue the baker.

Question 8

Harry in a drunken state agrees to give his car to Ben as a token of friendship. Once sober, Harry asks Ben to return his car. This contract is considered ________.

Accepted Answer

A)  valid 
B)  void 
C)  voidable 
D)  unenforceable 
A)  valid 
B)  void 
C)  voidable 
D)  unenforceable

Question 9

Restatement of the Law of Contracts is the agreed upon federal law in the United States.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of the UCC (Uniform Commercial Code)?

Accepted Answer

A)  The UCC aims to create a uniform system of accounting among the 50 states. 
B)  The common law of contracts normally takes precedence over the provisions of the UCC. 
C)  Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of rules of taxation. 
D)  Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the lease of goods. 
A)  The UCC aims to create a uniform system of accounting among the 50 states. 
B)  The common law of contracts normally takes precedence over the provisions of the UCC. 
C)  Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of rules of taxation. 
D)  Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the lease of goods.

Question 11

Ross makes an offer to Elizabeth to sell his automobile to her for $10,000. In this case, Ross is the offeree and Elizabeth is the offeror.

Accepted Answer

A) True 
 B)False

Question 12

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

Accepted Answer

A)  unilateral 
B)  bilateral 
C)  implied-in-law 
D)  executory 
A)  unilateral 
B)  bilateral 
C)  implied-in-law 
D)  executory

Question 13

What is recognizance?

Accepted Answer

A)  a party's acknowledgement in court that he or she will pay a specified sum of money if a certain event occurs 
B)  a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing 
C)  a sealed document that contains an informal contract whose contents are known only to the parties 
D)  a party's acknowledgement in court that he or she is not liable to pay any money if a certain event occurs 
A)  a party's acknowledgement in court that he or she will pay a specified sum of money if a certain event occurs 
B)  a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing 
C)  a sealed document that contains an informal contract whose contents are known only to the parties 
D)  a party's acknowledgement in court that he or she is not liable to pay any money if a certain event occurs

Question 14

Explain the objective theory of contracts. In your answer, provide an example of an offer that would not result in a valid contract.

Accepted Answer

The intent to enter into a contract is d

Question 15

If ambiguity is detected while determining the type of a contract, it is presumed to be a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 16

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of the doctrine of quasi contract?

Accepted Answer

A)  It allows a court to award monetary damages to a defendant because no actual contract existed between the parties. 
B)  It applies only where there is an enforceable contract between the parties. 
C)  It is an equitable doctrine intended to prevent unjust enrichment. 
D)  Agreement between parties to a quasi contract has been inferred from their conduct. 
A)  It allows a court to award monetary damages to a defendant because no actual contract existed between the parties. 
B)  It applies only where there is an enforceable contract between the parties. 
C)  It is an equitable doctrine intended to prevent unjust enrichment. 
D)  Agreement between parties to a quasi contract has been inferred from their conduct.

Question 18

In a(n) ________ contract, agreement between parties is inferred from their conduct.

Accepted Answer

A)  implied-in-law 
B)  implied-in-fact 
C)  express 
D)  formal 
A)  implied-in-law 
B)  implied-in-fact 
C)  express 
D)  formal

Question 19

The goal of the Uniform Commercial Code (UCC) is to regularize foreign trade norms among the 50 states of the United States of America.

Accepted Answer

A) True 
 B)False

Question 20

A contract is a(n) ________ if the offeror's promise is answered with the offeree's promise of acceptance.

Accepted Answer

A)  unilateral contract 
B)  bilateral contract 
C)  executed contract 
D)  executory contract 
A)  unilateral contract 
B)  bilateral contract 
C)  executed contract 
D)  executory contract

Exam 9: Nature of Traditional and E-Contracts

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan ________.

There is no right to a jury trial in an equitable action.

Windsor, the owner of Windsor's Sandwiches, contacts a new supplier, Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a(n) ________ contract between them.

Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.

Equity is a doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.

If one of the parties to a contract can enforce the contract, it is considered valid.

Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true?

Harry in a drunken state agrees to give his car to Ben as a token of friendship. Once sober, Harry asks Ben to return his car. This contract is considered ________.

Restatement of the Law of Contracts is the agreed upon federal law in the United States.

Which of the following is true of the UCC (Uniform Commercial Code)?

Ross makes an offer to Elizabeth to sell his automobile to her for $10,000. In this case, Ross is the offeree and Elizabeth is the offeror.

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

What is recognizance?

Explain the objective theory of contracts. In your answer, provide an example of an offer that would not result in a valid contract.

If ambiguity is detected while determining the type of a contract, it is presumed to be a bilateral contract.

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

Which of the following statements is true of the doctrine of quasi contract?

In a(n) ________ contract, agreement between parties is inferred from their conduct.

The goal of the Uniform Commercial Code (UCC) is to regularize foreign trade norms among the 50 states of the United States of America.

A contract is a(n) ________ if the offeror's promise is answered with the offeree's promise of acceptance.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, Mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection and E-Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, Real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, Trusts, and Estates

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