Question 1

According to the Uniform Commercial Code, if the original agreement requires any modification to be in writing, an oral modification:

Accepted Answer

A)  is unenforceable. 
B)  is enforceable. 
C)  can be enforced if the value of the goods exceeds $500. 
D)  can create legal value. 
A)  is unenforceable. 
B)  is enforceable. 
C)  can be enforced if the value of the goods exceeds $500. 
D)  can create legal value. A

Question 2

By far, the greatest number of preexisting duty cases involve _____ duties.

Accepted Answer

A)  equitable 
B) 
Contractual 
C)  illusory 
D)  statutory 
A)  equitable 
B) 
Contractual 
C)  illusory 
D)  statutory B

Question 3

Polly promises to pay city council member Smith $500 to show up for the weekly city council meetings. Polly's promise is:

Accepted Answer

A)  supported by consideration. 
B)  wholly enforceable. 
C)  not supported by consideration. 
D)  supported by conditional consideration. 
A)  supported by consideration. 
B)  wholly enforceable. 
C)  not supported by consideration. 
D)  supported by conditional consideration. C

Question 4

As a general rule, a promise to discharge a liquidated debt for part payment of the debt at or after its due date is unenforceable due to lack of consideration.

Accepted Answer

A) True 
 B)False

Question 5

Explain the difference between a liquidated and an unliquidated debt.

Accepted Answer

A liquidated debt is undisputed; that is

Question 6

Rudo asked Harun to detail his brand-new sports car by painting flames on the side of the vehicle. After the parties signed a contract and after Harun had already started to paint, Rudo decided that he also wanted Harun to install a new stereo system in the car at the same cost and modified the contract likewise. Harun painted the flames on the side of the vehicle as originally agreed but did not install a new stereo. Rudo refuses to pay the originally agreed upon price. If Harun sues Rudo for the contract price, he will win because

Accepted Answer

A)  Rudo's modification was unenforceable for lack of consideration. 
B)  Rudo's promise was unenforceable. 
C)  the old contract automatically got cancelled with the addition of a new condition. 
D)  Harun's act was not a preexisting duty and hence of no legal value. 
A)  Rudo's modification was unenforceable for lack of consideration. 
B)  Rudo's promise was unenforceable. 
C)  the old contract automatically got cancelled with the addition of a new condition. 
D)  Harun's act was not a preexisting duty and hence of no legal value.

Question 7

If the promisee does or agrees to do something he or she had no prior legal duty to do in exchange for the promisor's promise, that provides legal value.

Accepted Answer

A) True 
 B)False

Question 8

Courts generally do not enforce a promise against the promisor unless the promisee has given up something in exchange for the promise.

Accepted Answer

A) True 
 B)False

Question 9

On January 1, 2006, Bev owed City Bank $5,000 on her car loan. The loan was due in May 2006. On January 1, 2006, Bev sent the bank a check for $4,800 marked "In full payment for any and all claims City Bank has against me." City Bank cashes the check. Under these circumstances, _____.

Accepted Answer

A)  City Bank can sue Bev for $200 
B)  City Bank has not promised to accept the payment as "payment in full" 
C)  Bev can avoid paying the $200 
D)  Bev has not given consideration 
A)  City Bank can sue Bev for $200 
B)  City Bank has not promised to accept the payment as "payment in full" 
C)  Bev can avoid paying the $200 
D)  Bev has not given consideration

Question 10

At a fairly early point in the development of contract law, the common law courts decided not to enforce gratuitous promises.

Accepted Answer

A) True 
 B)False

Question 11

Generally, a bilateral contract that lacks mutuality is unenforceable due to lack of consideration.

Accepted Answer

A) True 
 B)False

Question 12

Explain forbearance to sue as it relates to consideration.

Accepted Answer

Forbearance occurs when someone promises

Question 13

Which of the following statements is true about unliquidated debts?

Accepted Answer

A)  As the amount is due and certain, a promise to pay less lacks consideration. 
B)  All courts allow collection of the remainder if checks marked "payment in full" are cashed without reservation. 
C)  As the amount is genuinely in dispute, an agreement resulting in accord and satisfaction is enforceable. 
D)  Composition agreements are an exception to unliquidated debts and can be enforced without additional consideration. 
A)  As the amount is due and certain, a promise to pay less lacks consideration. 
B)  All courts allow collection of the remainder if checks marked "payment in full" are cashed without reservation. 
C)  As the amount is genuinely in dispute, an agreement resulting in accord and satisfaction is enforceable. 
D)  Composition agreements are an exception to unliquidated debts and can be enforced without additional consideration.

Question 14

Explain with an example how promissory estoppel affects the consideration requirement of contract law.

Accepted Answer

An important exception to consideration

Question 15

If a professor charges extra fees to take a regularly scheduled class, it would not qualify as consideration because such an act:

Accepted Answer

A)  is prohibited by promissory estoppel. 
B)  would violate the preexisting duty rule. 
C)  is new consideration that is provided to support a modification. 
D)  is a tort. 
A)  is prohibited by promissory estoppel. 
B)  would violate the preexisting duty rule. 
C)  is new consideration that is provided to support a modification. 
D)  is a tort.

Question 16

The requirement of _____ requires a promisee to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise.

Accepted Answer

A)  promissory estoppel 
B)  equity 
C)  consideration 
D)  forbearance 
A)  promissory estoppel 
B)  equity 
C)  consideration 
D)  forbearance

Question 17

_____ are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their _____ claims against the debtor at or after the due date, in _____ satisfaction of their claims.

Accepted Answer

A)  Requisitions; unliquidated; partial 
B)  Compositions; liquidated; full 
C)  Extraordinary renditions; unliquidated; partial 
D)  Routine renditions; liquidated; full 
A)  Requisitions; unliquidated; partial 
B)  Compositions; liquidated; full 
C)  Extraordinary renditions; unliquidated; partial 
D)  Routine renditions; liquidated; full

Question 18

Jin moves into a neighborhood in Philadelphia and opens a repair shop. He is harassed by the local gang leader who wants to extort money from him. He promises to pay Sheng, a police officer whose patrol includes Jin's store, $50 a week to "keep an eye on the store" while walking his patrol. Which of the following statements is true of this situation?

Accepted Answer

A)  Jin's promise is enforceable. 
B)  The cop can sue Jin for not keeping his promise of paying $50 per week. 
C)  Sheng's promises toward Jin are not consideration. 
D)  Jin is the promisee and Sheng is the promisor. 
A)  Jin's promise is enforceable. 
B)  The cop can sue Jin for not keeping his promise of paying $50 per week. 
C)  Sheng's promises toward Jin are not consideration. 
D)  Jin is the promisee and Sheng is the promisor.

Question 19

Consideration is equitable value, bargained for and given in exchange for the promise to make a gift.

Accepted Answer

A) True 
 B)False

Question 20

On October 29, 1989, Alex agrees to paint Georgia's house during the Thanksgiving week for $4,000 in exchange for Georgia's promise to pay him $4,000 in cash immediately upon completion of the work. Which of the following statements is true of this case?

Accepted Answer

A)  Georgia could hire another painter on October 31 without legal liability to Alex because until he has painted the house, he has not given any consideration for Georgia's promise to hire him. 
B)  Alex could back out of the deal on October 31 without legal liability to Georgia because she has not given any consideration for Alex's promise to do the work until she pays him. 
C)  Both parties are bound on October 29 because each has given consideration for the other's promise. 
D)  Alex could back out of the deal on October 29 without legal liability if he could prove that $4,000 was inadequate consideration to paint Georgia's house. 
A)  Georgia could hire another painter on October 31 without legal liability to Alex because until he has painted the house, he has not given any consideration for Georgia's promise to hire him. 
B)  Alex could back out of the deal on October 31 without legal liability to Georgia because she has not given any consideration for Alex's promise to do the work until she pays him. 
C)  Both parties are bound on October 29 because each has given consideration for the other's promise. 
D)  Alex could back out of the deal on October 29 without legal liability if he could prove that $4,000 was inadequate consideration to paint Georgia's house.

Exam 12: Consideration

According to the Uniform Commercial Code, if the original agreement requires any modification to be in writing, an oral modification:

By far, the greatest number of preexisting duty cases involve _____ duties.

Polly promises to pay city council member Smith $500 to show up for the weekly city council meetings. Polly's promise is:

As a general rule, a promise to discharge a liquidated debt for part payment of the debt at or after its due date is unenforceable due to lack of consideration.

Explain the difference between a liquidated and an unliquidated debt.

If the promisee does or agrees to do something he or she had no prior legal duty to do in exchange for the promisor's promise, that provides legal value.

Courts generally do not enforce a promise against the promisor unless the promisee has given up something in exchange for the promise.

On January 1, 2006, Bev owed City Bank $5,000 on her car loan. The loan was due in May 2006. On January 1, 2006, Bev sent the bank a check for $4,800 marked "In full payment for any and all claims City Bank has against me." City Bank cashes the check. Under these circumstances, _____.

At a fairly early point in the development of contract law, the common law courts decided not to enforce gratuitous promises.

Generally, a bilateral contract that lacks mutuality is unenforceable due to lack of consideration.

Explain forbearance to sue as it relates to consideration.

Which of the following statements is true about unliquidated debts?

Explain with an example how promissory estoppel affects the consideration requirement of contract law.

If a professor charges extra fees to take a regularly scheduled class, it would not qualify as consideration because such an act:

The requirement of _____ requires a promisee to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise.

_____ are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their _____ claims against the debtor at or after the due date, in _____ satisfaction of their claims.

Consideration is equitable value, bargained for and given in exchange for the promise to make a gift.

On October 29, 1989, Alex agrees to paint Georgia's house during the Thanksgiving week for $4,000 in exchange for Georgia's promise to pay him $4,000 in cash immediately upon completion of the work. Which of the following statements is true of this case?

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

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Legal Liability of Accountants

Personal Property and Bailments

Real Property

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Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

Filters

___ are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their _ claims against the debtor at or after the due date, in ___ satisfaction of their claims.