Question 1

Not all promises are contracts.

Accepted Answer

A) True 
 B)False  True

Question 2

Umi enters into an agreement with Sheng to sell her farm to him. They shake hands to "seal the deal," but do not put the agreement in writing. The contract is:

Accepted Answer

A)  voidable but enforceable. 
B)  bilateral. 
C)  valid. 
D)  unenforceable. 
A)  voidable but enforceable. 
B)  bilateral. 
C)  valid. 
D)  unenforceable. D

Question 3

A contract that has been fully performed is an executory contract.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)  A quasi contract is a legal fiction created by the court to avoid just enrichment. 
B)  A person is not held liable under quasi contract for benefits he or she received unknowingly. 
C)  A person is held liable under quasi contract for benefits he or she reasonably believed were given as a gift. 
D)  A quasi contract does not involve contract-like duties imposed by the court. 
A)  A quasi contract is a legal fiction created by the court to avoid just enrichment. 
B)  A person is not held liable under quasi contract for benefits he or she received unknowingly. 
C)  A person is held liable under quasi contract for benefits he or she reasonably believed were given as a gift. 
D)  A quasi contract does not involve contract-like duties imposed by the court.

Question 5

Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:

Accepted Answer

A)  liquidation of assets. 
B)  sale of goods. 
C)  sale of securities. 
D)  transfer of money between banks. 
A)  liquidation of assets. 
B)  sale of goods. 
C)  sale of securities. 
D)  transfer of money between banks.

Question 6

Joe pays Ann to mow his lawn, but Ann mows Donna's lawn by mistake. Donna peeps out her window and sees Ann mowing, yet says nothing to Ann about her mistake as Donna needs to have her lawn mowed. When Ann approaches Donna for payment, Donna refuses, arguing that she had never asked Ann to mow her lawn. Under these circumstances, Ann can recover payment from Donna on a(n) _____ contract basis.

Accepted Answer

A)  void 
B)  quasi 
C)  executory 
D)  express 
A)  void 
B)  quasi 
C)  executory 
D)  express

Question 7

Article 3 of the Uniform Commercial Code applies to all contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about a contract?

Accepted Answer

A)  It need not necessarily be an agreement. 
B)  It need not necessarily be entered into by parties having capacity to contract. 
C)  It must be voluntarily entered into, and it is to perform a legal act. 
D)  It must always be supported by consideration. 
A)  It need not necessarily be an agreement. 
B)  It need not necessarily be entered into by parties having capacity to contract. 
C)  It must be voluntarily entered into, and it is to perform a legal act. 
D)  It must always be supported by consideration.

Question 9

Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:

Accepted Answer

A)  good. 
B)  service. 
C)  good-faith warranty. 
D)  mixture of goods and services. 
A)  good. 
B)  service. 
C)  good-faith warranty. 
D)  mixture of goods and services.

Question 10

The biggest reform of contract law has resulted from the adoption of the Multilateral Contracts Code (MCC).

Accepted Answer

A) True 
 B)False

Question 11

Explain the differences between and similarities of the categories used to classify contracts by their enforceability: valid, unenforceable, voidable, and void.

Accepted Answer

Students' responses may vary. The answer

Question 12

Which of the following is true of the laissez-faire economic theories that were prevalent in the 19th century?

Accepted Answer

A)  People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts. 
B)  The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization. 
C)  These theories were never considered a part of the public policy in the 19th century. 
D)  People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required. 
A)  People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts. 
B)  The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization. 
C)  These theories were never considered a part of the public policy in the 19th century. 
D)  People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required.

Question 13

A contract is a legally enforceable promise or set of promises.

Accepted Answer

A) True 
 B)False

Question 14

A void contract is enforceable against both parties unless a party with the right to cancel the contract has done so.

Accepted Answer

A) True 
 B)False

Question 15

A quasi contract can be best described as:

Accepted Answer

A)  a contract that has been fully performed. 
B)  a contract where terms are stated orally only. 
C)  contract-like duties imposed by the court to prevent unjust enrichment. 
D)  an agreement that contains all but one of the basic elements needed to form an enforceable contract. 
A)  a contract that has been fully performed. 
B)  a contract where terms are stated orally only. 
C)  contract-like duties imposed by the court to prevent unjust enrichment. 
D)  an agreement that contains all but one of the basic elements needed to form an enforceable contract.

Question 16

Which of the following is a change that took place in the legal system that led to the development of contract law in the process?

Accepted Answer

A)  Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization. 
B)  Courts today are not willing to consider defenses based on inequality of bargaining power between the parties. 
C)  Courts tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract. 
D)  Courts are not given the authority to control any contractual relationships as they are left to private bargaining. 
A)  Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization. 
B)  Courts today are not willing to consider defenses based on inequality of bargaining power between the parties. 
C)  Courts tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract. 
D)  Courts are not given the authority to control any contractual relationships as they are left to private bargaining.

Question 17

Article 2 of the UCC applies to which of the following contracts?

Accepted Answer

A)  a contract for the sale of real estate 
B)  a contract for the sale of appliances 
C)  a contract for the sale of stocks 
D)  a contract for the sale of information 
A)  a contract for the sale of real estate 
B)  a contract for the sale of appliances 
C)  a contract for the sale of stocks 
D)  a contract for the sale of information

Question 18

How does the Uniform Commercial Code (UCC) define merchant? Why does the UCC distinguish between merchants and nonmerchants?

Accepted Answer

The UCC defines merchant on a case-by-ca

Question 19

What is a quasi contract?

Accepted Answer

A quasi contract is a legal fiction crea

Question 20

What is a contract?

Accepted Answer

A contract is a legally enforceable prom

Exam 9: The Nature and Origins of Contracts

Not all promises are contracts.

Umi enters into an agreement with Sheng to sell her farm to him. They shake hands to "seal the deal," but do not put the agreement in writing. The contract is:

A contract that has been fully performed is an executory contract.

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

Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:

Article 3 of the Uniform Commercial Code applies to all contracts for the sale of goods.

Which of the following is true about a contract?

Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:

The biggest reform of contract law has resulted from the adoption of the Multilateral Contracts Code (MCC).

Explain the differences between and similarities of the categories used to classify contracts by their enforceability: valid, unenforceable, voidable, and void.

Which of the following is true of the laissez-faire economic theories that were prevalent in the 19th century?

A contract is a legally enforceable promise or set of promises.

A void contract is enforceable against both parties unless a party with the right to cancel the contract has done so.

A quasi contract can be best described as:

Which of the following is a change that took place in the legal system that led to the development of contract law in the process?

Article 2 of the UCC applies to which of the following contracts?

How does the Uniform Commercial Code (UCC) define merchant? Why does the UCC distinguish between merchants and nonmerchants?

What is a quasi contract?

What is a contract?

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

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

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

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

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

Which of the following is true of the laissez-faire economic theories that were prevalent in the 19^th century?