Question 1

The doctrine of promissory estoppel:

Accepted Answer

A)  makes the contracts unenforceable. 
B)  does not make promises enforceable. 
C)  protects bargains, not reliance. 
D)  protects reliance, not bargains. 
A)  makes the contracts unenforceable. 
B)  does not make promises enforceable. 
C)  protects bargains, not reliance. 
D)  protects reliance, not bargains.

Question 2

Sue Smith, the owner of Hi-Fi heaven, orders 100 stereo receivers from Steve Jones, a salesman for Slick Sound Manufacturing Company. Sue has made a promise to pay for the receivers in exchange for Slick Sound's promise to deliver them. This is a(n) _____ contract.

Accepted Answer

A)  unilateral 
B)  bilateral 
C)  implied 
D)  quasi 
A)  unilateral 
B)  bilateral 
C)  implied 
D)  quasi

Question 3

Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is _____.

Accepted Answer

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

Question 4

Which of the following is intended to avoid unjust enrichment?

Accepted Answer

A)  Bilateral contract 
B)  Quasi contract 
C)  Void contract 
D)  Express contract 
A)  Bilateral contract 
B)  Quasi contract 
C)  Void contract 
D)  Express contract

Question 5

Ingrid and Michael want to buy a house. As they don't have sufficient money, they plan to steal their neighbor's car and sell it to make money. This is a valid contract.

Accepted Answer

A) True 
 B)False

Question 6

The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.

Accepted Answer

A) True 
 B)False

Question 7

Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract.

Accepted Answer

A)  quasi 
B)  implied 
C)  bilateral 
D)  unilateral 
A)  quasi 
B)  implied 
C)  bilateral 
D)  unilateral

Question 8

The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:

Accepted Answer

A)  UCC does not require contracts to be in writing, while CISG requires contracts for the sale of goods in excess of $300 to be in writing. 
B)  CISG applies to the sale of consumer transactions, while the UCC governs both consumer and commercial transactions. 
C)  UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants. 
D)  CISG applies to both consumer and commercial transactions, while the UCC applies only to commercial sales of goods. 
A)  UCC does not require contracts to be in writing, while CISG requires contracts for the sale of goods in excess of $300 to be in writing. 
B)  CISG applies to the sale of consumer transactions, while the UCC governs both consumer and commercial transactions. 
C)  UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants. 
D)  CISG applies to both consumer and commercial transactions, while the UCC applies only to commercial sales of goods.

Question 9

As used in the Uniform Commercial Code (UCC), the concept "reasonable":

Accepted Answer

A)  is a practical standard used to gauge what people really do in the marketplace. 
B)  is a theoretical concept based on the "reasonable person standard" of tort law. 
C)  refers to the capacity to contract. 
D)  refers to what a reasonable person would do in the marketplace. 
A)  is a practical standard used to gauge what people really do in the marketplace. 
B)  is a theoretical concept based on the "reasonable person standard" of tort law. 
C)  refers to the capacity to contract. 
D)  refers to what a reasonable person would do in the marketplace.

Question 10

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

Accepted Answer

A)  It expressly recognizes the concept of an unconscionable contract. 
B)  It always imposes the same standards on merchants and nonmerchants. 
C)  It regards everyone covered by the UCC as a merchant. 
D)  It has no writing requirement unless the contract contains a provision requiring that modifications for terminations be in writing. 
A)  It expressly recognizes the concept of an unconscionable contract. 
B)  It always imposes the same standards on merchants and nonmerchants. 
C)  It regards everyone covered by the UCC as a merchant. 
D)  It has no writing requirement unless the contract contains a provision requiring that modifications for terminations be in writing.

Question 11

Marge Corp., a supermarket, sends Valerie Orchard Inc. an order for 80 cases of apples at $180 per case. Valerie Orchard sends an acknowledgement form to Marge, accepting the order. Describe the type of contract between Marge and Valerie Orchard.

Accepted Answer

Students' responses may vary. The partie

Question 12

Lorenzo offered Ida a job at his new law firm. In anticipation, Ida quit her job at Mega Firm, bought a new computer, and invested in a new set of law books. Shortly before her anticipated first day at Lorenzo's firm, Lorenzo informed Ida that he had changed his mind, and no longer wanted her to work for him. Ida may recover under the doctrine of _____.

Accepted Answer

A)  unjust enrichment 
B)  promissory estoppel 
C)  unilateral contract 
D)  express contract 
A)  unjust enrichment 
B)  promissory estoppel 
C)  unilateral contract 
D)  express contract

Question 13

An executory contract is a contract:

Accepted Answer

A)  that has been fully performed by all parties. 
B)  where executive privileges are implied. 
C)  that has not yet been fully performed by all parties. 
D)  where one party performs on the basis of a promise made by the other. 
A)  that has been fully performed by all parties. 
B)  where executive privileges are implied. 
C)  that has not yet been fully performed by all parties. 
D)  where one party performs on the basis of a promise made by the other.

Question 14

When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have:

Accepted Answer

A)  executed a contract. 
B)  made an express contract. 
C)  made an implied contract. 
D)  not made an enforceable contract. 
A)  executed a contract. 
B)  made an express contract. 
C)  made an implied contract. 
D)  not made an enforceable contract.

Question 15

Traditional contract law is basically designed to protect bargains that people make and that satisfy all the legal requirements for a binding contract.

Accepted Answer

A) True 
 B)False

Question 16

According to the Restatement (Second) of Contracts, promissory estoppel requires:

Accepted Answer

A)  one party to perform an act in exchange for the other party's promise. 
B)  that one or both parties may cancel the subject contract. 
C)  that at least one party give money or any other tangible, physical property as consideration. 
D)  a promise that the promisor should foresee is likely to induce reliance. 
A)  one party to perform an act in exchange for the other party's promise. 
B)  that one or both parties may cancel the subject contract. 
C)  that at least one party give money or any other tangible, physical property as consideration. 
D)  a promise that the promisor should foresee is likely to induce reliance.

Question 17

In a bilateral contract, both parties make a promise.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?

Accepted Answer

A)  It requires contracts for the sale of goods in excess of $300 to be in writing. 
B)  It mainly aims to unify and codify an international law of sales. 
C)  It focuses on which terms of the offer and acceptance are the same. 
D)  It applies to commercial and consumer transactions. 
A)  It requires contracts for the sale of goods in excess of $300 to be in writing. 
B)  It mainly aims to unify and codify an international law of sales. 
C)  It focuses on which terms of the offer and acceptance are the same. 
D)  It applies to commercial and consumer transactions.

Question 19

Written evidence of some kinds of contracts is required.

Accepted Answer

A) True 
 B)False

Question 20

The Restatement (Second) of Contracts carries the force of law.

Accepted Answer

A) True 
 B)False

Exam 9: The Nature and Origins of Contracts

The doctrine of promissory estoppel:

Sue Smith, the owner of Hi-Fi heaven, orders 100 stereo receivers from Steve Jones, a salesman for Slick Sound Manufacturing Company. Sue has made a promise to pay for the receivers in exchange for Slick Sound's promise to deliver them. This is a(n) _____ contract.

Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is _____.

Which of the following is intended to avoid unjust enrichment?

Ingrid and Michael want to buy a house. As they don't have sufficient money, they plan to steal their neighbor's car and sell it to make money. This is a valid contract.

The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.

Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract.

The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:

As used in the Uniform Commercial Code (UCC), the concept "reasonable":

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

Marge Corp., a supermarket, sends Valerie Orchard Inc. an order for 80 cases of apples at $180 per case. Valerie Orchard sends an acknowledgement form to Marge, accepting the order. Describe the type of contract between Marge and Valerie Orchard.

An executory contract is a contract:

When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have:

Traditional contract law is basically designed to protect bargains that people make and that satisfy all the legal requirements for a binding contract.

According to the Restatement (Second) of Contracts, promissory estoppel requires:

In a bilateral contract, both parties make a promise.

Which of the following is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?

Written evidence of some kinds of contracts is required.

The Restatement (Second) of Contracts carries the force of law.

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

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Which Form of Business Organization

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Financing the Corporation and the Role of the Shareholders

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Personal Property and Bailments

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Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

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