Question 1

"Refusal to Pay." Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.
-Which of the following is an appropriate characterization of the agreement between Debby and Max?

Accepted Answer

A)   They had a bilateral, express agreement.
B)   They had a bilateral, implied agreement.
C)   They had a bilateral and unilateral agreement.
D)   They had a unilateral, express agreement.
E)   They had a unilateral, implied agreement.F) A) and B)
G) C) and D)

Question 2

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.
-What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?

Accepted Answer

A)   The contract was executory.
B)   The contract was executed.
C)   The contract was novated.
D)   The contract was formal.
E)   The contract was a recognizance contract.F) A) and B)
G) B) and C)

Question 3

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.
-Which of the following is true regarding Jackson's assertion that Penny must pay him at this point if the neighbor fails to do so?

Accepted Answer

A)   He is correct because an express contract existed, and he made an honest mistake for which Penny must accept the risk.
B)   He is correct because an implied contract existed, and he made an honest mistake for which Penny must accept the risk.
C)   He is correct because an implied-in-law contract existed.
D)   He is correct because a valid contract existed; and, after his performance, it is considered executed.
E)   He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint, and the contract remains executory.F) B) and D)
G) All of the above

Question 4

Which of the following is the reason the Uniform Commercial Code was drafted?

Accepted Answer

A)   Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce.
B)   Some states had no law governing contracts.
C)   Federal law governing contracts was difficult to apply.
D)   The Uniform State Act on laws was not working.
E)   The Restatement of the Law Second, Contracts was not being evenly and fairly applied.F) A) and D)
G) C) and E)

Question 5

Congress passed the Uniform Electronic Transactions Act (UETA).

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?

Accepted Answer

A)   Article 2
B)   Article 3
C)   Article 4
D)   Article 5
E)   Article 7F) A) and B)
G) B) and E)

Question 7

Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

Accepted Answer

A)   The Restatement of the Law Second, Contracts.
B)   The Convention on Contracts for the National Sales of Goods.
C)   Common law.
D)   Common law and the Convention on Contracts for International Sales of Goods.
E)   The Convention on Contracts for the National Sales of Goods and the Restatement of the Law Second, Contracts.F) All of the above
G) A) and B)

Question 8

Which of the following represents the legal ability to enter into a binding agreement?

Accepted Answer

A)   Majority
B)   Emancipation
C)   Contractual knowledge
D)   Contractual capacity
E)   Informed consentF) C) and D)
G) D) and E)

Question 9

The person who makes an offer is called a[n] ___________.

Accepted Answer

A)   Offeree
B)   Offeror
C)   Agreeor
D)   Agree
E)   InquirerF) A) and B)
G) A) and C)

Question 10

The term "consideration" in relation to contracts involves parties acting in an ethical manner.

Accepted Answer

A) True 
 B)False

Question 11

Identify and describe the four elements that are necessary for a contract to exist.

Accepted Answer

The four elements necessary for a contra...

Question 12

All contracts can be categorized as either ___________ or __________.

Accepted Answer

A)   Unilateral; complete
B)   Unilateral; trilateral
C)   Bilateral; trilateral
D)   Unilateral; bilateral
E)   Bilateral; completeF) A) and C)
G) B) and C)

Question 13

As long as some of the duties under a contract have not yet been performed, the contract is considered ________________.

Accepted Answer

A)   Executory
B)   Executed
C)   Anticipatory
D)   Ended
E)   StoppedF) C) and D)
G) A) and E)

Question 14

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract, and give an example of an express and implied contract.

Accepted Answer

Express contracts have all their terms clearly set forth in either written or spoken words. Implied contracts arise not from words, but from the conduct of the parties. For an implied contract to be found, first the plaintiff needs to have provided some property or service to the defendant. Second, the plaintiff should have expected to be paid for such property or service, and a reasonable person in the position of the defendant would have expected to pay for it. Third, the defendant should have had an opportunity to reject the property or service, but did not. An example of an express contract is when terms are clearly laid out and parties enter into an agreement such as to buy a vehicle. An example of an implied contract is going to the dentist's office in an emergency. Although discussions are not held prior to treatment, payment is implied.

Question 15

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Accepted Answer

A)   Negotiable instruments
B)   Informal contracts
C)   Simple contracts
D)   Recognizances
E)   Formal contractsF) A) and B)
G) B) and E)

Question 16

In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an example of a formal contract?

Accepted Answer

A)   Contracts under seal but not executed contracts or letters of credit.
B)   Executed contracts but not contracts under sale or letters of credit.
C)   Letters of credit and contracts under seal, but not executed contracts.
D)   Contracts under seal letters of credit, but not executory contracts.
E)   Contracts under seal, letters of credit, and also executed contracts.F) B) and E)
G) C) and D) D

Question 18

Which of the following is sometimes referred to as an implied-in-law contract?

Accepted Answer

A)   Quasi-contracts
B)   Express contracts
C)   Implied-in-fact contracts
D)   Express contracts and implied-in-fact contracts
E)   Express contracts and quasi-contractsF) A) and B)
G) A) and C) A

Question 19

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following contracts are usually voidable?

Accepted Answer

A)   Contracts entered into as a result of fraud, but not duress or undue influence.
B)   Contracts entered into as a result of duress or undue influence, but not fraud.
C)   Contracts entered into as a result of undue influence or fraud, but not duress.
D)   Contracts entered into as a result of fraud or duress, but not undue influence.
E)   Contracts entered into as a result of fraud, duress, or undue influence.F) A) and C)
G) A) and E)

Exam 13: Introduction to Contracts

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Which of the following is the reason the Uniform Commercial Code was drafted?

Correct Answer
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Congress passed the Uniform Electronic Transactions Act (UETA).

Correct Answer
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Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?

Correct Answer
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Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

Correct Answer
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Which of the following represents the legal ability to enter into a binding agreement?

Correct Answer
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The person who makes an offer is called a[n] ___________.

Correct Answer
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The term "consideration" in relation to contracts involves parties acting in an ethical manner.

Correct Answer
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Identify and describe the four elements that are necessary for a contract to exist.

Correct Answer
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The four elements necessary for a contra...
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All contracts can be categorized as either _ or .

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As long as some of the duties under a contract have not yet been performed, the contract is considered ________________.

Correct Answer
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Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract, and give an example of an express and implied contract.

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Correct Answer
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In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Correct Answer
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Which of the following is an example of a formal contract?

Correct Answer
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D

Which of the following is sometimes referred to as an implied-in-law contract?

Correct Answer
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A

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Correct Answer
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Which of the following contracts are usually voidable?

Correct Answer
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Exam 13: Introduction to Contracts

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the reason the Uniform Commercial Code was drafted?

Correct AnswerverifiedShow Answer

Congress passed the Uniform Electronic Transactions Act (UETA).

Correct AnswerverifiedShow Answer

Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?

Correct AnswerverifiedShow Answer

Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

Correct AnswerverifiedShow Answer

Which of the following represents the legal ability to enter into a binding agreement?

Correct AnswerverifiedShow Answer

The person who makes an offer is called a[n] ___________.

Correct AnswerverifiedShow Answer

The term "consideration" in relation to contracts involves parties acting in an ethical manner.

Correct AnswerverifiedShow Answer

Identify and describe the four elements that are necessary for a contract to exist.

Correct AnswerverifiedThe four elements necessary for a contra...View AnswerShow Answer

All contracts can be categorized as either ___________ or __________.

Correct AnswerverifiedShow Answer

As long as some of the duties under a contract have not yet been performed, the contract is considered ________________.

Correct AnswerverifiedShow Answer

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract, and give an example of an express and implied contract.

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

Correct AnswerverifiedShow Answer

In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Correct AnswerverifiedShow Answer

Which of the following is an example of a formal contract?

Correct AnswerverifiedD

Which of the following is sometimes referred to as an implied-in-law contract?

Correct AnswerverifiedA

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Correct AnswerverifiedShow Answer

Which of the following contracts are usually voidable?

Correct AnswerverifiedShow Answer

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The four elements necessary for a contra...
View Answer

All contracts can be categorized as either _ or .

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D

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A

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