Review Assessment: Test 3 (Chapters 12-15)

Question 1

5 out of 5 points If an offeree dies before the offer has been accepted, the offer: a. may be rejected by the surviving spouse of the offeree. b. may be accepted by the surviving spouse of the offeree. c. is automatically revoked by the death of the offeree. d. may be accepted by the guardian appointed for any minor children of the offeree. Selected Answer: Correct Answer: c. c. 2 out of 2 points A bilateral contract consists of a promise for an act. Selected Answer: Correct Answer: False False 2 out of 2 points A contract is a binding agreement that does not create an obligation. Selected Answer: Correct Answer: False False 2 out of 2 points A contract is essentially an agreement that creates an obligation. Selected Answer: Correct Answer: True True 2 out of 2 points The maximum amount of time that a minor has to disaffirm a contract is: a. one year from the date of the agreement. b. 30 days from learning of his or her right to disaffirm. c. the age of majority. d. a reasonable period of time after reaching the legal age. Selected Answer: Correct Answer: d. d. 2 out of 2 points When an agreement is shown by acts of the parties it is: Selected Answer: a. an implied contract.

Question 2

Question 3

Question 4

Question 5

Question 6

Correct Answer: Question 7

a. an implied contract. 2 out of 2 points

When a minor avoids a contract to purchase a car: a. the parents of the minor are liable for the purchase price. b. a relative who cosigned the contract is liable for the purchase price. c. a friend to whom the minor loaned the car is liable for the purchase price. d. the automobile insurance company is liable for the purchase price. Selected Answer: Correct Answer: Question 8 b. b.

2 out of 2 points A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to: a. be illegal. b. result from undue influence. c. contain a waiver. d. contain a conditional promise. Selected Answer: Correct Answer: d. d. 2 out of 2 points Examples of illusory promises include: a. cancellation provisions. b. conditional promises. c. apparent obligations. d. real obligations. Selected Answer: Correct Answer: c. c.

Question 9

Question 10

2 out of 2 points Ordinarily, a promise to perform an existing legal obligation is: a. not consideration. b. binding if the promisor promises to perform with extra care. c. binding if the promisor promises to perform to suit the personal satisfaction of the promisee. d. binding if substantial loss would be caused the promisee by a breach of the promise. Selected Answer: Correct Answer: a. a. 2 out of 2 points The courts will consider the adequacy of the consideration when: a. one party clearly has the better of the deal. b. one party has more business experience than the other. c. one party claims to have been defrauded. d. one party shows a much lower price nationally advertised on television. Selected Answer: Correct Answer: c. c.

Question 11

Question 12 Which of the following can be consideration for a promise? a. refraining from beating one's spouse b. promising to refrain from beating one's spouse c. refraining from smoking cigarettes d. refraining from using cocaine Selected Answer: Correct Answer: Question 13 Will the law enforce every promise? a. Yes. b. Yes, with or without consideration. c. Generally yes, if consideration amongst other elements is present. d. None of the above. Selected Answer: Correct Answer: Question 14 c. c. c. c.

2 out of 2 points

2 out of 2 points

2 out of 2 points Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if: a. Jim bought the car solely because of its color. b. Jim knew that the mileage was more than 12,000 miles. c. Jim relied upon Jack's statement. d. Jack's statement occurred after the sale. Selected Answer: Correct Answer: c. c.

Question 15

2 out of 2 points If not an offer, the first statement made by one of two persons is most properly termed a(n): a. option. b. acceptance. c. invitation to negotiate. d. contract. Selected Answer: Correct Answer: c. c. 2 out of 2 points Inadequacy of consideration may be evidence of: a. the exercise of undue influence. b. taking advantage of the condition of the other party. c. unconscionability. d. all of the above. Selected Answer: Correct Answer: d. d. 2 out of 2 points

Question 16

Question 17

A negotiable instruments is an informal contract. Selected Answer: Correct Answer: Question 18 False False

2 out of 2 points Past benefits already received by a promisor can be consideration for a later promise. Selected Answer: Correct Answer: False False

Question 19

2 out of 2 points Arresting 100 persons guilty of crime can be consideration for the promise made to a police officer to pay a bonus for making such arrests. Selected Answer: Correct Answer: False False 2 out of 2 points The bid of each contractor for a job is not considered an offer. Selected Answer: Correct Answer: False False

Question 20

Question 21

2 out of 2 points Parents are not liable for contracts signed by their minor children if the terms are reasonable. Selected Answer: Correct Answer: True True 0 out of 2 points An apparently voluntary agreement may in fact not be voluntary if: Selected Answer: Correct Answer: d. all of the above. b. physical duress is present.

Question 22

Question 23

2 out of 2 points I believe that I own a very valuable vase. I tell this to you and state that I will sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth only $200. A fraud: a. has occurred. b. ordinarily has not occurred. c. always can be based upon a statement of opinion or value. d. none of the above. Selected Answer: Correct Answer: b. b. 2 out of 2 points A quasi contract's main thrust is to: a. encourage the making of written contracts. b. prevent unjust enrichment. c. compensate those who voluntarily help others. d. prevent enrichment.

Question 24

Selected Answer: Correct Answer: Question 25

b. b. 2 out of 2 points

If an offeree accepts an offer before it is effectively revoked: a. a void contract is formed. b. a voidable contract is formed. c. an unenforceable contract is formed. d. a valid contract is formed. Selected Answer: Correct Answer: Question 26 d. d.

2 out of 2 points Persons lack contractual capacity if: a. the person is a chronic alcoholic. b. the person is a drug addict. c. because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. d. all of the above. Selected Answer: Correct Answer: c. c.

Question 27

2 out of 2 points The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n): a. offer. b. acceptance. c. contract. d. agreement. Selected Answer: Correct Answer: a. a.

Question 28

2 out of 2 points A binding promise to keep an offer open for a stated period of time or until a specified date is called a(n): a. time contract. b. binding contract. c. breach contract. d. option contract. Selected Answer: Correct Answer: d. d.

Question 29

2 out of 2 points Arthur made a bid at an auction by calling out the amount of $250. The auctioneer noted Arthur's bid. There were no higher bids, and Arthur called out that he was withdrawing the bid. The auctioneer said that it was too late to withdraw the bid. a. Arthur's bid is an ordinary offer that can be revoked. b. Arthur's bid is firm and cannot be withdrawn. c. By noting that Arthur's bid was received, the bid became an option.

d. By noting that Arthur's bid was received, that was an acceptance of Arthur's offer. Selected Answer: Correct Answer: Question 30 In a unilateral contract, the consideration for the promise is: a. the surrender of a claim against the promisor. b. the returning of the promisor's property. c. a promise to do the act called for by the promisor. d. the doing of the act called for by the promisor. Selected Answer: Correct Answer: Question 31 A promise to make a gift is enforceable. Selected Answer: Correct Answer: Question 32 False False d. d. 2 out of 2 points a. a. 2 out of 2 points

2 out of 2 points Revocation of an offer ordinarily is effective only when it is made known to the offeree. Selected Answer: Correct Answer: True True 2 out of 2 points In most cases, an offeree may ignore any offer. Selected Answer: Correct Answer: True True 2 out of 2 points When there is no consideration for a promise, the agreement is: a. illegal. b. void. c. not binding. d. unethical. Selected Answer: Correct Answer: c. c. 2 out of 2 points The obligation of a cosigner is discharged by: a. the minority status of one of the parties. b. the majority status of one of the parties. c. the court's declaration of the contract's provision of necessaries. d. the payment of the debt. Selected Answer: Correct Answer: d. d.

Question 33

Question 34

Question 35

Question 36

2 out of 2 points A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to: a. be illegal. b. result from undue influence. c. contain a waiver. d. contain a conditional promise. Selected Answer: Correct Answer: d. d.

Question 37

2 out of 2 points A promise by a coat factory to pay $0.25 per button for any buttons that it orders from the ABC Button Company constitutes consideration. Selected Answer: Correct Answer: False False

Question 38

2 out of 2 points Even though the social force of protecting the person has gained recognition, most of the concepts of contractual incapacity have remained the same. Selected Answer: Correct Answer: False False

Question 39

2 out of 2 points An unenforceable promise will constitute consideration as long as the parties to the contract appear to be in agreement. Selected Answer: Correct Answer: False False 2 out of 2 points Consideration always must be an act or the promise to perform an act. Selected Answer: Correct Answer: False False

Question 40

Question 41

2 out of 2 points A reward offered to the public for the return of lost property is not considered an offer. Selected Answer: Correct Answer: False False 2 out of 2 points An executory contract has been entered into and fully performed. Selected Answer: Correct Answer: False False

Question 42

Question 43

2 out of 2 points The effect of an implied contract is not the same as the effect of an express contract. Selected Answer: False

Correct Answer: Question 44

False

2 out of 2 points When a contract sets a price for services rendered, a plaintiff can still sue for reasonable value. Selected Answer: Correct Answer: False False

Question 45

2 out of 2 points Arthur made a bid at an auction by calling out the amount of $250. The auctioneer noted Arthur's bid. There were no higher bids, and Arthur called out that he was withdrawing the bid. The auctioneer said that it was too late to withdraw the bid. a. Arthur's bid is an ordinary offer that can be revoked. b. Arthur's bid is firm and cannot be withdrawn. c. By noting that Arthur's bid was received, the bid became an option. d. By noting that Arthur's bid was received, that was an acceptance of Arthur's offer. Selected Answer: Correct Answer: a. a. 0 out of 2 points When a mutual or bilateral mistake is one of law, then: a. either party may void the agreement. b. the contract generally is binding. c. the contract is void automatically. d. it always has the same effect as a mutual mistake of fact. Selected Answer: Correct Answer: d. b. 2 out of 2 points Consideration is not required in: a. contracts for the sale of goods. b. employment contracts. c. agreements to modify employment contracts. d. agreements to modify contracts for the sale of goods. Selected Answer: Correct Answer: d. d. 2 out of 2 points Contractual capacity is the ability to: Selected Answer: Correct Answer: a. understand that a contract is being made and to understand its general nature. a. understand that a contract is being made and to understand its general nature. 2 out of 2 points In general, an acceptance occurs when: a. a particular form of words is stated to the offeror. b. a particular mode of expression is made to the offeror. c. the offeree reserves the right to reject the offer.

Question 46

Question 47

Question 48

Question 49

d. a clear expression of acceptance occurs. Selected Answer: Correct Answer: d. d.