false

Question 1
5 out of 5 points

The willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n): Answer Selected Answer: offer. Correct Answer: offer.

Question 2
5 out of 5 points

If not an offer, the first statement made by one of two persons is most properly termed a(n): Answer Selected Answer: invitation to negotiate. Correct Answer: invitation to negotiate.

Question 3
5 out of 5 points

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case: Answer Selected Answer: Correct Answer: no contract was formed because the customer's offer was refused. no contract was formed because the customer's offer was refused.

Question 4
5 out of 5 points

If an offeree accepts an offer before it is effectively revoked: Answer Selected Answer: a valid contract is formed. Correct Answer: a valid contract is formed.

Question 5
5 out of 5 points

Under the Uniform Commercial Code (UCC), a firm offer applies to: Answer Selected Answer: a written, signed offer by a merchant to buy or sell goods. Correct Answer: a written, signed offer by a merchant to buy or sell goods.

Question 6
5 out of 5 points

A counteroffer is a(n): Answer Selected Answer: rejection of the original offer. Correct Answer: rejection of the original offer.

Question 7
5 out of 5 points

If no termination date is specified for an offer, the offer will remain open: Answer Selected Answer: for a reasonable period of time. Correct Answer: for a reasonable period of time.

Question 8
5 out of 5 points

Contractual capacity is the ability to: Answer Selected Answer: Correct Answer: understand that a contract is being made and to understand its general nature. understand that a contract is being made and to understand its general nature.

Question 9
5 out of 5 points

The maximum amount of time that a minor has to disaffirm a contract is: Answer Selected Answer: a reasonable period of time after reaching the age of majority. Correct Answer: a reasonable period of time after reaching the age of majority.

Question 10
5 out of 5 points

When a minor avoids a contract to purchase a car: Answer Selected Answer: Correct Answer: a relative who cosigned the contract is liable for the purchase price.

a relative who cosigned the contract is liable for the purchase price.

Question 11
5 out of 5 points

A person lacks contractual capacity if: Answer Selected

Answer: Correct Answer:

because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.

Question 12
5 out of 5 points

An agreement is not binding when: Answer Selected Answer: both parties make a mistake regarding a material fact. Correct Answer: both parties make a mistake regarding a material fact.

Question 13
5 out of 5 points

Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if: Answer Selected Answer: Jim relied upon Jack's statement. Correct Answer: Jim relied upon Jack's statement.

Question 14
5 out of 5 points

I believe that I own a very valuable vase. I tell you this information 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. Fraud: Answer Selected Answer: has not occurred. Correct Answer: has not occurred.

Question 15

5 out of 5 points

Consideration is: Answer Selected Answer: Correct Answer: what is demanded by the promisor as the price for the promise.

what is demanded by the promisor as the price for the promise.

Question 16
5 out of 5 points

In a unilateral contract, the doing of a requested act is also the: Answer Selected Answer: acceptance of the offer of the promisor. Correct Answer: acceptance of the offer of the promisor.

Question 17
5 out of 5 points

When there is no consideration for a promise, the agreement is: Answer Selected Answer: not binding. Correct Answer: not binding.

Question 18
5 out of 5 points

Which of the following can be consideration for a promise? Answer Selected Answer: refraining from smoking cigarettes Correct Answer: refraining from smoking cigarettes

Question 19
5 out of 5 points

Ordinarily, a promise to perform an existing legal obligation is: Answer Selected Answer: not consideration. Correct Answer: not consideration.

Question 20
0 out of 5 points

Which of the following is not consideration for a present promise? Answer Selected Answer: Correct Answer: the promise to pay ones child support obligation, consistent with a pre-existing court order. the promise to pay ones child support obligation, consistent with a pre-existing court order.