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Chapter 9 true and false questions.

General contract law governs all contracts outside the scope of the UCC.

True.

The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.

True.

A negotiable instrument, such as a check, is not a formal contract.

False.

A quasi contract is another name for an oral contract.

False.

During the twentieth century it became harder to enter into a contract as well as to get out of one.

False.

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

False.

A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code.

False.

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

False.

Marcus has a contract to purchase a new CD player. The law governing this contract is Article 2 of the UCC.

True.

All written contracts are considered to be formal contracts.

False.

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

True.

A contract to sell five acres of land is governed by Article 2 of the UCC.

False.

The Restatement and the UCC are both currently authoritative sources of contract law.

True.

Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange.

True.

At common law a promise under a seal to authenticate it was effective without anything more.

True.

Albert breaches a contract with Bill in a state where the statute of limitations is six years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable.

True.

Quasi contract is another name for a contract that is implied in fact.

False.

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

True.

Arthur says to Bob, "If you will mow my lawn, I will give you ten dollars." Bob says nothing, but he mows the lawn. No contract exists under this fact situation, because Bob did not accept Arthur's offer.

False.

A valid contract is one that meets all of the requirements of a binding contract.

True.

An implied contract is as enforceable as is an express contract.

True.

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

True.

Larry says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these facts, no contract is formed until Jeff finishes mowing the lawn.

True.

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

False.

Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Betty now realizes she was deceived and wants to get out of the contract. This contract is voidable at Betty's option.

True.

Ann makes a material misrepresentation of fact to Brian, and based upon the misrepresentation, Brian enters into a contract. Ann now thinks that the contract is not fair to her. This contract is voidable at Ann's option.

False.

Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier. Nothing, however, is said by either party about the price or method of payment. The supplier ships the yogurt as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the yogurt.

True.

Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments in the law and business practices and to accommodate electronic commerce.

True.

Common law relating to the formation of contracts has little relevance in the business world today.

False.

An implied in fact contract is formed by conduct.

True.

Ron says to Matt, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Matt does not respond but has the landscaping done by the time Ron returns. This is an example of a unilateral contract.

True.

If a contract is not clearly unilateral or bilateral, the courts presume that the parties intended a unilateral contract.

False.

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