Advertisement Upgrade to remove ads

228. _____ In order for a contract to be valid, it must:
a. be made by a writing signed by adults
b. be fully performed on both sides
c. contain an offer, acceptance, and consideration
d. be properly filed

c. contain an offer, acceptance, and consideration

229. _____ Consideration can best be described as:
a. Something of legal value
b. Thinking about entering into a contract
c. A counteroffer
d. A signature on a contract

a. Something of legal value

230. _____ In order for someone to avoid a contract on the grounds of intoxication, the level of intoxication must have been:
a. At or above the legal limit
b. Only high enough that he was able to notice it
c. At least as high as that of the other party
d. So great that he didn't comprehend the nature of the agreement he was entering into

d. So great that he didn't comprehend the nature of the agreement he was entering into

231. _____ Jill, aged 30, enters into a written contract for the sale of her car with Ginny, aged 17. Under these facts:
a. Jill may disaffirm the contact since Ginny is a minor
b. Ginny can disaffirm the contract but only until a reasonable time after she turns 18
c. The contract is void
d. The contract is illegal

b. Ginny can disaffirm the contract but only until a reasonable time after she turns 18

232. _____ If a contract or contract clause is found to be unconscionable, the courts can do which of the following?
a. Refuse to enforce the contract
b. Refuse to enforce only the unconscionable portion
c. Limit the application of the unconscionable portion
d. a, b, and c

d. a, b, and c (a.)Refuse to enforce the contract (b.) Refuse to enforce only the unconscionable portion - (c.) Limit the application of the unconscionable portion

233. _____ George and Martha enter into an oral contract for the sale of George's office building. Before Martha takes possession, this contract is:
a. Enforceable by George only
b. Enforceable by Martha only
c. Enforceable by either party
d. Not enforceable

d. Not enforceable

234. _____ Mike makes a contract with Rich with the intent to benefit Mary. This is:
a. An assignment
b. A delegation
c. A third party beneficiary contract
d. None of the above

c. A third party beneficiary contract

235. _____ Sue makes a contract with Tom that indirectly benefits Judy, although neither Sue nor Tom intended that result. Judy is:
a. An assignee
b. An assignor
c. An intended beneficiary
d. An incidental beneficiary

d. An incidental beneficiary

236. _____ John offers to pay Mary $100 if she can drive at 100 miles per hour on Interstate 95 for at least five minutes. If Mary drives her Mustang at 100 miles per hour on Interstate 95 for six minutes, she and John will have formed

a. A bilateral contract
b. A unilateral contract
c. A performance contract
d. No contract

d. No contract

237. _____ Al tells Barb that he will buy her textbooks from the previous semester for $75. Barb agrees. Al and Barb have:
a. An express contract
b. An implied-in-fact contract
c. An implied-in-law contract
d. A quasi contract

a. An express contract

238. _____ One often hears the expression "time is of the essence" which suggests that doing things in a timely fashion is important. If that is the case, which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?
a. Forty-eight hours
b. Seven days
c. Thirty days
d. Forty-five days
e. There is no set amount of time and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

e. There is no set amount of time and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

239. _____ U.S. Stone promises to pay its employees a year-end bonus "if it seems like a good idea at the time." This is an example of:
a. an enforceable promise
b. an unconscionable promise
c. an illusory promise
d. a unilateral contract

c. an illusory promise

240. _____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. This contract may be classified as:
a. a bilateral contract
b. a unilateral contract
c. a voidable contract
d. none of the above

a. a bilateral contract

241. _____ To be enforceable, a non-competition clause in an employment agreement must:
a. be jus terci
b. be notarized
c. be reasonable in scope, time and geographical limitations
d. all of the above

c. be reasonable in scope, time and geographical limitations

242. _____ The elements of a valid contract include:
a. Agreement
b. Consideration
c. Legality
d. Capacity
e. All of the above

e. All of the above (a.) Agreement (b.) Consideration (c.) Legality (d.) Capacity

243. _____ Usually, quasi contracts are imposed by the court:
a. On parties who would not otherwise enter into valid contracts
b. To avoid the unjust enrichment of one party at the expense of another
c. When the amount of the contract is for $499 or less
d. If a formal seal on the contract is required

b. To avoid the unjust enrichment of one party at the expense of another

244. _____ If Harry promises to pay Larry not to park in a no-parking zone in front of Harry's house, then the agreement is:
a. Enforceable because Larry is giving up the right to do something that he could otherwise do in the absence of the agreement
b. Enforceable because the agreement accomplishes Larry's goal that the no-parking zone in front of his house be kept clear
c. Not enforceable because Larry has no legal right to park in the no-parking zone
d. Not enforceable because the no-parking zone is owned by the city

c. Not enforceable because Larry has no legal right to park in the no-parking zone

245. _____ U.S. Brokerage promises to pay its employees a year-end bonus "if it seems like a good idea at the time." This is an example of:
a. An enforceable contract
b. An unconscionable contract
c. An illusory contract
d. A unilateral contract

c. An illusory contract

246. _____ Joe has made an offer to Frank. Joe is therefore an offeror and Frank an offeree. Which of the following is a way in which Frank can manifest intent to enter into a contract with Joe?
a. By performance only
b. By a return promise only
c. By performance or by a return promise
d. By performance, by a return promise or by a counteroffer
e. By a signed writing only

c. By performance or by a return promise

247. _____ You offer $1000 to anyone who can return your lost cat, Kitty. John returns Kitty and requests the money, you however refuse to pay and argue that there is no binding contract. Which of the following is true regarding your position?
a. You are incorrect because there is a binding bilateral contract
b. You are incorrect because there is a binding unilateral contract which John accepted by performing
c. You are correct because there is no binding bilateral contract
d. You are correct because there is no binding unilateral contract
e. You are correct because John acted incorrectly by the manner of attempted acceptance

b. You are incorrect because there is a binding unilateral contract which John accepted by performing

248. _____ Allison wishes to ensure that an offer from Jason to sell him (Allison) his speedboat is held open for a set period of time. Allison may do so by entering into a[n] ______________ contract with the Jason.
a. Clear
b. Explicit
c. Unrevokable
d. Option
e. None of the above

d. Option

249. _____ Jim who is in declining health believed that he had only a few months to live. Not wanting to die alone, Jim asked Jane to quit her job in New York City and move down to South Florida to look after him until his death. He promised to leave his house for Jane after his death. Jane according quit her job and moved to South Florida to take care of Jim. Three weeks after Jane's move, Jim died. Unfortunately, there was not written agreements etc. and Jim's relatives wanted Jane out. The only way to avoid injustice here is to enforce the promise?
a. Promissory agreement
b. Promissory estoppel
c. Quasi estoppel
d. Quasi agreement
e. Promissory performance

b. Promissory estoppel

250. _____ Joey went to the Harvest Festival, where he stopped at Anderson's booth where she was selling landscape paintings. Joey admired one of the paintings which did not appear to be for sale. Joey said to Anderson, "I will give you $200 if you give me that painting right now." Anderson said nothing in response, but she gave Joey the painting, and Joey gave her $200 in cash. This is an example of a contract that is now:
a. Bilateral and executed
b. Bilateral and executory
c. Unilateral and executed
d. Unilateral and executory

c. Unilateral and executed

251. _____ Joe goes to the dentist to have a tooth extracted. Joe never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later the dentist bills Joe, and Joe refuses to pay. After that, the dentist sues Joe. Which of the following is true?
a. The dentist can recover under quasi-contract
b. The dentist can recover under an implied contract theory
c. a and b are true
d. The dentist cannot recover because there was no express contract here

c. a and b are true (a.) The dentist can recover under quasi-contract (b.) The dentist can recover under an implied contract theory

252. _____ A makes an offer to sell B some land, using a normal letter. The offer says nothing about an authorized or stipulated means of acceptance. B accepts using a normal letter. Which of the following is true?
a. The acceptance is effective upon dispatch
b. The acceptance is effective when it is received
c. The acceptance would be effective upon dispatch regardless of the means of communication used
d. Two of the above are correct

a. The acceptance is effective upon dispatch

253. _____ Carlos has entered into a contract to sell his house to Juan. Carlos knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and Carlos did not volunteer any information about the termites. Juan is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?
a. no, because Carlos made no statement that was false
b. no, because a seller does not have a duty to reveal all faults
c. yes, because a seller must always inform a buyer about defects that are not obvious
d. yes, because this involved a latent defect in real estate

d. yes, because this involved a latent defect in real estate

254. _____ Punitive damages are most likely to be awarded in which of the following contract cases?
a. Jack was not satisfied with the goods he purchased from Acme Company
b. Jill rejected the portrait Hansel painted of her because it did not meet her satisfaction
c. Big Insurance Company acted in bad faith in denying Pete's claim
d. Henry breached his promise to Kate to perform accounting services

c. Big Insurance Company acted in bad faith in denying Pete's claim

255. _____ Paul promises to marry Sarah who in turn promises to marry Paul. The consideration for each promise is ______.
a. A completed act, in this case the marriage
b. The beginning of action in acceptance, even if it is not complete
c. An acknowledgement of each party's promise
d. A return promise
e. An agreement to marry

d. A return promise

257. _____ The elements of promissory estoppel include all of the following except:
a. Agreement
b. Consideration
c. Capacity
d. none of the above

d. none of the above (a.) Agreement (b.) Consideration (c.) Capacity

258. _____ Christopher promised to sell his car to Jason and Jason promised to pay Christopher $7,500 for the car. The parties have not yet performed their respective promises. This contract may be classified as:
a. an executed, bilateral contract
b. an executory, unilateral contract
c. an executory, bilateral contract
d. an executed, unilateral contract

c. an executory, bilateral contract

259. _____ May tried to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is:
a. a valid acceptance because May is seriously frustrated
b. a valid acceptance because Nick is a car dealer
c. not a valid acceptance because May does not seriously intend to sell
d. not a valid acceptance because Nick is a car dealer

c. not a valid acceptance because May does not seriously intend to sell

260. _____ Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if:
a. Alan does not communicate it to Carol
b. Alan secretly does not intend to be bound by the offer
c. Carol is not capable of accepting the offer
d. the terms of the offer are not reasonably definite

b. Alan secretly does not intend to be bound by the offer

261. _____ Owen announces that he plans to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc., gives Owen a check for the stated amount. Owen:
a. Is bound to sell PSC to Quality Bookkeeping
b. May refuse to accept the check, because he only expressed an intent to do something in the future
c. May refuse to accept the check, because he only expressed an opinion as to the worth of the business
d. May refuse to accept the check because he only expressed a willingness to discuss a possibility of entering into a contract

b. May refuse to accept the check, because he only expressed an intent to do something in the future

262. _____ Ellen is selling her classic cars in an auction "without reserve." During the auction, Ellen can withdraw the cars:
a. at no time
b. before the auctioneer announces that the cars have been sold
c. before the cars are delivered to the buyers
d. only if the bids are extremely low

a. at no time

263. _____ Which of the following is true regarding promissory estoppel?
a. it requires that the promisor should reasonably expect to induct the promisee's action or forbearance
b. damages awarded for promissory estoppel always equal the value of the promise relied upon by the promise
c. it requires consideration
d. it applies only when one or both parties is a merchant

a. it requires that the promisor should reasonably expect to induct the promisee's action or forbearance

264. _____ An oral contract that is covered by the statute of frauds is:
a. Voidable
b. Void
c. Unenforceable
d. Executory

c. Unenforceable

265. _____ An executed contract is one that:
a. Has been terminated by operation of law
b. Has been terminated by the parties voluntary agreement
c. Has been fully performed by one or both parties
d. Has been fully performed by both parties

d. Has been fully performed by both parties

266. _____ An executed contract is one that:
a. Has been terminated by operation of law
b. Has been terminated by the parties voluntary agreement
c. Has been fully performed by one or both parties
d. Has been fully performed by both parties

d. Has been fully performed by both parties

267. _____ A contract whose formation is induced by duress (force or compulsion) is:
a. Void
b. Voidable
c. Unenforceable
d. Executory

b. Voidable

268. _____ A void contract:
a. Is a contract that one or both parties can cancel at their option
b. Is a contract, even though the courts will not enforce it
c. Creates no legal obligations
d. Is a contract that is created by operation of law rather than by the agreement of the parties

c. Creates no legal obligations

269. _____ Which of the following cannot be disaffirmed until after the age of majority?
a. A contract that affects title to real estate
b. A contract for a necessary
c. A contract that is fully executed
d. A contract for the sale of goods

a. A contract that affects title to real estate

270. _____ Contracts made by severely intoxicated people:
a. Are void rather than voidable
b. Cannot be disaffirmed until the person has regained his mental faculties
c. Cannot be ratified until the person has regained his mental faculties
d. Are always binding, because the law does not want to reward drug or alcohol abuse

c. Cannot be ratified until the person has regained his mental faculties

271. _____ In order to satisfy the Statute of Frauds, the parties' writing must:
a. Be signed by both parties
b. Be notarized
c. Be signed by the party to be charged with enforcement of the contract (the person using the statute of frauds as a defense) or his agent
d. Contain all the necessary contract terms in one document

c. Be signed by the party to be charged with enforcement of the contract (the person using the statute of frauds as a defense) or his agent

272. _____ First National Bank offers to lend money to Todd at 15% interest. Before Todd accepts the offer, a statute is enacted prohibiting loans at interest rates greater than 12%. According to common law, Todd and the bank have:
a. A contract for a loan at 15% interest
b. A contract for a loan at 12% interest
c. A contract for a loan at no interest
d. No contract for a loan

d. No contract for a loan

273. _____ Bill contracts to repair a computer for National Distributors. Bill knows that without the computer, National will lose an important sale. Bill does not repair the computer on time, and National files suit against him. As consequential damages, National might be able to recover:
a. The loss of profit National experienced as a result of the computer not being repaired on time
b. The cost of a replacement computer
c. The difference between Bill's quote to repair the computer and what it actually costs National to have the computer repaired
d. Nothing

a. The loss of profit National experienced as a result of the computer not being repaired on time

274. _____ The Statute of Frauds is:
a. A defense to prevent the enforcement of an oral contract
b. A claim stated by the nonbreaching party
c. A criminal wrong that requires intent
d. A civil wrong under the theory of negligence

a. A defense to prevent the enforcement of an oral contract

275. _____ Edgar promises Alice that a certain used car is a "real gem." Edgar offers to let Alice take the car for a test drive, but Alice declines. She pays for the car and drives off but soon realizes that the car's suspension system is in poor condition. Alice:
a. May rescind the contract on the grounds of unilateral mistake
b. May rescind the contract on the grounds of fraud
c. May rescind the contract on the grounds of misrepresentation
d. Was not defrauded

d. Was not defrauded

276. _____ George and Martha enter into an oral contract for a sale of George's tree farm. Before Martha takes possession, under the Statute of Frauds this contract is:
a. Enforceable by George only
b. Enforceable by Martha only
c. Enforceable by either party
d. Not enforceable

d. Not enforceable

277. _____ Each of the following is a requirement, or an element, for a contract to be valid except:
a. Capacity
b. Agreement
c. Legality
d. Offer
e. Consideration

d. Offer

278. _____ Acceptance of a bilateral contract occurs:
a. When there is an exchange of a promise for an act
b. Only if there is no detrimental reliance
c. At the time of actual performance
d. By the exchange of promises

d. By the exchange of promises

279. _____ The day before the final exam, Professor Jones tells the class: "I promise to give everyone an "A" on this exam, and you don't have to do a thing for it!" Upon hearing this, Christopher yells "yippee!!" and throws his textbook out the window (where it is promptly set upon and completely destroyed by the FAU owl!). When the grades come out, Christopher receives an "F." Christopher's best argument to enforce Professor Jones' promise would probably be:
a. res ipsa loquitor
b. quasi-contract
c. impossibility (it was impossible for him to pass)
d. implied-in-fact contract
e. promissory estoppel

e. promissory estoppel

280. _____ Trevor offers a reward for the return of his golden retriever, "Six." He posts signs all over the neighborhood, but not on his own block. Justin, his 15-year old next door neighbor, finds Six at the park, and delivers him to Trevor without seeing the reward signs or knowing about the reward offer! Trevor is happy to get Six back, but refuses to pay Justin any reward. If they go to court and litigate the matter, what will each likely argue?
a. Justin will argue promissory estoppel; Trevor will argue that the contract it is voidable due to Justin's obvious lack of capacity
b. Trevor will argue that his offer to pay the reward was not effective as to Justin, as Justin did not know of the offer; Justin will seek relief for unjust enrichment under a quasi-contract theory
c. Trevor will argue lack of capacity; Justin will claim "implied promissory estoppel"
d. none of the above

b. Trevor will argue that his offer to pay the reward was not effective as to Justin, as Justin did not know of the offer; Justin will seek relief for unjust enrichment under a quasi-contract theory

281. _____ The mailbox rule means the:
a. Offers and acceptances must be communicated in a certain way to be effective
b. Offers and acceptances are effective at the time they are mailed
c. In some cases, a properly dispatched, or sent, acceptance is effective even if the offeror never received it
d. A properly dispatched, or sent, revocation of an offer is effective when mailed even if the offeree never received it

c. In some cases, a properly dispatched, or sent, acceptance is effective even if the offeror never received it

282. _____ A contract in which both parties exchange promises is a(n):
a. A voidable contract
b. Bilateral contract
c. Unilateral contract
d. Quasi contract

b. Bilateral contract

283. _____ A person who makes a promise is a(n):
a. Promisor
b. Promise
c. Offeror
d. Executor

a. Promisor

284. _____ Which of the following is not generally required in order to have a valid contract?
a. Mutual assent
b. A lawful purpose
c. A fair bargain
d. Parties who have contractual capacity

c. A fair bargain

285. _____ Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. What is the effect of the court decision on the offer?
a. The court decision automatically terminates the offer
b. The court decision has no effect on the offer
c. The court decision acts as a condition on the offer
d. The court decision acts as a rejection of the offer by the offeree

a. The court decision automatically terminates the offer

286. _____ In general, which of the following will not terminate an offer to purchase real property?
a. The death of the offeree
b. The death of the offeror
c. An inquiry by the offeree as to size of the lot
d. An acceptance that adds a material item

c. An inquiry by the offeree as to size of the lot

287. _____ Lynn offers to sell his house to Dennis for $50,000. Dennis responds, "I will pay you $50,000 if you will paint the second floor." This response could be described as:
a. An acceptance
b. A counteroffer
c. A rejection
d. An invitation

b. A counteroffer

288. _____ Eddie agreed to sell stolen bicycles to Foster for $500 and Foster agreed to buy them. Which statement accurately describes their agreement?
a. The agreement is a voidable contract, which the parties may later affirm
b. The agreement is void and unenforceable
c. The agreement is enforceable if it is stated in writing
d. The agreement is a valid contract

b. The agreement is void and unenforceable

289. _____ Roger promised to sell his car to Reggie and Reggie promised to pay Roger $3,000 for the car. The parties have not yet performed their respective promises. This contract may be classified as:
a. An executed, bilateral contract
b. An executory, bilateral contract
c. An executed, unilateral contract
d. An executory, unilateral contract

b. An executory, bilateral contract

290. _____ Jackie offered to pay Glen $500 in consideration for Glen's complete trimming of all trees located on Jackie's property. This offer is an offer for a unilateral contract. Under these facts:
a. Glen can accept the offer by promising to trim the trees
b. Glen can accept the offer by completely trimming the trees
c. Glen can accept the offer by promising to trim the trees or by completely trimming the trees
d. Glen cannot accept the offer, offers for unilateral contracts are illegal

b. Glen can accept the offer by completely trimming the trees

291. _____ Gordon promises to pay Joseph $150 if Joseph promises to take notes for him next week in Business Law. Joseph agrees, and takes the notes. On Friday, he delivers the notes to Gordon, who pays him the $150. This contract is:
a. voidable and unilateral
b. bilateral and executed
c. void and executory
d. voidable and executed

b. bilateral and executed

292. _____ Under the terms of a written contract, Jillian delivers certain goods to Mary with the agreement that she may use and test them for the purpose of determining whether she wishes to buy them. The title and risk of loss to the goods is to remain with Jillian until Mary calls and agrees to the sale. The best way to describe this transaction is as:
a. a "merchant's" firm offer
b. a sale on approval
c. an entrustment
d. a consignment
e. none of the above

b. a sale on approval

293. _____ The common law governs contracts:
a. For services
b. For real estate
c. For employment
d. All of the above

d. All of the above (a. )For services (b.) For real estate (c.) For employment

294. _____ Which of the following contracts would not be governed by Article 2 of the UCC?
a. The sale of a car
b. The sale of land
c. The sale of furniture
d. The sale of a case of Pepsi Cola

b. The sale of land

295. _____ Under Article 2 of the UCC, a contract is usually enforceable even if which of the following terms is omitted:

a. Price

296. _____ The doctrine of caveat emptor means:
a. Price
b. Quantity
c. Price or quantity
d. Neither price nor quantity

c. Let the buyer beware

297. _____ The distinction between contracts that are covered by Article 2 of the Uniform Commercial Code (UCC) and those that are not is:
a. Basically dependent upon whether the subject matter of the contract involves the purchase or sale of goods
b. Based upon the dollar amount of the contract
c. Dependent upon whether the Statute of Frauds is involved
d. Of relatively little or no importance because the common law and UCC are invariably the same

a. Basically dependent upon whether the subject matter of the contract involves the purchase or sale of goods

298. _____ Article 2 of the UCC does not apply to a sale of:
a. Ball bearings
b. Wheat that has been harvested
c. Corporate stock
d. A new car

c. Corporate stock

299. _____ Why does it matter whether or not a contracting party is an Article 2 merchant?
a. Because this is the test for determining whether Article 2 applies
b. Because contracts between merchants are covered by the Restatement (Second) of Contracts rather than by Article 2 of the UCC
c. Because Article 2 sometimes creates different rules for merchants in sale-of-goods cases
d. Actually, the term merchant has little or no practical significance

c. Because Article 2 sometimes creates different rules for merchants in sale-of-goods cases

300. _____ The "confirmatory memorandum" exception to the UCC's Statute of Frauds provision:
a. Requires that the memorandum be signed by the party to be bound
b. Requires that the memorandum be sent within ten days after the contract is made
c. Applies even though the memorandum does not satisfy the UCC's writing requirement
d. Requires that both parties to the contract be merchants

d. Requires that both parties to the contract be merchants

301. _____ S and B make an oral contract whereby S agrees to sell B 480 widgets (goods) at a price of $480. Later, the parties want to modify the contract so that the price would become $520. This modification:
a. Must be in writing
b. Must be oral because the first contract was oral
c. Can be oral but need not be
d. Is unenforceable because the first contract is unenforceable

a. Must be in writing

302. _____ In order to recover for breach of an express warranty, a plaintiff must show that:
a. the warranty was part of the basis of the bargain
b. the seller gave a sample or model of the goods
c. the warranty was in writing
d. the warranty used the words "warrant" or "guarantee"

a. the warranty was part of the basis of the bargain

303. _____ Intellex, a small computer chip-designing firm, contracts with Intech, a chip manufacturer, to design a new-generation computer chip. This contract is governed by:
a. The common law of contracts
b. Article 2 of the UCC
c. Article 2A of the UCC
d. There is not enough information to answer this question

a. The common law of contracts

304. _____ Barry agrees to let Hillary work for him in his political campaign. She is to give speeches on his behalf, and generally try to persuade people to vote for Barry. In exchange, she is to be paid a yearly salary of $100,000. The contract is for two years, and is to commence next month. They both sign and date the agreement. Under these facts, Article 2 of the UCC requires:
a. a signed writing
b. that Hillary act in "good faith"
c. that Bob conduct himself in a "commercially reasonable" manner
d. both a and b above
e. none of the above

e. none of the above (a) a signed writing (b.)that Hillary act in "good faith" (c.) that Bob conduct himself in a "commercially reasonable" manner

305. _____ The Benson Ball Bearing Company orally agrees to sell 10,000 boxes of ball bearings to the Smith Motor Company at a rate of $10 per box, for a total of $100,000, and Smith orally agrees to pay that amount. Benson delivers 5,000 boxes, but Smith refuses to pay, citing the Statute of Frauds. Here, Smith is obligated to pay:
a. Nothing
b. $50,000
c. $75,000
d. $100,000

b. $50,000

306. _____ The following will create an express warranty except:
a. A material statement of fact
b. A description of the item
c. A statement about the value of the goods
d. A sample of the item

c. A statement about the value of the goods

307. _____ Which of the following is not one of the aspects of the implied warranty of merchantability?
a. The goods are fit for the ordinary purposes for which they are used
b. The goods are adequately contained, packaged, and labeled
c. The price of the goods is not excessive, taking into account the goods' grade and quality
d. The goods are of such quality that they pass without objection in the trade
e. The goods within each unit are of an even quality

c. The price of the goods is not excessive, taking into account the goods' grade and quality

308. _____ Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply?
a. The seller knows or has reason to know of the buyer's intended use of the good
b. The seller is a merchant
c. The seller states that the goods will serve the purpose of the buyer's intended use
d. The buyer buys in reliance on the seller's skill and judgment

c. The seller states that the goods will serve the purpose of the buyer's intended use

309. _____ Randy bought a flashlight that was fully operable, however it had a small dent. If Randy sues for breach of implied warranty of merchantability:
a. He may recover damages regardless of whether the seller was a merchant
b. He may recover damages only if the seller is NOT a merchant
c. He may not recover damages since the flashlight is fit for its ordinary purpose
d. He may not recover damages since they did not have a valid contract

c. He may not recover damages since the flashlight is fit for its ordinary purpose

310. _____ Uptown Office Systems pays Tech Products $100 to use a Tech computer for a month. Under the UCC, this will be considered
a. A negotiable transaction
b. A consignment
c. A lease
d. A sale

c. A lease

311. _____ Jason purchased a used car from Car-Max when he was 17. The day after he turned 18, he decides he no longer wants the car and drives over to Car-Max. He tells the manager that he is exercising his right to disaffirm the contract and that the car is in the lot. He wants his money back. His right to disaffirm the deal will depend on:
a. the car's condition when Jason bought it
b. the car's current condition
c. whether Jason acts within a reasonable period of time
d. he cannot disaffirm, he is now an adult

c. whether Jason acts within a reasonable period of time

312. _____ Organics R Us promises to sell to Whole Foods 100 bushels of fancy red organic apples. A wild fire destroys Organic's orchard while being harvested. If Organics does not deliver 100 bushels as agreed:
a. Whole Foods can enforce the contract because it has been breached
b. Whole Foods cannot enforce the contract because it has been discharged
c. Nothing happens, because the agreement has been suspended
d. Whole Foods can buy 100 bushels from another vendor and sue Organic for the additional cost in obtaining 100 bushels from another vendor

b. Whole Foods cannot enforce the contract because it has been discharged

313. _____ Mark and Jason enter into a contract in which Mark agrees to deliver cement to Jason at a construction site. They neglect to include a price in the agreement. A court will
a. Refuse to enforce the agreement
b. Select the lower quoted price for cement and insert it into the contract
c. Determine a reasonable price for the cement and insert it into the contract
d. Refuse to hear the case

c. Determine a reasonable price for the cement and insert it into the contract

314. _____ Ron and Wolf form a contract in which no mention is made of how the goods are to be delivered. In general, the UCC will require that the delivery take place at:
a. The seller's place of business
b. The buyer's place of business
c. Either the seller's or the buyer's place of business

a. The seller's place of business

315. _____ Grey contracts to purchase tea from Lipton but does not specify an exact amount of tea. Lipton subsequently breaches the contract. Grey will probably be:
a. Unable to enforce the agreement under any circumstances
b. Unable to enforce the agreement only if Grey's loss is substantial
c. Able to enforce the agreement against Lipton for failing to sell Grey its output
d. Able to enforce the agreement against Lipton for failing to supply Grey's requirements

a. Unable to enforce the agreement under any circumstances

316. _____ Robert agrees to paint Amanda's leased home in return for $1000. The contract provides that Amanda will provide the paint for the job. This contract:
a. is governed by Article 2 of the UCC
b. is not governed by the UCC
c. is governed by Article 2A of the UCC
d. all of the above

b. is not governed by the UCC

317. _____ National Vehicles contracts to sell ten P.T. Cruisers to Imperial Leasing, which contracts to lease the P.T. Cruisers to Recreation Rentals. Don, the owner of National Vehicles, gives a P. T. Cruiser to Paula. Article 2A of the UCC applies to:
a. The sale only
b. The lease only
c. The sale and the lease only
d. The sale, the lease, and the gift

b. The lease only

318. _____ Digital Computer Company agrees to sell Office Supplies, Inc. (OSI), computers for OSI to sell in its stores. Generally, a contract between these parties will be rendered unenforceable if it does not include:
a. The location for delivery of the goods
b. The method of payment for the goods
c. The price of the goods
d. The quantity of the goods

d. The quantity of the goods

319. _____ Lois offers to sell Clark fifty bushels of corn. Clark responds, "I agree to purchase fifty bushels only if the corn is Grade A quality." In these circumstances
a. A contract is formed
b. A contract is formed only if Lois can secure fifty bushels of Grade A corn
c. Clark's statement is a counteroffer
d. Clark's statement is an acceptance

c. Clark's statement is a counteroffer

320. _____ Pastry chefs refer to a "baker's dozen" as consisting of a collection of thirteen baked goods rather than twelve (twelve is one dozen by definition). This is an example of:
a. A course of dealing
b. Trade usage
c. Course of performance
d. Caveat emptor

b. Trade usage

321. _____ A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is:
a. A shipment contract
b. A destination contract

b. A destination contract

322. _____ Dick steals Jane's watch and later sells the watch to Sally. Jane can recover the watch from Sally
a. Under any circumstances
b. Only if Sally knew that the watch was stolen
c. Only if Sally did not know that the watch was stolen
d. Only if Sally gave legally sufficient consideration for the watch

a. Under any circumstances

323. _____ Laren Engineering contracts for a sale of flight instruments to Boyer Aircraft. Before the date on which performance is due, Laren notifies Boyer that it will not be able to perform the contract as agreed. This is:
a. Anticipatory repudiation
b. Perfect tender
c. Rescission
d. Revocation of acceptance

a. Anticipatory repudiation

324. _____ Suzanne purchases from the Hair Care Store a hair dryer that, according to the box it is packed in, contains three speeds and 1,500 watts. Suzanne subsequently discovers that the box contains only a towel with instructions. Suzanne may recover damages from the Hair Care Store due to its breach of:
a. An express warranty
b. A warranty of title
c. The implied warranty of merchantability
d. An implied warranty of fitness for a particular purpose

a. An express warranty

325. _____ Ben, a salesperson for Pre-owned Motors, states to Joan that "this is the best vehicle ever designed." This statement creates
a. An express warranty only
b. An implied warranty of fitness for a particular purpose only
c. Both an express warranty and an implied warranty of fitness for a particular purpose
d. Nothing

d. Nothing

326. _____ Walt sells Ray a case of crystal goblets, but Ray refuses to examine the crystal for defects at the time of the sale. Ray later discovers a defect. Which of the following is true?
a. Ray may recover damages from Walt for breach of the implied warranty of merchantability
b. Ray may recover damages from Walt for breach of the implied warranty of fitness for a particular purpose
c. Ray cannot recover from Walt since he waived his right to inspect
d. Ray cannot recover from Walt since Walt is protected by the Statute of Frauds

c. Ray cannot recover from Walt since he waived his right to inspect

327. _____ If Bud threatens to shoot Steve with a gun that Bud knows is unloaded but Steve thinks is loaded:
a. Steve cannot recover damages because he suffered no actual injury
b. Steve can recover damages for battery
c. Steve cannot recover damages because Bud did not intend to harm him
d. Steve may recover damages for assault

d. Steve may recover damages for assault

328. _____ Which of the following can be raised as a defense to a claim of defamation?
a. That the statement was true
b. That there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice
c. That there was a conditional privilege to make a defamatory comment on another's statements in order to protect legitimate self-interest
d. All of the above

d. All of the above (a.) That the statement was true (b.) That there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice (c.) That there was a conditional privilege to make a defamatory comment on another's statements in order to protect legitimate self-interest

256. _____ A promise to do something that you are already obligated to do is ______.
a. Valid consideration because it is illusory consideration
b. Valid consideration only in the employment context
c. Valid consideration because it is past consideration
d. Valid consideration only if a sale of goods is involved
e. Not valid consideration

e. Not valid consideration

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set