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Quiz on BUSL - Exam #3, created by ermarv12 on 01/05/2014.

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BUSL - Exam #3

Question 1 of 49

1

To be legally sufficient, consideration must be bargained for and be of legal value.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 49

1

The Statute of Frauds requires the writing to be a single integrated document.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 49

1

If a debt is liquidated, the parties have a good faith disagreement on the exact amount of the debt.

Select one of the following:

  • True
  • False

Explanation

Question 4 of 49

1

Minors may avoid both executory and executed contracts

Select one of the following:

  • True
  • False

Explanation

Question 5 of 49

1

After Uncle Ned is declared incompetent to manage his own legal affairs, his court-appointed guardian, Stewie, can sign contracts on Ned's behalf.

Select one of the following:

  • True
  • False

Explanation

Question 6 of 49

1

Adam sent Eve an offer by surface mail. Eve may accept the offer by overnight courier.

Select one of the following:

  • True
  • False

Explanation

Question 7 of 49

1

An unconditional offer of cash or a cash equivalent in exchange for services to be provided is an example of the incurring of a legal detriment.

Select one of the following:

  • True
  • False

Explanation

Question 8 of 49

1

A contract that, by its own terms, can be performed within a year from the date of making, must be in writing to be enforceable.

Select one of the following:

  • True
  • False

Explanation

Question 9 of 49

1

Carl and Daniel agree Daniel owes Carl $500. If Carl agrees to accept $400 from Daniel to settle the debt, the debt will be discharged.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 49

1

A unilateral mistake of a material fact may be grounds for the mistaken party to rescind a contract if the non-mistaken party did not know or have reason to know of the mistake.

Select one of the following:

  • True
  • False

Explanation

Question 11 of 49

1

Brad accepts Stanley's offer to ell his sailboat for $3,000. The contract does not include a time for the exchange of the money for the boat. A court may not supply the performance term to complete the contract.

Select one of the following:

  • True
  • False

Explanation

Question 12 of 49

1

Sheree intends to testify she was a minor when she entered into a written contract with Terrance. Under the Parol Evidence Rule, this testimony would be ruled inadmissible.

Select one of the following:

  • True
  • False

Explanation

Question 13 of 49

1

If the offeree has substantially performed the requested act in an offer for a unilateral contract, the offeror is prevented from revoking the offer.

Select one of the following:

  • True
  • False

Explanation

Question 14 of 49

1

Angus rejects Charlie's offer to purchase Angus' pool table for $700, then changes his mind and communicates an acceptance of the offer. Angus' acceptance is effective and a contract now exists.

Select one of the following:

  • True
  • False

Explanation

Question 15 of 49

1

Under the UCC, parties may agree to modify the terms of an existing contract without providing new consideration.

Select one of the following:

  • True
  • False

Explanation

Question 16 of 49

1

In determining whether a contract can be performed within a year, the measuring period starts the day the contract is signed and ends when the performance is completed.

Select one of the following:

  • True
  • False

Explanation

Question 17 of 49

1

Extraordinary difficulties unforeseen at the time a contract was formed may justify a demand for additional compensation

Select one of the following:

  • True
  • False

Explanation

Question 18 of 49

1

Angela offers to pay Paula $1,000 if she will not paint the front door to her home magenta. If Paula agrees, a valid, enforceable contract exists.

Select one of the following:

  • True
  • False

Explanation

Question 19 of 49

1

Giving up the right to sue on a valid claim may be consideration for receiving a sum of money to resolve a case in litigation.

Select one of the following:

  • True
  • False

Explanation

Question 20 of 49

1

Mike has completed and been paid for a renovation of Ike's summer home. Ike is so pleased he offers to pay Mike an additional $2,000. Ike's promise is legally binding.

Select one of the following:

  • True
  • False

Explanation

Question 21 of 49

1

At Common Law, a transaction that lacks a bargained-for exchange of consideration will not be upheld even if the parties knowingly and voluntarily consented to it.

Select one of the following:

  • True
  • False

Explanation

Question 22 of 49

1

Andi, a representative for Nature's Best Juice Co., has contracted for the entire crop of Bill's cranberry crop. This contract fails for indefiniteness.

Select one of the following:

  • True
  • False

Explanation

Question 23 of 49

1

A recital of nominal consideration is always interpreted to be sham consideration.

Select one of the following:

  • True
  • False

Explanation

Question 24 of 49

1

During formation of a contract parties may offer as consideration promises to do what they are already legally required to do.

Select one of the following:

  • True
  • False

Explanation

Question 25 of 49

1

An oral agreement to hire an employee for two years is not enforceable.

Select one of the following:

  • True
  • False

Explanation

Question 26 of 49

1

The Common Law requirement that the acceptance contain exactly the same terms as the offer is the _________ rule

Select one of the following:

  • Mail Box

  • Mirror Image

  • Offer Protection

  • Offeror Protection

Explanation

Question 27 of 49

1

Which element of a contract is met by a meeting of the minds?

Select one of the following:

  • Agreement

  • Consideration

  • Capacity

  • Legality

Explanation

Question 28 of 49

1

Courts use the "main purpose" rule to determine

Select one of the following:

  • whether a promisor has received something of value to justify his/her liability to a promisee

  • whether a contract is outside the Statute of Frauds

  • whether goods are classified as equipment or inventory for tax purposes

  • whether a warranty is express or implied

Explanation

Question 29 of 49

1

In which of the following situations would oral evidence be allowed?

Select one of the following:

  • To contradict the terms of partially integrated contract

  • To clarify the terms of a fully integrated contract

  • To prove a contract is not fully integrated

  • None of the above

Explanation

Question 30 of 49

1

The term for the withdrawal of an offer by an offeror is

Select one of the following:

  • recission

  • rejection

  • revocation

  • removal

Explanation

Question 31 of 49

1

Ann is injured in an accident caused by Bob. Bob agrees to pay Ann $2,500 if she agrees to release Bob from further liability. Ann agrees. If Ann's damages ultimately exceed $2,500, Ann can

Select one of the following:

  • collect the balance from Bob in a breach-of-contract suit

  • collect the balance from Bob in a tort suit

  • collect the balance from Bob on the ground of unforeseen difficulties

  • not collect the balance from Bob

Explanation

Question 32 of 49

1

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for $35 a bushel. This is an example of a(n) __________ contract.

Select one of the following:

  • requirements

  • output

  • unilateral

  • implied-in-law

Explanation

Question 33 of 49

1

Alan and Britney enter into an oral contract. Alan lists the terms on a sheet of paper containing his business logo and address and signs it. Britney does not sign the paper. This agreement is enforceable against

Select one of the following:

  • Alan only

  • Alan or Britney

  • Britney only

  • Neither Alan nor Britney

Explanation

Question 34 of 49

1

Which of the following statements about nominal consideration is correct?

Select one of the following:

  • Giving your sibling a quitclaim deed (a deed which foregoes a claim on property) for your 1/8 share in your family home for $1 is an example of nominal consideration

  • Nominal consideration will support an enforceable contract

  • Nominal consideration is another term for sham consideration

  • Statements a and b are correct

Explanation

Question 35 of 49

1

Which of the following is not a term a court will supply if it is missing in the contract?

Select one of the following:

  • Price of the goods

  • Time for performance

  • Quantity of goods purchased

  • The court will supply all the above if the are missing in a contract governed by the Code

Explanation

Question 36 of 49

1

Which of the following statements is true about modifying contracts governed by the Code?

Select one of the following:

  • No new consideration is required to modify an existing contract

  • Modifications must be made in good faith

  • Parties may agree all modifications to an existing contract must be in writing

  • All of the above are true statements

Explanation

Question 37 of 49

1

Milo files a suit against National Corporation under the doctrine of promissory estoppel. Milo must show that

Select one of the following:

  • Milo justifiably refused to fulfill a promise to National

  • Milo justifiably relied on National's promise to his detriment

  • National justifiably refused to fulfill a promise to Milo

  • National justifiably relied on Milo's promise to its detriment

Explanation

Question 38 of 49

1

Parol evidence is evidence based on

Select one of the following:

  • oral statements

  • usage of the trade

  • provisions handwritten into a contract

  • waivers of liability

Explanation

Question 39 of 49

1

Which of the following is an example of an unliquidated debt?

Select one of the following:

  • A promissory note for the sum of $10,000 to be repaid in 6 years at 5% interest

  • A cell phone service contract for $29.99 per month

  • A bill sent to homeowner by contractor for an additional $500 for cost overruns; owner claims he owes only $250

  • An installment sales contract for the purchase of a $5,000 mower with $200 down and the rest financed at 8% for 3 years

Explanation

Question 40 of 49

1

Larry Lawyer entered into a contract to buy land from a client at well below market value. The client was elderly and trusted Larry as his lawyer and son of his best friend to be fair and give him good advice. Client can rescind the contract based on

Select one of the following:

  • undue influence

  • duress

  • unilateral mistake of fact

  • unilateral mistake of value

Explanation

Question 41 of 49

1

Cashing a check marked "paid in full" creates an accord and satisfaction under which circumstances?

Select one of the following:

  • The check is for a lesser sum than the amount due on a liquidated debt

  • The check is for an unliquidated debt and both parties know of the dispute

  • The check is for any transaction governed by the Code

  • The check is in payment of a court judgment

Explanation

Question 42 of 49

1

If an offer does not specify how long it will remain open, it will remain open for

Select one of the following:

  • a reasonable period of time

  • one business day

  • one week

  • one month

Explanation

Question 43 of 49

1

Frank put an ad in the local paper stating he had a 1998 Avalon with 110,000 miles for sale for $9,000. Which statement best describes the legal status of this ad?

Select one of the following:

  • It is an offer to sell the car because it meets the requirement of definiteness

  • It is a firm offer to sell the car because it evidences a present commitment

  • It is an option offer to sell the car because it is communicated to multiple offerees

  • It is not an offer, but an announcement that he has a car to sell

Explanation

Question 44 of 49

1

Which of the following is an illusory promise?

Select one of the following:

  • "I will buy tickets to the World Series if the Yankees win the pennant."

  • "I will go with you to the donkey basketball game if I can't think of anything better to do."

  • "I will drive you to work if your car is still in the repair shop."

  • "I will buy your car if my husband likes it."

Explanation

Question 45 of 49

1

Dell, a farmer, has an agreement to lease 500 acres from Wood for 3 years. Must this agreement be in writing to be enforceable?

Select one of the following:

  • Yes, it is an interest in land and the lease is for more than one year

  • Yes, all leases of farmland are governed by the Statute of Purposes and must be in writing

  • No, all leases of farmland over 500 acres are governed by the Statute of Repose and may be oral

  • No, as soon as Dell plants crops a unilateral contract is formed that does not have to be in writing

Explanation

Question 46 of 49

1

On June 25, Sam Seller mailed Ben Buyer an offer to sell his car to Ben for $10,000. The offer arrived on June 28. Ben put his acceptance in the mail on June 30, but, because of the long holiday, it did not arrive at Sam's home until July 7. Sam found a buyer who was willing to pay $11,000 for the car and mailed a revocation on June 27. Ben got the revocation on July 1. Was a contract formed between Sam and Ben? If so, on what date did it become effective?

Select one of the following:

  • Yes, there is a contract that became effective on June 30, the day Ben mailed the acceptance.

  • Yes, there is a contract that became effective on July 7, the day the acceptance arrived

  • No, there is no contract because Ben received the revocation before Sam received the acceptance

  • No, there is no contract because the revocation was sent before Ben received the offer

Explanation

Question 47 of 49

1

Quinn promises to sell his RV to Sid, who builds a structure behind his house in which to keep it. Quinn's attempt to renege on the promise is

Select one of the following:

  • effective if Quinn did not ask Sid to build anything

  • effective if Quinn wants to sell the RV to someone else

  • not effective if Sid cannot obtain a similar RV for a similar price elsewhere

  • not effective if Sid is held to have detrimentally relied on the promise

Explanation

Question 48 of 49

1

Ruth, a minor, charges groceries at Sam's Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's Mart

Select one of the following:

  • the reasonable value of groceries

  • the retail value of the groceries

  • the wholesale value of the groceries

  • nothing

Explanation

Question 49 of 49

1

Alpha Cable Company, a subcontractor, understates its bid on a project for Beta Communications, Inc., the general contractor, due to an addition error. Alpha can most likely

Select one of the following:

  • recover damages from Beta for not catching the error

  • require Beta to pay the difference between the bid and the true cost

  • rescind the contract

  • none of the above

Explanation

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