Question 1

A consulting contract between a management consulting firm and a software company is governed by what source of law?
A) Common law.
B) Statutory law.
C) The Uniform Commercial Code.
D) Law at equity.

Accepted Answer

A) The contract is governed by common law because it is for services (consulting).
A) The contract is governed by common law because it is for services (consulting).
B) The contract is governed by common law because it is for services (consulting).
C) The contract is governed by common law because it is for services (consulting).

Question 2

An agreement to buy cocaine from a drug dealer is
A) a valid contract.
B) a void contract.
C) a voidable contract.
D) an unenforceable contract.

Accepted Answer

A) This agreement is a void contract because it lacks the essential element of legal
purpose.
A) This agreement is a void contract because it lacks the essential element of legal purpose.
B) This agreement is a void contract because it lacks the essential element of legal purpose.
C) This agreement is a void contract because it lacks the essential element of legal purpose.

Question 3

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is
A) valid.
B) void.
C) voidable.
D) unenforceable.

Accepted Answer

A) The contract is valid because it has all the necessary elements of a contract
(mutual assent, capacity to contract, consideration, legal purpose).
B) The contract is valid because it has all the necessary elements of a contract (mutual assent, capacity to contract, consideration, legal purpose).
C) The contract is valid because it has all the necessary elements of a contract (mutual assent, capacity to contract, consideration, legal purpose).
D) The contract is valid because it has all the necessary elements of a contract (mutual assent, capacity to contract, consideration, legal purpose).

Question 4

A contract in which one party may disaffirm or enforce the contract is
A) a valid contract.
B) a void contract.
C) a voidable contract.
D) an unenforceable contract.

Accepted Answer

A) A voidable contract is one in which one party, at its option, may either disaffirm
or enforce.
A) A voidable contract is one in which one party, at its option, may either disaffirm or enforce.
B) A voidable contract is one in which one party, at its option, may either disaffirm or enforce.
C) A voidable contract is one in which one party, at its option, may either disaffirm or enforce.

Question 5

Alan lives in a beachfront home,and one morning he discovers an adult woman who has washed up on shore and is unconscious.Alan takes her into his home and administers aid to her.She awakens after a few hours but has amnesia,not knowing who she is or how she ended up washed ashore on his property.Alan cares for her for two weeks,and then her memory returns.She fell overboard while sailing with her wealthy parents on their yacht.She tells him that her name is April,and she provides him with contact information for her parents.Naturally,when Alan calls,they are ecstatic.They tell Alan that they will fly in to pick her up the next day and that he should tally up his expenses and they will reimburse him for his costs.When they arrive,Alan gives them the cost sheet,which they refuse to pay.Does Alan have any rights against the parents? Does Alan have any rights against April?

Accepted Answer

The answer of Alan lives in a beachfront home,and one...

Question 6

Franz asks Joe if he will paint his office building for $1,000.Joe says he will do the job for $2,000.Joe's response is
A) an acceptance.
B) a rejection.
C) a counteroffer.
D) a mirror image offer.

Accepted Answer

A) Joe has made a counteroffer by rejecting the original offer and making a new
offer.
A) Joe has made a counteroffer by rejecting the original offer and making a new offer.
B) Joe has made a counteroffer by rejecting the original offer and making a new offer.
C) Joe has made a counteroffer by rejecting the original offer and making a new offer.

Question 7

An offer may be terminated in all but which of the following ways?
A) revocation
B) acceptance
C) rejection
D) counteroffer

Accepted Answer

A) An offer may be terminated by action of the parties in one of three ways: (1)
revocation, in which the offeror withdraws the offer prior to acceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, in which the offeree rejects the original offer and proposes a new offer with different terms.
Offers may also be terminated by operation of law.
B) An offer may be terminated by action of the parties in one of three ways: (1) revocation, in which the offeror withdraws the offer prior to acceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, in which the offeree rejects the original offer and proposes a new offer with different terms. Offers may also be terminated by operation of law.
C) An offer may be terminated by action of the parties in one of three ways: (1) revocation, in which the offeror withdraws the offer prior to acceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, in which the offeree rejects the original offer and proposes a new offer with different terms. Offers may also be terminated by operation of law.
D) An offer may be terminated by action of the parties in one of three ways: (1) revocation, in which the offeror withdraws the offer prior to acceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, in which the offeree rejects the original offer and proposes a new offer with different terms. Offers may also be terminated by operation of law.

Question 8

April is at work when a commercial painter's truck pulls up in front of her house.After checking the address on his assignment sheet,the painter starts erecting ladders against April's house and unloading brushes,rollers,and cans of paint.April has not contracted with this company,and the company has mistakenly put the wrong address on the painter's assignment sheet.When April arrives home,the painter is just finishing and he presents her with a bill.Is she obligated to pay? Why or why not?

Accepted Answer

The answer of April is at work when a commercial...

Question 9

What are some examples of contracts in the business context,and how does having an understanding of contract law help business owners and managers?

Accepted Answer

The answer of What are some examples of contracts in...

Question 10

Tina's dog has run away.She places reward posters throughout the neighborhood and places an ad in the local newspaper.Ted,her good friend,sees Tina's dog wandering and takes the dog back to Tina's house without ever seeing a poster or the newspaper advertisement.After he leaves her home,he then sees a reward poster.If he returns and demands the reward,is Tina obligated to pay?

Accepted Answer

The answer of Tina's dog has run away.She places reward...

Question 11

Why is it so important that the law of contracts be ordered and strong,particularly with regard to the business world?

Accepted Answer

The answer of Why is it so important that the...

Question 12

Randy is home when a landscaping crew enters his yard and begins working on his front garden beds and lawn.Randy did not hire the crew,but he allows them to continue working.Explain whether Randy will have to pay for the work.

Accepted Answer

The answer of Randy is home when a landscaping crew...

Question 13

What are the categories of contracts in the following scenario?
Dr.Pearson,an avid skier,decides to purchase a new pair of skis.He goes to a local ski shop and is assisted by the shop's owner as he looks at several pairs.He really likes a pair that costs $1,085,the most expensive set in the store,and says he will buy them if the owner will include bindings.The owner agrees and prints an order form with instructions to the shop staff for fitting the skis with bindings.Dr.Pearson pays for the skis and collects his receipt.The shop staff prepares the skis,and Dr.Pearson returns the following week to pick them up,ready to hit the slopes.

Accepted Answer

The answer of What are the categories of contracts in...

Question 14

Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing.If they enter a verbal agreement to buy a car for $1,500,this contract is
A) valid.
B) void.
C) voidable.
D) unenforceable.

Accepted Answer

A) The contract is unenforceable because of the statutory requirement that contracts
over $500 be in writing to be valid.
B) The contract is unenforceable because of the statutory requirement that contracts over $500 be in writing to be valid.
C) The contract is unenforceable because of the statutory requirement that contracts over $500 be in writing to be valid.
D) The contract is unenforceable because of the statutory requirement that contracts over $500 be in writing to be valid.

Question 15

When a store places an advertisement in a newspaper or runs an ad on the radio,what are the store's obligations if a customer arrives at the store and demands to purchase the item at the advertised price? Be complete.

Accepted Answer

The answer of When a store places an advertisement in...

Question 16

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offered to buy Zehmer's farm.After some negotiation,a written contract was executed.Zehmer claimed the entire episode was a joke and he never intended to sell his farm.The court determined that
A) since Zehmer claimed to be "high as a Georgia pine" and it was only the liquor talking, there was no contract.
B) since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed.
C) because the terms were fair, the parties are bound by the contract regardless of their intent or capacity.
D) Zehmer's actions made him appear serious; therefore, he was bound by his act despite what he was inwardly thinking.

Accepted Answer

A) Because negotiations and modifications to the written agreement lasted between 30 and 40 minutes, it appeared both parties were serious, so even if Zehmer had no subjective intent to sell the farm, he is still bound by his actions and the contract is enforceable.
Y) Because negotiations and modifications to the written agreement lasted between 30 and 40 minutes, it appeared both parties were serious, so even if Zehmer had no subjective intent to sell the farm, he is still bound by his actions and the contract is enforceable.
Z) Because negotiations and modifications to the written agreement lasted between 30 and 40 minutes, it appeared both parties were serious, so even if Zehmer had no subjective intent to sell the farm, he is still bound by his actions and the contract is enforceable.
[) Because negotiations and modifications to the written agreement lasted between 30 and 40 minutes, it appeared both parties were serious, so even if Zehmer had no subjective intent to sell the farm, he is still bound by his actions and the contract is enforceable.

Question 17

Ally,a minor,purchases a car from a used-car dealer.The law allows minors the right to cancel a contract until the time the minor turns 18.The contract between Ally and the dealer is
A) a valid contract.
B) a voidable contract.
C) a void contract.
D) an unenforceable contract.

Accepted Answer

A) The contract is voidable because the minor may, at her option, either disaffirm or
enforce.
A) The contract is voidable because the minor may, at her option, either disaffirm or enforce.
B) The contract is voidable because the minor may, at her option, either disaffirm or enforce.
C) The contract is voidable because the minor may, at her option, either disaffirm or enforce.

Question 18

Courts enforce contracts only if each party has the legal capacity to enter into a contract.Which classes of persons have limited power to contract?

Accepted Answer

The answer of Courts enforce contracts only if each party...

Question 19

If the offer specifies no time limit to which to accept
A) the offeree has a reasonable amount of time to accept.
B) the offeree has 30 days to accept.
C) the offeree has an unlimited amount of time to accept as long as a revocation has not been made.
D) the offeree has 10 days to accept.

Accepted Answer

A) If the offer specifies no time limit to which to accept, the courts will apply a
reasonable time standard.
V) If the offer specifies no time limit to which to accept, the courts will apply a reasonable time standard.
W) If the offer specifies no time limit to which to accept, the courts will apply a reasonable time standard.
X) If the offer specifies no time limit to which to accept, the courts will apply a reasonable time standard.

Question 20

In lawsuits that involve both goods and services,how is the proper source of law to enforce and govern the agreement established?

Accepted Answer

The answer of In lawsuits that involve both goods and...

Quiz 6: Overview and Language of Contracts

A consulting contract between a management consulting firm and a software company is governed by what source of law?

An agreement to buy cocaine from a drug dealer is

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is

A contract in which one party may disaffirm or enforce the contract is

Franz asks Joe if he will paint his office building for $1,000.Joe says he will do the job for $2,000.Joe's response is

An offer may be terminated in all but which of the following ways?

What are some examples of contracts in the business context,and how does having an understanding of contract law help business owners and managers?

Why is it so important that the law of contracts be ordered and strong,particularly with regard to the business world?

Randy is home when a landscaping crew enters his yard and begins working on his front garden beds and lawn.Randy did not hire the crew,but he allows them to continue working.Explain whether Randy will have to pay for the work.

Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing.If they enter a verbal agreement to buy a car for $1,500,this contract is

When a store places an advertisement in a newspaper or runs an ad on the radio,what are the store's obligations if a customer arrives at the store and demands to purchase the item at the advertised price? Be complete.

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offered to buy Zehmer's farm.After some negotiation,a written contract was executed.Zehmer claimed the entire episode was a joke and he never intended to sell his farm.The court determined that

Ally,a minor,purchases a car from a used-car dealer.The law allows minors the right to cancel a contract until the time the minor turns 18.The contract between Ally and the dealer is

Courts enforce contracts only if each party has the legal capacity to enter into a contract.Which classes of persons have limited power to contract?

If the offer specifies no time limit to which to accept

In lawsuits that involve both goods and services,how is the proper source of law to enforce and govern the agreement established?