Deck 8: Introduction to Contract Law

Question 1

This is an organized codification of the common laws of contracts.

A) The Restatement of the Law of Contracts
B) The Uniform Commercial Code
C) Implied in law
D) Case law
E) International Sale of Goods

Answer 1

A

Question 2

Raul posted signs in his neighborhood offering $50 for the return of his lost dog. Juanita called Raul and said, "I'll look for your dog." A contract has been formed.

Answer 2

False

Question 3

Which of the following is an example of a valid contract?

A) Tom offered to clean Harry's garden for a sum, which Harry did not agree to. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
B) Tom offered to clean Harry's garden for a sum. Harry was very drunk and agreed. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses. After persistent requests by Tom, Harry agrees to pay $10, which Tom declines.
C) Tom offered to clean Harry's garden to which Harry agreed. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
D) Tom and Harry bet on the ongoing FIFA match, on losing which Tom had to clean Harry's garden. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
E) Harry calls up Tom asking him to clean his garden. He offers $20 for the job and tells him that Tom can have free lunch thereafter for the next two weeks at his place. Impatiently, Tom cuts him off and agrees to clean the garden on whatever terms Harry wants.

Answer 3

E

Question 4

Contract law did not develop according to a conscious plan.

Question 5

The Restatement (Second) of Contracts is a compilation-an anthology-of judges' decisions on contract topics.

Question 6

A quasi-contract is another name for an oral contract.

Question 7

Not all rights are extinguished because a contract is unenforceable.

Question 8

Under the Uniform Commercial Code, there is no Statute of Frauds, i.e., a requirement that certain contracts be evidenced by a writing.

Question 9

Robert bought tickets on ClearCloud Airlines for a four-hour domestic flight, and in doing so online checked the "I agree" box that listed various airline rules regarding baggage allowances, refunds for missed flights and, relevant here, a provision providing that passengers might be involuntarily "bumped"-required to surrender their seat-at the airlines discretion. ClearCloud indeed bumped Robert, who protested. He was forcibly removed from the plane. He protested that he'd paid for his seat and was contractually entitled to it. What word or term describes the airline's successful argument?

A) quasi-contract
B) unilateral contract
C) voidable contract
D) unconscionable contract
E) recondite contract

Question 10

Contracts for the purchase and sale of goods are essentially bilateral and non-executory in nature.

Question 11

Stereotypically, the wife in a marriage does the child care. This assignment of duties by a person's status (here, "wife"), as opposed to assignment and agreement by contract, might be compared to

A) Socialism
B) Feudalism
C) Capitalism
D) Communism
E) Economics

Question 12

The Restatement of the Law of Contracts deals with the sale of goods.

Question 13

A contract with a minor remains in force unless the minor decides that he or she does not wish to be bound by it.

Question 14

The contracts and agreements covered by Article 2 relate to the sale of goods.

Question 15

If Debra makes an agreement to deliver a car to Denny, and does so, the contract is called an executory contract until Denny makes the payment.

Question 16

The Uniform Commercial Code is not a federal law but uniform state law.

Question 17

Walter Boyd had several times been hospitalized for alcoholism. While he was at home, in bed, in an alcoholic stupor, his son Conrad asked him to co-sign on a promissory note so Conrad could finance a remodeling of his restaurant. Conrad failed to make timely payments; Bank-the creditor-said it would foreclose on the restaurant mortgage unless at least interest payments were made. Conrad again approached his father who was now sober and the older man wrote a check for the interest owing. Conrad subsequently declared bankruptcy and Bank turned to Walter for payment. Walter's contract is

A) void
B) voidable
C) enforceable
D) unenforceable
E) executory

Question 18

The most important source of contract law is _____.

A) federal statutes
B) the federal government
C) the Convention on Contracts
D) the states' common law
E) civil laws

Question 19

The Convention on Contracts for the International Sale of Goods has been adopted by more than 40 countries excluding the United States.

Question 20

Under the Convention on Contracts for the International Sale of Goods, consideration is not required to form a contract.

Question 21

Which of the following is an example of a quasi-contract?

A) Ann agreed to buy her colleague's house for $420,000 and to take title on the subsequent Sunday.
B) A pizza delivery boy mistakenly leaves the neighbor's pizza on Ruby's fence and her son eats the pizza. The pizza boy asks Ruby to pay the bill.
C) A regular customer asks for a hamburger and is asked to pay $30 for it; it is not listed on the menu.
D) Tom buys a cycle from his friend for $50 which Tom's father pays for.
E) Cindy offers to buy Nile's bat for $10 and he agrees to it in writing with both their signatures on paper.

Question 22

Before uniform traffic laws were adopted, the rule for motorists driving "horseless carriages" was, be careful, and stay to the right. As judges determined what was "careful" under the circumstances presented to them, they were developing what kind of law?

A) criminal
B) common
C) equity-based
D) statutory
E) code

Question 23

Zachary graduated from college and sold most of the contents of his apartment to Sally. What law governs the contract the parties made?

A) the common law
B) the Convention on Contracts
C) real property law
D) Article 2 of the Uniform Commercial Code
E) none of these, as the contract is informal

Question 24

_____ is the degree to which a contract agreement is manifest to those not party to it.

A) Mutuality
B) Enforceability
C) Explicitness
D) Completion
E) Promise

Question 25

In SouthTrust Bank v. Williams, which of the following led to the final decision of the court?

A) The SouthTrust's amendment to the regulations was ineffective.
B) The mere failure to object to the addition of a material term can be construed as an acceptance of it.
C) The parties in the case took no action that could be considered inconsistent with an assent to the arbitration provision.
D) The parties in the case never affirmatively assented to the amended regulations.
E) A written confirmation of an acceptance may modify the contract unless it adds a material term, and arbitration clauses are material terms.

Question 26

In Roger's Backhoe Services, Inc. v. Nichols, which dimension of the contract was affected?

A) Mutuality
B) Enforceability
C) Completion
D) Explicitness
E) Promise

Question 27

Which of following would be considered an example of a n enforceable contract?

A) Nancy agrees to buy her 15-year-old neighbor's car for $10,000.
B) George offers to pay Libber $600 for killing his neighbor's tree-too much shade!-and Libber agrees to it.
C) Tim owes Peter money, but the statute of limitations has run out.
D) Tom owes Peters money, but before the statute of limitations ends, Tom is declared bankrupt.
E) Tom owes Peter money, but Pete has waited too long to collect it and the statute of limitations has run out; however, notwithstanding,Tom promises to repay half the amount.

Question 28

Which of the following is true about the Convention on Contracts for the International Sale of Goods (CISG)?

A) Under CISG, consideration is not required to form a contract.
B) It was approved in 1942 at a diplomatic conference in Vienna.
C) CISG includes the Statute of Frauds.
D) The CISG applies to contracts for the sale of electricity.
E) CISG is mandatory to parties to an international contract for the sale of goods.

Question 29

What are the four different dimensions that contracts are classified on?

Question 30

In Roger's Backhoe Service, Inc. v. Nichols, which of the following led to the final decision by the court?

A) The examination of the brick wall indicated that it was unfeasible to use that source of drainage.
B) The drainage into the underground creek was fully explored and rejected.
C) The services were beneficial to the recipient.
D) The charges submitted on the invoices for the three-day work was unfair and unreasonable.
E) There was no contract between the plaintiff and the defendant regarding the three-day work.

Question 31

What are the economic functions performed by contract law?