Question 1

Robert,a minor,buys a stereo from Jane for $200.State law allows a minor to disaffirm contracts within a reasonable time after turning 18.Robert disaffirms the contract the day after turning 18 and returns the stereo.
A)This contract was a valid contract,Robert cannot disaffirm.
B)This contract was a voidable contract,Robert can disaffirm.
C)This contract was a void contract.
D)This contract was unenforceable because it needed to be in writing to be enforceable.

Accepted Answer

The contract was a valid contract initially as Jane sold the stereo to Robert for $200. However, since Robert is a minor, he has the option to disaffirm the contract within a reasonable time after turning 18. Therefore, Robert can disaffirm the contract and return the stereo, making the contract voidable.

Question 2

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?
A)a promissory note
B)a stock
C)a patent
D)a computer

Accepted Answer

A computer is a tangible item that can be bought and sold, therefore it would be considered a "good" under the Uniform Commercial Code. A promissory note, stock, and patent are not physical items, so they would not fall under the definition of "goods" in the UCC.

Question 3

Tim sent an email to Belinda offering to sell his car to her for $5,000.Belinda texted Tim back offering to pay $4,000 for the car.A valid contract did not exist because
A)Belinda should have accepted Tim's offer orally.
B)consideration was not present in the negotiations.
C)the contract was not for a lawful purpose.
D)Belinda did not accept Tim's offer;she is still negotiating.

Accepted Answer

A valid contract requires an offer and acceptance, along with consideration and a lawful purpose. In this scenario, Tim made an offer to Belinda to sell his car for $5,000. Belinda's response indicating a willingness to pay $4,000 is a counteroffer, not an acceptance of Tim's original offer. Therefore, a valid contract did not exist because Belinda did not accept Tim's offer, and instead, negotiations were still ongoing.

Question 4

An agreement in which parties intend to form a valid bargain,but a court declares that some rule of law prevents enforcing it is called  
A)a void agreement.
B)a voidable contract.
C)an unenforceable agreement.
D)a quasi-contract.

Accepted Answer

An unenforceable agreement is one that the parties intended to form a valid contract but some legal issue prevents enforcement. It differs from a void agreement in that a void agreement never formed a valid contract, and a voidable contract can be enforced but one party has the option to avoid it. A quasi-contract is a legal fiction used to prevent unjust enrichment, and does not arise from the intention of the parties.

Question 5

An express contract
A)must be in writing.
B)may be inferred by the conduct of the parties involved.
C)has both parties setting forth their intentions.
D)is not valid in many states.

Accepted Answer

An express contract is characterized by both parties explicitly stating their intentions and terms of the agreement, either orally or in writing. This contrasts with implied contracts, which are inferred from the conduct of the parties.

Question 6

Larry goes to his barber who has cut his hair for the past several years.The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area.This is an example of a
A)unilateral,implied contract.
B)bilateral,implied contract.
C)unilateral,express contract.
D)bilateral,express contract.

Accepted Answer

This is an example of a unilateral, implied contract because Larry did not explicitly state that he wanted his hair cut but by sitting down in the barber's chair he implied that he wanted his hair cut. There was no verbal agreement or express communication, but the barber began to cut Larry's hair which was an implied acceptance of the invitation to provide services.

Question 7

Courts may award damages called quantum meruit,which means 
A)"as much as he deserves."
B)"to the letter of the law."
C)"let the buyer beware."
D)"something for something."

Accepted Answer

Quantum meruit is a Latin term meaning "as much as he deserves." It refers to the legal principle that a person should be compensated fairly for the work or services they have provided, even if there was no formal written agreement or contract in place.

Question 8

Which of the following represents a unilateral offer?
A)"I will pay you $50 if you mow my lawn."
B)"I will pay you $50 if you promise to trim that tree."
C)"I will pay you $50 for your CD player."
D)"I will pay you $50 for your backpack."

Accepted Answer

A is a unilateral offer because it is an offer made to one specific person in exchange for completing a specific task (mowing the lawn). The other options could potentially be bilateral offers as they involve a promise or exchange between two parties.

Question 9

One of the factors leading courts away from a laissez-faire approach to contract law was
A)the movement away from requiring written contracts with a seal affixed.
B)a change in relative bargaining power between parties to contracts.
C)the assumption that promises are not legally significant.
D)the assumption that parties had freedom to contract and would have to live with the consequences.

Accepted Answer

A change in relative bargaining power between parties to contracts led courts away from a laissez-faire approach to contract law because it shaped the underlying power dynamics of a contractual relationship, making it difficult to assume the parties entering the contract did so on an equal footing. As a result, courts began to intervene in certain cases to protect the weaker party from exploitation or unfair terms in the contract.

Question 10

Which of the following is an example of an implied contract?
A)Alberto visits his physician to be treated for a sinus infection.They do not discuss payment,but the following week Alberto receives a bill from his physician for services rendered.
B)Midori offers to sell a necklace to Patricia for $50;Patricia agrees to pay $50 for the necklace.
C)Amy tells her neighbor Tom,"If you rake up my leaves,I'll bake you a batch of brownies." Tom accepts the offer.
D)Miguel wants to purchase his first home.When he found the perfect place,he signed a contract for purchase and closed on the home within a month.

Accepted Answer

The agreement to pay for medical services is implied through Alberto's visit to the physician and receipt of a bill, even though payment was not discussed explicitly.

Question 11

Which of the following is NOT required to establish promissory estoppel?
A)a promise made by the defendant
B)a promise made by the plaintiff in response to the defendant's promise
C)reliance on the defendant's promise
D)All of these are required.

Accepted Answer

A promise made by the plaintiff is not required to establish promissory estoppel. The other three options (a promise made by the defendant, reliance on the defendant's promise, and a resulting injury) are all necessary elements.

Question 12

Walter enters a dentist office and points to a damaged tooth.The dentist,Matt,treats the tooth.If Walter refused to pay and Matt sued,
A)Walter would win as there was no contract.
B)Walter would win because of the UCC.
C)Matt would win;this is an implied contract.
D)Matt would win in quantum meruit.

Accepted Answer

When Walter pointed to the damaged tooth and Matt treated it, an implied contract was formed based on the conduct of the parties, obligating Walter to pay for the services rendered.

Question 13

The basic distinction between an executory contract and an executed contract is that
A)one is enforceable,the other is not.
B)only one promise is involved in an executory contract.
C)one is legal,the other is not.
D)all parties have fulfilled their obligations in an executed contract.

Accepted Answer

An executed contract is one in which all parties have fulfilled their obligations. In contrast, an executory contract is one where the parties have not yet completed their obligations.

Question 14

Patty is a poor college student struggling to work and keep up with her studies.Fred,her uncle,promises to pay Patty support of $200 per month for the next six months.Although Fred didn't ask her to,she quits her current job in order to devote full time to her studies for the next six months.Fred makes one payment and then stops with no explanation.If Patty sues,what is the likely result?
A)Fred would win,as he did not ask Patty to quit her job.
B)Patty would win,as a contract was formed when Fred promised to pay her the support.
C)Fred would win,as family members cannot sue each other for breach of an oral promise.
D)Patty may win under the doctrine of promissory estoppel.

Accepted Answer

Patty may win under the doctrine of promissory estoppel, which applies when a party suffers a detriment due to another party's promise and the court finds it necessary to prevent injustice. In this case, Patty quit her job in reliance on Fred's promise to provide financial support. Although there was no formal contract, the court may rule in Patty's favor based on the doctrine of promissory estoppel.

Question 15

Jennifer has offered to sell her laptop computer for $500 to Jack.She tells Jack that the computer is only six months old but,in fact,it is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is
A)a void agreement because of the fraud involved.
B)a voidable contract,one that Jack can void.
C)a voidable contract,because it is unilateral.
D)a void contract because of the UCC.

Accepted Answer

This is a voidable contract because Jennifer made false misrepresentations about the age of the laptop, which induced Jack to enter into the agreement. As such, Jack has the option to void the contract. However, it is not a unilateral contract (where one party promises to do something in exchange for an act by the other party) and the UCC does not apply here since it is a contract for the sale of a good between two individuals.

Question 16

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an
A)executed,bilateral,express contract.
B)executory,bilateral,implied-in-law contract.
C)executed,unilateral,express contract.
D)executory,bilateral,express contract.

Accepted Answer

The contract is executory because the painting work has not yet been completed by Mick. It is bilateral because both parties are obligated to perform - Mike to pay and Mick to paint. And it is an express contract because the offer and acceptance were made verbally.

Question 17

What type of contract is a possible remedy for an injured plaintiff in a case with no valid contract,when the plaintiff can show benefit to the defendant,reasonable expectation of payment,and unjust enrichment? 
A)an express contract
B)an implied contract
C)a quasi-contract
D)a unilateral contract

Accepted Answer

A quasi-contract, also known as an implied-in-law contract, is a legal construct used to create an obligation between parties in the absence of a valid contract. In this case, the plaintiff would be able to show that the defendant received a benefit, had a reasonable expectation of payment, and would be unjustly enriched if they were not required to pay for the benefit received. Therefore, a quasi-contract would provide a possible remedy for the injured plaintiff in this situation. An express contract requires an actual agreement between the parties, a unilateral contract requires acceptance through performance, and neither of these contracts would be applicable in this scenario.

Question 18

The courts will find an implied contract when
A)justice demands it.
B)conduct of the parties indicates they intended an agreement.
C)there is promissory estoppel.
D)there is undue influence.

Accepted Answer

An implied contract is formed when there is no written or express agreement, but the conduct of the parties indicates that they intended to enter into a contract. It is based on the presumed intention of the parties involved. In such situations, the court infers a contract from the conduct of the parties, and it is binding like any other contract. Therefore, option B is the correct answer. The other options mentioned, such as promissory estoppel and undue influence, do not necessarily indicate the formation of an implied contract.

Question 19

Madison purchases several 50-pound bags of mulch at the local gardening store.An employee carries the bags of mulch to Madison's truck and loads them into the back for her.Will Article 2 of the UCC govern the contract in this situation?
A)No,this is a mixed contract because Madison is paying for both goods and labor.
B)Yes,because the primary purpose of this contract is the sale of goods.
C)No,this is an express contract because both parties explicitly state their intentions.
D)Yes,because Article 2 of the UCC governs all bilateral contracts.

Accepted Answer

Since the primary purpose of this contract is the sale of goods, Article 2 of the UCC will govern the contract. The fact that an employee carries and loads the bags of mulch does not change the nature of the contract as a sale of goods.

Question 20

Noncompetition agreements are
A)more common today than they were in the past,although policy issues they raised in the 1700s have never gone away.
B)now illegal,as they violate antitrust laws.
C)infrequently litigated.
D)relatively recent developments,first used following the Great Depression in the United States.

Accepted Answer

Noncompetition agreements have been in existence and raised policy issues since the 1700s. However, their use has become more common in recent times due to the increased mobility of workers and the need to protect businesses' intellectual property.

Quiz 11: Introduction to Contracts

Robert,a minor,buys a stereo from Jane for $200.State law allows a minor to disaffirm contracts within a reasonable time after turning 18.Robert disaffirms the contract the day after turning 18 and returns the stereo.

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?

Tim sent an email to Belinda offering to sell his car to her for $5,000.Belinda texted Tim back offering to pay $4,000 for the car.A valid contract did not exist because

An agreement in which parties intend to form a valid bargain,but a court declares that some rule of law prevents enforcing it is called

An express contract

Larry goes to his barber who has cut his hair for the past several years.The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area.This is an example of a

Courts may award damages called quantum meruit,which means

Which of the following represents a unilateral offer?

One of the factors leading courts away from a laissez-faire approach to contract law was

Which of the following is an example of an implied contract?

Which of the following is NOT required to establish promissory estoppel?

Walter enters a dentist office and points to a damaged tooth.The dentist,Matt,treats the tooth.If Walter refused to pay and Matt sued,

The basic distinction between an executory contract and an executed contract is that

Jennifer has offered to sell her laptop computer for $500 to Jack.She tells Jack that the computer is only six months old but,in fact,it is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an

What type of contract is a possible remedy for an injured plaintiff in a case with no valid contract,when the plaintiff can show benefit to the defendant,reasonable expectation of payment,and unjust enrichment?

The courts will find an implied contract when

Madison purchases several 50-pound bags of mulch at the local gardening store.An employee carries the bags of mulch to Madison's truck and loads them into the back for her.Will Article 2 of the UCC govern the contract in this situation?

Noncompetition agreements are