Question 1

[Refusal to Pay] Business law teacher Allison needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Karina who agreed to trim some shrubbery for $40. Another student, Brendan, went to mow Allison's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Allison refused to pay Brendan because she said that he had upset the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Allison was glad about the dog bite because she felt it gave her a reason not to pay. Brendan refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Karina refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started the work.
-Which of the following is correct regarding Karina's statement that there was no contract?

Accepted Answer

A)   Karina is correct. There was no contract because she had not started working.
B)   Karina is incorrect because there was a bilateral, express agreement.
C)   Karina is incorrect because there was a bilateral, implied agreement.
D)   Karina is incorrect because there was a unilateral, express agreement.
E)   Karina is incorrect because there was a unilateral, implied agreement.F) B) and C)
G) B) and E)

Question 2

Bilateral contracts are a promise plus a requested action.

Accepted Answer

A) True 
 B)False

Question 3

Contract law comes from case law, the Uniform Commercial Code and the United Nations Convention for the International Sale of Goods.

Accepted Answer

A) True 
 B)False

Question 4

[Dog Training] Nia and Bruno enter into a written contract for Bruno to train Nia's dog. Under the contract, Nia is required to pay Bruno $20 for each training session.
-Bertrand sends an email to Lowell asking him if he would like to co-author a book. Lowell agrees and requests a $10,000 advance for the first three chapters. Bertrand sends him the money. Classify the contract.

Accepted Answer

A)   The contract is voidable, express, and executed.
B)   The contract is void, implied, and executory.
C)   The contract is express, bilateral, and executory.
D)   The contract is implied, executed, and valid.
E)   There is not a valid contract.F) A) and E)
G) B) and E)

Question 5

Due to increasing globalization, the International Commercial Code is important to contract law.

Accepted Answer

A) True 
 B)False

Question 6

Section 29 of the contract which states, "Pigment may be redesigned at any time."
-Flo claims that pink was proper under Section 29, and any court would interpret the contract in Flo's favor. Would Section 29 likely be enforced?

Accepted Answer

A)   No, Section 29 is ambiguous and should be interpreted against Flo.
B)   Yes, Serena should have read the contract more carefully and, if there were any ambiguity, she should have clarified it prior to signing.
C)   Yes, Serena signed the contract.
D)   Yes, Section 29 should be interpreted according to its plain language.
E)   Yes, Section 29 is ambiguous and should be interpreted against Serena.F) B) and D)
G) C) and D)

Question 7

Which of the following is not a negotiable instrument?

Accepted Answer

A)   Check
B)   Note
C)   Letter of credit
D)   Certificate of deposit
E)   DraftF) All of the above
G) A) and B)

Question 8

Marshall promises to smuggle illegal drugs for Thor across the border. What is the effect of this contract?

Accepted Answer

A)   A void contract
B)   An executory contract
C)   An implied contract
D)   An executed contract
E)   A voidable contractF) B) and D)
G) A) and E)

Question 9

In In Re Zappos.com Inc., Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos, what was the result of the case?

Accepted Answer

A)   The court ruled for the plaintiffs for the following two reasons: (1)  there was no contract because the plaintiffs did not assent to it, and (2)  even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time.
B)   The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs' lack of assent.
C)   The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time.
D)   The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable.
E)   The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.F) B) and D)
G) A) and C)

Question 10

Define a bilateral contract and a unilateral contract, and give an example of each.

Accepted Answer

A bilateral contract is commonly defined...

Question 11

The legal ability to enter into a binding agreement is known as what?

Accepted Answer

A)   Majority
B)   Emancipation
C)   Contractual knowledge
D)   Contractual capacity
E)   Informed consentF) A) and B)
G) A) and C)

Question 12

If a[n] ________ misunderstanding between the parties exists, and as a result of that misunderstanding the parties do not really come to a meeting of the minds, there is no contract.

Accepted Answer

A)   Mutual
B)   Unilateral
C)   Comprehensive
D)   Subjective
E)   ReasonableF) B) and E)
G) None of the above

Question 13

[Book Sale] Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.
-Which of the following describes Dylan's role in the transaction?

Accepted Answer

A)   He was the offeror.
B)   He was the offeree.
C)   He was the assentor.
D)   He was the assentee.
E)   He was the offeree and the assentee.F) A) and D)
G) C) and E)

Question 14

Section 29 of the contract which states, "Pigment may be redesigned at any time."
-Serena claims the contract is not valid because she only typed her name onto an electronic form and she did not "sign" any contract. Is she correct?

Accepted Answer

A)   No, because e-contracts are legally valid.
B)   Yes, to be valid, she needed to print the form, sign in, and send it in.
C)   Yes, although an e-contract is valid, it is voidable.
D)   Yes, since she paid the down payment, the contract was executory and e-contracts that are executory are void.
E)   No, an e-contract is voidable where there is no consideration.F) C) and E)
G) A) and D)

Question 15

Today's law of contracts originated from judicial decisions in ________.

Accepted Answer

A)   France
B)   Italy
C)   Spain
D)   England
E)   SwitzerlandF) B) and E)
G) B) and D)

Question 16

[Book Sale] Yasmeen offered to sell Dylan a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. However, there was a problem with the book; it was several editions old. Dylan was not aware of that fact, and neither was Yasmeen. When Dylan took the book to class and realized the problem, he went back to Yasmeen requesting a refund. Yasmeen refused to return his money. She claimed that she did not commit fraud because subjectively she thought that the book was correct, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.
-Which of the following would describe Yasmeen's role in the transaction?

Accepted Answer

A)   She was the offeror.
B)   She was the offeree.
C)   She was the assentor.
D)   She was the assentee.
E)   She was the offeree and the assentee.F) B) and E)
G) A) and B)

Question 17

All contracts can be categorized as either ________ or ________.

Accepted Answer

A)   Unilateral; complete
B)   Unilateral; trilateral
C)   Bilateral; trilateral
D)   Unilateral; bilateral
E)   Bilateral; completeF) None of the above
G) A) and E)

Question 18

Tulume argues with Brenda that the law of contracts is primarily statutory law. Is he correct?

Accepted Answer

A)   No, the law of contracts is known as comprehensive law.
B)   Yes, statutory law is the primary law of contracts.
C)   No, the common law is the primary law of contracts.
D)   No, the restated contracts cases are the primary law of contracts.
E)   No, there is no primary source of contract law, it is a big mixture of different bodies of law.F) A) and D)
G) D) and E)

Question 19

Section 29 of the contract which states, "Pigment may be redesigned at any time."
-Serena tells Flo that any judge would find that the contract calls for purple flowers, and that Flo breached the contract by providing pink flowers instead of purple. Is she correct?

Accepted Answer

A)   No, because the technical terms of Section 29 take precedence.
B)   No, because where there is a conflict between preprinted and handwritten terms, the preprinted ones prevail unless ambiguous.
C)   Yes, but only because more specific provisions take precedence over general ones in a contract.
D)   No, because Serena could not change the terms of the contract.
E)   Yes, because a judge should interpret a contract so as to give effect to the parties' intentions at the time they entered into the contract, and there is evidence that they discussed and intended to have purple flowers.F) A) and B)
G) A) and C)

Question 20

Which of the following was the result on appeal in Reisenfeld & Co. v. The Network Group, Inc.; Builders Square, Inc.; Kmart Corp., the case in the text involving whether the plaintiff could recover from BSI in the situation in which BSI contracted with Network Group to lease property, and Network Group contracted with the plaintiff agreeing to pay a certain commission for his work but then defaulted on the contract?

Accepted Answer

A)   The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the full amount of the commissions claimed.
B)   The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions.
C)   The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the full amount of the commissions claimed.
D)   The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions.
E)   The court ruled that because the plaintiff did not have a contract with BSI, the plaintiff was entitled to no recovery from BSI.F) A) and E)
G) C) and D)

Exam 13: Introduction to Contracts

Today's law of contracts originated from judicial decisions in ________.

Correct Answer
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All contracts can be categorized as either or .

Correct Answer
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Section 29 of the contract which states, "Pigment may be redesigned at any time." -Serena claims the contract is not valid because she only typed her name onto an electronic form and she did not "sign" any contract. Is she correct?

Correct Answer
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Correct Answer
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In In Re Zappos.com Inc., Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos, what was the result of the case?

Correct Answer
verified

Correct Answer
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Section 29 of the contract which states, "Pigment may be redesigned at any time." -Flo claims that pink was proper under Section 29, and any court would interpret the contract in Flo's favor. Would Section 29 likely be enforced?

Correct Answer
verified

Define a bilateral contract and a unilateral contract, and give an example of each.

Correct Answer
verified
A bilateral contract is commonly defined...
View Answer

Contract law comes from case law, the Uniform Commercial Code and the United Nations Convention for the International Sale of Goods.

Correct Answer
verified

Tulume argues with Brenda that the law of contracts is primarily statutory law. Is he correct?

Correct Answer
verified

Section 29 of the contract which states, "Pigment may be redesigned at any time." -Serena tells Flo that any judge would find that the contract calls for purple flowers, and that Flo breached the contract by providing pink flowers instead of purple. Is she correct?

Correct Answer
verified

The legal ability to enter into a binding agreement is known as what?

Correct Answer
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Correct Answer
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Correct Answer
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Which of the following is not a negotiable instrument?

Correct Answer
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If a[n] ________ misunderstanding between the parties exists, and as a result of that misunderstanding the parties do not really come to a meeting of the minds, there is no contract.

Correct Answer
verified

Marshall promises to smuggle illegal drugs for Thor across the border. What is the effect of this contract?

Correct Answer
verified

Due to increasing globalization, the International Commercial Code is important to contract law.

Correct Answer
verified

Correct Answer
verified

Bilateral contracts are a promise plus a requested action.

Correct Answer
verified

Exam 13: Introduction to Contracts

Today's law of contracts originated from judicial decisions in ________.

Correct AnswerverifiedShow Answer

All contracts can be categorized as either ________ or ________.

Correct AnswerverifiedShow Answer

Section 29 of the contract which states, "Pigment may be redesigned at any time." -Serena claims the contract is not valid because she only typed her name onto an electronic form and she did not "sign" any contract. Is she correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In In Re Zappos.com Inc., Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos, what was the result of the case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Section 29 of the contract which states, "Pigment may be redesigned at any time." -Flo claims that pink was proper under Section 29, and any court would interpret the contract in Flo's favor. Would Section 29 likely be enforced?

Correct AnswerverifiedShow Answer

Define a bilateral contract and a unilateral contract, and give an example of each.

Correct AnswerverifiedA bilateral contract is commonly defined...View AnswerShow Answer

Contract law comes from case law, the Uniform Commercial Code and the United Nations Convention for the International Sale of Goods.

Correct AnswerverifiedShow Answer

Tulume argues with Brenda that the law of contracts is primarily statutory law. Is he correct?

Correct AnswerverifiedShow Answer

Section 29 of the contract which states, "Pigment may be redesigned at any time." -Serena tells Flo that any judge would find that the contract calls for purple flowers, and that Flo breached the contract by providing pink flowers instead of purple. Is she correct?

Correct AnswerverifiedShow Answer

The legal ability to enter into a binding agreement is known as what?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a negotiable instrument?

Correct AnswerverifiedShow Answer

If a[n] ________ misunderstanding between the parties exists, and as a result of that misunderstanding the parties do not really come to a meeting of the minds, there is no contract.

Correct AnswerverifiedShow Answer

Marshall promises to smuggle illegal drugs for Thor across the border. What is the effect of this contract?

Correct AnswerverifiedShow Answer

Due to increasing globalization, the International Commercial Code is important to contract law.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Bilateral contracts are a promise plus a requested action.

Correct AnswerverifiedShow Answer

Correct Answer
verified

All contracts can be categorized as either or .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
A bilateral contract is commonly defined...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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