Question 1

An illusory promise is not a consideration.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following was the result in the case in the text Hamer v.Sidway,in which,after performance by his nephew,an uncle reneged on a promise to the nephew to pay him $5,000 if the nephew refrained from drinking liquor,using tobacco,swearing,and playing cards or billiards for money until he was 21 years of age?

Accepted Answer

A)   That because refraining from the conduct at issue benefited his character and health, the nephew could not recover.
B)   That no consideration was involved, and the nephew could not recover because the consideration from him did not consist of money or goods.
C)   That no consideration was involved, and the nephew could not recover because the proof established that the nephew had no interest in engaging in the items at issue, and avoiding them was no detriment to him.
D)   That the nephew could recover because he supplied consideration.
E)   That the nephew could recover, but only under promissory estoppel an amount compensating him for his reliance on the promise.F) All of the above
G) A) and E)

Question 3

Which of the following is true regarding the effect of a debtor offering to pay a different type of payment,for example,goods instead of money,on a debt for which there is not a dispute over the amount or existence of the debt,and the creditor agrees?

Accepted Answer

A)   A liquidated debt is involved, and there is an accord and satisfaction.
B)   A liquidated debt is involved, and there is an accord but no satisfaction.
C)   A liquidated debt is involved, and there is not a satisfaction or an accord.
D)   An unliquidated debt is involved, and there is an accord and satisfaction.
E)   An unliquidated debt is involved, and there is an accord but not satisfaction.F) All of the above
G) A) and B)

Question 4

Which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt when the debt itself,in its entirety,is in dispute,and the creditor agrees?

Accepted Answer

A)   A liquidated debt is involved, and there is an accord and satisfaction.
B)   A liquidated debt is involved, and there is an accord but no satisfaction.
C)   A liquidated debt is involved, and there is neither a satisfaction nor an accord.
D)   An unliquidated debt is involved, and there is an accord and satisfaction.
E)   An unliquidated debt is involved, and there is an accord but not satisfaction.F) A) and D)
G) C) and E)

Question 5

When an accord and satisfaction is at issue,the ______ is the new agreement to pay less than the creditor claims is owed.

Accepted Answer

A)   Satisfaction
B)   Accord
C)   Seal
D)   Compromise
E)   AcknowledgementF) A) and D)
G) C) and D)

Question 6

A promise to do something that you are already obligated to do is generally a valid consideration.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding Richard's claim regarding the inadequacy of house cleaning as consideration?

Accepted Answer

A)   Richard is correct because cleaning house would not constitute a benefit to the promisor.
B)   Richard is correct because cleaning house would not constitute a detriment to the promisee.
C)   Richard is correct because Denise had only promised - she had not actually performed.
D)   Although, contrary to Richard's assertion, house cleaning can be consideration, it was not in this case because his apartment was already fairly clean.
E)   Richard is incorrect because house cleaning would constitute consideration that would support a contract, and the court would not likely be concerned with the fact that the cleaning duties would be light.F) A) and B)
G) A) and C)

Question 8

Which of the following would be the result in a majority of states in regard to Penny's obligation to the dive shop?

Accepted Answer

A)   That because the debt was unliquidated and the dive shop cashed the check, an accord and satisfaction occurred, and Penny owes nothing.
B)   That because the debt was liquidated, no accord and satisfaction occurred, and Penny owes the full $2,000.
C)   That in order to satisfy equitable principles, the parties would split the remaining debt with Penny owing $1,000.
D)   That under the UCC, Penny would be required to pay the full amount, but the dive shop would be estopped from charging any interest.
E)   That because the dive shop offered, through issuance of the check, full repayment, no accord and satisfaction existed; Penny owes the full $2,000.F) C) and E)
G) A) and B)

Question 9

Define and discuss promissory estoppel,and give an example of when it would be applied.

Accepted Answer

Promissory estoppel occurs when one part...

Question 10

Assuming no exception applies,which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt,and the creditor agrees?

Accepted Answer

A)   A liquidated debt is involved, and there is an accord and satisfaction.
B)   A liquidated debt is involved, and there is an accord but no satisfaction.
C)   A liquidated debt is involved, and there is neither a satisfaction nor an accord.
D)   An unliquidated debt is involved, and there is an accord and satisfaction.
E)   An unliquidated debt is involved, and there is an accord but not satisfaction.F) A) and E)
G) D) and E)

Question 11

Which of the following is true regarding the dispute between Richard and Sam regarding whether Sam must return anything?

Accepted Answer

A)   Sam must return the computer only.
B)   Sam must return the business law book only.
C)   Sam must return the communications book only.
D)   Sam must return the computer, the business law book, and the communications book.
E)   Sam does not legally have to return anything.F) B) and C)
G) A) and D)

Question 12

In a lawsuit between the bank and Ursula,regarding the reward funds,who is likely to prevail and why?

Accepted Answer

A)   The bank is likely to prevail because Ursula only provided past consideration.
B)   The bank is likely to prevail because Ursula was tainted by being Victor's girlfriend.
C)   The bank is likely to prevail because no valid bilateral contract existed.
D)   Ursula is likely to prevail because a valid bilateral contract existed.
E)   Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.F) B) and C)
G) None of the above

Question 13

Which of the following is true regarding the rating the World Bank gives China in relation to the ease of doing business there?

Accepted Answer

A)   China is rated in the top 10.
B)   China is ranked near the middle.
C)   China is ranked in the bottom 25.
D)   China is ranked in the bottom 10.
E)   China is ranked last.F) A) and D)
G) A) and B)

Question 14

Frank is building a home for Debby that is to be completed by December 31st.Frank tells Debby that he needs to hire additional workers in order to have the home done by that time and that she needs to pay him an extra $10,000.Debby says that she will pay.Frank finishes the home and asks for his $10,000.Debby refuses to pay.What is the likely result if Frank sues? Discuss whether you believe the result is ethical and equitable.

Accepted Answer

Debby will likely win.Assuming the unfor...

Question 15

Which of the following occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on it; the only way to avoid injustice is to enforce the promise?

Accepted Answer

A)   Promissory agreement
B)   Promissory estoppel
C)   Quasi estoppel
D)   Quasi agreement
E)   Promissory performanceF) B) and D)
G) C) and E)

Question 16

In a[n] ______ debt,the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

Accepted Answer

A)   Disputed
B)   Unacknowledged
C)   Uncertain
D)   Liquidated
E)   UnliquidatedF) All of the above
G) A) and C)

Question 17

In a[n] ______ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Accepted Answer

A)   Actual
B)   Acknowledged
C)   Certain
D)   Liquidated
E)   UnliquidatedF) All of the above
G) C) and E)

Question 18

Which of the following is an exception to the rule requiring consideration?

Accepted Answer

A)   Promissory agreement
B)   Promissory estoppel
C)   Quasi estoppel
D)   Quasi agreement
E)   Promissory performanceF) A) and D)
G) B) and D)

Question 19

What is Credit Card Company A's best argument in relation to enforcing Penny's obligations?

Accepted Answer

A)   That the agreement constituted a bad deal for the card company.
B)   That only past consideration was involved.
C)   That student debt is not dischargeable as a matter of law and that the card company owed no obligation to Penny regardless of statements made.
D)   That its promise was clearly an illusory promise that Penny should have known could not be enforced once the card company discovered the true circumstances.
E)   That no consideration existed for its promise, and that based on Penny's circumstances and behavior, enforcing the debt would not result in injustice to Penny.F) All of the above
G) A) and B)

Question 20

Which of the following was involved when the government,in attempting to help AIG,agreed with AIG to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Accepted Answer

A)   An accord and satisfaction
B)   An accord but not a satisfaction
C)   A unilateral contract
D)   A bilateral contract
E)   An unliquidated contractF) D) and E)
G) C) and D)

Exam 15: Consideration

Which of the following was involved when the government,in attempting to help AIG,agreed with AIG to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Correct Answer
verified

In a[n] ______ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Correct Answer
verified

Correct Answer
verified

Assuming no exception applies,which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt,and the creditor agrees?

Correct Answer
verified

Which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt when the debt itself,in its entirety,is in dispute,and the creditor agrees?

Correct Answer
verified

Which of the following is an exception to the rule requiring consideration?

Correct Answer
verified

When an accord and satisfaction is at issue,the ______ is the new agreement to pay less than the creditor claims is owed.

Correct Answer
verified

Which of the following is true regarding the dispute between Richard and Sam regarding whether Sam must return anything?

Correct Answer
verified

An illusory promise is not a consideration.

Correct Answer
verified

In a[n] ______ debt,the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

Correct Answer
verified

In a lawsuit between the bank and Ursula,regarding the reward funds,who is likely to prevail and why?

Correct Answer
verified

Which of the following would be the result in a majority of states in regard to Penny's obligation to the dive shop?

Correct Answer
verified

Which of the following is true regarding the rating the World Bank gives China in relation to the ease of doing business there?

Correct Answer
verified

A promise to do something that you are already obligated to do is generally a valid consideration.

Correct Answer
verified

Correct Answer
verified
Debby will likely win.Assuming the unfor...
View Answer

Which of the following occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on it; the only way to avoid injustice is to enforce the promise?

Correct Answer
verified

Define and discuss promissory estoppel,and give an example of when it would be applied.

Correct Answer
verified
Promissory estoppel occurs when one part...
View Answer

What is Credit Card Company A's best argument in relation to enforcing Penny's obligations?

Correct Answer
verified

Which of the following is true regarding Richard's claim regarding the inadequacy of house cleaning as consideration?

Correct Answer
verified

Which of the following is true regarding the effect of a debtor offering to pay a different type of payment,for example,goods instead of money,on a debt for which there is not a dispute over the amount or existence of the debt,and the creditor agrees?

Correct Answer
verified

Exam 15: Consideration

Which of the following was involved when the government,in attempting to help AIG,agreed with AIG to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Correct AnswerverifiedShow Answer

In a[n] ______ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming no exception applies,which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt,and the creditor agrees?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt when the debt itself,in its entirety,is in dispute,and the creditor agrees?

Correct AnswerverifiedShow Answer

Which of the following is an exception to the rule requiring consideration?

Correct AnswerverifiedShow Answer

When an accord and satisfaction is at issue,the ______ is the new agreement to pay less than the creditor claims is owed.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the dispute between Richard and Sam regarding whether Sam must return anything?

Correct AnswerverifiedShow Answer

An illusory promise is not a consideration.

Correct AnswerverifiedShow Answer

In a[n] ______ debt,the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

Correct AnswerverifiedShow Answer

In a lawsuit between the bank and Ursula,regarding the reward funds,who is likely to prevail and why?

Correct AnswerverifiedShow Answer

Which of the following would be the result in a majority of states in regard to Penny's obligation to the dive shop?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the rating the World Bank gives China in relation to the ease of doing business there?

Correct AnswerverifiedShow Answer

A promise to do something that you are already obligated to do is generally a valid consideration.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDebby will likely win.Assuming the unfor...View AnswerShow Answer

Which of the following occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on it; the only way to avoid injustice is to enforce the promise?

Correct AnswerverifiedShow Answer

Define and discuss promissory estoppel,and give an example of when it would be applied.

Correct AnswerverifiedPromissory estoppel occurs when one part...View AnswerShow Answer

What is Credit Card Company A's best argument in relation to enforcing Penny's obligations?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Richard's claim regarding the inadequacy of house cleaning as consideration?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of a debtor offering to pay a different type of payment,for example,goods instead of money,on a debt for which there is not a dispute over the amount or existence of the debt,and the creditor agrees?

Correct AnswerverifiedShow 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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Correct Answer
verified
Debby will likely win.Assuming the unfor...
View Answer

Correct Answer
verified

Correct Answer
verified
Promissory estoppel occurs when one part...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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