Business Law Final Exam Questions With Accurate Answers
The most important reason courts enforce contracts is/are:
A. "a person's word is their bond." (It's the moral thing to do.)
B. the law says one will keep one's promises, so you must obey the law
C. contracts are a foundation of our economy
D. keeping one's promises shows you can be trusted - correct answer -C
T/F: Contract law emphasizes personal responsibility and accountability - correct answer -True
T/F: An otherwise valid contract may still be unenforceable - correct answer -True
A bilateral contract
A. must be in writing
B. is an exchange of a promise for a promise
C. is an exchange of a promise for performance
D. A & B above
E. A & C above - correct answer -B
T/F: Consideration is the respect you pay the other person in a contract - correct answer -false
T/F: Agreement means an offer and acceptance - correct answer -true
T/F: The accent of parties to enter into a contract must be voluntary - correct answer -true
T/F: Bill offered to pay Jennifer $100 for her bike if she would paint it blue. Jennifer agreed and painted
the bike a beautiful carolina blue. Bill refused to buy the bike saying it wasn't a manly blue and Jennifer
should have known that. Bill wins, Jennifer loses - correct answer -False
T/F: In contract law, the term consideration refers to the serious thought that underlies a party's intent
to enter into a contract - correct answer -False
T/F: In a contract law if a promise is made, it will be enforced - correct answer -False
Henry promises not to open his Hank's lunchbox cafe before 10AM, if Danni, who owns Danni's Dannish
and Donuts next door, promises to close by 1PM. Henry's consideration is
A. the destruction of a legal relationship
B. the creation of a legal relationship
C. a forbearance
D. an exchange of money - correct answer -C
T/F: Consideration has to be essentially equal in any contract - correct answer -False
T/F: The most important consideration in determining value is the cost involved - correct answer -False
T/F: Past consideration is consideration - correct answer -False
, T/F: You agree to pay Eddie $1,000 if he quits smoking. This is a valid contract - correct answer -True
T/F: If you don't have contractual capacity you may not enter into a contract - correct answer -False
T/F: The age o majority in the US is 19 - correct answer -False
T/F: An assignment of ALL rights has to do with rights and delegation of duties - correct answer -True
T/F: The intent to enter into a contract depends on what the parties think about the contract - correct
answer -False (matters what a reasonable person thinks about the contract)
T/F: Catherine saw a sofa in the store that had a price tag of $250. She offered Tim $250 for the sofa. He
rejected the offer. If Catherine files a law suit, Tim will win. - correct answer -True (price tag is an
advertisement for offer)
highest bid that exceeds the minimum will win - correct answer -auction with reserve
highest bid wins. - correct answer -auction without reserve
T/F: the terms of a contract must be specific for the contract to be enforceable - correct answer -True
When is an offeror's revocation of an offer effective? - correct answer -When's it's received by the
offeree
When is an offeree's rejection of an offer effective? - correct answer -When it's received by the offeror
The rejection of the original offer and the simultaneous making of a new offer. EX: Moe my lawn for 20.
No 30. - correct answer -counteroffer
T/F: an acceptance of an offer is valid when placed in a mailbox even when the offeror doesn't receive it.
- correct answer -True
T/F: E- signatures and electronic agreements are generally valid acceptances of a contract - correct
answer -True
Consideration must be _____ _____ _____ and _____ _____ _____ - correct answer -legally sufficient
value and bargained for exchange
T/F: Courts generally consider the adequacy of consideration in a contract - correct answer -False
T/F: The Amount of consideration in a contract must be equal. - correct answer -False
Why is a gift promise unenforceable by the courts? - correct answer -Lacks consideration from both
sides
Courts do NOT enforce _____ contracts because they don't help the economy and are merely a transfer
of wealth - correct answer -gift
The most important reason courts enforce contracts is/are:
A. "a person's word is their bond." (It's the moral thing to do.)
B. the law says one will keep one's promises, so you must obey the law
C. contracts are a foundation of our economy
D. keeping one's promises shows you can be trusted - correct answer -C
T/F: Contract law emphasizes personal responsibility and accountability - correct answer -True
T/F: An otherwise valid contract may still be unenforceable - correct answer -True
A bilateral contract
A. must be in writing
B. is an exchange of a promise for a promise
C. is an exchange of a promise for performance
D. A & B above
E. A & C above - correct answer -B
T/F: Consideration is the respect you pay the other person in a contract - correct answer -false
T/F: Agreement means an offer and acceptance - correct answer -true
T/F: The accent of parties to enter into a contract must be voluntary - correct answer -true
T/F: Bill offered to pay Jennifer $100 for her bike if she would paint it blue. Jennifer agreed and painted
the bike a beautiful carolina blue. Bill refused to buy the bike saying it wasn't a manly blue and Jennifer
should have known that. Bill wins, Jennifer loses - correct answer -False
T/F: In contract law, the term consideration refers to the serious thought that underlies a party's intent
to enter into a contract - correct answer -False
T/F: In a contract law if a promise is made, it will be enforced - correct answer -False
Henry promises not to open his Hank's lunchbox cafe before 10AM, if Danni, who owns Danni's Dannish
and Donuts next door, promises to close by 1PM. Henry's consideration is
A. the destruction of a legal relationship
B. the creation of a legal relationship
C. a forbearance
D. an exchange of money - correct answer -C
T/F: Consideration has to be essentially equal in any contract - correct answer -False
T/F: The most important consideration in determining value is the cost involved - correct answer -False
T/F: Past consideration is consideration - correct answer -False
, T/F: You agree to pay Eddie $1,000 if he quits smoking. This is a valid contract - correct answer -True
T/F: If you don't have contractual capacity you may not enter into a contract - correct answer -False
T/F: The age o majority in the US is 19 - correct answer -False
T/F: An assignment of ALL rights has to do with rights and delegation of duties - correct answer -True
T/F: The intent to enter into a contract depends on what the parties think about the contract - correct
answer -False (matters what a reasonable person thinks about the contract)
T/F: Catherine saw a sofa in the store that had a price tag of $250. She offered Tim $250 for the sofa. He
rejected the offer. If Catherine files a law suit, Tim will win. - correct answer -True (price tag is an
advertisement for offer)
highest bid that exceeds the minimum will win - correct answer -auction with reserve
highest bid wins. - correct answer -auction without reserve
T/F: the terms of a contract must be specific for the contract to be enforceable - correct answer -True
When is an offeror's revocation of an offer effective? - correct answer -When's it's received by the
offeree
When is an offeree's rejection of an offer effective? - correct answer -When it's received by the offeror
The rejection of the original offer and the simultaneous making of a new offer. EX: Moe my lawn for 20.
No 30. - correct answer -counteroffer
T/F: an acceptance of an offer is valid when placed in a mailbox even when the offeror doesn't receive it.
- correct answer -True
T/F: E- signatures and electronic agreements are generally valid acceptances of a contract - correct
answer -True
Consideration must be _____ _____ _____ and _____ _____ _____ - correct answer -legally sufficient
value and bargained for exchange
T/F: Courts generally consider the adequacy of consideration in a contract - correct answer -False
T/F: The Amount of consideration in a contract must be equal. - correct answer -False
Why is a gift promise unenforceable by the courts? - correct answer -Lacks consideration from both
sides
Courts do NOT enforce _____ contracts because they don't help the economy and are merely a transfer
of wealth - correct answer -gift
