ACCT 2700 exam 4 BUSI LAW
QUESTIONS WITH CORRECT ANSWERS
An otherwise valid contract is enforceable even if the parties have not genuinely agreed
to its terms. True or False? - Correct answerFalse
If there is a unilateral mistake about a material fact, there is still voluntary consent and
the contract will generally been forceable. True or False? - Correct answerTrue
When both parties to a contract are mistaken about the same material fact, a unilateral
mistake has occurred. True or False? - Correct answerFalse
If a contractor's bid was significantly low because he made a mistake in adding up the
total estimated costs, any contract resulting from the bid is still normally enforceable.
True or False? - Correct answerFalse
Because value is variable, mistakes of value affect the enforceability of contracts. True
or False? - Correct answerFalse
For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting
a fact knows it is not as stated. True or False? - Correct answerTrue
Undue influence can arise from a confidential relationship or a relationship based on
trust. True or False? - Correct answerTrue
Forcing a party to enter into a contract under the fear of threats constitutes duress. True
or False? - Correct answerTrue
A misunderstanding concerning a basic assumption on which a contract is made will
support the rescission of the deal if the mistake is: - Correct answerBilateral
At an auction, Ben bids on a classic car, believing that it is worth more than the price
asked. When the car proves to need more repairs than Ben estimated, and thus is worth
less as is, Ben is: - Correct answerStill liable on the bid
Owen, an employee of Plumbing LLC, makes a substantial math mistake in totaling the
estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently,
Plumbing's bid is significantly low. Any contract with Quality Built that includes the
mistake may be rescinded: - Correct answerIf quality knew or should've known of
the mistake.
, In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be
worth twice as much by next year." This statement is not likely to support rescission of
the contract because it is: - Correct answerAn opinion
Alvin induces Beth to enter into a contract for the purchase of a Chef's Burger
restaurant. Alvin knowingly misrepresents a number of material features about the
restaurant and the business. When Beth discovers the truth, she can rescind the
contract on the basis of: - Correct answerFraudulent misrepresentation
Eugene, an accountant, convinces his client Faye to enter into contract to invest her
savings in Gathering, a non-existent social media site. There is clear and convincing
evidence that Faye did not act out of her free will. This is: - Correct answerUndue
influence
Don threatens physical harm to force Earl to sell his flower shop to Don for a below-
market price. This is: - Correct answerDuress
An agreement subject to the writing requirement must be written on paper. True or
false? - Correct answerFalse
The purpose of the Statute of Frauds is to ensure that, for certain types of contracts,
there is reliable evidence of the contracts and their terms. True or False? - Correct
answerTrue
A mortgage taken on a piece of land need not be in writing to been forced. True or
False? - Correct answerFalse
A contract must be in writing to been forceable if it cannot by its terms be performed
within one year from the day after the contract's formation. True or False? - Correct
answerTrue
A promise to pay a primary obligation normally must be in writing to been forceable.
True or false? - Correct answerFalse
A promise to pay another's debt only if that party fails to pay does not need to bein
writing to be enforceable. True or False? - Correct answerFalse
An oral sales contract for goods priced at less than $500 is enforceable. True or False?
- Correct answerTrue
To satisfy the UCC's Statute of Frauds, a writing evidencing a sale of goods need only
state the price term. True or False? - Correct answerFalse
QUESTIONS WITH CORRECT ANSWERS
An otherwise valid contract is enforceable even if the parties have not genuinely agreed
to its terms. True or False? - Correct answerFalse
If there is a unilateral mistake about a material fact, there is still voluntary consent and
the contract will generally been forceable. True or False? - Correct answerTrue
When both parties to a contract are mistaken about the same material fact, a unilateral
mistake has occurred. True or False? - Correct answerFalse
If a contractor's bid was significantly low because he made a mistake in adding up the
total estimated costs, any contract resulting from the bid is still normally enforceable.
True or False? - Correct answerFalse
Because value is variable, mistakes of value affect the enforceability of contracts. True
or False? - Correct answerFalse
For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting
a fact knows it is not as stated. True or False? - Correct answerTrue
Undue influence can arise from a confidential relationship or a relationship based on
trust. True or False? - Correct answerTrue
Forcing a party to enter into a contract under the fear of threats constitutes duress. True
or False? - Correct answerTrue
A misunderstanding concerning a basic assumption on which a contract is made will
support the rescission of the deal if the mistake is: - Correct answerBilateral
At an auction, Ben bids on a classic car, believing that it is worth more than the price
asked. When the car proves to need more repairs than Ben estimated, and thus is worth
less as is, Ben is: - Correct answerStill liable on the bid
Owen, an employee of Plumbing LLC, makes a substantial math mistake in totaling the
estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently,
Plumbing's bid is significantly low. Any contract with Quality Built that includes the
mistake may be rescinded: - Correct answerIf quality knew or should've known of
the mistake.
, In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be
worth twice as much by next year." This statement is not likely to support rescission of
the contract because it is: - Correct answerAn opinion
Alvin induces Beth to enter into a contract for the purchase of a Chef's Burger
restaurant. Alvin knowingly misrepresents a number of material features about the
restaurant and the business. When Beth discovers the truth, she can rescind the
contract on the basis of: - Correct answerFraudulent misrepresentation
Eugene, an accountant, convinces his client Faye to enter into contract to invest her
savings in Gathering, a non-existent social media site. There is clear and convincing
evidence that Faye did not act out of her free will. This is: - Correct answerUndue
influence
Don threatens physical harm to force Earl to sell his flower shop to Don for a below-
market price. This is: - Correct answerDuress
An agreement subject to the writing requirement must be written on paper. True or
false? - Correct answerFalse
The purpose of the Statute of Frauds is to ensure that, for certain types of contracts,
there is reliable evidence of the contracts and their terms. True or False? - Correct
answerTrue
A mortgage taken on a piece of land need not be in writing to been forced. True or
False? - Correct answerFalse
A contract must be in writing to been forceable if it cannot by its terms be performed
within one year from the day after the contract's formation. True or False? - Correct
answerTrue
A promise to pay a primary obligation normally must be in writing to been forceable.
True or false? - Correct answerFalse
A promise to pay another's debt only if that party fails to pay does not need to bein
writing to be enforceable. True or False? - Correct answerFalse
An oral sales contract for goods priced at less than $500 is enforceable. True or False?
- Correct answerTrue
To satisfy the UCC's Statute of Frauds, a writing evidencing a sale of goods need only
state the price term. True or False? - Correct answerFalse
