BUL 5810 Exam 3 B
Which of the following contracts is covered by Article 2 of the Uniform Commercial
Code?
a. The sale of a building.
b. The sale of new furniture.
c. An agreement to have the sidewalk shoveled.
d. A sale of stock in ABC, Inc. - answerb. The sale of new furniture.
Any property other than an interest in real property, is/are:
a. tangible property.
b. intangible property.
c. goods.
d. personal property. - answerd. personal property.
Which of the following is NOT always necessary in order for a valid contract to be
formed?
a. Mutual assent
b. Legality of purpose
c. A writing
d. Consideration - answerc. A writing
In order to have a valid contract, in addition to the four basic requirements of a contract,
which of the following must also occur?
a. The consideration that one party is giving the other must be of the same value as the
consideration that is being received.
b. There must be the sale of goods from one party to another.
c. There must be an absence of invalidating conduct, such as duress.
d. Both parties must already have performed (done what they promised to do). -
answerc. There must be an absence of invalidating conduct, such as duress.
What is a requirement of an express contract?
a. It is written and signed.
b. It is based on the conduct of the parties.
c. The terms are stated in words.
d. It consists of a promise in exchange for an act. - answerc. The terms are stated in
words.
,If both parties exchange promises, the contract is:
a. bilateral.
b. void.
c. implied.
d. executed - answera. bilateral.
When might a contract might be unenforceable?
a. If the purpose of the contract was to commit a tort.
b. If one party has not yet performed, but the other party has fully performed.
c. If the statute of limitations has passed.
d. If the parties could not reach an agreement. - answerc. If the statute of limitations has
passed.
The doctrine of promissory estoppel:
a. is a doctrine enforcing contractual promises.
b. applies even if the promisor should not have expected the promisee to rely on the
promise.
c. applies even if the promisee does not rely on the promise.
d. is a doctrine that relies on justice and not contractual rights. - answerd. is a doctrine
that relies on justice and not contractual rights.
Another name for a quasi contract is:
a. promissory estoppels.
b. an implied in fact contract.
c. an implied in law contract.
d. an unenforceable contract. - answerc. an implied in law contract.
Which of the following is required in order to recover in quasi contract?
a. An implied or express promise
b. A valid contract
c. Acceptance or retention of a benefit conferred on the defendant by the plaintiff
d. A voidable contract - answerc. Acceptance or retention of a benefit conferred on the
defendant by the plaintiff
Contracts that are implied in law:
a. are obligations imposed by law on grounds of justice and equity.
b. are really contracts.
c. are also called implied in fact contracts
d. require the assent of the contracting parties. - answera. are obligations imposed by
law on grounds of justice and equity.
,Molly signs a contract with a publishing company to edit text manuscripts. This contract
is governed by
a. federal statute.
b. the law of quasi contract.
c. state common law.
d. Article 2 of the UCC. - answerc. state common law.
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob
accepts Sally's offer and tells her he will pay her on Friday when he gets his paycheck.
A contract is formed:
a. when Bob accepts Sally's offer
b. when Bob pays Sally.
c. when Sally offers to sell her book to Bob.
d. when Bob gets his paycheck. - answera. when Bob accepts Sally's offer
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not
have to show up for jury duty, but will go to work instead. Aaron knows that this is
against the law, but he would rather be paid $500 from his boss than the $30 that the
court will pay him for jury duty. Aaron calls in sick and is excused from jury duty. This
agreement between Aaron and his boss is:
a. a unilateral contract.
b. a bilateral contract.
c. a quasi contract
d. not a contract. - answerd. not a contract.
Sid makes a material representation of fact regarding his car to Barbara while out
driving one day. The next day, Barbara calls Sid and offers to buy his car. Sid accepts
Barbara's offer without correcting the misrepresentation of fact that he made the
previous day. What is the effect of the material representation on the agreement
between Sid and Barbara?
a. Barbara may avoid the contract.
b. Either Barbara or Sid may avoid the contract.
c. Sid may avoid the contract.
d. There is no effect because it was made the day before the offer was made. -
answera. Barbara may avoid the contract.
Bill enters into a contract with Harry. The terms are that Bill will build an addition to
Harry's home, replace the roof on Harry's garage, and make repave Harry's driveway in
exchange for Bill's payment to Harry of several thousand dollars once all of the projects
have been completed. If the driveway repavement has not yet been completed, but the
, addition and the roof have been completed, which term describes the type of contract in
existence?
a. Voidable
b. Executory
c. Implied-in-fact
d. Quasi-contract - answerb. Executory
Vince has lost his job and is having difficulty making ends meet. Last week, the bank
repossessed Vince's car. He is telling his neighbor Paul about his bad luck and Paul
says he wishes he could help Vince. Paul suggests that maybe Vince could have the
old car sitting in Paul's garage if Vince could get it to run. He ends the conversation by
saying "Let me think about it." The next day while Paul is at work, Vince goes into Paul's
garage and begins working on the old car. He gets it running and drives it out of Paul's
garage and into Vince's driveway. When Paul gets home from work, Vince shows Paul
the car and asks him for the title to the car. Paul tells Vince he had not made up his
mind about whether or not he would give Vince the car. Vince:
a. has no claim to the car because he did not have a written agreement with Paul.
b. has no claim to the car because Paul did not make a promise.
c. has no claim to the car b - answerb. has no claim to the car because Paul did not
make a promise.
Daniel is a self-made millionaire, but he has been medically committed to a mental
health facility. A court also ordered Daniel's sister, Michelle, to preside over Daniel's
business affairs. Once inside the mental health facility, Daniel befriends his nurse,
Amanda. One day, Amanda tells Daniel about her invention to help identify stray dogs
and cats. Daniel was so impressed by Amanda's invention that he offers to buy it for
$500,000. Amanda accepts Daniel's offer. Did Daniel and Amanda form a contract?
a. Yes, because Daniel offered to buy Amanda's invention, and Amanda accepts the
offer.
b. No, because Daniel lacks the capacity to contract.
c. No, because the agreement lacks consideration.
d. Yes, because the contract is perfectly legal. - answerb. No, because Daniel lacks the
capacity to contract.
Mary induces James to enter into a contract. James subsequently discovers that Mary
intentionally misrepresented the terms of their contract. Upon this discovery, James tells
Mary that he will not perform his promise under the contract. If Mary sues James for
breach of contract, will Mary win?
a. No, because the contract was not in writing.
b. No, because Mary induced James into the contract by fraudulent misrepresentations,
which makes the contract voidable.
c. Yes, so long as consideration exists.
Which of the following contracts is covered by Article 2 of the Uniform Commercial
Code?
a. The sale of a building.
b. The sale of new furniture.
c. An agreement to have the sidewalk shoveled.
d. A sale of stock in ABC, Inc. - answerb. The sale of new furniture.
Any property other than an interest in real property, is/are:
a. tangible property.
b. intangible property.
c. goods.
d. personal property. - answerd. personal property.
Which of the following is NOT always necessary in order for a valid contract to be
formed?
a. Mutual assent
b. Legality of purpose
c. A writing
d. Consideration - answerc. A writing
In order to have a valid contract, in addition to the four basic requirements of a contract,
which of the following must also occur?
a. The consideration that one party is giving the other must be of the same value as the
consideration that is being received.
b. There must be the sale of goods from one party to another.
c. There must be an absence of invalidating conduct, such as duress.
d. Both parties must already have performed (done what they promised to do). -
answerc. There must be an absence of invalidating conduct, such as duress.
What is a requirement of an express contract?
a. It is written and signed.
b. It is based on the conduct of the parties.
c. The terms are stated in words.
d. It consists of a promise in exchange for an act. - answerc. The terms are stated in
words.
,If both parties exchange promises, the contract is:
a. bilateral.
b. void.
c. implied.
d. executed - answera. bilateral.
When might a contract might be unenforceable?
a. If the purpose of the contract was to commit a tort.
b. If one party has not yet performed, but the other party has fully performed.
c. If the statute of limitations has passed.
d. If the parties could not reach an agreement. - answerc. If the statute of limitations has
passed.
The doctrine of promissory estoppel:
a. is a doctrine enforcing contractual promises.
b. applies even if the promisor should not have expected the promisee to rely on the
promise.
c. applies even if the promisee does not rely on the promise.
d. is a doctrine that relies on justice and not contractual rights. - answerd. is a doctrine
that relies on justice and not contractual rights.
Another name for a quasi contract is:
a. promissory estoppels.
b. an implied in fact contract.
c. an implied in law contract.
d. an unenforceable contract. - answerc. an implied in law contract.
Which of the following is required in order to recover in quasi contract?
a. An implied or express promise
b. A valid contract
c. Acceptance or retention of a benefit conferred on the defendant by the plaintiff
d. A voidable contract - answerc. Acceptance or retention of a benefit conferred on the
defendant by the plaintiff
Contracts that are implied in law:
a. are obligations imposed by law on grounds of justice and equity.
b. are really contracts.
c. are also called implied in fact contracts
d. require the assent of the contracting parties. - answera. are obligations imposed by
law on grounds of justice and equity.
,Molly signs a contract with a publishing company to edit text manuscripts. This contract
is governed by
a. federal statute.
b. the law of quasi contract.
c. state common law.
d. Article 2 of the UCC. - answerc. state common law.
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob
accepts Sally's offer and tells her he will pay her on Friday when he gets his paycheck.
A contract is formed:
a. when Bob accepts Sally's offer
b. when Bob pays Sally.
c. when Sally offers to sell her book to Bob.
d. when Bob gets his paycheck. - answera. when Bob accepts Sally's offer
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not
have to show up for jury duty, but will go to work instead. Aaron knows that this is
against the law, but he would rather be paid $500 from his boss than the $30 that the
court will pay him for jury duty. Aaron calls in sick and is excused from jury duty. This
agreement between Aaron and his boss is:
a. a unilateral contract.
b. a bilateral contract.
c. a quasi contract
d. not a contract. - answerd. not a contract.
Sid makes a material representation of fact regarding his car to Barbara while out
driving one day. The next day, Barbara calls Sid and offers to buy his car. Sid accepts
Barbara's offer without correcting the misrepresentation of fact that he made the
previous day. What is the effect of the material representation on the agreement
between Sid and Barbara?
a. Barbara may avoid the contract.
b. Either Barbara or Sid may avoid the contract.
c. Sid may avoid the contract.
d. There is no effect because it was made the day before the offer was made. -
answera. Barbara may avoid the contract.
Bill enters into a contract with Harry. The terms are that Bill will build an addition to
Harry's home, replace the roof on Harry's garage, and make repave Harry's driveway in
exchange for Bill's payment to Harry of several thousand dollars once all of the projects
have been completed. If the driveway repavement has not yet been completed, but the
, addition and the roof have been completed, which term describes the type of contract in
existence?
a. Voidable
b. Executory
c. Implied-in-fact
d. Quasi-contract - answerb. Executory
Vince has lost his job and is having difficulty making ends meet. Last week, the bank
repossessed Vince's car. He is telling his neighbor Paul about his bad luck and Paul
says he wishes he could help Vince. Paul suggests that maybe Vince could have the
old car sitting in Paul's garage if Vince could get it to run. He ends the conversation by
saying "Let me think about it." The next day while Paul is at work, Vince goes into Paul's
garage and begins working on the old car. He gets it running and drives it out of Paul's
garage and into Vince's driveway. When Paul gets home from work, Vince shows Paul
the car and asks him for the title to the car. Paul tells Vince he had not made up his
mind about whether or not he would give Vince the car. Vince:
a. has no claim to the car because he did not have a written agreement with Paul.
b. has no claim to the car because Paul did not make a promise.
c. has no claim to the car b - answerb. has no claim to the car because Paul did not
make a promise.
Daniel is a self-made millionaire, but he has been medically committed to a mental
health facility. A court also ordered Daniel's sister, Michelle, to preside over Daniel's
business affairs. Once inside the mental health facility, Daniel befriends his nurse,
Amanda. One day, Amanda tells Daniel about her invention to help identify stray dogs
and cats. Daniel was so impressed by Amanda's invention that he offers to buy it for
$500,000. Amanda accepts Daniel's offer. Did Daniel and Amanda form a contract?
a. Yes, because Daniel offered to buy Amanda's invention, and Amanda accepts the
offer.
b. No, because Daniel lacks the capacity to contract.
c. No, because the agreement lacks consideration.
d. Yes, because the contract is perfectly legal. - answerb. No, because Daniel lacks the
capacity to contract.
Mary induces James to enter into a contract. James subsequently discovers that Mary
intentionally misrepresented the terms of their contract. Upon this discovery, James tells
Mary that he will not perform his promise under the contract. If Mary sues James for
breach of contract, will Mary win?
a. No, because the contract was not in writing.
b. No, because Mary induced James into the contract by fraudulent misrepresentations,
which makes the contract voidable.
c. Yes, so long as consideration exists.
