BUS-L201 Final Exam (Moore IU) Test
Questions and Actual Detailed
Answers 2025-2026 Set.
Can a local businessman pay a police officer $50 a week to watch the business more closely?
a. Yes, as long as the contract is registered with the Secretary of State
b. No, Public Officials cannot give consideration on duties they are already supposed to perform
c. Yes, as long as 50$ is reasonable amount to watch the business
d. Yes, as long as a court reviews the contract within 30 days
e. No, unless a court approves the agreement - Answer b. No, Public Officials cannot give
consideration on duties they are already supposed to perform
Austen Construction, a general contractor, advertised for bids from subcontractors on the
electrical work for the renovation of one of State University's parking structures. The
advertisement announced that the contract will be awarded to the lowest responsible bidder.
Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the
electrical portion of the work. Austen informed Bronte that she should begin work immediately.
Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following
statements is most accurate?
a. Austen should not rely on Bronte's offer to do the electrical work
b. Austen has accepted Bronte's offer, thereby forming a contract
c. Austen is not bound by Bronte's bid until he informs her of his intent to accept
d. Bronte has accepted Austen's offer by submitting the lowest bid
e. Bronte may withdraw her bid at any time prior to beginning work - Answer d. Bronte has
accepted Austen's offer by submitting the lowest bid
Which of the following contracts are agreements that create no legal obligations and for which
no remedy is given?
a. Valid contracts
b. Unenforceable contracts
c. Void contracts
d. Voidable contracts
e. Quasi-contracts - Answer c. Void contracts
, b. Yes, promissory estoppel requires enforcement of the promise
c. No, legal consideration is absent
d. No, legal capacity is absent
e. Yes, quasi-contract requires enforcement of this promise - Answer c. No, legal consideration
is absent
Where the parties to a contract wish to cancel their contract and be in the same position as
they were prior to forming the contract, they should seek to obtain a(n) ___________.
a. Novation
b. Accord and satisfaction
c. Revocation
d. Rescission
e. Specific performance - Answer d. Rescission
A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the
contract. The adult party must:
a. Perform the contract
b. Rescind the contract
c. Abandon the contract
d. Ratify the contract
e. Void the contract - Answer a. Perform the contract
Which of the following contracts is void?
a. A contract made by an unemancipated minor
b. A contract made by a person who has been adjudicated insane and institutionalized
c. A contract made by a person under the influence of mind-altering drugs
d. A contract made by a minor who receives no support from a parent or guardian
e. A contract made under duress - Answer b. A contract made by a person who has been
adjudicated insane and institutionalized
Tracy, aged 12, is named the sole inheritor of her family mansion, which is valued to be worth
millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This
automatically transfers the title to the latter. Which of the following statements is true of the
Questions and Actual Detailed
Answers 2025-2026 Set.
Can a local businessman pay a police officer $50 a week to watch the business more closely?
a. Yes, as long as the contract is registered with the Secretary of State
b. No, Public Officials cannot give consideration on duties they are already supposed to perform
c. Yes, as long as 50$ is reasonable amount to watch the business
d. Yes, as long as a court reviews the contract within 30 days
e. No, unless a court approves the agreement - Answer b. No, Public Officials cannot give
consideration on duties they are already supposed to perform
Austen Construction, a general contractor, advertised for bids from subcontractors on the
electrical work for the renovation of one of State University's parking structures. The
advertisement announced that the contract will be awarded to the lowest responsible bidder.
Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the
electrical portion of the work. Austen informed Bronte that she should begin work immediately.
Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following
statements is most accurate?
a. Austen should not rely on Bronte's offer to do the electrical work
b. Austen has accepted Bronte's offer, thereby forming a contract
c. Austen is not bound by Bronte's bid until he informs her of his intent to accept
d. Bronte has accepted Austen's offer by submitting the lowest bid
e. Bronte may withdraw her bid at any time prior to beginning work - Answer d. Bronte has
accepted Austen's offer by submitting the lowest bid
Which of the following contracts are agreements that create no legal obligations and for which
no remedy is given?
a. Valid contracts
b. Unenforceable contracts
c. Void contracts
d. Voidable contracts
e. Quasi-contracts - Answer c. Void contracts
, b. Yes, promissory estoppel requires enforcement of the promise
c. No, legal consideration is absent
d. No, legal capacity is absent
e. Yes, quasi-contract requires enforcement of this promise - Answer c. No, legal consideration
is absent
Where the parties to a contract wish to cancel their contract and be in the same position as
they were prior to forming the contract, they should seek to obtain a(n) ___________.
a. Novation
b. Accord and satisfaction
c. Revocation
d. Rescission
e. Specific performance - Answer d. Rescission
A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the
contract. The adult party must:
a. Perform the contract
b. Rescind the contract
c. Abandon the contract
d. Ratify the contract
e. Void the contract - Answer a. Perform the contract
Which of the following contracts is void?
a. A contract made by an unemancipated minor
b. A contract made by a person who has been adjudicated insane and institutionalized
c. A contract made by a person under the influence of mind-altering drugs
d. A contract made by a minor who receives no support from a parent or guardian
e. A contract made under duress - Answer b. A contract made by a person who has been
adjudicated insane and institutionalized
Tracy, aged 12, is named the sole inheritor of her family mansion, which is valued to be worth
millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This
automatically transfers the title to the latter. Which of the following statements is true of the
