Question

QUESTION 1

Which one of the following would NOT be necessary for an offer to have legal standing?

	A.	The language must reflect the intent to become a party to a contract.
	B.	All of the conditions under which the offer would be terminated must be identified.
	C.	All the significant terms and/or conditions must be contained in the offer.
	D.	The offer must be effectively communicated to the other party.

3 points   

QUESTION 2

Which one of the following WOULD be considered an enforceable offer?

	A.	I'm thinking about selling my property on Main Street for $75,000.00.
	B.	My beautifully maintained car is worth at least $5,000.00.
	C.	A price list distributed by a local Pizzeria.
	D.	I will install a concrete driveway at 22 Elm Street for $3,700.00.

3 points   

QUESTION 3

A person who has reasonably relied on an offer or promise, and has incurred some expense or loss as a result of that reliance, may be compensated as a result of the doctrine of __________. In this situation, the offeror can not revoke the offer.

	A.	quasi contract
	B.	option-to-cancel
	C.	promissory estoppel
	D.	unliquidated debt

3 points   

QUESTION 4

Often, the legal issue related to the "communication" of an offer is associated with

	A.	whether the offeree, or promisee, was aware of the "fine print".
	B.	whether it reflects the intent to become a party to a contract.
	C.	the absence of reasonably certain and complete terms or conditions.
	D.	the time at which the acceptance takes effect.

3 points   

QUESTION 5

With regard to the termination of an offer, the general rule is

	A.	an offer can be revoked even after it has been accepted by the other party.
	B.	an offer can be revoked anytime prior to its' acceptance by the other party.
	C.	only option contracts and merchant's firm offers can be terminated.
	D.	the contract is void when the offer is linked to a separate agreement.

3 points   

QUESTION 6

Which one of the following would NOT be associated with the termination of an offer by "operation of law"?

	A.	Termination by the actions of either one of the parties.
	B.	The passing of a reasonable amount of time.
	C.	The loss or destruction of the subject matter of the offer.
	D.	The death of either the offerer or the offeree.

3 points   

QUESTION 7

To be valid or enforceable, the "acceptance" must be

	A.	made at the same time as the offer.
	B.	similar to some of the conditions contained in the offer.
	C.	unconditional and unequivocal.
	D.	confidential and consistent.

3 points   

QUESTION 8

Usually, an acceptance goes into effect when it is sent. This principle is reflected in the __________.

	A.	operation of law
	B.	dispatch principle
	C.	doctrine of promissory estoppel
	D.	mailbox rule

3 points   

QUESTION 9

An agreement is formed when the offer is matched by an acceptance that produces

	A.	a clearly positive result for both parties.
	B.	a meeting of the minds.
	C.	an effective negotiating process.
	D.	an exact time for both parties' performance.

3 points   

QUESTION 10

Usually, the consumer who responds to an advertisement from a local retailer

	A.	makes an offer that can be accepted or rejected by the retailer.
	B.	is accepting the offer contained in the advertisement.
	C.	can force the retailer to issue a "rain check".
	D.	can often accuse the retailer of false advertising if the items are sold out.

3 points   

QUESTION 11

A person who fails to read the "fine print" in a contract

	A.	will be freed of all obligations by arguing that the full offer was not understood.
	B.	can argue that the language was boring and too complicated.
	C.	will usually not receive protection from the legal system.
	D.	can simply focus on the main, or more easily understood, parts of the offer.

4 points   

QUESTION 12

The warning that, "The law will not take better care of you than you should care for yourself", is a

	A.	false statement designed to scare people
	B.	foolish or meaningless statement
	C.	generally correct statement
	D.	statement of hope rather than reality.

4 points   

QUESTION 13

Usually, when an offer has been properly communicated,

	A.	a lack of a response is interpreted as an acceptance.
	B.	silence, with some exceptions, is considered a rejection.
	C.	it is available for acceptance indefinitely.
	D.	it can only be revoked when there is an option contract.

3 points   

QUESTION 14

"A promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty", is a definition of a/an

	A.	promissory estoppel.
	B.	acceptance that has been dispatched.
	C.	meeting of the minds.
	D.	enforceable contract

3 points   

QUESTION 15

A bilateral contract involves a

	A.	promise for a promise.
	B.	promise for an act.
	C.	quasi agreement.
	D.	promise of a reward.

4 points   

QUESTION 16

A unilateral contract involves a

	A.	promise for a promise.
	B.	unilateral exchange
	C.	single acceptance.
	D.	promise for an act.

4 points   

QUESTION 17

A contract that is stated in words, either oral or written, is a/an __________ contract.

	A.	implied
	B.	quasi
	C.	void
	D.	express

3 points   

QUESTION 18

The name of a contract that is associated with the phrases "unjust enrichment" or "something for nothing" is a/an__________ contract.

	A.	implied
	B.	quasi
	C.	express
	D.	bilateral

3 points   

QUESTION 19

A person who orders, and consumes, a meal in a restaurant has created a/an___________ contract.

	A.	implied
	B.	express
	C.	quasi
	D.	unenforceable

3 points   

QUESTION 20

A __________ contract allows at least one of the parties to withdraw without incurring a penalty for the withdrawal.

	A.	valid
	B.	void
	C.	quasi
	D.	voidable

3 points   

QUESTION 21

With regard to the agreement, the __________ initiates the process by communicating with the __________.

	A.	offeree - - - - offerer
	B.	initiator - - - - responder
	C.	offeror - - - - offeree
	D.	executor - - - - executee

3 points   

QUESTION 22

A unicycle can be used as an example of a/an __________ contract while a bicycle serves as a example of a/an__________ contract.

	A.	unilateral - - - - bilateral
	B.	offer - - - - acceptance
	C.	voidable - - - - valid
	D.	executed - - - - executory

3 points   

QUESTION 23

When one party to a contract fails to perform as promised, the other party may bring a __________ case. In most instances the __________ will be seeking a __________ or __________.

	A.	criminal - - - - defendant - - - - fine - - - - imprisonment
	B.	civil - - - - plaintiff - - - - legal remedy - - - - money damages
	C.	civil - - - - defendant - - - - decree of specific performance - - - - an equitable remedy
	D.	criminal - - - - plaintiff - - - - legal remedy - - - - punitive damages

3 points   

QUESTION 24

An automobile is available for sale. The seller is asking $7,500.00 for the vehicle. The potential buyer is willing to pay the asking price, but needs five days to try to arrange a loan. The potential buyer says that he/she will give the seller $50.00 if the seller agrees to wait for the five days. In this instance, the potential purchaser has entered into a/an __________ contract. If the seller accepts the $50.00, he/she __________ sell the automobile the next day if someone offers more than $7,500.00.

	A.	voidable - - - - can
	B.	void - - - - can not
	C.	quasi - - - - can
	D.	option - - - can not

3 points   

QUESTION 25

Most advertisements, price lists, and catalogues are legally considered to be

	A.	offers that form an agreement when they are accepted by consumers.
	B.	contracts where the performance occurs when the sale is completed.
	C.	quasi contracts that may become express contracts if consumers respond positively.
	D.	invitations to negotiate, or an indication of a willingness to sell goods at certain prices.

3 points   

QUESTION 26

In general, a salesperson's exaggerated claims concerning the quality, value, or versatility of an item offered for sale are considered __________. It is assumed that sales people will emphasize the positive aspects of their products and minimize their negative characteristics.

	A.	puffery
	B.	offers
	C.	fraudulent
	D.	assumptions

3 points   

QUESTION 27

__________ are awarded when a plaintiff has incurred economic losses like medical expenses and lost time at work. __________ are intended to punish a defendent for particularly outrageous or harmful conduct and to deter others from engaging in similar behavior.

	A.	Financial incentives - - - - Injunctions
	B.	Compensatory damages - - - - Punitive damages
	C.	Decrees of Specific Performance - - - - Fines
	D.	Punitive damages - - - - Compensatory damages

3 points   

QUESTION 28

An equitable, rather than a legal, remedy that requires a party who has breached a contract to perform as originally promised in the agreement is known as a __________. It is usually awarded when financial compensation would be inadequate and the subject maater of the contract is unique.

	A.	Court order
	B.	Accord and Satisfaction
	C.	Decree of Specific Performance
	D.	Preexisting duty

3 points   

QUESTION 29

In the online lecture, it is noted that the most powerful and misleading word in retail sales promotion is __________ while the second most powerful is __________.

	A.	Discount - - - - Modern
	B.	Limited - - - - Hurry
	C.	Free - - - - Save
	D.	Sale - - - - Exciting

2 points   

QUESTION 30

In the online lecture dealing with "communication", it is noted that the Obama administration is requiring private health insurance companies to provide consumers with summaries of their policies that are no longer than __________ .

	A.	the description of the premiums.
	B.	the application.
	C.	six pages.
	D.	the summaries of competitors.

2 points   

QUESTION 31

In the online lecture introducing the nature and terminology of contracts, it is noted that contracts need not be lengthy and extremely complex. In the example of the parking facility, several important concepts or phrases are identified. Which one of the following is NOT one of those concepts or phrases?

	A.	holder's risk
	B.	lock your car
	C.	not responsible for
	D.	no bailment is created

3 points   

QUESTION 32

In the online lecture dealing with Agreements, advertisements that promote treatments for __________ are used to illustrate the relationship betwen puffing and false advertising.

	A.	high blood pressure
	B.	high cholesterol
	C.	"low T"
	D.	"low D"

3 points   

QUESTION 33

In the online lecture dealing with Agreements, it is noted that some employers are asking new employees to agree to take problems to arbitrators rather than to the courts. Some lawyers argue that these arbitration proceeding resemble __________ and raise questions about whether the original Agreement represents a "meeting of the minds".

	A.	pretrial hearings
	B.	corporate courts
	C.	quasi contracts
	D.	noncompete restrictions

Answer 1

Question 1. B

The offer to be valid must have the intention to create legal relations, must contain clear terms and conditions, it must be communicated effectively.

The termination of the contract need not be mentioned, if it is not mentioned then it will lapse after a reasonable period of time.

Question 2

D. Since this offer is definite and clear.

The other three options are vague, hence, not enforceable.

Question 3

c. Promissory estoppel.

Question 4

A. The offeree must be aware of the offer.