Question

QUESTION 1

A contract induced by improper threats or undue influence is void.

True

False

1 points   

QUESTION 2

A contract made by a person under guardianship is voidable.

True

False

1 points   

QUESTION 3

A contract with a minor remains in force unless the minor decides that he or she does not wish to be bound by it.

True

False

1 points   

QUESTION 4

A person who was intoxicated at the time he made a contract cannot subsequently ratify it.

True

False

1 points   

QUESTION 5

A promise cannot be made to one person who is not expected to do anything in return.

True

False

1 points   

QUESTION 6

According to the UCC, an offer must remain open for the time period stated or, if no time period is given, at least for a reasonable period of time, which may not exceed five months.

True

False

1 points   

QUESTION 7

According to the mirror image rule, a response to an offer can change its terms.

True

False

1 points   

QUESTION 8

An agreement signed by Lowry, the president of an automobile company, not to work for any competitors during the term of his employment in the company is unlawful according to restraint of trade.

True

False

1 points   

QUESTION 9

An exculpatory clause will generally be held valid if _____.

		the agreement involves a business generally thought suitable for public regulation.
		the party seeking exculpation is performing a business of great importance to the public.
		the party purports to be performing the service to just anybody who comes along.
		the parties are dealing at arms' length, able to bargain about the contract.
		the property of the purchaser is placed under control of the seller, independent of his negligence.

1 points   

QUESTION 10

As per the mailbox rule, an acceptance is effective when it is dropped in the mail by the offeree.

True

False

1 points   

QUESTION 11

Enforceability is the degree to which agreement is manifest to those not party to it.

True

False

1 points   

QUESTION 12

Identify the correct statement in proving fraudulent misrepresentation.

		Concealment is a more passive type of nondisclosure.
		Nondisclosure of a fact operates as a misrepresentation under all circumstances.
		The act of concealment should be direct.
		Concealment may consist of diverting the other party from gaining the necessary knowledge.
		Sales puffery is considered a fact.

1 points   

QUESTION 13

If a contract is illegal, a promisee who has already performed under the contract can neither obtain performance of the act for which he bargained nor recover the money he paid or the value of the performance he made.

True

False

1 points   

QUESTION 14

If a promisor gives an illusory promise, he/she gives no consideration and no contract is formed.

True

False

1 points   

QUESTION 15

In duress by threat, _____.

		the threat must be proper
		there must be a reasonable alternative
		the test for inducement is objective
		the contract is rendered voidable
		the test for inducement is based on what a more reasonable person might have feared

1 points   

QUESTION 16

Suppose Tom and Harry bet on the FIFA world and Harry loses. Harry has the right to recover his money before it is paid out to Tom.

True

False

1 points   

QUESTION 17

Suppose a man offers to pay $100 to his neighbor, if the neighbor promises not to dump his garbage in his backyard. The man has a legal obligation to pay his neighbor.

True

False

1 points   

QUESTION 18

The Restatement of the Law of Contracts deals with the sale of goods.

True

False

1 points   

QUESTION 19

The Uniform Commercial Code is not a federal law but uniform state law.

True

False

1 points   

QUESTION 20

_____ is an agreement where a defaulter can pay money to all those lenders whom he owes money to on a pro-rata basis.

		Exclusive dealing agreement
		Creditors' composition
		Unliquidated debt
		Covenant not to sue
		Firm offer

1 points   

QUESTION 21

Which of the following would be considered a reasonable restraint-of-trade?

		Ginny promises Tibbs that she would never sell the car that he sold to her.
		Timothy sells a café to Ron and promises not to open a competing café for the next five years.
		Julie gets a job in a hotel, which requires her to sign a bond that prevents her from working in any other hotel for a period of one year until resignation.
		Libby sells her pet store to Nina and promises not to open a competing pet store in town for one year.
		Rosh threatens to fire his housekeeper if he does not show up for work Christmas Eve.

1 points   

QUESTION 22

Which of the following statements pertaining to mistakes is true?

		If one party has made a mistake about the subject matter, a contract is voidable.
		A person who has made the mistake of not reading a written document would still get relief.
		Relief will be afforded to one whose mistake is caused by negligence, and if the person would suffer reasonable hardship if the mistake were not corrected.
		If the dealer has to bear the risk of mistake, the contract is valid.
		A mistake is unilateral if it has a material effect on the agreed-to exchange.

1 points   

QUESTION 23

Which of the following promises is enforceable without consideration according to statutory law?

		Promissory estoppel
		Revival of promise barred by statute of limitations
		International contracts
		Voidable duties
		Moral obligation

1 points   

QUESTION 24

Which of the following promises is enforceable without consideration according to the common law?

		Alleged breach of contract
		Bankruptcy
		International contracts
		Promissory estoppel
		Convention on contracts

1 points   

QUESTION 25

Which of the following is true of licensing?

		A regulatory license is imposed to ensure that practitioners register their address so they can be found if a disgruntled client wants to serve them legal papers for a lawsuit.
		A revenue license is intended to protect the public health, safety, and welfare.
		Failure to hold a revenue license does not bar recovery.
		A practitioner should demonstrate his abilities by an examination to get a revenue license.
		Some regulatory licenses require practitioners to demonstrate that they have insurance.

Answer 1

1. TRUE . Contract induced by improper threats or undue influence is void.

2. FALSE. because Contract made by a person under guardianship is not viodable.

3. TRUE. A contract with a minor remains in force unless the minor decides that he or she does not wish to be bound by it.

4. FALSE because A person who was intoxicated at the time he made a conract can subsequently ratify it.

5. FALSE A promise cannot be made to one person who is not expected to do anything in return.