Question 1

Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is

Accepted Answer

A)   a formal contract.
B)   an informal contract.
C)   a social contract.
D)   no contract.E) B) and C)
F) A) and D)

Question 2

One of the requirements for a valid contract is its acceptance.

Accepted Answer

A) True 
 B)False

Question 3

Pete, a judge, can apply the doctrine of quasi contract to a dispute be?tween Quality Service Company and Regulated Office Systems

Accepted Answer

A)   only if there is a valid contract covering the area in question.
B)   only if there is not a valid contract covering the area in question.
C)   whether or not there is a valid contract covering the area in question.
D)   under no circumstances.E) A) and C)
F) A) and B)

Question 4

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

Accepted Answer

A)   an express contract.
B)   an implied-in-fact contract.
C)   an implied-in-law contract.
D)   no contract.E) B) and C)
F) A) and C)

Question 5

In an express contract, the terms are fully stated in words.

Accepted Answer

A) True 
 B)False  True

Question 6

Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's prom?ise to pay. Avatar delivers. The contract is

Accepted Answer

A)   voidable.
B)   executed.
C)   executive.
D)   executory.E) A) and C)
F) A) and B)

Question 7

A contract can be created only when a promise is given in exchange for another promise.

Accepted Answer

A) True 
 B)False

Question 8

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. Under the modern-day view, these parties had

Accepted Answer

A)   an expired contract when Neil said that he had changed his mind.
B)   a quasi contract when Neil said that he would pay for certain work.
C)   a unilateral contract as soon as Outdoor began to perform.
D)   no contract.E) All of the above
F) A) and C)

Question 9

Cody signs and returns a letter from Deb, referring to Deb's Double-D Ranch and its price. When Cody attempts to complete the deal, Deb re?fuses, claiming that they have no con?tract. Cody claims they do. What standard determines whether these parties have a contract?

Accepted Answer

The objective theory of contracts is the...

Question 10

Macro Corporation and Micro, Inc., enter into an agreement. To consti?tute a contract

Accepted Answer

A)   all terms must be express.
B)   all terms must be implied.
C)   the terms may be express, implied, or a mix of both.
D)   the terms may be express or implied, but not both.E) A) and B)
F) A) and C) C

Question 11

An implied-in-fact contract is implied from the conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 12

National Grocers, Inc., enters into a contract with Overland Shipping Company for the de?livery of a shipment of fresh produce. If ambiguities appear in the con?tract, they will be construed against

Accepted Answer

A)   the party who drafted the contract.
B)   the party with the greater bargaining power.
C)   the promisor.
D)   the promisee.E) B) and D)
F) All of the above

Question 13

A contract between Gamma Software Company and Omega Designs, Inc., ends with the initials "L.S." These initials

Accepted Answer

A)   emphasize that the parties must sign with "legal signatures."
B)   remind the parties that they must have "legal status" to contract.
C)   stand for "locus sigilli" and substitute for a seal.
D)   underscore that the parties' deal must have "lawful significance."E) None of the above
F) All of the above

Question 14

No offer may be revoked before it is accepted.

Accepted Answer

A) True 
 B)False

Question 15

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

Accepted Answer

A)   an executed contract.
B)   an express contract.
C)   an implied-in-fact contract.
D)   a quasi contract.E) A) and B)
F) All of the above

Question 16

A contract is a promise to act.

Accepted Answer

A) True 
 B)False

Question 17

Cathy assures Don that she will deliver his products as he directs. An as?surance that one will do something in the future is part of the defini?tion of

Accepted Answer

A)   a declaration.
B)   a moral obligation.
C)   an ethical principle.
D)   a promise.E) B) and C)
F) All of the above

Question 18

An express contract must be in writing.

Accepted Answer

A) True 
 B)False  False

Question 19

A quasi contract is a fictional contract.

Accepted Answer

A) True 
 B)False

Question 20

An offer to form a unilateral contract is accepted by a promise to perform.

Accepted Answer

A) True 
 B)False

Exam 10: Nature and Terminology

Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is

Correct AnswerverifiedShow Answer

One of the requirements for a valid contract is its acceptance.

Correct AnswerverifiedShow Answer

Pete, a judge, can apply the doctrine of quasi contract to a dispute be?tween Quality Service Company and Regulated Office Systems

Correct AnswerverifiedShow Answer

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

Correct AnswerverifiedShow Answer

In an express contract, the terms are fully stated in words.

Correct AnswerverifiedTrue

Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's prom?ise to pay. Avatar delivers. The contract is

Correct AnswerverifiedShow Answer

A contract can be created only when a promise is given in exchange for another promise.

Correct AnswerverifiedShow Answer

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. Under the modern-day view, these parties had

Correct AnswerverifiedShow Answer

Cody signs and returns a letter from Deb, referring to Deb's Double-D Ranch and its price. When Cody attempts to complete the deal, Deb re?fuses, claiming that they have no con?tract. Cody claims they do. What standard determines whether these parties have a contract?

Correct AnswerverifiedThe objective theory of contracts is the...View AnswerShow Answer

Macro Corporation and Micro, Inc., enter into an agreement. To consti?tute a contract

Correct AnswerverifiedC

An implied-in-fact contract is implied from the conduct of the parties.

Correct AnswerverifiedShow Answer

National Grocers, Inc., enters into a contract with Overland Shipping Company for the de?livery of a shipment of fresh produce. If ambiguities appear in the con?tract, they will be construed against

Correct AnswerverifiedShow Answer

A contract between Gamma Software Company and Omega Designs, Inc., ends with the initials "L.S." These initials

Correct AnswerverifiedShow Answer

No offer may be revoked before it is accepted.

Correct AnswerverifiedShow Answer

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

Correct AnswerverifiedShow Answer

A contract is a promise to act.

Correct AnswerverifiedShow Answer

Cathy assures Don that she will deliver his products as he directs. An as?surance that one will do something in the future is part of the defini?tion of

Correct AnswerverifiedShow Answer

An express contract must be in writing.

Correct AnswerverifiedFalse

A quasi contract is a fictional contract.

Correct AnswerverifiedShow Answer

An offer to form a unilateral contract is accepted by a promise to perform.

Correct AnswerverifiedShow Answer

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True

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The objective theory of contracts is the...
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C

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False

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