Multiple Choice
1. The evolved in commerce over the centuries.
a. law of contracts
b. law of commerce
c. law of trade
d. law of documents
e. law of freedom
2. The evolved in commerce over the centuries.
a. law of invention
b. law of commerce
c. law of trade
d. law of documents
e. none of the other choices are correct
3. The
contracts.
means that there are also responsibilities imposed on parties who commit to binding relationships in
a. freedom of speech
b. freedom of contract
c. freedom of sales
d. freedom of economics
e. freedom of torts
4. The
contracts.
means that there are also responsibilities imposed on parties who commit to binding relationships in
a. freedom of speech
b. freedom of torts
c. freedom of sales
d. freedom of economics
e. none of the other choices are correct
5. The freedom of contract is:
a. a hallmark of the law of contracts
b. a minor part of the law of contracts
c. not binding in most states
d. only relevant in cases involving easements
e. restricted by the Constitution
6. The freedom of contract is:
a. restricted by the Constitution
b. a minor part of the law of contracts
c. not binding in most states
d. only relevant in cases involving easements
e. none of the other choices are correct
7. The freedom of contract is a hallmark of:
a. the law of torts
b. the law of economics
c. administrative law
d. the law of contracts
e. the law of sales
8. The freedom of contract is a hallmark of:
a. the law of torts
b. the law of economics
c. administrative law
d. the law of sales
e. none of the other choices are correct
9. Contract law is primarily:
a. federal statutory law
b. state common law
c. federal common law
d. state statutes
e. international code law
10. Contract law is primarily:
a. federal statutory law
b. international commercial treaty law
c. federal common law
d. state statutory law
e. none of the other choices
11. 19th century English courts referenced when resolving contract disputes.
a. lex mercatoria
b. res judicata
c. semper fi
d. the English Constitution
e. France’s laws on contracts
12. 19th century English courts referenced when resolving contract disputes.
a. France’s laws on contracts
b. res judicata
c. semper fi
d. the English Constitution
e. none of the other choices are correct
13. An authoritative document that provides an orderly summary and presentation of the common law of contract is:
a. the Restatement (2d) of Contracts
b. the Contracts Commercial Code
c. Cohen on Contracts
d. the Statute of Frauds
e. the Federal Register
14. An authoritative document that provides an orderly summary and presentation of the common law of contract is:
a. the Federal Register
b. the Contracts Commercial Code
c. Holmes on Contracts
d. the Statute of Frauds
e. none of the other choices
15. The Restatement (2d) of Contracts is:
a. Britain’s legal code concerning contracts
b. an amendment to the Constitution
c. an authoritative document that provides a summary of the common law of contract
d. an unwritten code concerning contract law
e. a document detailing the rules for engaging in international commerce
16. The Restatement (2d) of Contracts is:
a. Britain’s legal code concerning contracts
b. an amendment to the Constitution
c. a document detailing the rules for engaging in international commerce
d. an unwritten code concerning contract law
e. none of the other choices are correct
17. The Uniform Commercial Code (UCC) was designed to:
a. prevent copyright violations
b. increase the number of inventions patented by U.S. inventors
c. promote uniformity of the laws relating to commercial sales of goods
d. promote inter-state trade
e. promote intra-state trade
18. The Uniform Commercial Code (UCC) was designed to:
a. prevent copyright violations
b. increase the number of inventions patented by U.S. inventors
c. promote intra-state trade
d. promote inter-state trade
e. none of the other choices are correct
19. The code that was designed to promote uniformity of the laws relating to commercial sales of goods is known as:
a. the Uniform Commercial Code
b. the Universal Commercial Code
c. the Commercial Code of the United States of America
d. the Commercial Code
e. the Ultimate Commercial Code
20. The code that was designed to promote uniformity of the laws relating to commercial sales of goods is known as:
a. the Ultimate Commercial Code
b. the Universal Commercial Code
c. the Commercial Code of the United States of America
d. the Commercial Code
e. none of the other choices are correct
21. Modern definitions of contracts center on:
a. a binding promise
b. lex mercatoria
c. commercial rules
d. evidence of seals
e. duties imposed by the International Convention on Contracts
22. Modern definitions of contracts center on:
a. lex mercatoria
b. commercial rules
c. evidence of seals
d. duties imposed by the International Convention on Contracts
e. none of the other choices
23. A binding promise is:
a. central to the modern definition of contracts
b. unimportant in the modern definition of contracts
c. not relevant to the modern definition of contracts
d. central to the modern definition of easements
e. none of the other choices are correct
24. A binding promise is:
a. a contract by federal law
b. unimportant in the modern definition of contracts
c. not relevant to the modern definition of contracts
d. central to the modern definition of easements
e. none of the other choices are correct
25. A binding promise may be defined as:
a. one made by parties whose words are “intended to be meaningful”
b. one that is enforced by tort law
c. one that is written and “sealed”
d. one that may be enforced by law in case of breach
e. one that is written in the presence of an attorney
26. A binding promise may be defined as one:
a. made by parties whose words are “intended to be meaningful”
b. that is enforced by tort law
c. that is written and “sealed”
d. that is written in the presence of an attorney
e. none of the other choices
27. The Restatement (2d) of Contracts defines a promise as:
a. a manifestation of the intention [of a party] to act or refrain from acting in a specified manner
b. an unwritten agreement [of a party] to act or refrain from acting in a specified manner
c. a legally binding understanding between parties not to act in a specified manner that would affect the rights
of others
d. the positive intention of a party not to act in a specified manner
e. none of the other choices are correct
28. The Restatement (2d) of Contracts defines a promise as:
a. the refusal [of a party] to act or refrain from acting in a specified manner
b. an unwritten agreement [of a party] to act or refrain from acting in a specified manner
c. a vague understanding between parties not to act in a specified manner
d. the positive intention of a party not to act in a specified manner
e. none of the other choices are correct
29. The legal relationship that consists of the rights and duties of the agreeing parties growing out of promises is:
a. an easement
b. an agreement
c. a contract
d. a copyright
e. a patent
30. The legal relationship that consists of the rights and duties of the agreeing parties growing out of promises is:
a. a tort
b. an agreement
c. a patent
d. a copyright
e. none of the other choices are correct
31. Contract law governs the enforceability of:
a. the legal relationship that consists of the rights and duties of the agreeing parties growing out of promises
b. noncontractual promises
c. nonbinding promises involving third parties
d. binding and nonbinding promises
e. the legal relationship that consists of the rights and duties of the agreeing parties growing out of court orders
32. Contract law governs the enforceability of:
a. the legal relationship that consists of the rights and duties of the agreeing parties growing out of court orders
b. noncontractual promises
c. nonbinding promises
d. binding and nonbinding promises
e. none of the other choices are correct
33. If a party fails to perform a nonbinding promise:
a. contract law will provide a remedy
b. contract law will not provide a remedy
c. contract law will provide a remedy in some states, but not others
d. the injured party must bring the case to the Supreme Court
e. the party that fails to perform will be held liable for up to $100,000 worth of damages
34. If a party fails to perform a nonbinding promise:
a. contract law will provide a remedy
b. the party that fails to perform will be held liable for up to $100,000 worth of damages
c. contract law will provide a remedy in some states, but not others
d. the injured party must bring the case to the Supreme Court
e. none of the other choices are correct
35. If Scott makes a nonbinding promise to Lee and then fails to fulfill it:
a. Lee can expect contract law to provide a remedy
b. Lee can expect contract law to provide a remedy if he lives East of the Mississippi
c. Lee can expect that he will have to go to the Supreme Court for a remedy
d. Lee cannot expect contract law to provide a remedy
e. Lee is now legally allowed to force Scott to fulfill his promise
36. If Scott makes a nonbinding promise to Lee and then fails to fulfill it:
a. Lee can expect contract law to provide a remedy
b. Lee can expect contract law to provide a remedy if he lives East of the Mississippi
c. Lee can expect that he will have to go to the Supreme Court for a remedy
d. Lee is now legally allowed to force Scott to fulfill his promise
e. none of the other choices are correct
37. For an exchange of promises to be legally binding, parties must make sure the exchange:
a. meets the requirements of a contract
b. is witnessed by a third party
c. is in writing
d. is unique
e. takes place before a court official
38. For an exchange of promises to be legally binding, parties must make sure the exchange:
a. takes place in a court
b. is witnessed by a third party
c. is in writing
d. is unique
e. none of the other choices are correct
39. Express contracts occur when:
a. the contract is created by more than two parties
b. the contract is created quickly
c. there is a written or oral expression of intent by the parties to enter into a legally binding agreement
d. there is a written or oral expression of intent by the parties to enter into a nonbinding agreement
e. none of the other choices are correct
40. Express contracts occur when:
a. the contract is created by more than two parties
b. the contract is created quickly
c. there is no written or oral expression of intent by the parties to enter into a legally binding agreement
d. there is a written or oral expression of intent by the parties to enter into a nonbinding agreement
e. none of the other choices are correct
41. A contract is a(n)
agreement.
a. rapid contract
b. implied contract
c. explicit contract
d. express contract
e. final contract
if there is a written or oral expression of intent by the parties to enter into a legally binding
42. A contract is a(n)
agreement.
a. rapid contract
b. fast contract
c. explicit contract
d. implied contract
if there is a written or oral expression of intent by the parties to enter into a legally binding
e. none of the other choices are correct
43. Implied contracts arise from:
a. the actions rather than the expressions of the parties
b. the expressions rather than the actions of the parties
c. the intentions rather than the actions of the parties
d. the consequences of the actions of the parties
e. none of the other choices are correct
44. Implied contracts arise from:
a. the intentions rather than the results of the actions
b. the expressions rather than the actions of the parties
c. the intentions rather than the actions of the parties
d. the consequences of the actions of the parties
e. none of the other choices are correct
45. A contract is a(n) if it arises from the actions rather than the expressions of the parties.
a. explicit contract
b. implied contract
c. express contract
d. real contract
e. active contract
46. A contract is a(n) if it arises from the actions rather than the expressions of the parties.
a. explicit contract
b. real contract
c. express contract
d. real contract
e. none of the other choices are correct
47. The purpose of a contract is to:
a. make it easy to do international business transactions
b. encourage innovation
c. encourage investment
d. give parties confidence that bargained-for exchanges will be enforceable
e. give parties confidence that they will make a profit
48. The primary purpose of a contract is to:
a. make it easy to do international business transactions
b. encourage innovation
c. encourage investment
d. give parties confidence that they will make a profit
e. none of the other choices are correct
49. Basic elements of a contract must include:
a. legal capacity
b. agreement
c. consideration
d. genuine consent
e. all of the other choices
50. Basic elements of a contract need not include:
a. negotiation
b. agreement
c. consideration
d. legal capacity
e. all other choices
51. The basic elements of a contract include agreement, lawful subject matter, and:
a. offer, consideration, and legal capacity
b. consideration, legal capacity, and remedies
c. consideration, legal capacity, and performance
d. consideration, legal capacity, and genuine consent
e. offer, acceptance, and legal capacity
52. The basic elements of a contract include agreement, lawful subject matter, legal capacity, consent, and:
a. offer
b. remedies
c. performance
d. consideration
e. acceptance
53. The basic elements of a contract include agreement, lawful subject matter, legal capacity, consent, and:
a. offer
b. remedies
c. performance
d. acceptance
e. none of the other choices
54. Elements of a contract include all of the following except:
a. an agreement among the parties
b. lawful subject matter
c. consideration
d. parties with legal capacity
e. all of the other choices are elements
55. The basic elements of a contract:
a. vary from state to state
b. vary from business to business
c. are constant across states
d. come from ancient Greek law
e. are understood by few
56. The basic elements of a contract:
a. vary from state to state
b. vary from business to business
c. are understood by few
d. come from ancient Greek law
e. none of the other choices are correct
57. You leave your poodle at a new grooming shop and tell them to wash the dog⎯a $30 service. They do that and also
paint the poodle‘s nails and tie ribbons in his hair⎯these services are an extra $10. You pay them for the wash.
What about the extra $10 in services?
a. an express contract existed; you must pay the $10
b. an implied contract existed; you must pay the $10
c. a quasi-contract existed; you must pay the $10
d. no contract for these services existed, no extra payment
e. the UCC would hold that no contract existed, so no payment
58. You leave your poodle at a new grooming shop and tell them to wash the dog⎯a $30 service. They do that and also
paint the poodle‘s nails and tie ribbons in his hair⎯these services are an extra $10. You pay them for the wash.
What about the extra $10 in services?
a. an express contract existed; you must pay the $10
b. an implied contract existed; you must pay the $10
c. a quasi-contract existed; you must pay the $10
d. the UCC would hold that no contract existed, so no payment
e. none of the other choices
59. The legally binding agreement that is the essence of a contract is reached though a process of:
a. offer and rejection
b. offer and bargaining
c. offer and acceptance
d. acceptance and offer
e. offer and compliance
60. The legally binding agreement that is the essence of a contract is reached though a process of:
a. offer and rejection
b. offer and bargaining
c. offer and compliance
d. acceptance and offer
e. none of the other choices are correct