Which of the following authorities requires that, at minimum, the terms of the offer
must be sufficiently clear so that what was promised can be determined?
A. The UCC only.
B. The common law and the Restatement.
C. The UCC and the Restatement.
D. The CISG and the UCC.
Answer:
When two parties have directly, but orally, stated all of the terms of a contract at the
time it was formed, they have:
A. executed the contract.
B. made an express contract.
C. made an implied contract.
D. not made an enforceable contract.
Answer:
The UCC defines “goods” as:
A. intangible personal property.
B. tangible personal property.
C. abstract property.
D. tangible public property.
Answer:
In terms of the RUPA, when a partner dies, the surviving partners:
A. cannot continue the business.
B. are entitled to compensation for winding up the partnership business.
C. must accept the deceased partner’s heir as a full partner.
D. are relieved from personal liability on partnership debts.
Answer:
A surety:
A. is liable for the performance of another person’s duty.
B. is not liable for the payment of the principal’s debts.
C. is held for higher liability than a guarantor.
D. is not entitled to be reimbursed by the principal.
Answer:
In most states, the agreements of people who have been adjudicated insane are ____.
A. valid
B. void
C. voidable
D. unenforceable
Answer:
To prove a case of duress, modern courts require evidence of:
A. only physical injury.
B. only a wrongful threat.
C. both threat and injury.
D. statements amounting to puffery.
The common law courts originally required a threat of physical injury before they
would find duress. Modern courts require only that the threat be a wrongful one.
Answer:
In a contract involving elements of both goods and services, a court will determine
whether Article 2 of the UCC applies by:
A. asking which element predominates.
B. balancing the need to apply a uniform standard with the interest of justice.
C. asking if the contract is barred by public policy.
D. using the criteria of reasonableness.
Answer:
In an agreement between two parties, if the facts indicate that a term was left out
because the parties were unable to reach an agreement about it, it would probably mean
that:
A. the CISG must fill in the gaps only if the price terms are left in the agreement.
B. the party’s intent to contract and CISG must fill in any gaps left in the agreement.
C. the UCC must fill in any gaps left in the agreement.
D. the intent to contract is absent, and no contract was created.
Answer:
An agreement to restrain trade:
A. is illegal under certain cases of the exculpatory clause.
B. is never illegal in our democratic society.
C. may be legal if it covers a reasonable geographic area and a reasonable time period.
D. may be legal if it is contradictory to a contract that protects business interests.
Answer:
Attempts to require franchisees to buy products, equipment, and supplies exclusively
from the franchisor may violate the prohibition in the ____.
A. Sherman Act
B. Franchising Act
C. Clayton Act
D. Federal Trade Commission Act
Answer:
A buyer who rejects tender of goods:
A. still retains title.
B. can retain title if the contract is a predominantly service one.
C. vests the title back in the seller.
D. retains title only for a limited period of time.
Answer:
Which of the following is a TRUE statement for unconscionable contracts?
A. The doctrine of unconscionability can be used to relieve people of their bad bargains.
B. Any contract between two parties with unequal bargaining power is unconscionable.
C. If the court finds a term of a contract to be unconscionable, it must hold the entire
contract to be illegal and unenforceable.
D. A court may refuse to enforce an unconscionable contract as contrary to public
policy.
Answer:
The Occupational Safety and Health Act of 1970:
A. requires employers to establish pension plans or to meet specific benefit levels.
B. requires covered employers to pay their employees time and a half for hours worked
in excess of 40 in one week.
C. is designed to provide reasonable leave periods for family-related health issues.
D. permits its inspectors to enter the workplace at any reasonable time and without
advance notice.
Answer:
The principal is bound by representations:
A. that are reasonably necessary for the agent to make in order to accomplish the
purpose of the agency since they would be apparently authorized.
B. that the agent is expressly authorized to make.
C. even if the third person knows that the agent has exceeded his actual authority.
D. that are not customary in the kind of business being transacted by the agent.
Answer:
The Clean Water Act prohibits any dredging or filling activity undertaken without a
permit in a wetland that is:
A. located in the United States, irregardless of navigability.
B. part of the navigable waters of the United States.
C. under federal protection.
D. habituated by marine life.
Answer:
In cases in which the insured has misstated his or her age:
A. the insurer cannot contest its liability at any point of time.
B. the insured can take advantage of a misstatement of age clause.
C. the insurer can use a misstatement of age clause to cancel the policy.
D. the insured can object on the basis of absence of insurable interest.
The incontestability clause bars the insurer from contesting its liability on the policy on
the basis of the insured’s misrepresentations if the policy has been in force for a
specified period of time.
Answer:
When tenants transfer all of their remaining rights under a lease to a third party, a(n)
____ occurs.
A. assignment
B. sublease
C. constructive eviction
D. termination
Answer:
Buyer, who owns a grocery store, orders bananas from a fruit wholesaler. The bananas
arrive, but they are much too ripe to sell in the grocery. Buyer rejects the bananas and
promptly notifies the fruit wholesaler of his rejection. What are Buyer’s responsibilities
regarding the rejection of the spoilt goods?
A. Buyer must follow any reasonable instructions the seller gives concerning the
disposition of the bananas.
B. Buyer must make a reasonable effort to sell them on the seller’s behalf, but must not
expect a reimbursement from the seller.
C. Buyer need not state any reasons for the rejection to the seller.
D. Buyer must give sufficient notice to the seller and the seller must personally come
and collect the goods rejected by the buyer.
Answer:
Violetta was injured in a bike accident while on a ride with Alfredo, who she knew was
intoxicated. A court would regard this as:
A. ultrahazardous.
B. the assumption of the risk.
C. intentional wrongdoing.
D. comparative negligence.
Answer: