Joy orally promised to pay Toth $150 if he repaired Joy’s computer. Toth repaired the
computer but has not yet been paid. At this point, this contract is
a. valid, unilateral, and executory.
b. valid, bilateral, and executory.
c. valid, bilateral, and executed.
d. valid, unilateral, and executed.
As soon as a breach occurs, the victim has a duty to
a. notify the court.
b. mitigate the damages.
c. sue the breaching party.
d. contact a lawyer.
Laws that are enacted by legislative bodies forbidding conduct that is considered
harmful to society and that is subject to punishment are referred to as
a. moral law.
b. civil law.
c. Roman law.
d. criminal law.
Copyrights are enforceable rights granted by the
a. county government.
b. state government.
c. city government.
d. federal government.
The difference between larceny and robbery is that
a. larceny involves the use of force, but robbery does not.
b. robbery is intentional, but larceny is unintentional.
c. larceny and robbery both involve the use of force.
d. robbery involves the use of force, but larceny does not.
Under no-fault insurance laws, an injured person collects from
a. the insurance company of the person at fault.
b. his or her own insurance company.
c. the state insurance fund.
d. all of these.
A creditor’s agreement to accept part payment as full settlement of a debt is enforceable
a. at all times.
b. if the creditor receives additional consideration from the debtor.
c. when the due date is extended.
d. in all of these cases.
A person may acquire title to real property by
a. deed.
b. gift.
c. inheritance.
d. all of these.
Under the UCC, between merchants, any additional terms added to the acceptance of an
offer
a. have no effect on the original offer.
b. are a counteroffer that terminates the original offer.
c. will automatically become part of the contract if the offeree’s response indicates a
definite acceptance of the offer.
d. are a rejection of the original offer.
The Supreme Court of the United States derives its judicial power from the
a. U.S. Constitution.
b. U.S. president.
c. U.S. Congress.
d. state courts.
A refusal by a creditor to accept a debtor’s offer to pay cash in settlement of his or her
debt
a. discharges the debt.
b. excuses the debtor from future interest payments.
c. renews the debt for six years.
d. bars legal action by the creditor on the debt.
McManus promises to pay Gooding $150 if Gooding repairs his car. A day later
Gooding repairs the car to McManus’s satisfaction. This is an example of a
a. bilateral contract.
b. quasi contract.
c. void contract.
d. unilateral contract.
Many leases permit a landlord to enter the leased premises, even if the tenant is not
present, to
a. inspect the property.
b. make repairs.
c. show the property to prospective tenants.
d. all of these.
The Social Security system is funded by payments from
a. employees.
b. employers.
c. both employers and employees.
d. the federal government.
An agent’s actual authority ends when
a. the agent cancels the agency contract.
b. the principal revokes the authority of the agent.
c. the principal refuses to compensate the agent.
d. all of these.
To collect for damage, the insured must have an insurable interest
a. at the time the application is filed.
b. at the time the policy is issued.
c. at the time the loss occurs.
d. all of these.
Morton owed Dowd $1,000. The debt was due on May 1. The debt would not be
discharged if
a. on the due date, Dowd agreed to accept $500 and a watch valued at $150 in full
settlement of the debt.
b. Dowd insisted the debt was $1,000, but Morton claimed it was $500, and they
compromised on $650 in full settlement.
c. on April 15, Dowd agreed to accept $500 in full settlement.
d. on July 1, Dowd orally agreed to accept $500 in full settlement of the $1,000 debt.
Claims against property for unpaid taxes, rights of others, and unpaid mortgages are
known as
a. covenants.
b. instruments.
c. contingencies.
d. encumbrances.
A provision excusing one party from liability for negligence is
a. an exculpatory clause.
b. a revocation clause.
c. a disaffirmatory clause.
d. forbearance.
The supreme law in the United States is
a. the constitutions of the various states.
b. decisions made by courts.
c. administrative regulations.
d. the U.S. Constitution.
A minor who buys a necessary is obligated to pay the
a. price stated in the agreement.
b. reasonable value of the necessary.
c. seller’s cost.
d. price demanded by the seller.
If the amount on an instrument is altered, a holder in due course can enforce the
instrument for the original amount.
Debts and estate taxes must be paid before a beneficiary can receive anything under the
terms of a will.
Renting a store would not be a bailment because it involves ____________________
property.
Love and affection are generally considered to be valid consideration.
Blank indorsements turn order instruments into bearer instruments.
An oral warranty made by the seller before or at the time of a sale that is contrary to the
terms stated in the written warranty is not binding.
A contract to sell involves ____________________.
In most states, a job applicant must take a lie detector test.
Agreements formed for an illegal purpose are ____________________.