BUS 346 Week 8 Quiz

BUS 346 Week 8 Quiz | Assignment Help | Mercer University

Exam 8: Chapter 12

Question 1

In contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.

o   True

o   False

Question 2

The element of bargained-for exchange distinguishes contracts from gifts.

o   True

o   False

Question 3

An advertisement—“we buy gold”—is an offer.

o   True

o   False

Question 4

An acceptance can impose new conditions or change the terms of the original offer without rejecting it.

o   True

o   False

Question 5

In contract law, intent is determined by the personal or subjective intent, or belief, of a party.

o   True

o   False

Question 6

A request or invitation to negotiate is an offer

o   True

o   False

Question 7

If a voidable contract is avoided, the promisee, but not the promisor, is released from it.

o   True

o   False

Question 8

The only requirement for a valid contract is that the parties voluntarily entered into it.

o   True

o   False

Question 9

In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

o   True

o   False

Question 10

An acceptance that changes the terms of the original offer may be considered a counteroffer.

o   True

o   False

Question 11

Every state has a statute that stipulates what types of contracts must be in writing.

o   True

o   False

Question 12

Some promises are not legally binding.

o   True

o   False

Question 13

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

o   True

o   False

Question 14

An e-contract must meet basic requirements that are different from those required of a paper contract.

o   True

o   False

Question 15

A contract entered into by a minor is voidable at the option of either of the contracting parties.

o   True

o   False

Question 16

No offer may be revoked before it is accepted.

o   True

o   False

Question 17

A contract to do something that is prohibited by statutory law is void.

o   True

o   False

Question 18

An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract.

o   True

o   False

Question 19

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

o   True

o   False

Question 20

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received.

o   True

o   False

Question 21

Deluxe Awnings, Inc., offers Elbert a job as an installer. No time for acceptance is specified in the offer. The offer will terminate

o   after a reasonable period of time.

o   after a typical workweek (five business days).

o   after a usual month (thirty calendar days).

o   never.

Question 22

Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by

o   Jolie.

o   Jolie’s medical insurance company.

o   Keaton.

o   no one.

Question 23

Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac-cepting the offer by March 1. Signe may revoke the offer

o   before Thomas accepts the offer.

o   before March 1, whether or not Thomas has accepted the offer.

o   only after Thomas accepts the offer.

o   only after March 1.

Question 24

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors. When Genovese runs into the types of difficulties that contractors ordinarily confront, Hawthorne agrees to pay extra compensation to over-come them. Regarding the agreement to pay more, a court would likely

o   enforce it.

o   rescind it.

o   order the parties to renegotiate it.

o   not enforce it.

Question 25

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is

o   a browse-wrap term.

o   a click-on agreement.

o   a shrink-wrap agreement.

o   a partnering agreement.

Question 26

Kelby enters into a contract with Lara on a social media network to buy her stock in Mobile Devices Corporation. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

o   be “denied legal effect” if it falls under UCC Article 2.

o   be “denied legal effect” unless a hard copy is printed.

o   be “denied legal effect” until it is signed on paper.

o   not be “denied legal effect” solely because it is in electronic form.

Question 27

Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex. These parties have

o   an express contract.

o   an implied contract.

o   a unilateral contract.

o   no contract.

Question 28

Bruce, a minor, enters into a contract with Coralee to buy her car. Later, Bruce opts to avoid the deal. With respect to the contract, this releases

o   both parties.

o   neither party.

o   only Bruce.

o   only Coralee.

Question 29

Iggy tells Jade, “I might sell the snowboard that I bought this winter since I haven’t used it and the season is almost over.” This is

o   an acceptance of an offer.

o   a preliminary negotiation.

o   an offer.

o   a statement of future intent.

Question 30

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforceable contract. Defenses to the enforcement of a contract include

o   a desire not to perform.

o   insufficient capital.

o   preliminary indications of unsatisfactory results.

o   the lack of a party’s voluntary consent.

Question 31

Henry promises not to open his Hank’s Lunchbox Café before 10:00 A.M. if Isis, who owns Isis’s Danish & Donuts next door, promises to close by 4:00 P.M. Henry’s consideration is

o   the destruction of a legal relationship.

o   the creation of a legal relationship.

o   a forbearance.

o   an exchange of money.

Question 32

Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people.” Esmeralda’s promise is not enforceable because

o   society does not want gifts cheapened by making them legally enforceable.

o   the redistribution of wealth on a one-to-one basis is not a valid social goal.

o   Esmeralda could have paid more.

o   Fiorello has not given consideration in return.

Question 33

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. Such a contract is normally

o   voidable by a party who does not wish to follow through with it.

o   void.

o   valid.

o   voidable but only by consent of both parties.

Question 34

Dewey asks Ember, “Do you want to buy my bike?” This is

o   a valid offer.

o   not a valid offer because the terms are not definite.

o   not a valid offer because Dewey did not state an intent.

o   not a valid offer because Ember did not respond.

Question 35

Lamar offers to pay Melanie $150 for a hot-air balloon ride for Nina. They agree to meet at dawn the next day to exchange the cash for the ride. At this point, these parties have

o   a bilateral contract.

o   an implied contract.

o   a unilateral contract.

o   no contract.

Question 36

Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000. Hana replies, “The price is too high. I will buy it for $75,000.” Hana has

o   accepted the offer.

o   made a counteroffer without rejecting the offer.

o   rejected the offer and made a counteroffer.

o   rejected the offer without making a counteroffer.

Question 37

Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator. In determining whether a contract has been formed, an element of prime importance is

o   the parties’ intent.

o   Mung’s base of operations.

o   the duration of the work.

o   Lucy’s language capabilities.

Question 38

Moby negotiates a contract with Nora via e-mail. It is reasonable to infer that Moby has consented to

o   transact business electronically.

o   submit to the jurisdiction of any selected forum.

o   respond to any message sent to that e-mail address.

o   nothing.

Question 39

Mark is creating Nu2U.com, a Web site through which he will enter into contracts over the Internet. Important terms to include in his offers include

o   provisions specifying the remedies if the contract is breached.

o   a detailed history of his business.

o   glowing reviews from former customers.

o   his educational background.

Question 40

Ricci, a user of SmartPhoneApps.com’s Web site, can download apps for free if she first clicks on “I accept” after viewing certain terms. This is

o   a contract that does not include the terms.

o   a contract that includes the terms.

o   not a contract but the terms are enforceable.

o   unenforceable.