BUS 140 Week 5 Test Contracts

BUS 140 Week 5 Test Contracts | MiraCosta College

Question 1

In order for an acceptance to be valid, it must “parrot” the offer.  This is known as:

Mailbox Rule  

U.C.C.  

Mirror Image Rule  

Polly's Cracker

Question 2

Contractual damages that are beyond compensatory damages and are only awarded when there are special circumstances are known as:

Add-on Damages  

Punitive Damages  

Consequential Damages  

General Damages

Question 3

Peter and Wendy are best friends.  Following a visit to Peter’s house one day and concerned that Peter will never grow up, Peter’s dad offers to give Wendy $1million to marry Peter.   Wendy accepts and the two create a written agreement.  After marrying Peter, Wendy asks Peter’s dad for the money.  Peter’s dad refuses to give Wendy the money.   Wendy sues.   Who is likely to win?

Wendy  

Peter's Dad 

Peter

No one, because the marriage will never last.

Question 4

Orenthal agreed to sell Ricky sports memorabilia for $5000.  After Orenthal delivered the items to Ricky, Orenthal tells Ricky to deliver the money to Nicole because he owes her a lot of money.  Ricky delivers the money to Nicole.  Nicole would be considered a(n):      

Donee Third Party Beneficiary  

Creditor Third Party Beneficiary  

Assignor  

Delegator

Question 5

In order for an acceptance to be effective, which of the following is true?

The offeree must manifest an intent to enter into a contract.  

The acceptance must mirror the offer  

It must be clear to a reasonably prudent person that an offer was made  

All of the above

Question 6

How does one accept a unilateral contract?

By promising to do the act requested  

By completing the act requested  

By making time in one's schedule to do the act requested  

By saying "O.K."

Question 7

What is the term used for when an Offeror takes back his offer?

Counter Offer  

Revocation  

Rejection  

Acceptance

Question 8

Which of the following contracts must be in writing to be effective?

Contract for the sale of property  

Contract that cannot be completed with one year, according to its terms  

Contracts for the sale of goods over $500  

All of the above

Question 9

Which of the following would NOT qualify as consideration for a contract?

Money   

Giving up a legal right  

Moral consideration  

Anything of sufficient legal value

Question 10

Pursuant to the mailbox rule, the acceptance for a bilateral contract is effective:

   Upon proper dispatch  

Only when hand delivered  

Upon receipt  

Never. One cannot accept a bilateral contract by mail.

Question 11

Mick D. accepts an offer to illegally poach an alligator for Walter so that Walter can have a cool set of alligator boots to give to his girlfriend.  After delivering the now poached alligator to Walter, Walter refuses to deliver the agreed upon amount of money to Mick.  Mick sues.  Who is likely to win?

Walter  

The girlfriend  

Mick D.  

The alligator

Question 12

A contractual remedy that requests a court order to stop someone from doing a particular action is known as:

Specific Perfomance 

Injunction 

Consequential 

Legal remedy

Question 13

Which of the following is an exception to the pre-existing duty rule?

Past consideration 

Moral Consideration 

Unforeseen circumstances  

Bad bargaining

Question 14

Someone who benefits from an agreement but is not a party to the contract is called a(n):

Mooch  

Offeree  

Assignor  

Third Party Beneficiary

Question 15

The bargained-for exchange used in a contract and is the glue that binds the contract together is called:

Option  

Consideration  

Unconscionable  

A perk

Question 16

Bob agrees to sell Patrick his bubble factory for $10,000.  Patrick agrees but can only pay Bob in monthly payments of $500.  Bob agrees.  Which of the following is true?

For the contract to be enforceable, it needs to be in writing  

The contract should be void because the factory is worth $15,000  

The contract should be void because Patrick cannot even blow bubbles  

For the contract to be enforceable, Patrick has to show Bob the money first

Question 17

When both parties to a contract make a mistake regarding an important element of the contract or subject matter, it is called a(n):

Unilateral mistake  

Mutual mistake  

A bummer  

Scrivener's mistake

Question 18

Which of the following may affect someone’s capacity to create a valid contract?

Age  

Intoxication  

Minority  

All of the above

Question 19

Johnny is walking down the street one day and sees Keira.  He notices a bottle of rum in Keira’s hand.   Deciding he was thirsty for such a treat, Johnny approaches Keira and offers her $75 for the bottle of rum.  Keira replies that she wouldn’t take less than $100 for it.  Which of the following is true?

Johnny and Keira have a contract for $100  

Johnny and Keira have a contract for $75  

Johnny and Keira do not have a contract because the $100 was a counter offer.  

Johnny and Keira do not have a contract because rum is bad for you.

Question 20

Which of the following is a legal remedy for breach of contract?

Compensatory damages  

Punitive damages  

Consequential damages  

All of the above

Question 21

Tom feels awful about his continuous violent behavior toward Jerry.  So Tom goes to a cheese factory and orders a pound of cheese.  After paying for the cheese, he tells the factory to deliver the cheese directly to Jerry instead of delivering it to him.  Jerry is a(n):

Creditor third party beneficiary  

Donee third party beneficiary  

Delegator  

Offeree

Question 22

Eddie and Nick decide to leave Eddie’s car in garage overnight.  Eddie offers the security guard $100 to just keep an eye out for thieves.  The security guard accepts. When Eddie returns to retrieve his car, the security guard demands the $100.  Eddie refuses.  Who is likely to win?

The security guard because there was adequate consideration  

The security guard because he performed the task requested  

The security guard because there was a valid contract  

Eddie because the security guard had a pre-existing duty to watch out for thieves

Question 23

A transfer of a right, rather than a duty, is called a(n):  

Privilege  

Amendment  

Assignment  

Delegation

Question 24

Ernie decides he no longer wants his rubber duckie.  He offers Bert the yellow toy for $10.  Bert replies, “I’d rather just throw the annoying thing in the trash!”  Bert’s reply would most likely represent a(n):

Acceptance  

Revocation  

Rejection  

Offer

Question 25

A person who receives a benefit under an existing contract in order to receive a gift is called a:

Creditor third party beneficiary  

Donee third party beneficiary  

Thug  

Delegating beneficiary

Question 26

A contractual remedy that requests a court to enforce a contract by ordering a party to do what he promised to do under that contract is known as:

Compensatory damages  

Specific Performance  

Consequential damages  

Injunction

Question 27

A transfer of duties under a contract is called a(n): 

Delegation  

Beneficiary contract  

Assignment  

Guaratee

Question 28

Mary told Jane that if Jane quit smoking illegal substances for a year, Mary would give her $10,000.  After much contemplation, Jane quit smoking illegal substances for a year after which she asked Mary for the money.  Mary refused and Jane sues.  Who is likely to win?

Jane, because there was a valid contract  

Jane, because she quit smoking for a year  

Jane, because she detrimentally relied on Mary's promise  

Mary

Question 29s

When there is a mutual mistake: 

The contract cannot be rescinded (voided) by the parties    

The contract can be rescinded (voided) by either party    

The contract is enforceable  

The contract is only enforceable by the government

Question 30

Mac Queen was driving through the desert on a long road trip one summer when he realized that he needed to gas up his car.  However, after driving for miles and his gas gauge needle rapidly approaching 'Empty,' he could not find a gas station.  Finally, in the distance he saw a small town, Radee Springs.  When he stopped to fuel up, he was shocked to learn the price of gas was $95.00 per gallon.  After reluctantly filling up his tank, he paid and bolted away.  Later he decides to sue Sally, the owner of the gas station.  Who is likely to win?

Sally because there was a valid contract  

Sally because there was adequate consideration  

Sally because Mac agreed to the price of gas  

Mac because he entered into the contract under economic duress

Question 31

Kate and Tom are getting ready to be married.  Just prior to walking down the aisle, Tom approaches Kate and says, “I will only marry you if you agree that you get nothing if we divorce.”  Anxious to get married, Kate verbally agrees.  Shortly after realizing her new husband was a raving lunatic, Kate files for divorce seeking half of everything.  Tom claims that there was a contract between them and that Kate gets nothing.  Who is likely to win?

Kate because she only agreed under physical duress  

Tom because there was a contract  

Kate because the contract was not in writing  

Tom because he married Kate

Question 32

Bo offered to sell Luke an old car that had been sitting on Bo’s car lot for years for $500. Bo was anxious to get rid of the “piece of junk.”  Luke was not thrilled with the artwork on top of the 1969 Dodge Charger but agreed and pays Bo the $500.  Luke drives the car straight to his insurance agent who then informs Luke that the car was used in television and in the movies and is worth much more than $500.  Bo finds out this information and demands the car back.  Luke refuses.  Who is likely to win?

Bo  

Luke  

Neither Bo nor Luke because there was no contract  

The insurance agent because he realized it was worth a lot of money

Question 33

Samantha and Carrie entered into an agreement in which Samantha was to givem$1000 for Carrie’s “Prada shoe collection.”   Unbeknownst to Samantha, Carrie has two Prada shoe collections.  Samantha thought she was contracting for the red collection and Carrie thought she was contracting for the black collection.  Which of the following is true?

The contract is valid and enforceable  

There is no contract because there was a mutual mistake and no meeting of the minds  

The contract is void because no one pays only $1000 for a Prada shoe collection regardless of the color  

There is no contract because there was only a unilateral mistake

Question 34

A person who receives a benefit under an existing contract in order to extinguish a prior debt is called a(n):

Creditor third party beneficiary  

Donee third party beneficiary  

Thug  

Delegating beneficiary

Question 35

Michael approaches Moe and says “I have an offer that you can’t refuse.”  Moe rejects the offer and Michael in response tells Moe that if Moe does not enter the contract Michael will have him harmed, severely.  This best represents:

Organized influence  

Economic duress  

Bully contract  

Physical duress

Question 36

Which of the following may be used to attack the validity of contract?

Mistake  

Economic duress  

Fraud  

All of the above

Question 37

Sebastian presents a proposal to Arial to build a swimming pool in Arial’s lush backyard.  Arial reviews the proposal and signs the contract immediately upon seeing that the offer to build the pool is $10.000 in total.   Sebastian arrives at Arial’s house to get payment so that he may begin digging and receives only a $10 check.  Sebastian refuses to honor the contract.  Arial demands that Sebastian build the pool for $10.   Which of the following is true?

Sebastian does not have to build the pool for $10 because it was a unilateral mistake

Sebastian does not have to build the pool for $10 because Arial should have known that the cost was incorrect

Sebastian does not have to build the pool for $10 there was a scrivener's error

All of the above

Question 38

Bud and Samuel were hanging out one day at the beach when Bud reached over to Samuel and said “You have been such a good friend.  When I die, I’m going to leave everything I own to you.  Because, I love you, man.”  Not long after that, Bud died an untimely death when he was hit by a drunk driver.  In his will, Bud left nothing to Samuel.  Samuel sues Bud’s estate.  Who is likely to win?

Samuel because Bud made a promise to him  

Samuel because Bud was his friend and Bud should have been in the will  

Bud because he secretly did not mean it 

Bud because there was inadequate consideration

Question 39

Britney and her friends were drinking alcohol in the back of a limousine.  While under the intoxicating effects of the alcohol, Brittany, tired of her children interfering with her fun, told her friend that she would sell her sons for $5 to anyone who will take her.   Britney’s friend, Paris, gave her a five dollar bill.  Which of the following is true?

The contract is enforceable because Paris accepted Britney's offer

The contract is enforceable because the contract was valid at the time it was made  

The contract is enforceable because Paris believes Britney does not deserve children  

The contract is unlikely to be enforced because Britney was intoxicated at the time and the contact is against public policy

Question 40

Once presented with an offer, what options are then available to the offeree?

To counteroffer  

To reject the offer  

To accept the offer  

All of the above

Question 41

Ross offers to sell a very unique skeleton of a brontosaurus dinosaur standing fully erect in his museum to Rachel in exchange for $100,000.  Rachel hires an expert to authenticate the bone structure.  Rachel and the expert arrive at Ross’s only to find a huge pile of bones broken into millions of pieces all over the floor, with the exception of one large bone mysteriously attached to a remote control car.  Ross asks for the money and Rachel refuses to give it to him claiming they did not have a contract.  Who is likely to win?

The expert

Rachel  

Ross  

The dude holding the remote control for the car

Question 42

Helix asks Leo to build him a large staircase with stone and marble.  Helix then tells Leo in order for Leo to accept his offer, he should arrive at Helix’s house and build the staircase. Leo arrives and begins building the staircase. After weeks of building, he finally reaches his last step.  Helix approaches Leo and tells Leo he revokes his offer and asks Leo to leave.  Leo sues.  Who is likely to win?

Helix because Leo did not complete the staircase  

Helix because the agreement was not in writing  

Helix because this was a bilateral contract 

Leo because Helix's ability to revoke terminated after Leo substantially began building the staircase

Question 43

Ferris and his two classmates ride to school together in a classic 1961 Ferrari.  Before arriving at school one day, the car stalls.  Cameron, the owner of the nice vehicle, becomes angry and yells out, “I hate this car! I would give anyone $10 to push it off a deck, into a ravine and leave it there!” The next day, Ferris, delighted to accept the offer, puts the car on blocks and pushes it off a deck.  He then demands the money from Cameron. Cameron refuses to pay. Which of the following is true?

The contract is enforceable because all the elements were present  

The contract is enforceable because Ferris accepted the offer by doing the task  

The contract is enforceable because it was a unilateral contract  

There is no contract

Question 44

Kevin, a postman, rides along the Great Plains through the rain and snow to deliver an offer to George.  George, after reviewing the offer, decides he does not want to accept and has Kevin deliver that message back to Paul.   Paul receives the message and throws it on his desk without reading it.  Which of the following is true?

George’s message is ineffective because the message was not delivered by George personally 

George’s message is ineffective because Paul did not read it 

George’s message is effective because it was received by Paul  

George’s message is ineffective because he should have known Paul would not have read it

Question 45

In order to have a valid enforceable contract there must be a(n):

Acceptance  

Offer  

Consideration  

All of the above

Question 46

What is the shorthand for the term "contract?"

C 

K 

Ct