Question Details

BUSN 420 Week 3 Quiz

1.	Question :	(TCO 4) Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have _____

 	Student Answer:		  an executed contract.

 		 	  an express contract.

 			  an implied-in-fact contract.

 			  a quasi-contract.

 		



Question 2.	Question :	(TCO 4) Which of the following is true of the Restatement of the Law of Contracts?

 	Student Answer:	 	  It serves as a reference for guidance in contract disputes.

 			  It does not identify negotiable instruments as formal contracts.
 			  Its goal is to create a uniform system of commercial law among the 50 states.
 			  It is the absolute federal law for contracts drafted in the U.S.A.
 		



Question 3.	Question :	(TCO 4) Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rico within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have ______

 	Student Answer:	 	  a bilateral contract.

 			  a trilateral contract.

 		 	  a unilateral contract.

 			  no contract.

 		



Question 4.	Question :	(TCO 4) Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is _____

 	Student Answer:	 	  a formal contract.

 			  an informal contract.

 			  a social contract.

 			  no contract.

 		



Question 5.	Question :	(TCO 4) Livewire Company and Kitchen Products, Inc., sign a document that states Livewire agrees to design a Web page for Kitchen Products, which agrees to pay for the service. Livewire and Kitchen Products have made _____

 	Student Answer:	 	  an express contract.

 		 	  an implied-in-fact contract.

 			  an implied-in-law contract.

 			  a quasi-contract.

 		



Question 6.	Question :	(TCO 4) General Credit Corporation promises to pay its chief finance officer Hughie and other employees a year-end bonus if it seems like a good idea at that time. This is _____

 	Student Answer:		  an enforceable contract.

 		 	  an illusory contract.

 			  an unconscionable contract.

 			  a unilateral contract.
	



Question 7.	Question :	(TCO 4) Which of the following elements has to be proved for a contract to be deemed unconscionable?

 	Student Answer:		  That the weaker party did not enter the contract under duress.
 			  That the parties had equal bargaining power.

 			  That the dominant party justly used its bargaining power.

 		 	  That the adhering party had no reasonable alternative.

 	



Question 8.	Question :	(TCO 4) Regular Insurance Company violates a state statute when selling an insurance policy to Simone. As a member of the class of persons protected by the state statute, Simone can _____

 	Student Answer:		  do nothing with respect to the contract.

 		 	  enforce the contract or recover the payment.

 			  only enforce the contract.

 		 	  only recover the payment.

 		



Question 9.	Question :	(TCO 4) In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he must _____.

 	Student Answer:		  disaffirm the contract before reaching the age of majority

 			  complete his contractual duties of restitution and restoration
 		 	  ratify the contract after reaching the age of majority

 			  place the adult in status quo till reaching the age of maturity

 	


Question 10.	Question :	(TCO 4) Poweroxi Inc. produces rocket propellant fuel that is used in space shuttles. NASA is an agency that requires rocket propellant fuel to send its rockets to space. NASA enters into a contract with Poweroxi Inc. to purchase all of the propellant fuel it will need this year from Poweroxi. What would this contract be an example of?

 	Student Answer:	 	  Requirements contract

 			  Output contract

 			  Option contract

 			  Yield contract