1) Contracts allow a free society to __________.

• a.) achieve total equality
• b.) do away with capitalism
• c.) assert control over its members
• d.) create order out of disorder

2) Select the true statement about the Convention on Contracts for the International Sale of Goods (CISG).

• a.)The Convention is consistent with the Uniform Commercial Code (UCC) in every way.
• b.)The United States has not formally adopted the CISG.
• c.)Parties to a contract may mutually agree to follow the CISG rather than the Uniform Commercial Code (UCC).
• d.)The Convention is only applicable to countries in the Western Hemisphere.

3) After your surgery, you tell me that you can't walk your dog anymore. You ask me to walk your dog for $50 a week, and I agree. This Monday, I began walking your dog.

We have a(n) __________.

• a.)bilateral contract
• b.)unilateral contract
• c.)implied contract
• d.)quasi-contract

4) The contractual element of consideration means that __________.

• a.)each party to a contract must give and receive equitable value
• b.)one party to a contract must receive value
• c.)each party to a contract must give and receive value
• d.)one party to a contract must give value

5) A contract isalwaysrendered unenforceable when __________.

• a.)a party to the contract returns the consideration
• b.)a party to the contract cannot meet the financial obligations of the contract
• c.)the subject or purpose of the contract is illegal
• d.)the contract was formed under emotional strain

6) A purpose of the Statute of Frauds is to __________.

• a.)warn consumers about the areas of exchange in whichthey are likely to encounter fraud
• b.)ensure that all contracts that have been reviewed by a lawyer are enforceable
• c.)determine whether a contract has been partially or fully executed
• d.)make certain contracts unenforceable if they are only in oral form

7) When an exterminator is hired to rid a home of termites and fails to do so, extensive damage is done by the insects to the home's deck. The exterminator is required to pay for the necessary repairs.

This is an example of which type of monetary award?

• a.)Incidental damages
• b.)Consequential damages
• c.)Punitive damages
• d.)Nominal damages