1. __________________________ involves an independent contract that develops between one signer of the original contract and another individual or other legal entity.

Horizontal privity of contract

Bilateral privity of contract

Vertical privity of contract

2. Tori's Pizza, Inc., enters into a verbal contract with Pizza Pie Food Truck, LLC, for the sale of 500 frozen pizzas, which are considered goods and governed by the Uniform Commercial Code (UCC). The total contract price is $1,000. The contract is...

unenforceable because the contract price is too low.

unenforceable because the contract is not in writing.

enforceable because the contract is for unique goods.

3. Under the common forms of Bankruptcy, Individuals "Wage Earners" would file under Chapter ____.

9

11

13

4. Contracts to commit a crime, contracts for a loan with an interest rate above the state maximum, and contracts related to illegal gambling are all examples of agreements that are ________ because of an illegal purpose.

Valid until proven otherwise.

Void

All of the above.

5. Steven Anderson proposed to Janet Wilson on Sunday, January 1^st. While proposing, he slipped a ring on Janet's finger and asked her, "Will you marry me?" Janet replied, "Yes, I'll marry you!" Four months later, Janet called off the engagement. What is true about the ring?

The ring was given to Janet as a gift; therefore, Janet does not have to give the ring back.

Steven should not expect the ring back, as they shared many expenses while in the relationship, and therefore, Janet is just getting her "share" of the expenses back.

Janet must give the ring back, as the ring was not a gift, but a promise of marriage, which did not take place, therefore, he is owed back the ring.

6. Landon entered into a written agreement to sell land to Wyatt. At the time the agreement was executed, Landon had been drinking alcoholic beverages. Landon's ability to understand the nature and terms of the contract was not impaired. Wyatt did not believe that Landon was intoxicated. The contract is...

valid and legally binding on both parties. Landon will have to prove that he was intoxicated in order to void the agreement.

void.

voidable at Landon's discretion.

None of the above.

7. If a bank charges a customer awith a usurious loan rate,the contact for the loan would be _________.

Void

Voidable

None of the above.

8. On the back of the United Airlines ticket, it states the following, "Carrier may without notice substitute alternative carriers or aircraft..." This is an example of ___________________________.

Accord and Satisfaction

Commercial Frustration

Assumption of the Risk

9. The fact of not exercising a legal right, especially of not insisting on payment of a debt at the due date and giving the debtor more time to pay is called __________________.

Consideration

Special Consideration

Forbearance

None of the above.

10. Susie offers to help Joel with his paper route. Susie goes to a customer's home to collect payment on Joel's behalf, but she fails to give Joel the payment. The courts can find that Susie works for Joel as his gratuitous agent, and that her actions _____________.

bind Joel.

are independent of Joel.

were outside of the scope of employment.

11. An example of ________________ would be in the way that credit card companies keep a rotating balance; only charging a low monthly minimum payment for the debt owed.

Forbearance

Moderation of demands.

None of the above.

12. Todd, a 16-year-old, negligently crashed into Cami's car and caused extensive damage. Which statement is correct?

Todd can disaffirm liability for the damage to Cami's car because he is a minor.

Todd can disaffirm liability for the damage to Cami's car unless he was intoxicated.

Todd cannot disaffirm liability for his negligence.

13. What isNOTa Legal Remedy resulting from a court's exercise of its power "at law"?

Compensatory Damages.

Significant Damages.

Punitive Damages.

Liquidated Damages.

Mitigation of Damages.

14. Ravi is treated by his dentist, Janelle, and agrees to pay the co-pay of $1090.00. Once he receives the bill, he refuses to pay it because he feels that it too much, so instead, he writes the check for $550.00 with a notation on the check, "Payment in Full". What would be theBEST thingfor her to do?

Cash the check.

Cash the check and then send a bill for the remaining balance.

Return the check to Ravi with a letter stating that she is not accepting the tendered amount as full payment of the debt.

There is nothing that she can legally do.

15. Detriment refers to...

the fact that the promise is based on the promisee is acquiring something from the promisor.

the fact that the promise is based on the promisee giving up something.

d. Has nothing to do with any of the above statements.

16. Jake's Dealership has been around since 1952. Over time the area has changed. With a wave of criminal activity in the area, Jake's son and partner, Steve, has decided that the only way to keep the business from being vandalized is to put up a cyclone fence and get some dogs to patrol the area at night. What is true about this decision?

As long as Steven uses great care and caution, he will be not held liable.

Warning signs will indemnify the dealership from liability.

Because of foreseeability, strict liability will be imposed, as the owner of the animal has a duty of care to anyone who might possibly come in contact with the animal.

17. Privity of contract is a legal doctrine that holds that a business contract, along with any other type of contract, __________________________.

may not confer rights or impose obligations to any person or agent

may confer rights or impose obligations to any person or agent

None of the above.

18. was harvested. An unexpected hard freeze came along, destroying 85% of the crop. Which part of the contract would address such a loss?

Restitution Clause

Commercial Frustration

Duty to Mitigate

19. ______________________becomes an issue when the benefits bestowed by a contract are given to a third party or a party that was not a part of the original contract.

Horizontal privity of contract

Bilateral privity of contract

None of the above

20. Minors are obligated to pay for the necessaries of life such as food, shelter, clothing, medical services, etc. The seller's recovery is based on the equitable doctrine of ____________rather than on the contract itself.

A Duty to Restore

Quasi-contract

Contract of support

21. In a civil trial, the jury felt that the plaintiff's claim was minor, but sided with the plaintiff with an award of $15.00, payable by the defendant. Based on this action, this would be considered a:

A Nominal Damage

A Substantial Damage

A Consequential Damage

None of the above.