1.One of the elements of a valid contract is a fair price.

TrueFalse

2.An executory contract is one that has been fully performed.

TrueFalse

3.A contract is void if its purpose is illegal.

TrueFalse

4.Inadequate consideration may reflect a lack of bargained for exchange.

TrueFalse

5.Under the Statute of Frauds, all contracts must be in writing to be enforceable.

TrueFalse

6.If a contract stipulates that a right cannot be assigned, then ordinarily it cannot be assigned.

TrueFalse

7.The most common way to discharge a contract is by breach.

TrueFalse

8.The Fair Labor Standards Act applies to all employees engaged in interstate commerce.

TrueFalse

9.Anything less than complete performance is a material breach of contract.

TrueFalse

10.A corporation is recognized as a "person" and enjoys all of the rights and privileges that U.S. citizens enjoy.

TrueFalse

11.Perpetrator is the term for a person who commits a tort.

TrueFalse

12.Defense of others is a defense to an allegation of battery.

TrueFalse

13.A person may not be liable for a defamatory statement if he or she enjoys a privilege.

TrueFalse

14.The use of a person's likeness for commercial purposes without permission is not an invasion of privacy.

TrueFalse

15.In a fiduciary relationship, the principal and agent owe each other the duty to act with the utmost good faith.

TrueFalse

16.A business that invites persons to come onto its premises is charged with a duty to exercise reasonable care to protect those invitees.

TrueFalse

17.Some risks are obvious but, with respect to the duty of care required to establish negligence, a warning is always necessary.

TrueFalse

18.Assumption of the risk can be raised as a defense in a negligence suit.

TrueFalse

19.A disclosed principal is a principal whose identity is known by the third party at the time the contract is made by the agent.

TrueFalse

20.Due care must be exercised in designing a product.

TrueFalse

21.A public policy underlying the imposition of strict product liability is that a manufacturer who makes an unsafe product should be put out of business.

TrueFalse

22.To avoid strict product liability, a manufacturer must make a product entirely safe for all uses.

TrueFalse

23.To succeed in a product liability suit based on strict liability, a plaintiff must prove that a product was defective.

TrueFalse

24.The extreme risk of an activity is a primary basis for imposing strict liability.

TrueFalse

25.In an "at-will" employment relationship either the employer or the employee may terminate the employment relationship at any time for any reason.

TrueFalse