1).T/FThe agreement or "meeting of the minds" is comprised of two elements, offer and

acceptance.

2).T/FAt common law, the offer and acceptance must match exactly or be the mirror image of

eachother.

3).T/FThe mirror image rule has stayed the same under the Uniform Commercial Code.

4).The following are elements of a contract:

a)offer and acceptance

b)consideration

c)capacity and legality

d)all of the above

5)T/FThe UCC has updated the common law of contracts and makes it more relevant to

conducting business today.

6)T/F Advertisements are most often offers.

7)T/FAdvertisements generally fail as offers since they lack certain and definite terms.

8)T/FIn the famous Lefkowitz case, the department store was found to have breached it's

contract arising from acceptance of its offer advertised in the newspaper.

9)T/FAn offer without a specified duration lasts for a reasonable time; however, parties are

free to contract for a specific duration.

10)T/FOffers must be communicated to the offeree.

11)T/FIf an "acceptance" changes terms of an offer, a counter-offer may result that terminates

the original offer.

12) T/F A minor is never responsible for the reasonable value of necessary items due to lack of

capacity to contract.

13)T/F The Statute of Frauds is a treatise on common law fraud no longer applicable today.

14)T/FUnder the UCC, Article 2 governs sale of goods contracts.

15)T/FA good is movable and tangible.

16) T/F Food and beverage to be consumed on or off premises of the business is always a

services contract.

17)T/FThe United Nations Convention on International Sale of Goods (UNCISG) applies to

U.S.and other member country international sale of goods contracts.

18)T/FThe sale of a carpet priced at 1,000.00, that includes installation in your home, is a

goodscontract that requires a writing.

19)T/FI have hired an elderly person to take care of my kids for the rest of her/his life.This

contract requires a writing.

20)The following types of contracts generally require a writing:

A)real estate

B)sale of goods priced at 500.00 or more

C)employment contracts longer than a year

D)all of the above generally require a writing

21)T/FIf both parties are mistaken as to the material nature of the contract, there is still a valid

contract.

22)The UCC has a relaxed writing requirement for sale of goods contracts:

a)only quantity is required

b)quantity plus price required

c)quantity plus signature against whom action is sought

d)none of the above since any writing is now enforceable under the UCC

23)T/FDuress can negate a true meeting of the minds, for example, forcing someone to sign an

otherwise valid contract, through physical threat.

24)T/FIf a counselor benefits unusually well under a contract with a client-patient, there may

be a case of undue influence that may invalidate the assent between the parties and the

contract.

25)T/FAnticipatory repudiation allows a non-breaching party to treat the other as in breach

and to contract elsewhere.

26)"An acceptance is effective upon dispatch" is called:

a)dispatch rule

b)invitation

c) time is of the essence

d) mailbox rule

e) none of the above

27)T/FThird-party beneficiaries are commonly found in life insurance contracts.

28)T/FOnly parties who have contracted and supplied consideration have rights in the contract

according to the privity doctrine.

29)T/FThere are many exceptions to the common law privity doctrine today.

30)T/FA party that assigns rights in a contract is called an assignee.

31)The party who delegates duties in a contract is called:

a)delegatee

b)offeror

c)delegator

d) assignor

32)T/FAssignment is a way to transfer rights in a contract that often involve payment, but not

personal obligations such as a non-compete agreement to an acquiring company.

33)T/FParties can agree to rescind or get out of a contract.

34)T/FIf a condition precedent does not occur, the party's duty to perform does not arise.

35)T/FIf a contractor discovers that it will cost her/him 2million more dollars to complete your

job originally priced at $200,000 this may be a case of commercial impracticability that

discharges the contract.

36)Your antique car is destroyed by lightening just before you were to tender it to the party who

purchased it.This contract is discharged under:

a) statute of limitations

b)discharge due to bad weather

c)impossibility of performance

d)none of the above since the car debris must be tendered

37)T/FIf a third party beneficiary to a contract is not paid, he/she may sue for enforcement.

38)The following are ways that contracts are discharged:

a)by conditions and performance

b)by material breach and mutual agreement

c)by operation of law

d)all of the above are ways that contracts are discharged

39)The predominate factor test is generally useful in determining whether there is a sale of

goods contract.Which predominates in the sale of a triple hamburger with

extra cheese, extra large fries, and gigantic coke?

a)Service since the order is so big they need to carry it to your table

b)Goods since this is going to taste soooo good!

c)Goods since this is what you are paying for, not service

d)Service since there is a service tax in some states

40)T/FIntellectual property protections and enforcement are provided under the World Trade

Organization's (WTO)'s Trade Related Aspects of Intellectual Property Rights (TRIPS).

41)T/FCompensatory damages are generally available for breach of contract to put the

plaintiff in the position he/she would have been in had the contract been fully

performed.

42)A covenant-not-to-compete may be stricken from a contract as illegal if it exceeds

reasonable criteria governing:

a)time

b)geography

c)a & b

d)None of the above since it is a capacity issue, not a legality issue!

43)T/FIf both parties are mistaken about the central or material nature of a sales contract, there

is lack of assent.

44)T/FThe fair-use doctrine can be a defense to a claim of copyright infringement.

45)T/FMcDonald's Golden Arches are an example of protected intellectual property of

trademark.

46)The following are elements of fraud:

a)intentional misrepresentation

b)reasonable reliance

c)damage

d)all of the above

e)none of the above since the UCC has replaced these elements

47)T/FAlthough the general rule is that acceptance is effective upon dispatch, you can contract

otherwise.

48)T/FThe UCC is uniform law in the U.S.; therefore it is federal law.

49)The UCC updates the common law in various ways including:

a)a more flexible mirror-image rule

b)a more flexible writing requirement

c)anticipatory repudiation

d)all of the above

e)none of the above since the UCC is designed to be more strict that the common law!

50)T/F An unconscionable contract is one that "shocks the conscience of the court" and

involves parties of greatly unequal bargaining position.