Ch 9

1)Which of the following is true regarding the validity of various means of acceptance (assuming no means of communicating the acceptance is specified)?

Telephone, mail, and e-mail are all valid means of acceptance, while telegraph and fax are not valid means of acceptance.

Telegraph and fax are valid means of acceptance, while telephone, mail, and e-mail are not valid means of acceptance.

Telephone, mail, e-mail, and fax are all valid means of acceptance, while telegraph is not a valid means of acceptance since it is an outdated form of communication.

Telephone, telegraph, mail, fax, and e-mail are all valid means of accepting an offer.

Telephone, telegraph, mail, fax, and e-mail are all invalid means of accepting an offer, since an offer must be accepted either in person or by way of a formal letter of acceptance.

2)Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

Those over the age of majority and those suffering from a mental illness

People suffering from physical illness and intoxicated persons

Intoxicated persons and those over the age of majority

Those under the age of 21 and those over the age of 70

People under the age of majority, people suffering from mental illness, and intoxicated persons

3)If the subject matter of an offer becomes illegal, what is the result?

The offer immediately terminates

The offer is still valid if the offer was made at least three (3) calendar days before the subject matter of the offer became illegal

The offer is still valid if the offer was made at least seven (7) calendar days before the subject matter of the offer became illegal

The offer is still valid if the offer was made at least thirty (30) calendar days before the subject matter of the offer became illegal

The offer is still valid if the offer is part of an otherwise enforceable option contract

4)Which type of contract allows one or both of the parties the ability to either withdraw from the contract or to enforce the contract?

Executed

Executory

Implied-in-law

Voidable

Void

5)Which of the following is true regarding quasi-contracts?

They are sometimes called implied-in-law contracts, but they are not actually contracts.

They are sometimes called implied-in-law contracts, and they are actual contracts.

They are sometimes called implied-in-fact contracts, but they are not actually contracts.

They are sometimes called implied-in-fact contracts, and they are actual contracts.

They are sometimes called express contracts, but they are actually implied contracts.

6)Darla posts notices in her neighborhood promising to pay $1,000 for the return of her missing Snowshoe Siamese cat. Two days later, Noelle finds the missing cat and returns it to Darla. What type of contract is this?

A bilateral contract

A subrogation contract

An executory contract

A unilateral contract

This is not a valid contract.

7)Which of the following is the first element of a contract?

An agreement

Forbearance

An invitation to negotiate

Equitable consideration

A unilateral promise

8)Which of the following is incorrect regarding how the Japanese tend to view contracts?

The Japanese tend to view contracts as ongoing relationships.

The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance.

The Japanese tend to be suspicious of long, detailed contracts.

The Japanese have a preference for flexible contracts.

9)What was the result in the Lucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding the sale of land prevented the formation of a contract?

The court ruled that the contract would not be enforced because one of the parties was subjectively joking.

The court ruled that the contract would not be enforced because one of the parties was joking and a reasonable person should have known that.

The court ruled that the contract would not be enforced because the parties had been consuming alcohol.

The court ruled that the agreement would be enforced because of the outward manifestations of agreement.

The court ruled that the contract would be enforced because of what the parties said, regardless of whether an objective person would have thought joking was involved.

10)Which of the following is true regarding when an offeree may reject an offer?

Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it the offer is terminated.

If the offeror states that an offer will be held open for a certain time period, it is open for that time even if the offeree rejects the offer prior to the expiration of the specified period.

An offer must remain open for at least three (3) business days before an offeree may reject it.

An offer must remain open for at least seven (7) calendar days before an offeree may reject it.

An offer must remain open for at least thirty (30) calendar days before an offeree may reject it.

The Japanese do not prefer that any terms be left to be decided later.

11)Helen finds a piece of land that she is interested in purchasing. She asks Robert, the landowner, to hold the land for her while she makes a decision. Robert says that for $1,000, he will hold the land for her while she decides, and Helen agrees. This is an example of a(n) _____.

quasi-contract

illusory contract

option contract

open-ended offer

implied-in-fact offer

12)Which of the following is true if no means of communicating an acceptance is specified in an offer?

The acceptance must be in writing.

The acceptance must be made orally either by telephone or in person.

No valid contract may be entered into because the offer must specify a means by which to accept.

Acceptance may be made by any reasonable means.

Acceptance must be made orally or in writing within twenty-four (24) hours.

13)Under common law, when does formation of an agreement begin?

When the offeree makes an offer to the offeror

When consideration is provided

When funds are transferred

When a writing is executed

When the offeror makes an offer to the offeree

14)Today's law of contracts actually originated in judicial decisions from _____.

France

Germany

Sweden

England

Norway

15)Which of the following are the two primary sources of contract law?

Case law and the Restatement (Second) of Contracts

Case law and the Uniform Commercial Code (UCC)

The Uniform Commercial Code (UCC) and the Convention on Contracts for the International Sales of Goods (CISG)

Case law and the Convention on Contracts for the International Sales of Goods (CISG)

The Convention on Contracts for the International Sales of Goods (CISG) and the Restatement (Second) of Contracts

16)Expiration of the statute of limitations period for a breach of contract action may make a contract _____.

executed

executory

unenforceable

illusory

implied-in-fact

17)As a general rule, when is revocation of an offer effective?

When it is mailed by the offeror

When it is received by the offeree

Three (3) business days after the offeror makes the offer, assuming the offeree has not already accepted the offer

Seven (7) calendar days after the offeror makes the offer, assuming the offeree has already accepted the offer

Thirty (30) calendar days after the offeror makes the offer, assuming the offeree has not already accepted the offer

18)Pamela offers Veronica the right to buy her entire collection of compact discs. Veronica tells Pamela no. Veronica's response is considered _____.

a revocation

a rejection

bad faith (or at a minimum, the absence of good faith)

a counteroffer

an invitation to negotiate

19)If a(n) _____ contract exists, the administrator of an offeror's estate must hold the offer open until it expires in accordance with the contract.

bilateral

unilateral

executed

option

implied-in-law

20)Which of the following types of contracts has a special form or must be created in a specific manner?

Implied

Quasi-

Implied-in-law

Formal

Executory