Pick the one best answer for each question.

1-A- Contracts are

A. legally enforceable promises.

B. always required to be written as per the Uniform Commercial Code (UCC) law.

C. a form of a circular.

D. enforceable in supreme courts but not in lower courts.

E. always informal agreements.

2--Which one of the following statements is true about contract laws?

A. Their application is confined to formally written documents.

B. They must be formal in order to be valid.

C. They enable private agreements to be legally enforceable.

D. They are applicable to all business dealings that are against public policy too.

E. They are invalid in instances that involve implied promises.

3-- In the context of contracts formed by promises, which of the following is an agreement containing mutual promises?

A. unilateral contract

B. quasi-contract

C. express-in-fact contract

D. bilateral contract

E. implied-in-fact contract

4__B__ Madison promises Grace $10 if Grace collects her dry cleaning for her. This is an example of a(n) ______ contract.

A. bilateral

B. unilateral

C. voidable

D. void

E. unenforceable

5__A__ A(n) ______ is one in which the promised terms of the contract are discussed by the parties.

A. express contract

B. reciprocal contract

C. implied contract

D. bilateral contract

E. unilateral contract

6--If there is evidence that a word used in a contract has a particular trade usage, courts will

A. give it that meaning.

B. ask the contracting parties to remove that word from the contract.

C. ask the contracting parties to add it as a comment to the contract.

D. ask the contracting parties to add it to the nolo contendere section of the contract.

E. replace the word with its legal equivalent.

7--Jeff signs a contract agreeing to purchase a dishwasher. The printed terms in the contract state that there is no return policy, but the contract has additional typed terms that allow him to return the product within 15 days from the date of purchase. The contract also has handwritten terms that allow him to return the product within 30 days of purchase. Both parties have initialed the changes to the printed terms. Jeff would like to return the dishwasher 20 days after purchase. Which of the following statements is most likely to be true in this scenario?

A. Jeff cannot return the product after 15 days of purchase.

B. Jeff cannot return the dishwasher at all.

C. Jeff can return the dishwasher after 45 days of purchase.

D. Jeff can return the dishwasher after 20 days of purchase.

E. Jeff can return the product only after getting an obiter dictum from a court.

8-B-Morgan signs a contract with Shane agreeing to work with him for a movie. Halfway through the production of the movie, Shane decides to quit as he gets another job as a marketing executive. The printed terms in the contract state that when a breach of contract occurs, the breaching party has to pay $20,000 to the nonbreaching party. The contract also has additional handwritten terms that state that in the event of a party being unable to complete the performance required due to unforeseen, unnatural causes, the breaching party does not have to pay any money to the nonbreaching party. Both parties initialed the handwritten changes. Which of the following statements is true in this situation?

A. Shane has to pay Morgan $20,000 as punitive damages.

B. Shane has to pay $20,000 to Morgan for breach of contract.

C. Shane does not have to pay any amount to Morgan because his breach was excused by the contractual terms.

D. Morgan cannot sue Shane for the breach as the liquidated damage is meant to penalize the nonbreaching party.

E. Shane can sue Morgan for compensatory damages.

9__D__Which of the following statements is true in cases where only one party drafts a contract that contains terms that appear vague and ambiguous to the other party?

A. The court will give the terms the meaning as per trade usage.

B. The court will reject the non-drafting partys attempt to reinterpret the terms after the contract has been signed.

C. The court will declare the drafting partys behavior as a tort due to intentional ambiguity of terms.

D. The court will interpret the terms as they mean in the common language.

E. The court will interpret the ambiguous and vague terms against the party that drafts them.

10__C__Which of the following states that parties to a complete and final written contract cannot introduce oral proof in court that changes the intended meaning of the written terms?

A. the statute of frauds

B. the exclusionary rule

C. the parol evidence rule

D. the statute of limitations

E. the assignor rule

11--Which of the following statements is true of publicly held business organizations?

A. Publicly held organizations are owned only by a few persons.

B. Publicly held organizations are only owned by the government.

C. Shareholders of publicly held organizations can transfer their ownership without interfering with the organizations management.

D. A family-operated business is an example of a publicly held business organization.

E. Publicly held organizations are free from all legal liabilities to its shareholders, which is the primary reason for this corporate form being used.

12__D__ Which of the following forms of organization requires no formal documentation but only business licenses for formation?

A. limited partnership

B. Corporation

C. limited Liability Company

D. sole proprietorship

E. S corporation

13--Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices?

A. the Federal Trade Commission (FTC)

B. the Equal Employment Opportunity Commission (EEOC)

C. the Consumer Product Safety Commission (CPSC)

D. the National Labor Relations Board (NLRB)

E. the Federal Reserve Board (FRB)

14--Which of the following is true of the Environmental Protection Agency (EPA)?

A. It protects the public against unreasonable risks of injury associated with consumer products.

B. It ensures all workers a safe and healthy work environment.

C. It administers all laws relating to water pollution, air pollution, solid wastes, pesticides, and toxic substances.

D. It administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs.

E. It regulates civil aviation to provide safe and efficient use of airspace.

15--The Securities and Exchange Commissions (SECs) adoption of rules and regulations relating to financial and other information furnished to the Commission comes under its ______ power.

A. quasi-judicial

B. federal

C. quasi-executive

D. quasi-legislative

E. bargaining

16 --Which of the following statements is true of an environmental impact statement (EIS)?

A. The National Environmental Policy Act requires federal agencies to follow the conclusions of the EIS.

B. An EIS can be in any language as long as it is clear and to the point.

C. An EIS is to be included in every recommendation or report on proposals for legislation and other major federal actions significantly affecting the quality of the human environment.

D. An EIS should include technical jargon to clearly explain all the points mentioned in the statement.

E. The EIS is usually a short list of points that hints at the pros of the economic profits that are outcomes of transactions concerning the human environment.