QUESTION 1

1.Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is:

a.

void.

b.

unenforceable.

c.

voidable.

d.

executed.

QUESTION 2

1.Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court inSteinberg v. Chicago Medical School:

a.

there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog.

b.

there is a quasi contract.

c.

there is not a contract.

d.

there is a voidable contract.

QUESTION 3

1.According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

a.

express contract.

b.

formal contract.

c.

sale.

d.

commercial contract.

QUESTION 4

1.The Uniform Commercial Code does not apply to:

a.

employment contracts.

b.

service contracts.

c.

insurance contracts.

d.

contracts involving real property.

e.

All of these.

QUESTION 5

1.Byron and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Byron waits until the time specified in the statute of limitations has passed, the contract is now:

a.

void.

b.

unenforceable.

c.

executory and enforceable.

d.

voidable.

QUESTION 6

1.Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:

a.

cannot enforce the contract since she had not actually started working at Northland.

b.

has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity.

c.

may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.

d.

has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making.

QUESTION 7

1.Express contracts and implied in fact contracts:

a.

are both genuine contracts.

b.

are equally enforceable.

c.

are not really contracts.

d.

Two of these are true.

QUESTION 8

1.Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

a.

the law of quasi contract.

b.

state common law.

c.

federal statute.

d.

Article 2 of the UCC.

QUESTION 9

1.Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able:

a.

and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

b.

has entered into an implied in fact contract with the hospital.

c.

will have to pay the hospital, because this is a quasi-contractual agreement.

d.

has entered into a unilateral contract with the hospital and therefore will have to pay the bill.

QUESTION 10

1.Contracts that are implied in law:

a.

are obligations imposed by law on grounds of justice and equity.

b.

are intended to prevent unjust enrichment.

c.

do not rest upon the assent of the contracting parties.

d.

All of these.

QUESTION 11

1.James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

a.

only when James gets the $3,000.

b.

when Brenda gets the money from the credit union.

c.

when Brenda applies for the loan at the credit union.

d.

when Brenda tells James she will buy the boat.

QUESTION 12

1.The court in theWeichert Co. Realtors v. Ryancase held that the performing party was entitled to recoup the reasonable value of the services rendered under:

a.

quantum meruit.

b.

an express contract.

c.

Article 2 of the UCC.

d.

promissory estoppel.

QUESTION 13

1.A change in contract law between the nineteenth and twentieth centuries was:

a.

a movement toward enforcement of promises only if there was strict compliance with basic contract requirements.

b.

increasing difficulty for parties to get out of a contract.

c.

an increase in technical requirements for contract formation.

d.

a relaxation of requirements of contract formation.

QUESTION 14

1.Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

a.

Hal's promise not to foreclose is unsupported by consideration.

b.

Hal's promise is noncontractual.

c.

Hal's promise may be enforced against him based upon the doctrine of promissory estoppel.

d.

All of these.

QUESTION 15

1.Which of the following is not generally required in order to have a valid contract?

a.

A lawful purpose.

b.

Parties who have contractual capacity.

c.

Fairness of the bargain.

d.

Mutual assent.

QUESTION 16

1.A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

a.

formal

b.

implied

c.

express

d.

written

QUESTION 17

1.In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

a.

The agreement must always be in writing.

b.

A legal remedy must be available for there to be a breach.

c.

There must be evidence of undue influence.

d.

There must be an absence of invalidating conduct.

QUESTION 18

1.Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

a.

An employment agreement.

b.

A sale of automobile insurance.

c.

The sale of a new car.

d.

The sale of a house.

QUESTION 19

1.The doctrine of promissory estoppel:

a.

is a doctrine enforcing noncontractual promises.

b.

includes as a requirement within the doctrine that there has been justifiable reliance on the promise.

c.

a doctrine relying on justice and not contractual rights.

d.

All of these

QUESTION 20

1.Possible remedies for a breach of contract include:

a.

compensatory damages.

b.

fines.

c.

incarceration.

d.

All of these.

e.

None of these.