Question 15

Josiah is a huge fan of Justin Bieber. He pays him $140.00 to purchase his hair clippings from a recent haircut. Which statement is correct according to contract law?

Group of answer choices

Under the theory of freedom to contract, the courts will support the agreement if it is in writing.

Josiah's agreement will be evaluated by the courts to determine if it was wise before courts will enforce it.

Under the theory of freedom to contract, the courts will support the rights of the individual to contract and not interfere.

Under the theory of good faith and fair dealings, the court will support the agreement as long as they determine that Justin Bieber did not take advantage of Josiah.

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Question 16

In the United States, the law presumes that every contract is entered into with

Group of answer choices

Reasonableness

Wisdom

Equal Benefit

Good faith

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Question 17

A promise that can be accepted only by the performance of the person to whom it is offered is an example of a unilateral contract.

Group of answer choices

True

False

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Question 18

A contract that lacks one or more of the basic required elements of a contract or that has not been formed in conformance with the law from the outset of the agreement is considered

Group of answer choices

Voidable

enforceable

Void

valid

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Question 19

Consideration, an element of contractformation, requires that both parties

Group of answer choices

Enter into the agreement in good-faith.

Do not act against public policy.

Exchange something of legal value.

Think about the terms of the contract.

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Question 20

In 1971 Poorwa offered to sell her new Ford Mustang to Tom for $2000.00. Tom asked to think about her offer and get back to Poorwa. 40 years later, Tom realizes Poorwa still has the Mustang that is now worth $121,000.00. He calls up Poorwa and says that he has finally had time to think about it and he now accepts Poorwa's offer from 1971 to buy the Mustang at $2000.00. Which statement below is correct?

Group of answer choices

Since Poorwa allowed Tom to think about it, the offer remained open until Tom notified her of his decision.

Since the facts do not indicate that Poorwa ever formally revoked the offer, it remained open and Tom's acceptance created mutual assent.

The offer terminated after a reasonable amount of time had lapsed.

All offers under the Uniform Commercial Code automatically terminate after 10 years.

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Question 21

Stahlhut Corporation's human resource department sends a letter to Nancy stating the following: "We want you to work for us as a sales representative effective July 15 at an annual salary of $45,000.00. Please sign this document and return it in the self-addressed stamped envelope." Nancy signs the document and drops it in the mail. Nancy is

Group of answer choices

The buyer

The contractor

The offeror

The offeree

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Question 22

The age when someone possesses capacity to contract is 21 years.

Group of answer choices

True

False

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Question 23

Capacity is the ability to make reasoned wise decisions when contracting.

Group of answer choices

True

False

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Question 24

Once a minor reaches majority, if that person continues with the terms of the contract they have __________ the contract.

Group of answer choices

ratified

renegotiated

affirmed

rescinded

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Question 25

Cliff sells a calculator to Lydia. He states he has only used it for his geometry class which was a lie because he never took geometry. He used it in his basic math class. Since Cliff lied to Lydia, most likely would Lydia be successful in asserting the defense of misrepresentation to get out of the contract?

Group of answer choices

No as most likely the court will rule his lie was unintentional.

No, unless the court determines his lie about the class in which he used the calculator was a lie about a material fact.

Yes if Cliff lied about any fact during the negotiation process.

Yes if he intentionally lied.

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Question 26

Parker runs Auto Oil Change. His arch enemy Stella comes into his business to get her oil changed. Parker intentionally lies when he tells Stella that he refilled her oil, when he actually left it empty. As a result, when Stella drives away her engine block freezes up and destroys her engine. Accordingly, which statement below is true about which damages she may recover because of Parker's fraudulent actions?

Group of answer choices

None, since there was no genuine assent no contract exists and therefore she cannot recover any damages.

Only out of pocket costs for the lost oil.

Pain and suffering as the courts want to discourage this unethical conduct and the emotional stress it would cause.

Consequential damages because intentional lies allow an injured party to request them.