QUESTION 39 Lacrisha offers to service Margi's home alarm system for one year for $500. Under the mirror image rule, Margi's response will be an acceptance if the terms of the acceptance 0 a. change both the price and the items offered. 0 b. exactly mirror those of the offer. O C. change the items offered, but do not change the price. Q d. change the price, but do not change the items offered. QUESTION 40 If an offeree rejects an initial offer and makes a new offer at the same time then he has made a counteroffer. 0 True 0 False QUESTION 35 Robert has been declared mentally incompetent by a court and Isabelle has been appointed as his guardian. Two weeks later, without telling Isabe 1, knowledge, Robert signs a contract to sell his home to Javier for its real market value. The contract is O a. enforceable if Robert knew the market value of the home. b. void. 0 C. enforceable if Robert comprehended the consequences. 0 d. enforceable if Robert was the owner of the home in the ofcial town records. QUESTION 36 Walter begins pouring cement for a driveway on Mark's property under a contract between the parties. Halfway through the job, Walter asks for $3,000 more over the contract price, arguing that the price of cement has increased. Mark agrees but later refuses to pay. His promise to pay the extra money will likely be 0 a. unenforceable because it is illegal. O b. enforceable because Mark bears the risk if the price of cement increases. 0 C. enforceable because $3,000 is not so much money. 0 d. unenforceable because Walter's performance was a preexisting duty under the contract. Q U E STI O N 33 A covenant not to compete is enforceable even if it is unreasonable in duration and geographic area. O True 0 False QUESTION 34 Byron buys a subscription to Music Mania, an online music vendor. Before accessing the list of songs, Byron must check a box agreeing to not make and sell copies of the music. This provision is O a. a partnering agreement. 0 b. a click-on agreement. 0 C. an illusory agreement. 0 d. an illegal agreement. QUESTION 31 Adequate price is a required element of a valid contract. 0 True O False QUESTION 32 Amusement Park Central requires its guests to sign a form that includes a clause releasing Amusement Park Central from liability in the event of monetary or physical injury no matter who is at fault. Charlie signs a form that contains the clause when he arrived at the Park as a guest. This is O a. an adhesion contract; 0 b. an exculpatory clause. 0 C. an illusory promise. Q d. a covenant not to compete. QUESTION 29 Reggie offers to repair and service an elevator for Dolly's Department Store, but Reggie dies before Dolly's accepts. Most likely, Reggie's death O a. terminates the offer. O b. shortens the time of the offer but does not terminate it. Q C. extends the time of the offer. 0 d. does not affect the offer. QUESTION 30 The Gossip Galore Web site asks followers to \"send us your gossip and we might share it with the world.\" Pat submits a story about a celebrity and writes= \"I accept your offer.\" Gossip Galore and Pat have O a. a contract to consider Pat's story before any others. O b. a contract for the publication of Pat's story. 0 C. a contract to negotiate for the publication of Pat's story. 0 d. no contract. QUESTION 27 Beatrice sells Beatrice's Bakery to Delila. In the contract of sale, there is a covenant not to compete that prohibits Beatrice from opening another Bakery within 600 miles. If a court concludes that this restriction is unreasonable, it will most likely O a. reform the covenant to a reasonable distance. 0 b. award Betty damages equal to the speculative prot of a closer store. 0 C. prohibit both parties from opening bakeries. Q d. order Diane to stop doing business. QUESTION 28 Pioneer Technologies, Inc. asks Lawrence, its employee, to sign a covenant not to compete with his employer. The covenant is enforceable if it Q a. is reasonable with respect to geographic area and duration. 0 b. relieves the employer from liability for any injury to Lawrence . O C. does not require either party to obtain a business license. 0 d. none of the choices. QUESTION 25 Farida and Gaston agree to hijack a truck carrying a shipment of diamonds. If Farida later refuses to go through with the crime, Gaston can O a. none of the choices. O b. obtain damages in the amount of his partner's share of the illegal profits. O C. obtain damages in the amount of his own share of the illegal profits. O d. enforce the agreement. QUESTION 26 Mandy is the sheriff of Notreal, Texas. Oliver robs a gas station in Notreal and a $500 reward is offered for anyone who turns him in. If Mandy finds and arrests Oliver, with respect to the reward, she can O a. collect it. O b. not collect it because she had a preexisting duty to capture Oliver. O C. not collect it because it would be unconscionable. O d. not collect it because it is not legally sufficient consideration.QUESTION 23 A promise by one person to pay another person to refrain from an action that she has a legal right to do is valuable consideratin O True 0 False Q u ESTION 24 Charlene is a minor who signs a contract with Debra= an adult. The contract is voidable only by O a. Charlene only. 0 b. either party. 0 C. Debra only. 0 d. neither party. QUESTION 21 Ted claims that Adele breached their contract for tutoring. Adele responds that she never intended to enter into a contract with Ted. Rules of contract interpretation require the intent to enter into a contract be determined by O a. the personal theory of contracts. 0 b. the objective theory of contracts. 0 C. the intentional theory of contracts. 0 d.the subjective theory of contracts. QUESTION 22 Frida and Wedding World, Corp. enter into a contract for the use of a mansion and its grounds for a wedding. If ambiguities appear in the contract, they will be construed against the party who 0 a. drafted the contract. 0 b. made the offer to contract. 0 C. offers the most confusing explanation of the terms. 0 d.has the greater bargaining power. QUESTION 19 Marco promises to pay his personal chef Davida $60,000 in consideration of the services she provided over the years but Marco never makes the payment. Marco's promise is O a. enforceable to the extent of what Davida's services were actually worth. 0 b. not enforceable because the failure to pay is an unforeseen difculty. O C. not enforceable because the consideration is in the past. 0 d. enforceable for the entire $60,000. QUESTION 20 Minors have an unlimited amount of time after the minor reaches the age of majority to disaffn'm a contract. 0 True 0 False QUESTION 17 If Betty asks Juanita "Do you want to hire me to fix your roof?", this is O a. not a valid offer because the terms are not definite. O b. not a valid offer because Betty did not express an intent. O c. not a valid offer because Juanita did not respond. O d. a valid offer. QUESTION 18 As soon as promises are exchanged a bilateral contract comes into existence O True O FalseQUESTION 15 \"I plan to sell my ipad one day is a valid offer. 0 True O False QUESTION 16 Geula tells Freddy that she will pay him $80 once he removes the trimmed tree limbs and leaves from her property. Freddy's acceptance is complete O a. only after he hauls away the debris. O b. as soon as he says he will do the job. 0 C. when he hears the offer. 0 d. once he starts to work. \\ In contract law, \"agreement \" refers to the time that a party takes to decide if a deal is fair. 0 True 0 False QUESTION 13 If Chevon posts sign in front of her house that reads "House for Sale" this is a valid offer. 0 True 0 False QUESTION 14 An acceptance that materially changes the terms of the original offer will be valid if the offeree was serious. 0 True 0 False QUESTION 10 Plumbers Palace, Inc. offers Geraldine a job as a plumber without any time for acceptance specified in the offer. The offer will terminate O a. after a reasonable period. O b. never. O c. after a month (thirty calendar days). O d. after a work week (five business days). QUESTION 11 LouAnn enters into a contract to sell her motorcycle to Marni. Marnie takes possession of the motorcycle when she is 16 years old and continues to use it for five more years, well after reaching the age of majority. She has O a. impliedly ratified the contract. O b. expressly disaffirmed the contract. O c. expressly ratified the contract. O d. impliedly disaffirmed the contract.QUESTION 8 If Chad approaches Felicia and agrees to pay her $40,000 not to open a competing restaurant near Chad's Cafe, this agreement will likely be 0 a. enforceable since $40,000 is a lot of money. O b. unenforceable because it is against the law. 0 C. unenforceable because it is against public policy. 0 d. enforceable because opening up a store is an action that Felicia has the legal right to do. QUESTION 9 When two parties break off their wedding engagement, under new York law the ring 0 a. must be returned to the giver of the ring because it was a conditional gift. 0 b.remains with the receiver of the ring because it was a conditional gift. 0 c. is considered an unconditional gift. Q d. must be sold. QUESTION 6 Nancy negotiates a deal for the sale of a factory to Orville. Nancy promises Orville she won't revoke the offer for one month in return for a small payment.This is an example of O a. an agreement to agree. 0 b. an option contract. O C. an invitation to negotiate. Q d. the mirror image rule. QUESTION 7 When Brianna tries to start her new car and the motor stalls, she gets out of her car and screams that she will sell the car to anyone for $10. Nelly= a passerby who owns Nelly's Used Cars, hands Brianna $10. This is O a. a valid acceptance because Nelly is a professional dealer. 0 b. a valid acceptance because Brianna is seriously frustrated. O C. not a valid acceptance because Nelly is only passing by. Q d. not a valid acceptance because Brianna does not seriously intend to sell. QUESTION 4 If parties fully perform a contract it is called an executory contract. 0 True False QUESTION 5 If the terms of a contract are fully and explicitly stated in words, this is an express contract. True O False QUESTION 2 A contract is not valid unless both of the parties entering into it have the capacity to do so. 0 True 0 False QUESTION 3 Dolla's Aunt Ida tells Dolla, \"If I feel you deserve it on that day, I will give you a new car on the day you graduate from college.\" This promise O a. is illusory. O b. consists of a preexisting duty. O C. relies on forbearance. Q d. is enforceable. QUESTION 38 Sailor Sam offers a tour of the local seaport to Tom's Tourists, Inc. for $600. When Tom tells Sam he will pay no more than $400." Sam's offer is O a. still open. O b. rejected and subject to a counteroffer. O c. revoked. O d. accepted