Contract Law Test Questions

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What is the definition of a contract?

An agreement between two or more parties for the doing or not doing of something specified.

Describe the various types of contracts.

1) Bilateral and Unilateral
2) Express and Implied
3) Executory and Executed

What elements does a contract need to be enforceable?

1) Agreement
2) Legality
3) Consideration
4) Capacity

What elements would constitute a discharge of a contract?

1) Material breach
2) Minor breach
3) Anticipatory breach
4) Mutual Rescission
5) Accord/Satisfaction

What is a bilateral contract?

Both parties make a promise.

What is a unilateral contract?

One party make a promise that the other party can accept only by doing something. ex. I'll give you $10 to mow my lawn. If not mowed no $10.

What is an express contract?

Two parties state all important terms of their agreement.
ex. Where, when, how much, oral or written.

What is an implied contract?

Words and conduct of the parties indicate that they intended an agreement.

What is an executory contract?

When one or more parties have not fulfilled its obligations.

What is an executed contract?

When all parties have fulfilled their obligations?

If there is a breech of contact, what remedies are available?

Injuction - An order forcing someone to do something or refrain from doing something. Expectation Damages / Restitution - $ required to put on party in the position she would have been had the other side performed the contract. Specific Performance - In cases of rare property court ordered to complete the deal. Reformation - Court will rewrite contract.

Describe types of acceptable performace of a contract.

Strict Performance
Substantial Performance

What are the Sherman and Clayton Antitrust Acts?

Sherman Act of 1890 - first national law to regulate competition. Clayton Act of 1914 clarified the Sherman Act.

What are the key provisions of the Sherman and Clayton Antitrust Acts?

*Prohibits all agreements that will "restrain trade" (Sherman) *Bans "monopolies" (Sherman)
*Prohibits anticompetitive mergers (Clayton)
*Tying arrangements (Clayton)
*Exclusive dealings (Clayton)
*Bans price discrimination - illegal to charge different prices to different purchasers. (Robinson-Pattman Act 1936 an amendment to Clayton -)

Describe the variety of aggressive business actions that are illegal and violations of antitrust regulations.

Monopolization -possessing a monopoly is not illegal; using bad acts to acquire or maintain one is. Predatory Pricing - lowering prices below cost to drive competitors out. Tying Arrangements - selling products on the condition the buyer purchases a different (or tied) product. Contolling distributors or retailers (Retail price maintenance)

How is consumer credit regulated?

Through the Truth in Lending Act

What government regulations apply to consumer product safety?

*Federal food, drug, cosmetic act
*Food quality protection act

What is the role of the Environmental Protection Agency?

Monitor and protect the air, water and land polution. . .

What requirements were specified by the Federal Trade Commission Act of 1914?

Unfair or deceptive acts or practices.

What is the point at which a legal agreement is said to have occured?

intend to contract

List the types of breech of contracts.

Material Breach
Minor Breach
Anticipatory Breach
Mutual Rescission

What is an express warranty?

Seller creates with words or actions that goods meet certain standards.

Created three ways:
Affirmation of a fact or promise, Description of the goods, or sample or model.

What is an implied warranty?

Created by UCC code itself, not by an act or statement of the seller.

What is a disclaimer?

A statement that a particular warranty does not apply.

What are the limitations on remedies for breach of warranty and product liability?

Limitation of Remedy Clause...
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