Business Law

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In the case in the text where someone purchased a used safe at an auction for $50, but was later found by the buyers to contain more than $30,000 in cash, how did the court rule?
a. There was no contract because the buyer was unjustly enriched. b. There was no contract because the act of opening the safe was not completed before the buyers took the safe.
c. This was an implied-in-fact contract and the buyers were required to pay the fair value for the safe and its contents.
d. There was objective intent that the parties intended that the safe, and whatever might be in it, be sold for a price of $50.
D [moderate p. 196]
56. The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it, is known as:

a. Quasi-contract.
b. Pseudo-contract.
c. Unjust-contract.
d. Unilateral-contract.
A [easy p. 197]
57. Which of the following are two terms for concept or situation? a. Implied-in-law contract and implied-in-fact contract.
b. Implied-in-law contract and quasi-contract.
c. Implied-in-fact contract and quasi-contract.
d. Unilateral contract and informal contract.
e. Formal contract and implied-in-law contract.
B [moderate p. 197]
58. Which of the following is needed to impose a quasi-contract? a. A benefit having been conferred and injustice if the benefit were not paid for. b. Actions implying a contract and an agreement as to the price. c. A promise asking for action and the requested action having been completed. d. A benefit having been conferred and objective intent that it be conferred. A [moderate p. 197]

59. What is the distinguishing characteristic that makes a contract a formal contract? a. A signature by both parties.
b. The contract being in writing.
c. A legal requirement that the contract be in a specific form. d. All possible scenarios are addressed in the contract terms. C [easy p. 198]
60. Which of the following is not a formal contract?
a. Contract under seal.
b. Recognizance.
c. Negotiable instrument.
d. Letter of credit.
e. New car purchase contract.
E [moderate p. 198]
61. Which of the following is true regarding contract validity? 128
a. A void contract is one where a party has the option to avoid his/her contractual liability.
b. A voidable contract is one in which a party may avoid his/her obligation under that contract.
c. A voidable contract is one that has no legal effect because one of the essential elements is missing.
d. An executory contract is also unenforceable.
e. A unilateral contract is unenforceable.
B [difficult p. 198]
62. Over time, most contracts are:
a. executory at one time and executed at another time.
b. bilateral at one time and unilateral at another time.
c. valid at one time and void at another time.
d. implied at one time and express at another time.
A [difficult pp. 198-200]
Classifications of Contracts
63. Otto approaches Edie and says, “If you pick up my new suit for me at the mall tomorrow, I’ll pay you $20.” Edie replies, “I don’t know if I’ll have time to get it, but I’ll see if I get a chance.” As a result of this conversation:

a. Otto and Edie have formed a bilateral contract.
b. Edie has a legal obligation to use her best efforts to pick up the suit. c. A contract will be formed only if Edie picks up the suit. d. The contract which they have formed is voidable because Edie did not obligate herself.

C [moderate p. 194]
64. Jean says to Joan, “If you’ll promise to feed my dog each day while I am out of town next week, I’ll pay you $100.” Joan replies, “I’ll absolutely do that, I hope you have a nice trip.” Joan then feeds the dog, after which Jean paid her. At what point did a contract come into existence?

a. When Jean made the offer to Joan.
b. When Joan said that she would feed Jean’s dog.
c. When Joan started feeding Jean’s dog.
d. When Joan...
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