TB11e 10

Chapter 10

Contracts

TEST BANK

1. The ______________ evolved in commerce over the centuries.
a. law of contracts
b. law of commerce
c. law of trade
d. law of documents
e. law of freedom

ANSWER: a (page 262)

National: AACSB Analytic; Communication; AICPA BB-Legal

2. The ______________ evolved in commerce over the centuries.
a. law of invention
b. law of commerce
c. law of trade
d. law of documents
e. none of the other choices are correct

ANSWER: e (page 262)

National: AACSB Analytic; Communication; AICPA BB-Legal

3. The ________________ means that there are also responsibilities imposed on parties who commit to binding relationships in contracts. a. freedom of speech b. freedom of contract c. freedom of sales d. freedom of economics e. freedom of torts

ANSWER: b (page 262)

National: AACSB Analytic; Communication; AICPA BB-Legal

4. The ________________ means that there are also responsibilities imposed on parties who commit to binding relationships in contracts. a. freedom of speech b. freedom of torts c. freedom of sales d. freedom of economics e. none of the other choices are correct

ANSWER: e (page 262)

National: AACSB Analytic; AICPA BB-Legal

5. The freedom of contract is:
a. a hallmark of the law of contracts
b. a minor part of the law of contracts
c. not binding in most states
d. only relevant in cases involving easements
e. restricted by the Constitution

ANSWER: a (page 262)

National: AACSB Analytic; AICPA BB-Legal

6. The freedom of contract is:
a. restricted by the Constitution
b. a minor part of the law of contracts
c. not binding in most states
d. only relevant in cases involving easements
e. none of the other choices are correct

ANSWER: e (page 262)

National: AACSB Analytic; AICPA BB-Legal

7. The freedom of contract is a hallmark of:
a. the law of torts
b. the law of economics
c. administrative law
d. the law of contracts
e. the law of sales

ANSWER: d (page 262)

National: AACSB Analytic; AICPA