Enforceable Contract - Introduction of Business Law - Past Exam, Exams of Commercial Law

Download Enforceable Contract - Introduction of Business Law - Past Exam and more Exams Commercial Law in PDF only on Docsity! Business Law 201, Fall 2001 MWF Class Professor Steven L. Isler True/False Indicate whether the sentence or statement is true or false. ____ 1. Parties who have contractual capacity may form an enforceable contract. ____ 2. Three elements-agreement, consideration, and contractual capacity-are sufficient to form a binding contract. ____ 3. Offers may not be revoked before they are accepted. ____ 4. Implied-in-fact contracts differ from express contracts in that the words of the parties, rather than their conduct, reveal that they intended to form a contract that creates and defines the terms of the contract. ____ 5. A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it. ____ 6. Strict liability is liability without fault. ____ 7. A finding by a court that a defendant committed a tort will sometimes result in a prison sentence. ____ 8. A battery occurs only if the victim suffers actual physical harm. ____ 9. Store owners do not have the authority to detain customers under any circumstances. ____ 10. Normally, fraud can occur only when there is reliance on a statement of fact. ____ 11. State police powers relate solely to criminal law enforcement. ____ 12. If a tax passed by Congress bears a reasonable relationship to revenue production, it is within the national taxing power. ____ 13. Contract law assures the parties to private agreements that the promises they make will be enforceable. ____ 14. The common law governs all contracts without exception. ____ 15. A promisee is a person who makes a promise. ____ 16. A contract can be created only when an offer is accepted by the offeree's performance. ____ 17. An offer to make a bilateral contract is accepted by a promise to perform. ____ 18. A unilateral contract is formed when the one receiving the offer completes the requested act or performance. ____ 19. Quasi contracts do not arise from a mutual agreement by the parties but are imposed by courts to avoid unjustly enriching a party at the expense of another. ____ 20. An executed contract is one that has not yet been fully performed. ____ 21. The doctrine of strict liability applies only to abnormally dangerous activities. ____ 22. The doctrine of strict liability applies only in the area of product liability. ____ 23. One of the elements of a product liability suit based on strict liability is a failure to exercise a reasonable degree of care. ____ 24. Comparative negligence and assumption of risk are two defenses that may be raised by a product manufacturer being sued for negligence. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 25. Agatha promises to pay Betty, her niece, $5,000 if she will quit her job and concentrate solely on her college education. Betty quits her job and eventually completes her education. Agatha is a. not required to pay because the promise induced conduct that ultimately benefited Betty. b. not required to pay because Betty had indicated that she was considering attending college. c. required to pay because Betty's relied on Agatha's promise and completed her education. d. required to pay because Betty incurred many significant costs while attending college. ____ 26. Oscar offers Edward $100 for his $500 leather coat. Edward knowingly and voluntarily agrees to the offer. A court would probably a. set aside the agreement as being unfair. b. set aside the agreement because the consideration is inadequate. c. not question the adequacy of the consideration. d. consider such a suit to be frivolous. Fact Pattern 12-1 Ned Contractors, Inc., begins construction of a mall for Van Development Corporation and after six months demands an extra $100,000. Van agrees to pay. ____ 27. Refer to Fact Pattern 12-1. Imagine that Ned offered no reason for the extra $100,000, but said only that it would stop working if Van did not agree to pay. The agreement is a. enforceable because the parties executed an accord and satisfaction. b. enforceable because of the unforeseen difficulties. c. unenforceable due to the preexisting duty rule. d. both a and b. ____ 28. Refer to Fact Pattern 12-1. Imagine that Ned explained, as a reason for the extra $100,000, that unforeseen soil and rock conditions would add considerable costs to the project. The agreement is a. enforceable because the parties executed an accord and satisfaction. b. enforceable because of the unforeseen difficulties. c. unenforceable due to the preexisting duty rule. d. both a and b. ____ 29. Refer to Fact Pattern 12-1. Imagine that Ned explained, as a reason for the extra $100,000, that ordinary business expenses had increased. The agreement is a. enforceable because the parties executed an accord and satisfaction. b. enforceable because of the unforeseen difficulties. c. unenforceable due to the preexisting duty rule. d. both a and b. ____ 30. Jane promises to pay her secretary $1,000 in consideration of the services the secretary provided over the years. Jane later reneges on the promise. Jane is a. liable for payment of the $1,000. b. liable only if the promise was written. c. not liable because the consideration is in the past. d. not liable because the consideration is accidental. ____ 31. Arnold is in an automobile accident caused by Roberta's negligence. He accepts her offer to pay him $1,000 and agrees to release her from any further liability. Later, he discovers that his injuries are worse than he had suspected. Arnold's acceptance of Roberta's offer will a. enable him to sue Roberta to recover for the other injuries. b. enable him to sue Roberta to recover for the other injuries only if Roberta carries adequate insurance. c. not allow him to sue Roberta. c. slander. d. none of the above. ____ 48. John carelessly bumps into Sally, knocking her to the ground. John has committed the tort of negligence a. only if Sally is injured. b. only if Sally is not injured. c. whether or not Sally is injured. d. under no circumstances. ____ 49. Bob is injured in a car accident and files a suit against Mary, whom Bob alleges was driving negligently. Mary claims that Bob was driving more carelessly than she was. Comparative negligence in tort cases may reduce a plaintiff's recovery a. only if the plaintiff was more at fault than the defendant. b. only if the plaintiff and defendant were equally at fault. c. only if the plaintiff was less at fault than the defendant. d. even if the plaintiff was only a small fraction at fault. ____ 50. Which legislative body can pass a law that conflicts with the Constitution? a. Congress b. Any state legislature but not Congress c. Any state legislature and Congress d. None of the above Business Law 201, Fall 2001 MWF Class Professor Steven L. Isler Answer Section TRUE/FALSE 1. T 2. F 3. F 4. F 5. T 6. T 7. F 8. F 9. F 10. T 11. F 12. T 13. T 14. F 15. F 16. F 17. T 18. T 19. T 20. F 21. F 22. F 23. F 24. T MULTIPLE CHOICE 25. C 26. C 27. C 28. B 29. C 30. C 31. C 32. A 33. B 34. B 35. A 36. A 37. B 38. C 39. A 40. C 41. B 42. A 43. B 44. D 45. C 46. D 47. D 48. A 49. D 50. D