Business Law MCQ Exam: Quiz!

40 Questions | Total Attempts: 239

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Business Law MCQ Exam: Quiz!

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Questions and Answers
  • 1. 
    If a contract requires the occurrence of an event before a party is obligated to perform a contractual duty, this is a condition.
    • A. 

      Precedent

    • B. 

      Subsequent

    • C. 

      Conclusive

    • D. 

      None of the foregoing

  • 2. 
    Jack and Jill were discussing business over lunch when they agreed on the sale of some goods. Because neither of them had any paper handy, Jack wrote the following on a napkin: "Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1, 2011, at a cost of $10,000, payable on delivery." Jill and Jack both signed the napkin. Jack delivered the widgets per the contact, but Jill refuses to pay for them. IF Jack sues Jill for the price of the goods, the most likely result is which of the following?
    • A. 

      Jill will win because this writing is not sufficient under the Statute of Frauds.

    • B. 

      Jack will win because the writing is sufficient under the Statute of Frauds.

    • C. 

      Jill will win because this is a formal contract.

    • D. 

      Jack will win because the Statute of Frauds does not apply to this situation.

  • 3. 
    An oral contract for the sale of land is...
    • A. 

      Void

    • B. 

      Enforceable

    • C. 

      Voidable

    • D. 

      Unenforceable

    • E. 

      Implied

  • 4. 
    When a client accepts the services of an accountant without an agreement concerning payment, the result is...
    • A. 

      An implied-in-fact contract

    • B. 

      An implied-in-law contract

    • C. 

      An express contract

    • D. 

      No contract

  • 5. 
    CitiBank makes a mistake at an auction which costs the CitiBank $350,000. After the final bis is accepted and the hammer has fallen, CitiBank realizes its mistake. CitiBank tries to overturn the final bid in a lawsuit.
    • A. 

      CitiBank wins because the mistake is so serious that enforcing the bid would be unconscionable.

    • B. 

      CitiBank wins because it would be unjust to allow the winning bit to benefit the high bidder by $350,000.

    • C. 

      CitiBank loses because of the legal theory of Bilateral Mistake.

    • D. 

      CitiBank loses because it made a Unilateral Mistake.

  • 6. 
    Which of the following statements concerning the effectiveness of an offeree's rejections and an offeror's revocation of an offer are ordinarily true?
    • A. 

      An Offeree's Rejection is Effective When: Received by the offeror An Offeror's Renovation is Effective When: Sent by the offeror

    • B. 

      An Offeree's Rejection is Effective When: Sent by the offeree An Offeror's Renovation is Effective When: Received by the offeree

    • C. 

      An Offeree's Rejection is Effective When: Sent by the offeree An Offeror's Renovation is Effective When: Sent by the offeror

    • D. 

      An Offeree's Rejection is Effective When: Received by the offeror An Offeror's Renovation is Effective When: Received by the offeree

  • 7. 
    Jenna saw a vase in a store. A tag on the vase said, "Genuine Crystal, $125." Jenna said to Owen, the owner of the store, "I'll buy this vase for $125." Owen refused to sell the vase to Jenna. In a lawsuit brought by Jenna against Owen,
    • A. 

      Jenna wins because a contract was formed when she said she would buy the vase.

    • B. 

      Jenna wins because the vase was unique.

    • C. 

      Owen wins because he rejected Jenna's offer.

    • D. 

      Owen wins because the contract was not written.

  • 8. 
    Generally, Consideration must be:
    • A. 

      Of "Legally Sufficient Value"

    • B. 

      A "Bargained-for-Exchange"

    • C. 

      Of "Cash Money" only

    • D. 

      All of the above

    • E. 

      A and B only

  • 9. 
    Alpha Nu Theta verbally orders $3,500 of screen printed t-shrits for their famous ANT Race contest from "Printin' On Tees." Once the t-shirts are ready, Alpha Nu Theta refused to complete the purchase saying that since they didn't sign a purchase order, they aren't required to complete their end of the bargain. If they are sued for Breach of Contract, Alpha Nu Theta...
    • A. 

      Wins, since the Statute of Frauds requires all commercial contracts to be in writing

    • B. 

      Wins, since the Statute of Frauds requires that all contracts for the sale of goods over $500 be in writing

    • C. 

      Loses since there is no fraud involved in this transaction

    • D. 

      Loses since they ordered specially manufactured goods which were of no real value to anyone else

    • E. 

      Loses since "Printin' On Tees" should have realized the Humane Society wouldn't allow ANT racing by drunk college student

  • 10. 
    An award of ______ performance orders the breaching party to perform the acts promised in a contract.
    • A. 

      Specific

    • B. 

      Substantial

    • C. 

      Sequestered

    • D. 

      Salient

  • 11. 
    Sara and Jesse are getting married. They discuss and orally agree on the disposition of all property in the event that the marriage is not successful. During divorce proceedings, Jesse states that the couple had an agreement as to the disposition of property. Is the agreement enforceable?
    • A. 

      Yes; it was an agreement made in contemplation of marriage.

    • B. 

      No, the agreement was not in writing.

    • C. 

      Yes, so long as the terms were reasonably specific or ascertainable

    • D. 

      No; the agreement is contrary to public policy.

  • 12. 
    The City announces a plan to build a multimillion dollar tennis center on Richland Road. Adjacent land values skyrocket. A local developer pays a premium price for an adjacent parcel of land. The City decides not to build the tennis center. The adjacent land values plummet, costing the local developer a million dollars. He sues the City for costing him a million dollars. The developer...
    • A. 

      Wins his lawsuit against the City because the City's actions were negligent

    • B. 

      Wins his lawsuit against the City because he relied on the City's publicly announced plan to build the Tennis Center

    • C. 

      Loses the lawsuit against he City because he was an incidental beneficiary of the City's plan to build the Tennis Center

    • D. 

      Loses the lawsuit against the City because "detrimental reliance" doesn't apply to public contracts

  • 13. 
    You contract to rent a room at the inn for two months while you are in summer school. You drop out after the first day when you find out Mr. Cochran is going to be the professor. you get another person to take your place on the contract and fulfill your obligations under the contact with the full agreement of all parties. This is...
    • A. 

      Promissory estoppel

    • B. 

      Part performance

    • C. 

      A novation

    • D. 

      A jurat of acknowledgement

    • E. 

      Como esta usted

  • 14. 
    You contract with the Outhouse Mice to perform three sets at your spring formal for $10,000. Other than the fact that they were drunk and sick and your formal, their sets were only 15 minutes long each. They want full payment; you don't want to pay them anything. you both eventually agree that they will be paid $1,000, mostly because they were the funniest drunk and sick people anyone had ever seen. This compromise would...
    • A. 

      Not be enforceable because the contract was ambiguous

    • B. 

      Not be enforceable because the rock stars are supposed to only look drunk, not be drunk

    • C. 

      Be enforceable because this was a unilateral mistake

    • D. 

      Be enforceable because this was an Accord

  • 15. 
    A _________ is a person who agrees to pay a debt if the primary debtor does not.
    • A. 

      Creditor

    • B. 

      Mortgagor

    • C. 

      Borrower

    • D. 

      Guarantor

  • 16. 
    According to Mr. Cochran, courts do not enforce "gift" contracts because...
    • A. 

      For almost a thousand years courts have not enforced such contracts

    • B. 

      "Gift" contracts tend to have a dramatic economic effect on the economy

    • C. 

      A person's word is their bond

    • D. 

      "Gift" contracts don't help the economy; they are merely a transfer of wealth

  • 17. 
    Squeegie, 17 years old, buys a car for $20,000 cash from Fast Eddie's Used Cars. A week later Squeegie is stopped at a red light when he is rear-ended by Wingnut. Squeegie has the wrecked the car, now worth $200, towed back to Fast Eddie's. Squeedie will...
    • A. 

      Be able to disaffirm the contract and get his $20,000 back since he was a minor and returned the wrecked car

    • B. 

      Be able to disaffirm the contract but only get $200 back

    • C. 

      Won't be able to disaffirm his contract since his conduct was wanton

    • D. 

      Will win a lawsuit against Fast Eddie for dealing with a minor

  • 18. 
    Big High Drug Store contract to hire Anna Sue as a pharmacist upon graduation in May, but she muse receive her Pharmacist's license by the next December. This contract contains a(n)...
    • A. 

      Covenant

    • B. 

      Condition subsequent

    • C. 

      Condition precedent

    • D. 

      Implied condition

  • 19. 
    Inferior performance is...
    • A. 

      The same as no performance at all

    • B. 

      Simply less than average performance

    • C. 

      Performance which is almost complete

    • D. 

      None of the above

  • 20. 
    An email contract is...
    • A. 

      Void

    • B. 

      Voidable

    • C. 

      A violation of the Statute of Frauds

    • D. 

      Valid and enforceable, assuming all the elements of a contract are present

  • 21. 
    The Parol Evidence Rule generally prevents Leroy from introducing evidence in court of oral agreements which conflict with the terms on the valid written contract he has with Tater.
    • A. 

      True

    • B. 

      False

  • 22. 
    An "Assignment of All Rights" under a contract means an assignment of the rights and a delegation of the duties under a contract.
    • A. 

      True

    • B. 

      False

  • 23. 
    Courts generally consider the adequacy of consideration in a contract
    • A. 

      True

    • B. 

      False

  • 24. 
    Fraud on the part of one party allows the other party to rescind a contract
    • A. 

      True

    • B. 

      False

  • 25. 
    A gift promise is unenforceable by the courts because there isn't adequate consideration.
    • A. 

      True

    • B. 

      False

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