MGT 312-7101: Legal Framework Business

Quiz #4 Chapters 11 15 100% Score

Question 1
5 out of 5 points

A contract requires:
Selected
Answer:

both an offer and an acceptance.

Answers:

a.

d.

an offer.
b.

an agreement manifested by the written or spoken words of the parties.

c.

an acceptance.
d.

both an offer and an acceptance.

Question 2
5 out of 5 points

A contract under which one or both parties have not yet fully performed is termed a(n):
Selected Answer:

b.

executory contract.
Answers:

a.

void agreement.
b.

executory contract.
c.

executed contract.
d.

executive contract.

Question 3
5 out of 5 points

An executory contract is:

Selected Answer:

b.

entered into but not fully performed.

Answers:

a.

void if neither party has performed.

b.

entered into but not fully performed.

c.

One that has been completely performed.

d.

always unilateral in nature.

Question 4
5 out of 5 points

A contract is essentially an agreement that creates an obligation.

Selected Answer:
Answers:

True
True
False

Question 5
5 out of 5 points

A best efforts clause is always deemed too indefinite to be enforceable.

Selected Answer:
Answers:

False
True
False

Question 6
5 out of 5 points

A revocation of an offer is ordinarily effective after the offer has been accepted.
Selected Answer:
Answers:

False
True
False

Question 7
5 out of 5 points

An acceptance must be absolute and unconditional.

Selected Answer:
Answers:

True
True
False

Question 8
5 out of 5 points

If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable
goods or land.
Selected Answer:
Answers:

False
True
False

Question 9

5 out of 5 points

A contract made by an incompetent person after a guardian has been appointed is voidable.
Selected Answer:

False
True

Answers:

False

Question 10
5 out of 5 points

A minor cannot avoid a contract to purchase a car if the:

Selected Answer:

b.

minor is able to return the car but does not do so.

Answers:

a.

car is used for non-commercial purposes.

b.

minor is able to return the car but does not do so.

c.

car has been damaged.

d.

car has been destroyed.

Question 11
5 out of 5 points

At common law, a minor cannot be held contractually liable for his or her necessary medical expenses
when the parent is unable or unwilling to pay.
Selected Answer:

False
True

Answers:

False

Question 12
5 out of 5 points

Status incapacities against married women have largely disappeared.

Selected Answer:

True

Answers:

True
False

Question 13
5 out of 5 points

Examples of illusory promises include:

Selected Answer:

a.

apparent promises.
Answers:

a.

apparent promises.
b.

conditional obligations.
c.

real obligations.
d.

cancellation provisions.

Question 14
5 out of 5 points

Promissory estoppel does NOT require

Selected Answer:

d.

a signed writing explaining the promise.

Answers:

a.

a clear and definite promise

b.

that a promisee has justifiably relied on the promise

c.

that justice be better served by enforcement of a promise

d.

a signed writing explaining the promise.

Question 15
5 out of 5 points

Consideration is not required in:

Selected Answer:

c.

agreements to modify contracts for the sale of goods.

Answers:

a.

employment contracts.
b.

agreements to modify employment contracts.

c.

agreements to modify contracts for the sale of goods.

d.

contracts for the sale of goods.

Question 16
5 out of 5 points

A contract in which one party agrees to purchase goods from another contingent upon the purchaser's
ability to locate suitable financing is said to:

Selected Answer:

c.

contain a conditional promise.

Answers:

a.

contain a waiver.
b.

result from undue influence.

c.

contain a conditional promise.

d.

be illegal.

Question 17
5 out of 5 points

An agreement that calls for the commission of a civil wrong is illegal and void.
Selected Answer:
Answers:

True
True
False

Question 18
5 out of 5 points

An illegal provision in a contract:

Selected
Answer:
Answers:

d.

can be ignored by the parties in their performance of the remaining legal provisions
of the contract.
a.

causes the entire contract to be rescinded.

b.

causes the entire contract to be void.

c.

can be ignored by the parties, because an illegal provision in a contract is not

deemed substantial.
d.

can be ignored by the parties in their performance of the remaining legal provisions
of the contract.

Question 19
5 out of 5 points

Agreements not to compete are always void.

Selected Answer:
Answers:

False
True
False

Question 20

5 out of 5 points

If a contract can be interpreted in two ways, one legal and the other illegal, the court will assume that
the legal meaning was intended unless the contrary is clearly indicated.
Selected Answer:
Answers:

True
True
False