Fin 280 - Bus Law Exam 1 (ch 11-15)

  1. The Uniform Commercial Code governs all contracts involving business. T/F
    False
  2. To determine whether a contract has been formed, a court is more interested in hearing about the objective facts surrounding the formation of the contract, rather than hearing what the parties claim they intended when they had entered a contract. T/F
    True
  3. Common law is law made through court decisions rather than by a legislature. T/F
    True
  4. Which of the following is/are requirements of a valid contract?




    E) All of the above
  5. Every contract involves at least two parties
    True
  6. Bob offers to buy Linda's used Finance textbook for $30.00 and says that he will pay her on Friday when he gets his paycheck. Linda says that she accepts his offer of $30 and says that she will bring the textbook over to Bob's apt. Friday evening & pick up the payment. Bob & Linda have entered what kind of contract? 



    B) A bilateral contract
  7. Bob & Linda's book buying ex. illustrate an "executory" contract rather than an "executed" contract. T/F
    True
  8. In an implied contract, the terms are fully and explicitly stated in words. T/F
    False
  9. Which of the following sentences in correct: 
    a) The corporation failed to pay it's annual registration fee.
    b) The corporation failed to pay its annual registration fee.
    b) The corporation failed to pay its annual registration fee
  10. In his TED talk, Mark Cutts encourages everyone to try something new for: 



    D) 30 days
  11. If a contract is ambiguous, a court can consider extrinsic evidence. T/F
    True
  12. A contract is ambiguous if the parties to the contract disagree about what the contract means. T/F
    False
  13. The doctrine of quasi contract generally can only be used when there is not an actual contract that covers the matter in controversy. T/F
    True
  14. The term "consideration" refers to the legality of the subject matter of the contract. T/F
    False
  15. Dan & Debra negotiate a deal where Dan will steal property from his employer & Debra will sell the property on Ebay and split the proceeds with him. The contract is: 



    A) void
  16. "Quantum meruit" is often used as a remedy by a court to avoid unjust enrichment to a party of an implied contract T/F
    True
  17. Mike is 16 years old, a minor in IL, and enters a contract to purchase his neighbor Stan's car for $1,000. Which of the following applies to this contract?


    A) Mike can enforce the contract against Stan if Stan refuses to sell the car
  18. One rule of contract interpretation says that ambiguous terms in a contract should be construed against the party who drafted the contract. T/F
    True
  19. Which of the following is given the most weight by a court that is interpreting a contract? 


    C) course of performance of the contract at issue
  20. If the parties to a contract cross out a word on a preprinted form & write in a new word of their own choosing, the court will ignore that handwritten word bc handwritten terms are given less weight than preprinted terms T/F
    False
  21. An advertisement is generally considered an offer T/F
    False
  22. In an auction, a bidder is an offeree T?F
    False - offeror
  23. Which of the following is/are generally required of an offer? 




    E) all of the above
  24. Stan offers to sell Tim his textbook but conditions the sale on Tim accepting the offer by March 1. Stan may revoke the offer - 



    B) Any time before Tim accepts the offer
  25. Stan offers to sell Tim his book, but conditions the sale on Tim accepting the offer by 3/1. If a law is passed forbidding the sale of textbooks before Tim accepts Stan's offer, the offer is terminated and Tim cannot accept it. T/F
    True
  26. Stan offers to sell Tim his book, but conditions the sale on Tim accepting the offer by 3/1. If the textbook is destroyed in an apartment fire before Tim accepts Stan's offer, the offer is terminated and Tim cannot accept it. T/F
    True
  27. Ordinarily, an offer may be rejected by words or conduct evidencing the offeree's intent not to accept the offer. T/F
    True
  28. If no time period is stated in the terms of the offer, then the offer will terminate after a "reasonable" period of time. T/F
    True
  29. A counteroffer is considered a rejection of the original offer. T/F
    True
  30. Which of the following sentences is correct? 


    C) They're having a great time in school this year
  31. Bob offers to sell Amanda his 1999 Chevy truck for $1,000 with payment due by Friday. Amanda responds that she will buy the truck but will only be able to pay $500 on Friday and can pay the remaining $500 a week later. According to the "mirror image" rule, which of the following is true:
    a) B & A have a contract bc Amanda agreed to Bob's price
    b) Bob and Amanda have a contract bc a one week delay in payment is not a material change to the terms
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redheadsrockyeah
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Fin 280 - Bus Law Exam 1 (ch 11-15)
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Fin 280 - Bus Law Exam 1 (ch 11-15)
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