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chp10 quiz

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Preview Test #A - Chapter 10 - Nature & Terminology

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Question 1 Edit
Marks: 5
Jane offers to pay Kyle $500 if he jogs across the Golden Gate Bridge. Kyle can ac­cept the offer only by jogging across the bridge. If Kyle jogs across the bridge, he and Jane will have formed

Choose one answer.
a. a unilateral contract.  
b. a bilateral contract.  
c. a social contract.  
d. a moral obligation.  

 

Question 2 Edit
Marks: 5
Cathy assures Don that she will deliver his products as he directs. An as­surance that one will do something in the future is part of the defini­tion of

Choose one answer.
a. a moral obligation  
b. an ethical principle  
c. a promise  
d. a declaration  

 

Question 3 Edit
Marks: 5
A contract between Gamma Software Company and Omega Designs, Inc., ends with the initials “L.S.” These initials



Choose one answer.
a. stand for “locus sigilli” and substitute for a seal.  
b. emphasize that the parties must sign with “legal signatures.”  
c. underscore that the parties’ deal must have “lawful significance.”  
d. remind the parties that they must have “legal status” to contract  

 

Question 4 Edit
Marks: 5
Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely

Choose one answer.
a. void.  
b. voidable.  
c. valid.  
d. enforceable.  

 

Question 5 Edit
Marks: 5
Allen applies for a police officer’s job with Bay City, which responds with a letter setting an appointment for a psychological exam. The letter does not state that it is “a conditional employment offer.” Based on the court’s reasoning in Case 10.1, Ardito v. City of Providence, this letter is

Choose one answer.
a. a quasi contract on which Allen can rely for employment.  
b. a bilateral contract that Allen accepted by applying for the job.  
c. a unilateral contract that Allen can accept by passing the exam.  
d. no contract.  

 

Question 6 Edit
Marks: 5
Beth claims that her contract with Carl is voidable. If the contract is avoided

Choose one answer.
a. neither party is released from it.  
b. both parties are released from it.  
c. only Carl is released from it.  
d. only Beth is released from it.  

 

Question 7 Edit
Marks: 5
Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier’s nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed



Choose one answer.
a. a quasi contract.  
b. an express contract.  
c. an implied-in-fact contract.  
d. an implied-in-law contract.  

 

Question 8 Edit
Marks: 5
Joy promises to buy Kevin’s computer for $400. Joy is

Choose one answer.
a. an offeree  
b. a promisor.  
c. an officer.  
d. a promisee.  

 

Question 9 Edit
Marks: 5
Lou claims that he and Mira entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that

Choose one answer.
a. Lou expected to be paid for providing services or prop­erty.  
b. Lou provided Mira with services or property.  
c. Mira failed to reject services or property provided by Lou.  
d. a court imposed a promise in the interest of fairness.  

 

Question 10 Edit
Marks: 5
Don contracts to tutor Ellen in the principles of business law. For the breach of a contractual promise, contract law entitles innocent parties to

Choose one answer.
a. some forms of relief.  
b. any relief that a court wants to provide.  
c. any relief that a plaintiff wants to seek.  
d. any relief that a defendant wants to concede.  

 

Question 11 Edit
Marks: 5
Adams Accounting Services and Best Products, Inc., enter into a con­tract. Terms in the contract that are the subject of separate negotiation are considered subordinate to

Choose one answer.
a. none of the above.  
b. terms that can be understood only by lawyers and judges.  
c. standardized terms.  
d. terms that are not negotiated separately.  

 

Question 12 Edit
Marks: 5
Stu makes an offer to Tina to enter into a contract. Tina accepts the offer. A valid contract requires

Choose one answer.
a. a valid acceptance only.  
b. a valid offer only.  
c. a valid offer and a valid acceptance.  
d. neither a valid offer nor a valid acceptance.  

 

Question 13 Edit
Marks: 5
Marie, a judge, imposes a quasi contract on National Sales Corporation and Outstate Delivery Company most likely to

Choose one answer.
a. avoid the unjust enrichment of one party at the expense of the other.  
b. reward the semi-contractual conduct of one party toward the other.  
c. sanction the non-contractual behavior of one party toward the other.  
d. punish the failure of one party to honor a moral obligation to the other.  

 

Question 14 Edit
Marks: 5
Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains un­clear terms, the rules of contract interpretation will give effect to

Choose one answer.
a. what the defendant claims was the parties’ intent.  
b. what the parties now agree they intended.  
c. the parties’ intent as expressed in their contract.  
d. what the plaintiff claims was the parties’ intent.  

 

Question 15 Edit
Marks: 5
National Insurance Company (NIC) insures Omega, Inc.’s assets under a policy that states any “amendment” must be approved by NIC and signed by Omega. In renewing the policy, NIC insists on an “amend­ment” excluding coverage for flood damage. Omega signs the amend­ment. Based on the court’s reasoning in Citizens Communications Co. v. Trustmark Insurance, if flood damage occurs.



Choose one answer.
a. Omega must suffer the loss because the policy predates the amendment.  
b. Omega must suffer the loss because the amendment meets the pol­icy’s conditions.  
c. NIC must pay Omega because the amendment does not meet the policy’s conditions.  
d. NIC must pay Omega because the policy predates the amendment.  

 

Question 16 Edit
Marks: 5
George agrees to paint Holly’s Gift Shop. George does the work, but Holly does not pay. To recover the price, George can collect from Holly on the basis of their


Choose one answer.
a. quasi contract.  
b. implied-in-fact contract.  
c. implied-in-law contract.  
d. express contract.  

 

Question 17 Edit
Marks: 5
Macro Corporation and Micro, Inc., enter into an agreement. To consti­tute a contract


Choose one answer.
a. the terms may be express, implied, or a mix of both.  
b. all terms must be express.  
c. the terms may be express or implied, but not both.  
d. all terms must be implied.  

 

Question 18 Edit
Marks: 5
Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut

Choose one answer.
a. under no circumstances.  
b. only if Bud was aware of the error.  
c. even if Bud was not aware of the error.  
d. only if Bud tried to conceal the error.  

 

Question 19 Edit
Marks: 5
Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely

Choose one answer.
a. voidable.  
b. enforceable.  
c. unenforceable.  
d. void.  

 

Question 20 Edit
Marks: 5
Jill makes a promise to Ken. Ken is

Choose one answer.
a. a promisor.  
b. a promisee.  
c. an officer.  
d. an offeree.  

 

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