Question 1

5 out of 5 pointsThe willingness of an offeror to enter into a contractual agreement regarding a particular subject is expressed by a(n):Answer

Selected Answer: offer.

Correct Answer: offer.

Question 2

5 out of 5 pointsIf not an offer, the first statement made by one of two persons is most properly termed a(n):Answer

Selected Answer: invitation to negotiate.

Correct Answer: invitation to negotiate.

Question 3

5 out of 5 pointsA customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:Answer

Selected Answer: no contract was formed because the customer's offer was

refused.

Correct Answer: no contract was formed because the customer's offer was

refused.

Question 4

5 out of 5 points

false

If an offeree accepts an offer before it is effectively revoked:Answer

Selected Answer: a valid contract is formed.

Correct Answer: a valid contract is formed.

Question 5

5 out of 5 pointsUnder the Uniform Commercial Code (UCC), a firm offer applies to:Answer

Selected Answer: a written, signed offer by a merchant to buy or sell goods.

Correct Answer: a written, signed offer by a merchant to buy or sell goods.

Question 6

5 out of 5 pointsA counteroffer is a(n):Answer

Selected Answer: rejection of the original offer.

Correct Answer: rejection of the original offer.

Question 7

5 out of 5 pointsIf no termination date is specified for an offer, the offer will remain open:Answer

Selected Answer: for a reasonable period of time.

Correct Answer: for a reasonable period of time.

Question 8

5 out of 5 points

Contractual capacity is the ability to:Answer

Selected Answer: understand that a contract is being made and to understand its

general nature.

Correct Answer: understand that a contract is being made and to understand its

general nature.

Question 9

5 out of 5 pointsThe maximum amount of time that a minor has to disaffirm a contract is:Answer

Selected Answer: a reasonable period of time after reaching the age of majority.

Correct Answer: a reasonable period of time after reaching the age of majority.

Question 10

5 out of 5 pointsWhen a minor avoids a contract to purchase a car:Answer

Selected Answer: a relative who cosigned the contract is liable for the purchase

price.

Correct Answer: a relative who cosigned the contract is liable for the purchase

price.

Question 11

5 out of 5 pointsA person lacks contractual capacity if:Answer

Selected Answer: because of mental impairment, the person does not comprehend

that a contract is being made or understand its consequences.

Correct Answer: because of mental impairment, the person does not comprehend

that a contract is being made or understand its consequences.

Question 12

5 out of 5 pointsAn agreement is not binding when:Answer

Selected Answer: both parties make a mistake regarding a material

fact.

Correct Answer: both parties make a mistake regarding a material

fact.

Question 13

5 out of 5 pointsJack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:Answer

Selected Answer: Jim relied upon Jack's statement.

Correct Answer: Jim relied upon Jack's statement.

Question 14

5 out of 5 pointsI believe that I own a very valuable vase. I tell you this information and state that I will sell it to you for $800. I sell the vase to you, and you later find out that the vase is worth only $200. Fraud:Answer

Selected Answer: has not occurred.

Correct Answer: has not occurred.

Question 15

5 out of 5 points

Consideration is:Answer

Selected Answer: what is demanded by the promisor as the price for the

promise.

Correct Answer: what is demanded by the promisor as the price for the

promise.

Question 16

5 out of 5 pointsIn a unilateral contract, the doing of a requested act is also the:Answer

Selected Answer: acceptance of the offer of the

promisor.

Correct Answer: acceptance of the offer of the

promisor.

Question 17

5 out of 5 pointsWhen there is no consideration for a promise, the agreement is:Answer

Selected Answer: not binding.

Correct Answer: not binding.

Question 18

5 out of 5 pointsWhich of the following can be consideration for a promise?Answer

Selected Answer: refraining from smoking cigarettes

Correct Answer: refraining from smoking cigarettes

Question 19

5 out of 5 pointsOrdinarily, a promise to perform an existing legal obligation is:Answer

Selected Answer: not consideration.

Correct Answer: not consideration.

Question 20

0 out of 5 pointsWhich of the following is not consideration for a present promise?Answer

Selected Answer: the promise to pay one’s child support obligation, consistent with

a pre-existing court order.

Correct Answer: the promise to pay one’s child support obligation, consistent with

a pre-existing court order.