Chapter 10 Nature and Terminology Quiz
1. Which of the following
will a court enforce?
a. a contract between a
mother and son
b. a promise between a mother and son
c. a promise between two companies
d. both A and B
2. Farmer Tom grows vegetables and sells most of them to grocery stores in his area. If one of the stores breaks a contract with him and fails to pay for a shipment, what body of law will be used to determine the outcome of the case?
a. state common law
b. federal common law
c. the Uniform Commercial Code
d. both A and B
3. Lauren, who is on the telephone, offers to sell Tina her bicycle for $400, and Tina accepts. Tina is over 18. Is this agreement a contract?
a. yes, because a contract
automatically is formed when an offer is accepted
b. yes, because all contractual requirements are met
c. no, because the agreement is not in writing
d. no, because no consideration is given
4. Which of the following people have the right to enter into contracts?
a. children
b. convicted felons
c. both A and B
d. none of the above
5. Able points a gun at Carl, and offers to sell Carl his car. Afraid for his life, Carl accepts the offer. Has a contract been formed?
a. yes, because an offer
was accepted
b. yes, because all contractual elements are met
c. no, because there is no consideration
d. no, because there is no genuine assent
6. Jeff jokingly offers to sell his farm to Al for $100. Al accepts, and demands the farm after giving Jeff his $100. What is Jeff's best argument that a contract was not formed?
a. He did not mean to make
an offer; he was joking.
b. There is no consideration.
c. A reasonable person would not think an offer to sell a farm
for only $100 was a serious one.
d. none of the above
7. Jerry wants to sell his car to Bill. He says to Bill, "I'll sell you my car for $2,000." In this scenario, _______________ is the _______________.
a. Jerry; offeror
b. Jerry; offeree
c. Bill; offeree
d. both A and C
8. A contest offers $100 to the best two essays handed in by Saturday. Al and Bill are selected as the winners. What type of contract exists between Al, Bill, and the operators of the essay contest?
a. unilateral
b. bilateral
c. trilateral
d. none of the above
9. Andrew puts an ad in the paper that offers $100 to the first person who will come and paint his house. Bill decides to paint the house, and heads for Andrew's house. What is the latest moment at which Andrew can change his mind and revoke his offer?
a. when Bill rings his doorbell
b. when Bill begins painting
c. when Bill finishes painting
d. never-unilateral offers may not be revoked
10. Alex calls Baker and orally offers to sell him her computer for $400. Baker accepts. What kind of contract has been formed?
a. express
b. implied
c. quasi
d. none of the above
11. Raymond comes up to Tim's car when it is stopped at a red light and washes the windshield. What kind of contract has been formed?
a. express
b. implied
c. quasi
d. none of the above
12. Tom drops off his shirts at the cleaners. The clerk writes down his name, and nothing else is said. What kind of contract has been formed?
a. express
b. implied
c. quasi
d. none of the above
13. Doctor Detroit sees Val Victim unconscious on the side of the road. He stops and renders aid that saves Val's life. What kind of contract has been formed?
a. express
b. implied
c. quasi
d. none of the above
14. Bill orders a stove from Best Buy for $1,000. They deliver the stove, and Bill refuses to pay them. What kind of contract has been formed?
a. express
b. implied
c. quasi
d. both A and C
15. Ren and Stimpy write out a simple contract and put it in an envelope. What type of contract have they formed?
a. a formal contract
b. an informal contract
c. a contract under seal
d. none of the above
16. Al makes a contract in which he will sell his car to Bill for $5,000. The contract has been signed, but no further action has taken place. What type of contract is it at this moment?
a. executed
b. executory
c. void
d. none of the above
17. Al makes a contract in which he will sell his car to Bill for $5,000. Al has delivered the car, and Bill has paid the $5,000. What type of contract is it at this moment?
a. executed
b. executory
c. void
d. none of the above
18. Al makes a contract in which he will sell his car to Bill for $5,000. Al has delivered the car, but Bill has not yet paid the $5,000. What type of contract is it at this moment?
a. executed
b. executory
c. void
d. none of the above
19. Capone hires Smith to take a truck filled with marijuana to California for $10,000. What type of contract has been formed?
a. valid
b. void
c. voidable
d. unenforceable
20. Tom and Bill formed a contract six years ago, and Tom has still not fulfilled his part of the bargain. The statute of limitations in their state is four years. What kind of contract exists today?
a. valid
b. void
c. voidable
d. unenforceable
21. Jimmy, who is 14, orders 12 CDs from a mail order music club for a penny. He signs an agreement to buy 6 more over the next three years. What type of agreement has been formed?
a. valid
b. void
c. voidable
d. unenforceable
22. Tom and Mike sign an agreement that says, "Mike will sell his 1977 Ford Mustang to Tom for $500." Tom, in court, insists that Tom also agreed to deliver the car, paint it, and repair the brakes for the $500. Which of these pieces of evidence will the court consider in interpreting this agreement?
a. the claim the car was
to be delivered
b. the claim the car was to be painted
c. the claim the car was to be repaired
d. none of the above
23. In determining the meaning of an ambiguous contract, which of the following factors may a court examine?
a. past dealings between
the parties
b. the common definition of a term
c. customary practices in relevant industries
d. all of the above
24. Alpha sells microchips for Beta to use in the manufacture of computers. The industry average cost of similar chips is $220. The preprinted terms of the contract between Alpha and Beta say the cost will be $200 per unit, but this figure has been crossed out and replaced with handwriting that says "$250/unit". How much will Beta have to pay for each chip?
a. $200
b. $220
c. $250
d. none of the above
25. Alex is insured by State Farm. He is in a car wreck with Bill, and Alex is at fault. His State Farm policy is written ambiguously, and there is a question as to whether it covers the particular type of accident Alex was involved in. Who will have to pay for the repairs to Bill's car?
a. Alex
b. Bill
c. State Farm
d. both A and C