Deck 9: Nature of Traditional and E-Contracts

Question 1

Restatement of the Law of Contracts is the agreed upon federal law in the United States.

Answer 1

False

Question 2

Article 2 of the Uniform Commercial Code (UCC)prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods.

Answer 2

True

Question 3

Common law of contracts refers to contract law developed primarily by state courts.

Answer 3

True

Question 4

Objective theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Question 5

If the law requires that a contract be in writing,failure of such a contract to be in writing does not impact its enforcement.

Question 6

Agreement to a contract requires an offer by the offeror and an acceptance of the offer by the offeree.

Question 7

Which of the following is true of the Restatement of the Law of Contracts?

A)It serves as a reference for guidance in contract disputes.
B)It does not identify negotiable instruments as formal contracts.
C)Its goal is to create a uniform system of commercial law among the 50 states.
D)It is the absolute federal law for contracts drafted in the U.S.A.

Question 8

Under the objective theory of contracts,the subjective intent of a party to enter into a contract is irrelevant.

Question 9

Which of the following is an acceptable consideration for a contract?

A)arrest
B)penalty
C)money
D)sentence

Question 10

According to the objective theory of contracts,the intent to enter into an express or implied-in-fact contract is judged by the ________.

A)reasonable person standard
B)legality of the contract
C)doctrine of equity
D)common law of contracts

Question 11

Two brothers Sam and Jim were fighting over the division of their ancestral property.After ten years of legal battle,a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress to make him sign a contract of assent in favor of Sam.When Jim takes this contract to court,the contract will be declared ________.

A)enforceable
B)conditionally enforceable
C)voidable
D)unenforceable

Question 12

Which of the following is true of the Uniform Computer Information Transactions Act?

A)It establishes the rules for operation of franchises in the U.S.A.
B)It does not become law until a state adopts it as a statute.
C)It solely deals with the formation of electronic contracts, not licenses.
D)It addresses most of the legal issues that are encountered while starting an entrepreneurial venture.

Question 13

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

A)Restatement of the Law of Contracts
B)Restatement (Second)of Contracts
C)objective theory of contracts
D)common law of contracts

Question 14

Which of the following statements is true of contracts?

A)The offeror is the party to whom an offer to enter into a contract is made.
B)An offeree is the authority that supervises the signing of a contract.
C)A contract is created when the offer is made and before it is accepted.
D)To have an enforceable contract, there must be mutual assent by the parties.

Question 15

Provision of services qualifies as a consideration for an enforceable contract.

Question 16

The goal of the Uniform Commercial Code (UCC)is to regularize foreign trade norms among the 50 states of the U.S.A.

Question 17

Which of the following is true of the UCC (Uniform Commercial Code)?

A)The UCC aims to create a uniform system of accounting among the 50 states.
B)The common law of contracts normally takes precedence over the provisions of the UCC.
C)Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of rules of taxation.
D)Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the lease of goods.

Question 18

Michael Harrison opens an online store where people from all over the world can purchase and download iPhone apps.Which of the following should Michael consult to know the rules of trading through his online store?

A)the common law of contracts
B)the objective law of contracts
C)the Uniform Computer Information Transactions Act
D)the Uniform Commercial Code

Question 19

Ross makes an offer to Elizabeth to sell his automobile to her for $10,000.In this case,Ross is the offeree and Elizabeth is the offeror.

Question 20

The ________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

A)common law of contracts
B)Restatement of the Law of Contracts
C)Uniform Computer Information Transactions Act
D)Uniform Commercial Code

Question 21

The UCITA (Uniform Computer Information Transactions Act)establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

Question 22

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

A)can revoke the contract as informal verbal agreements are not binding
B)cannot revoke the contract
C)can reduce the money on offer
D)can only increase the money on offer

Question 23

A contract is bilateral contract if the offeror's promise is answered with the offeree's promise of acceptance.

Question 24

An act of performance is necessary to create a bilateral contract.

Question 25

A contract is a(n)________ if the offeror's promise is answered with the offeree's promise of acceptance.

A)unilateral contract
B)bilateral contract
C)executed contract
D)executory contract

Question 26

Traditional contract rules do not apply to e-contracts.

Question 27

The UCITA (Uniform Computer Information Transactions Act)is a model act that does not become law until a state legislature adopts it as a statute for the state.

Question 28

Which of the following is an informal contract?

A)check
B)bank draft
C)lease
D)recognizance

Question 29

An offer to create a unilateral contract cannot be accepted by a promise to perform.

Question 30

If ambiguity is detected while determining the type of a contract,it is presumed to be a bilateral contract.

Question 31

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following will hold true?

A)Martha can sue the baker to recover $150 in damages.
B)Martha can sue the baker but cannot recover damages.
C)The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her.
D)Martha cannot sue the baker.

Question 32

The UCITA (Uniform Computer Information Transactions Act)is a law common to all states and does not require state legislatures to adopt it as a statute for the state.

Question 33

Windsor,the owner of Windsor's Sandwiches,contacts a new supplier,Gary.He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning.Gary promises to make the delivery as requested by Windsor.This creates a(n)________ contract between them.

A)unilateral
B)bilateral
C)implied-in-law
D)executory

Question 34

Companies are not permitted to issue licenses by e-commerce.

Question 35

What is recognizance?

A)a party's acknowledgement in court that he or she will pay a specified sum of money if a certain event occurs
B)a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing
C)a sealed document that contains an informal contract whose contents are known only to the parties
D)a party's acknowledgement in court that he or she is not liable to pay any money if a certain event occurs

Question 36

Explain the basic requirements that must be met for a contract to be enforceable.

Question 37

Which of the following statements is true of contracts?

A)Parties to an informal contract can use any words they choose to express their contract.
B)A contract under seal is disclosed only to the offeror of the contract.
C)A letter of credit is an informal contract.
D)A void contract is the same as a voidable contract.

Question 38

A unilateral contract can be accepted without the performance of an act by the offeree.

Question 39

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

A)unilateral
B)bilateral
C)implied-in-law
D)executory

Question 40

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday,she would pay him $1,000.This offer creates a(n)________ contract.

A)executed
B)executory
C)unilateral
D)bilateral

Question 41

Which of the following is true of the equity doctrine?

A)Equity is resorted to when an award of money damages would not be the proper remedy.
B)In an action in equity, a jury decides the equitable issue.
C)An equitable action could be tried with a judge or a jury.
D)The doctrine of equity cannot be applied in contract cases.

Question 42

A letter of credit is considered an informal contract as it does not have a special method of creation.

Question 43

A(n)________ is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.

A)bilateral contract
B)unilateral contract
C)implied-in-fact contract
D)quasi contract

Question 44

Which of the following statements is true of the doctrine of quasi contract?

A)It allows a court to award monetary damages to a defendant because no actual contract existed between the parties.
B)It applies only where there is an enforceable contract between the parties.
C)It is an equitable doctrine intended to prevent unjust enrichment.
D)Agreement between parties to a quasi contract has been inferred from their conduct.

Question 45

To create an implied-in-fact contract,it must be established that a plaintiff provided a property or services gratuitously.

Question 46

Which of these is an instance of a quasi contract?

A)an employee receiving his or her paycheck every month
B)an unconscious man being nursed at a hospital, having been brought in by a passer-by
C)two companies signing a business agreement that spans an undefined duration
D)a woman hiring a caterer only after the caterer promises to deliver the food on time

Question 47

Stella gets injured in a motor accident and is brought to the hospital by a passerby.Stella subsequently passes into a coma.The doctors and other staff perform the necessary medical procedures to save her life.Stella comes out of her coma two months later and is released from the hospital after the doctors are satisfied by her recovery.Under the doctrine of ________ contract,Stella has to pay the hospital for its services.

A)express contract
B)quasi contract
C)implied-in-fact contract
D)formal contract

Question 48

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Question 49

Contracts under seal are thus named because they are highly confidential,and the parties to these contracts are not allowed to talk about their terms.

Question 50

In a(n)________ contract,agreement between parties is inferred from their conduct.

A)implied-in-law
B)implied-in-fact
C)express
D)formal

Question 51

In a recognizance,a party acknowledges in court that he or she will pay a specified sum of money if a certain event occurs.

Question 52

An oral agreement to purchase a neighbor's bicycle is a(n)________ contract.

A)voidable
B)void
C)express
D)implied

Question 53

What are the possible problems that can come up in a unilateral contract?

Question 54

Which of the following elements must be established to create an implied-in-fact contract?

A)A plaintiff provided a property or services gratuitously.
B)A plaintiff made a defendant sign a contract and then changed its terms, calling the new terms "previously implied."
C)A defendant was given an opportunity to reject a property or services provided by a plaintiff but failed to do so.
D)A defendant accepted a property or services offered by a plaintiff as a fee for an illegal activity.

Question 55

A quasi contract is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.

Question 56

________ is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

A)The common law of contracts
B)The Restatement of the Law of Contracts
C)Equity
D)Letter of credit

Question 57

Express contract can be stated orally.

Question 58

A(n)________ contract is stated orally or in written words.

A)express
B)implied-in-law
C)implied-in-fact
D)quasi

Question 59

Kyle goes to a used-car showroom to buy a sedan.He signs an agreement with the store that bears the name of the car,price,and other details.This is an example of a(n)________ contract.

A)unilateral
B)implied-in-law
C)implied-in-fact
D)express

Question 60

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

Question 61

An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house.The contract is ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 62

If a contract is required to be in writing under the Statute of Frauds but is not,then the contract is ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 63

A contract that has been fully performed by both sides is called an executory contract.

Question 64

How are unjust enrichment and unjust detriment prevented,in the context of contracts?

Question 65

An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.

Question 66

A contract that has been fully performed on both sides is called an ________ contract.

A)executory
B)executed
C)option
D)executive

Question 67

Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.

A)executory
B)executed
C)void
D)voidable

Question 68

If one of the parties of a contract has the option to void his or her contractual obligations,the contract is considered voidable.

Question 69

There is no right to a jury trial in an equitable action.

Question 70

Equity is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

Question 71

Harry in a drunken state agrees to give his car to Ben as a token of friendship.Once sober,Harry asks Ben to return his car.This contract is considered ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 72

Elizabeth signs a contract to purchase a new car from Spadace Motors.She is yet to pay for the car and thus Spadace Motors has not delivered the car to Elizabeth.This is an example of a(n)________ contract.

A)void
B)unenforceable
C)executed
D)executory

Question 73

If one of the parties to a contract can enforce the contract,it is considered valid.

Question 74

A voidable contract is also termed as an unenforceable contract.

Question 75

Compare valid,void,voidable,and unenforceable contracts.

Question 76

Which of the following is a necessary condition for a contract to be considered valid?

A)It cannot be enforced by just one of the parties involved.
B)It is enforceable by at least one of the parties.
C)It can be voided by one of the parties.
D)It can be voided by both parties.

Question 77

Explain the doctrine of equity with reference to contracts.

Question 78

Which of the following is true of enforcing a contract?

A)A contract is only considered valid if it is enforceable by both parties.
B)In an unenforceable contract, at least one party has the option to void his or her contractual obligations.
C)Void contracts are enforceable in cases involving mutual mistakes.
D)Parties may voluntarily perform a contract that is unenforceable.