Deck 9: The Nature and Origins of Contracts

Question 1

The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.

Answer 1

False

Question 2

Which of the following statements is true about the UCC?

A)One of the purposes of UCC was to promote fair dealing and higher standards of behavior in the marketplace.
B)The most obvious purpose of UCC was to establish a uniform law to govern commercial transactions that often takes place within the state.
C)In accordance with the intentions of the drafters of UCC,complete uniformity has been achieved.
D)The Code is divided into 10 articles that deal with many of the problems that might ordinarily arise in a commercial transaction.

Answer 2

B
Explanation: The drafters of the UCC had several purposes in mind,including promoting fair dealing and higher standards of behavior in the marketplace.The most obvious purpose was to establish a uniform law to govern commercial transactions that often take place across state lines.Despite the intentions of the drafters,complete uniformity has not been achieved.The Code is divided into 9 articles that deal with many of the problems that might ordinarily arise in a commercial transaction.

Question 3

The UCC is more flexible than the common law.

Answer 3

True

Question 4

In a unilateral contract,only one of the parties makes a promise.The other party performs an act in exchange for that promise.

Question 5

A voidable contract is necessarily unenforceable.

Question 6

A contract is implied when the parties directly state its terms at the time the contract is formed.

Question 7

Article 2 of the UCC applies to all contracts for the:

A)liquidation of assets.
B)sale of goods.
C)sale of securities.
D)transfer of money between banks.

Question 8

Which of the following is true of the laissez faire economic theories?

A)People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts.
B)The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization.
C)These theories were never considered a part of the public policy in the 19^th century.
D)People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required.

Question 9

Freedom of contract is a notion that has emerged only in the last twenty years.

Question 10

The Industrial Revolution that modernized America changed many of the basic assumptions underlying contract law.

Question 11

The "Restatement (Second)of Contracts" carries the force of law.

Question 12

CISG applies to any party,be it a merchant or a nonmerchant.

Question 13

A voidable contract is one that may be canceled by only one of the parties.

Question 14

Which of the following is true about a contract?

A)Any offer made is a contract,though there is no acceptance of the offer.
B)It need not necessarily be entered into by parties having capacity to contract.
C)It must be voluntarily entered into and promise to perform a legal act.
D)It must always be supported by consideration.

Question 15

Which of the following is a change that took place in the legal system that led to the development of contract law in the process?

A)Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization.
B)Courts today are not willing to consider defenses based on inequality of bargaining power between the parties.
C)Courts tend to view with great suspicion,attempts by manufacturers to limit their responsibility for their products by contract.
D)Legislation does not control any contractual relationships.This has been left to private bargaining.

Question 16

Every state has adopted the Uniform Commercial Code.

Question 17

Unlike contractual liability under the traditional bargain theory,liability under the doctrine of promissory estoppel is based on reliance.

Question 18

A contract that has been fully performed is an executory contract.

Question 19

Jim and Slater want to buy a car.As they don't have sufficient money,they plan to steal their neighbor's car and sell it.This is a valid contract.

Question 20

The drafters of the U.C.C intended for the code to establish complete uniformity.

Question 21

Which of the following is intended to avoid unjust enrichment?

A)A bilateral contract
B)A quasi contract
C)A void contract
D)An express contract

Question 22

Ben makes an agreement with Bob for Bob to steal Professor Smith's laptop computer.The agreement between Ben and Bob is:

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

Question 23

An executory contract is a contract:

A)which has been fully performed by all parties.
B)where executive privileges are implied.
C)which has not yet been fully performed by all parties.
D)where one party performs on the basis of a promise made by the other.

Question 24

John tells Sally he will sell her his car for $1,000.Sally agrees to buy the car on John's terms.The contract between John and Sally is:

A)unilateral and executory.
B)bilateral and voidable.
C)bilateral and executory.
D)unilateral and implied.

Question 25

If there is no UCC rule governing a particular contract problem:

A)freedom of contract is obtained.
B)unconscionable contract is assumed.
C)unjust enrichment is assumed.
D)the common law is applicable.

Question 26

A promise exchanged for an act is an example of a:

A)a bilateral contract.
B)a unilateral contract.
C)an implied contract.
D)a quasi-contract.

Question 27

Which of the following is correct regarding the definition of "Merchant" by UCC?

A)It sometimes imposes a higher standard of behavior on merchants than non-merchants.
B)It always imposes the same standards on merchants and non-merchants.
C)It regards everyone covered by the UCC as a merchant.
D)It deals only with nonprofessional sellers.

Question 28

Elroy is fifteen years old and makes an agreement with Dave to buy Dave's mp3 player.The agreement:

A)is executed.
B)cannot be cancelled.
C)is unilateral.
D)is voidable.

Question 29

When two parties have directly,but orally,stated all of the terms of a contract at the time it was formed,they have:

A)executed the contract.
B)made an express contract.
C)made an implied contract.
D)not made an enforceable contract.

Question 30

A promise exchanged for a promise is an example of:

A)a bilateral contract.
B)a unilateral contract.
C)an implied contract.
D)promissory estoppel.

Question 31

The UCC differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG)in that:

A)the UCC does not require contracts to be in writing,CISG requires contracts for the sale of goods in excess of $500 to be in writing.
B)the CISG applies to the sale of consumer transactions while the UCC governs both consumer and commercial transactions.
C)the UCC holds merchants to higher standards in some circumstances,while the CISG does not make a distinction between merchants and non-merchants.
D)the CISG applies to both consumer and commercial transactions,while the UCC applies only to commercial sales of goods.

Question 32

An oral contract which was required by contract law to be in writing is:

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

Question 33

Which of the following is correct regarding the CISG?

A)Its fundamental goal is to unify and codify the law on sale of goods among contracting parties from different states in the United States.
B)It provides rules governing the formation of international contracts and regulates the transfer of goods under those contracts.
C)It focuses on which terms of the offer and acceptance are the same.
D)It applies to commercial and consumer transactions.

Question 34

In a contract involving elements of both goods and services,a court will determine whether Article 2 of the UCC applies by:

A)asking which element predominates.
B)balancing the need to apply a uniform standard with the interest of justice.
C)asking if the contract is barred by public policy.
D)using the criteria of reasonableness.

Question 35

Ted makes a deal with Ella to sell her his farm.They shake hands to "seal the deal," but do not put the agreement in writing.The contract is:

A)voidable but enforceable.
B)void.
C)valid.
D)unenforceable.

Question 36

The UCC defines "goods" as:

A)intangible personal property.
B)tangible personal property.
C)abstract property.
D)tangible public property.

Question 37

A quasi contract is:

A)a contract that has been fully performed.
B)a contract where terms are stated orally only.
C)contract like duties imposed by the court to prevent unjust enrichment.
D)an agreement which contains all but one of the basic elements needed to form an enforceable contract.

Question 38

As used in the UCC,the concept "reasonable":

A)is a practical standard used to gauge what people really do in the marketplace.
B)is a theoretical concept based on the "reasonable person standard" of tort law.
C)refers to the capacity to contract.
D)refers to what a reasonable person would do in the marketplace.

Question 39

Christy downloaded a music software program from the Internet.Under the UCC,the software is:

A)a good.
B)a service.
C)a good faith warranty.
D)a mixture of goods and services. The software download is considered a service under the UCC.Initially,the drafters of the Uniform Commercial Code considered adding a new section to the Code to address "information contracts." However,the drafters abandoned this effort and amended the definition of "goods" to exclude information.This means that a transaction such as software downloaded from the Internet would not qualify as a good.

Question 40

Compared with common law,the UCC:

A)is more rigid.
B)is more likely to find that parties have a contract.
C)is more concerned with technical rules.
D)applies theoretical rules to deal with what people do in the marketplace today.

Question 41

The doctrine of promissory estoppel:

A)makes the contracts unenforceable.
B)does not make promises enforceable.
C)protects bargains,not reliance.
D)protects reliance,not bargains.

Question 42

Explain the differences and similarities of the categories used to classify contracts by their enforceability: valid,unenforceable,voidable,void.

Question 43

Jerry's Juice Joint sends Mango Mart an order for 20 cases of mangoes at $100 per case.Mango Mart sends Jerry's an acknowledgement form accepting the order.Using concepts discussed in this chapter,describe the type of contract between Jerry's and Mango Mart.

Question 44

How does the Uniform Commercial Code define "merchant"? Why does the UCC distinguish between merchants and non-merchants?

Question 45

Discuss the importance of having contracts in today's market economy.

Question 46

Joe pays Ann to mow his lawn and Ann mows Danna's lawn by mistake.Danna peeps out her window and sees Ann mowing,yet says nothing to Ann about her mistake since Danna needs to have her lawn mowed.When Ann approaches Danna for payment,Danna refuses,arguing that she had never asked Ann to mow her lawn.Under these circumstances,Ann can recover payment from Danna under:

A)void contract.
B)quasi contract.
C)executory contract.
D)express contract.

Question 47

Fran promises to reimburse Tim $700 for a new scooter for his own use.After Tim delivers the scooter,Fran refuses to pay Tim.Tim may recover under the doctrine of:

A)unjust enrichment.
B)executory contract.
C)unilateral contract.
D)promissory estoppel.

Question 48

Pete offered Liz a job at his new law firm.In anticipation,Liz quit her job at Mega Firm,bought a new computer and invested in a new set of law books.Shortly before her anticipated start date with Pete's firm,Pete informed Liz that he had changed his mind,and no longer wanted her.Liz may recover under the doctrine of:

A)unjust enrichment.
B)promissory estoppel.
C)unilateral contract.
D)express contract.

Question 49

Regarding promissory estoppel most courts:

A)follow the requirements for promissory estoppel set forth in the "Restatement (Second)of Contracts" because the "Restatement" is the law.
B)follow the requirements for promissory estoppel set forth in the "Restatement (Second)of Contracts" despite the fact that the "Restatement" does not carry the force of law.
C)do not follow the requirements for promissory estoppel set forth in the "Restatement (Second)of Contracts" despite the fact that the "Restatement" carries the force of law.
D)do not follow the "Restatement" as it does not carry the force of law.

Question 50

What is a quasi-contract?