Deck 8: Real, Personal, and Intellectual Property

Question 1

Quasi-contracts are actual contracts.

Answer 1

False
Explanation: Quasi-contracts are sometimes called implied-in-law contracts, but they are not actually contracts.

Question 2

The person who agrees to the terms of an offer by another party is called the ___________.

A) Offeree.
B) Offeror.
C) Agreeor.
D) Agree.
E) Inquiror.

Answer 2

A
Explanation: The party who agrees to the terms of an offer is called the offeree.

Question 3

There are a limited number of circumstances under which silence can be an acceptance.

Answer 3

True
Explanation: The Restatement of Contracts, however, offers three circumstances under which silence can be an acceptance.

Question 4

Any contact that is not a formal contract is an informal contract, also called a simple contract.

Question 5

If an acceptance is received after a rejection is received, the acceptance is still valid.

Question 6

The Restatement (Second) of the Law, Contracts is not actually the law itself.

Question 7

Courts interpret contracts using an objective standard.

Question 8

Only the offeree to whom an offer is directed can accept the offer.

Question 9

Whether a contract is bilateral or unilateral depends upon what response the offeree expects from the offeror.

Question 10

Which of the following consists of an offer by one party and an acceptance of the terms by another party?

A) Legal object.
B) Agreement.
C) Coherence.
D) Alliance.
E) Concurrence.

Question 11

An offer by a retailer to purchase seasonal goods from a wholesaler would not lapse before an offer to purchase goods that could easily be sold all year long.

Question 12

An offeror has no right to terminate an offer.

Question 13

If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.

Question 14

If a contract is valid, then by definition it is enforceable.

Question 15

The person who makes an offer is called the _____________.

A) Offeree.
B) Offeror.
C) Agreeor.
D) Agree.
E) Inquiror.

Question 16

In order to recover under quasi-contract, there is no requirement that enrichment be unjust.

Question 17

Silence can be an acceptance when the offeree receives the benefits of the offered services with reasonable opportunity to reject them and knowledge that some form of compensation is expected, yet remains silent.

Question 18

The mirror-image rule is applicable when a unilateral contract is involved.

Question 19

A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

A) Contract.
B) Offer.
C) Consideration.
D) Acceptance.
E) Legal object.

Question 20

Which of the following is a definition for consideration?

A) Being cordial in the negotiation of contracts.
B) Refraining from unethical behavior in the negotiation of contracts.
C) Being both cordial and refraining from unethical behavior in the negotiation of contracts.
D) A bargained-for exchange.
E) A contract negotiated in person as opposed to by telephone or e-mail.

Question 21

The part of the Uniform Commercial Code that governs contracts for the sale of goods is Article __________.

A) 2.
B) 3.
C) 4.
D) 5.
E)

Question 22

A _____________ contract is one that contains all the legal elements of a contract.

A) Voidable.
B) Executed.
C) Formal.
D) Valid.
E) Approved.

Question 23

Which of the following is sometimes referred to as an implied-in-law contract?

A) Quasi-contracts.
B) Express contracts.
C) Implied-in-fact contracts.
D) Express contracts and implied-in-fact contracts.
E) Express contracts and quasi-contracts.

Question 24

Which of the following references the requirement that a contract not be either illegal or against public policy?

A) Consideration.
B) Capacity.
C) Legal object.
D) Illegal prohibition.
E) Ethical requirement.

Question 25

Which of the following is a measure of recovery when a quasi-contract is involved?

A) The amount set forth in the contract.
B) The fair market value of the matter involved.
C) The wholesale price of any good involved.
D) The amount sought by the plaintiff in the complaint.
E) Damages will be computed the same as they are computed for any other contract.

Question 26

Which of the following is the reason the Uniform Commercial Code was drafted?

A) Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce.
B) Some states had no law governing contracts.
C) Federal law governing contracts was difficult to apply.
D) The Uniform State Act on laws was not working.
E) The Restatement of the Law Second, Contracts was not being evenly and fairly applied.

Question 27

In a _____________ contract, the offeror wants a performance to form the contract.

A) Trilateral.
B) Bilateral.
C) Unilateral.
D) Complete.
E) Anticipatory.

Question 28

Today's law of contracts originated from judicial decisions in ________.

A) France.
B) Italy.
C) Spain.
D) England.
E) Switzerland.

Question 29

A ______________ contract is commonly defined as a promise in exchange for a promise.

A) Unilateral.
B) Trilateral.
C) Complete.
D) Bilateral.
E) Classified.

Question 30

In which of the following does a contract arise not from words but from the conduct of the parties?

A) Implied contracts.
B) Express contracts.
C) Liquidated contracts.
D) Bilateral contracts.
E) Unilateral contracts.

Question 31

Harry accepts Frank's offer to sell a used car for $2,000. At what point is there a binding contract?

A) When the agreement is made.
B) When the money is paid.
C) When the car is delivered.
D) Ten days after the car is delivered and approved.
E) Twenty days after the car is delivered and approved.

Question 32

The part of the Uniform Commercial Code that is relevant to contracts is Article 2, which governs contracts for the sale (exchange for a price) of goods (tangible, movable objects).

Question 33

Which of the following is true regarding the Uniform Commercial Code?

A) It has been adopted federally and is therefore applicable in all states.
B) It has been individually adopted by all states completely and in the same manner.
C) It became the law in each state that adopted it in whole or in part and state laws differ somewhat.
D) It was defeated and voted down by an act of Congress.
E) It was replaced by the Restatement of the Law Second, Contracts.

Question 34

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

A) Those under the age of majority.
B) People suffering from mental illness.
C) Intoxicated persons.
D) People under the age of majority and people suffering from mental illness, but not intoxicated persons.
E) People under the age of majority, people suffering from mental illness, and intoxicated persons.

Question 35

Which of the following are the two most important sources of contract law?

A) Case law and the Restatement of Law.
B) Case law and the Uniform Commercial Code.
C) The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods.
D) Case law and the Convention on Contracts for International Sales of Goods.
E) The Convention on Contracts for International Sales of Goods and the Restatement of the Law, Contracts.

Question 36

Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

A) The Restatement Second of the Law of Contracts.
B) The Convention on Contracts for International Sales of Goods.
C) Common law.
D) Both common law and the Convention on Contracts for International Sales of Goods.
E) Both the Convention on Contracts for International Sales of Goods and the Restatement Second of the Law of Contracts.

Question 37

Which of the following represents the legal ability to enter into a binding agreement?

A) Majority.
B) Emancipation.
C) Contractual knowledge.
D) Contractual capacity.
E) Informed consent.

Question 38

The law of contracts is primarily _______________ law.

A) Civil.
B) Statutory.
C) Common.
D) Restated.
E) Modified.

Question 39

Which of the following have all their terms clearly set forth in either written or spoken words?

A) Implied contracts.
B) Express contracts.
C) Liquidated contracts.
D) Bilateral contracts.
E) Unilateral contracts.

Question 40

Which of the following represents a lack of genuine assent?

A) Acceptance secured through fraud.
B) Acceptance secured through undue influence.
C) Acceptance secured through misrepresentation.
D) Acceptance secured through fraud or undue influence, but not through misrepresentation.
E) Acceptance secured through fraud, undue influence, or misrepresentation.

Question 41

All contracts can be categorized as either ___________ or ____________ contracts.

A) Unilateral or complete.
B) Unilateral or trilateral.
C) Bilateral or trilateral.
D) Unilateral or bilateral.
E) Bilateral or complete.

Question 42

In an auction ___________, the seller is treated as making an offer to accept the highest bid.

A) Without controls.
B) With controls.
C) Without reserve.
D) With reserve.
E) Without qualifications.

Question 43

A valid contract may be _____________ when there is some law that prohibits the courts from enforcing it.

A) Executed.
B) Executory.
C) Unenforceable.
D) Novated.
E) Condoned.

Question 44

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

A) Negotiable instrument.
B) Informal contracts.
C) Simple contracts.
D) Letters of credit.
E) Formal contracts.

Question 45

What was the result in the case in the text Lucy v. Zehmer involving whether allegations of joking involving the sale of land prevented the formation of a contract?

A) The court ruled that the contract would not be enforced because one of the parties was subjectively joking.
B) The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that.
C) The court ruled that the contract would not be enforced because the parties had been drinking although they were not intoxicated.
D) The court ruled that the agreement would be enforced because of the outward manifestations of agreement.
E) The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved.

Question 46

Constance asks Kathy if Kathy will sell her used business book for $50. What is the status of the negotiations?

A) No offer has been made.
B) An offer has been made, but it may be revoked.
C) An offer has been made that may not be revoked.
D) A contract has been entered into.
E) A contract has been entered into, but it may be set aside at the option of either party.

Question 47

Under common law, when does formation of an agreement begin?

A) When the offeree makes an offer to the offeror.
B) When consideration is provided.
C) When funds are transferred.
D) When a writing is entered into.
E) When the offeror makes an offer to the offeree.

Question 48

If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________.

A) Without controls.
B) With controls.
C) Without reserve.
D) With reserve.
E) Without qualifications.

Question 49

A contract is _______________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

A) Voidable.
B) Executory.
C) Implied.
D) Executed.
E) Void.

Question 50

The __________ terms of a contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.

A) Important.
B) Significant.
C) Material.
D) Adequate.
E) Identifiable.

Question 51

The term __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

A) Implied-in-fact contracts.
B) Implied-in-law contracts.
C) Contracts under wax.
D) Contracts under seal.
E) Contracts under pressure.

Question 52

What was the result in the case nugget, Lefkowitz v. Great Minneapolis Surplus Store, Inc., involving an advertisement for the sale of fur coats?

A) The court ruled that the advertisement was not an offer because it involved a luxury good.
B) The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it.
C) The court ruled that the advertisement was not an offer because it was a ridiculously low offer which the plaintiff should have known was not to be taken seriously.
D) The court ruled that the ad was not an offer because ads are never offers, only invitations for customers to make an offer.
E) The court ruled that the ad was an offer and that the plaintiff properly accepted it.

Question 53

Which of the following is, in effect, not a contract at all?

A) A voidable contract.
B) An executory contract.
C) An implied contract.
D) An executed contract.
E) A void contract.

Question 54

Which of the following is an example of a formal contract?

A) Contracts under seal.
B) Executed contracts.
C) Letters of credit.
D) Contracts under seal and letters of credit, but not executed contracts.
E) Contracts under seal, letters of credit, and also executed contracts.

Question 55

How many states still allow a contract without consideration to be enforced, if it is under seal?

A) Five.
B) Eight.
C) Ten.
D) Twenty.
E) Thirty.

Question 56

Once all of the terms of the contract have been fully performed, the contract is said to be _____________.

A) Executory.
B) Executed.
C) Anticipatory.
D) Ended.
E) Stopped.

Question 57

As long as some of the duties under a contract have not yet been performed, the contract is considered __________________.

A) Executory.
B) Executed.
C) Anticipatory.
D) Ended.
E) Stopped.

Question 58

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.

A) Contract under seal
B) Voidable contract
C) Recognizance
D) Implied-in-fact
E) Informal contract A recognizance arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.

Question 59

Which of the following is the first element of a contract?

A) An agreement.
B) Intent.
C) An offer.
D) An acceptance.
E) A writing.

Question 60

Which of the following contracts are usually voidable?

A) Contracts entered into as a result of fraud.
B) Contracts entered into as a result of duress.
C) Contracts entered into as a result of undue influence.
D) Contracts entered into as a result of fraud or duress, but not undue influence.
E) Contracts entered into as a result of fraud, duress, or undue influence.

Question 61

A ________________ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents.

A) Letter of agreement
B) Letter of credit
C) Letter of acknowledgement
D) Negotiated credit instrument
E) Simple contract

Question 62

In the absence of a time condition in an offer, the offer will expire ___________.

A) In forty-eight hours.
B) In seven days.
C) In thirty days.
D) In forty-five days.
E) After a reasonable amount of time.

Question 63

Which of the following modifies the Mirror-Image Rule?

A) The Absolute Business Code.
B) The Uniform Commercial Code.
C) The Governing Business Agreement.
D) The International Business Code.
E) None of these because the common law has not been modified.

Question 64

In which of the following ways may an offeree accept a unilateral contract?

A) By making a counteroffer.
B) By a signed writing only.
C) By either verbal acceptance or a signed writing.
D) By performance.
E) By performance, by a verbal acceptance, or by a signed writing.

Question 65

When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare with those for a valid offer?

A) The basic requirements for a valid acceptance are materially different from those for a valid offer.
B) The basic requirements for a valid acceptance parallel those for a valid offer.
C) The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be in writing.
D) The basic requirements for a valid acceptance are different from those for a valid offer only because an acceptance must be in writing.
E) The basic requirements for a valid acceptance are different form those for a valid offer only because an offer must be revoked immediately but acceptance can be withheld for a reasonable period of time.

Question 66

As a general rule, when is revocation effective?

A) When it is mailed by the offeror.
B) When it is received by the offeree.
C) One day after it is made.
D) Two days after it is made.
E) Three days after it is made.

Question 67

Which of the following references a problem occurring when a buyer and a seller purport to make an agreement, but pre-printed forms do not match?

A) The parallel issue.
B) The matching issue.
C) The battle of the forms.
D) The lack of completeness issue.
E) The minor deviance issue.

Question 68

Which of the following is true if no means of communicating an acceptance is specified in an offer?

A) The acceptance must be in writing.
B) The acceptance must be made verbally either by telephone or in person.
C) No valid contract may be entered into because the offer must specify a means by which to accept.
D) Acceptance may be made by any reasonable means.
E) Acceptance must be made orally or in writing within twenty-four hours.

Question 69

In the European Union, which of the following is the source to turn to, in order to understand how the various member states regulate contracts?

A) The Principles of European Contract Law
B) The European Union Contract Manual for Member States
C) The Elements of Contractual Relation in the European Union
D) European Contract Law
E) None of these because all the member states have their own individual regulations

Question 70

If a[n] __________ contract exists, the administrator of an offeror's estate must hold an offer open until it expires in accordance with the contract.

A) Bilateral.
B) Unilateral.
C) Complete.
D) Option.
E) Bilateral or option.

Question 71

If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into a[n] ______________ contract with the offeror.

A) Clear.
B) Explicit.
C) Unrevokable.
D) Option.
E) None of these because legally an offeree cannot guarantee that an offer will be held open for a specific time.

Question 72

Which of the following is true regarding when an offer may be rejected by an offeree?

A) Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.
B) If the offeror states that an offer will be held open for a certain amount of time, then it is open for that length of time even if a rejection is received prior to the expiration of that time.
C) An offer must remain open for at least two days before an offeree may reject it.
D) An offer must remain open for at least three days before an offeree may reject it.
E) An offer must remain open for at least four days before an offeree may reject it.

Question 73

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement?

A) Gretchen is incorrect because there is a binding bilateral contract.
B) Gretchen is incorrect because there is a binding unilateral contract which Haley accepted by performing.
C) Gretchen is correct because there is no binding bilateral contract.
D) Gretchen is correct because there is no binding unilateral contract.
E) Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.

Question 74

Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?

A) Forty-eight hours.
B) Seven days.
C) Thirty days.
D) Forty-five days.
E) There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Question 75

Which of the following refers to the right of an offeror to revoke an offer?

A) The offeror is the "originator of his offer."
B) The offeror is the "master of his offer."
C) The offeror is the "proponent of his offer."
D) The offeror is the "adjudicator of his offer."
E) The offeror is the "arbiter of his offer."

Question 76

Which of the following is false regarding how the Japanese tend to view contracts?

A) The Japanese tend to view contracts as ongoing relationships.
B) The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance.
C) The Japanese tend to be suspicious of long, detailed contracts.
D) The Japanese have a preference for flexible contracts.
E) The Japanese do not desire that any terms be left to be decided later.

Question 77

Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale?

A) There is no contract because silence, as a general rule, cannot be used to form a contract.
B) There is no contract because the offer was not made in person.
C) There is no contract because the offer was not made in writing.
D) Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time.
E) Janice can avoid this being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.

Question 78

In which of the following ways can an offer terminate?

A) Only by revocation by the offeror.
B) Only by revocation by the offeror, or rejection or counteroffer by the offeree.
C) Revocation by the offeror, rejection by the offeree, or destruction of the subject matter.
D) By revocation by the offeror, but not before the offer is held open for five days.
E) Only by revocation by the offeror, but not before the offer is held open for ten days.

Question 79

Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of the offer?

A) The Matching Rule.
B) The Complete Rule.
C) The Mirror Image Rule.
D) The Exact Rule.
E) The Parallel Rule.

Question 80

If the subject matter of an offer becomes illegal, what is the result?

A) The offer immediately terminates.
B) There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal.
C) There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal.
D) There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal.
E) There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.