Question 1

Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of ________.
A) contracts for the sale of goods
B) all contracts
C) contracts for the lease of goods
D) service contracts

Accepted Answer

Article 2A of the Uniform Commercial Code (UCC) specifically deals with contracts for the lease of goods, providing a standardized set of rules for their creation and enforcement.

Question 2

Which of the following statements best describes the Restatement of the Law of Contracts?
A) It is the supreme legal authority for contract law.
B) It is a law which has been adopted, at least in part, by every state.
C) It is a compilation of contract law principles, as agreed upon by its drafters.
D) It is a compilation of law pertaining exclusively to the Uniform Commercial Code.

Accepted Answer

The Restatement of the Law of Contracts is a compilation of contract law principles, as agreed upon by its drafters. It is not the supreme legal authority, nor has it been adopted in its entirety by every state. It also includes principles that go beyond the Uniform Commercial Code, so it is not exclusively about UCC law.

Question 3

The ________ states that the intent to enter into a contract is judged by the reasonable person standard and not by the subjective intent of the parties.
A) objective theory of contracts
B) Restatement (Second) of Contracts
C) Restatement of the Law of Contracts
D) common law of contracts

Accepted Answer

The objective theory of contracts holds that the intention to enter into a contract is based on the objective facts and circumstances, as judged by a reasonable person standard, rather than the subjective intent of the parties. This principle is widely recognized in contract law and is used to determine the existence and scope of a contract. The Restatement (Second) of Contracts and Restatement of the Law of Contracts are both authoritative sources of contract law, but they do not specifically address the objective theory of contracts. The common law of contracts is also relevant to this area of law, but it is based on judicial decisions rather than a specific doctrine.

Question 4

Which of the following is a characteristic of a valid contract?
A) A valid contract cannot contain promises.
B) The parties must have the contract's terms approved by the appropriate court for it to be valid.
C) A court will enforce a contract if a party does not voluntarily perform.
D) There need not be mutual assent by all the parties involved in a contract.

Accepted Answer

A valid contract must have mutual assent between the parties, meaning that all parties involved must have agreed to the terms and conditions of the contract. Additionally, the contract must have consideration, meaning that each party must be giving or promising something of value to the other party. Finally, the purpose of the contract must be legal and not against public policy. If all of these criteria are met, the contract is considered valid and a court will enforce it if necessary. However, the approval of a court is not necessary for a contract to be valid.

Question 5

In a unilateral contract,the offeror ________.
A) must accept the promise extended by the offeree to create the contract
B) can revoke the offer at any point of time after performance
C) will treat either a promise to perform or the actual performance of the act as acceptance of his or her offer
D) cannot revoke the offer once the offeree has begun performance or has substantially completed performance of the act

Accepted Answer

In a unilateral contract, the offeror cannot revoke the offer once the offeree has begun performance or has substantially completed performance of the act. This is because once the offeree has started performing, they have accepted the offer by their action, which creates a binding contract. The offeror cannot withdraw the offer at this point without breaching the terms of the contract.

Question 6

Which of the following is one of the four basic requirements for contract formation and enforcement?
A) A promise must be supported by a signed written document and an advance payment.
B) The parties must have contractual capacity.
C) The object of the contract must be ethical.
D) Both parties to the contract must be at least 21 years old.

Accepted Answer

One of the four basic requirements for contract formation and enforcement is that the parties must have contractual capacity. This means they must be of legal age and mental capacity to enter into a binding agreement. Options A, C and D are incorrect as they are not basic requirements for contract formation and enforcement.

Question 7

Mike is a painter who makes a verbal offer to paint Betty's house for $2,000 by May 1??.Betty verbally promises to pay Mike $2,000 for the paint job if he completes it by May 1??.This is an example of a(n)________.
A) void contract
B) quasi-contract
C) executed contract
D) bilateral contract

Accepted Answer

This is a bilateral contract because both parties have made promises to fulfill their obligations. Mike has promised to paint Betty's house, and Betty has promised to pay him $2,000 for doing so.

Question 8

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.

Accepted Answer

The Restatement of the Law of Contracts is a secondary source that provides guidance and clarification on contract law principles, often used by courts and legal professionals.

Question 9

A unilateral contract is ________.
A) a promise for an act
B) a promise for a promise
C) an act for an act
D) an exchange of money

Accepted Answer

A unilateral contract is a promise for an act. This means that one party promises to perform a specific act, and the other party is not obligated to do anything in return unless and until the act is performed. Once the act is performed, the contract becomes binding and the other party may be required to fulfill their end of the agreement. Examples of unilateral contracts include insurance contracts and reward offers.

Question 10

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 equitable action, the jury decides on the 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.

Accepted Answer

The equity doctrine is resorted to when an award of money damages would not be the proper remedy. Equity seeks to provide fair and just remedies in cases where money damages are not sufficient, such as cases involving specific performance, injunctions, or declaratory relief.

B, C, and D are incorrect.
B is incorrect because in an equitable action, the judge determines the outcome, not a jury.
C is partially incorrect – an equitable action could be tried with a judge or a jury, but the judge ultimately decides on the issue.
D is incorrect because the doctrine of equity can be applied in various types of cases, including contract cases.

Question 11

Under the objective theory of contracts,the subjective intent of a party to enter into a contract is ________.
A) determinative
B) minimally important
C) as important as the intent of a reasonable person
D) irrelevant

Accepted Answer

Under the objective theory of contracts, the subjective intent of a party is considered irrelevant. What matters is how a reasonable person would interpret the actions and words of the parties involved, not the internal, unexpressed intentions of either party.

Question 12

Equity was resorted to when ________ would not be the proper remedy.
A) the application of natural law
B) an award that is morally just
C) an award of money damages
D) maxims based on fairness

Accepted Answer

Equity was resorted to when an award of money damages would not be the proper remedy. Equity provided a way to provide a fair and just solution beyond just monetary damages.

Question 13

The court of equity that was developed in England was called ________.
A) quasi-court
B) criminal court
C) common court
D) Chancery Court

Accepted Answer

The court of equity that was developed in England was called the Chancery Court.

Question 14

Which of the following is true of the Uniform Commercial Code (UCC)?
A) The UCC has never been amended since it was first drafted.
B) The UCC is not considered as law, but rather as a guide to lawyers and judges.
C) The provisions of the UCC normally take precedence over the common law of contracts.
D) The UCC has been adopted in its entirety by all states.

Accepted Answer

The UCC is a set of model laws that govern commercial transactions, and its provisions typically take precedence over the common law of contracts. However, the UCC has been adopted in varying degrees by each state, so not all states have adopted it in its entirety. Additionally, the UCC has been amended several times since it was first drafted in the 1950s.

Question 15

Which of the following is true of contracts?
A) Contracts can be classified as either voluntary or involuntary.
B) All contracts are legally enforceable.
C) The terms of a valid contract become private law between the parties.
D) Courts of law usually do not enforce the promises made as part of contracts.

Accepted Answer

The terms of a valid contract become private law between the parties, meaning they are legally binding and enforceable by the parties themselves. A and B are incorrect because contracts are always voluntary and not all contracts are legally enforceable. D is incorrect because courts of law do enforce the promises made as part of contracts, as long as the contract is valid and meets certain requirements.

Question 16

The ________ establishes common legal rules for the formation and enforcement of electronic contracts and licenses.
A) Digital Millennium Copyright Act (DMCA)
B) Uniform Computer Information Transactions Act (UCITA)
C) Electronic Communication Privacy Act
D) Computer Misuse Act of 1990

Accepted Answer

The Uniform Computer Information Transactions Act (UCITA) establishes common legal rules for the formation and enforcement of electronic contracts and licenses. The DMCA focuses on copyright and digital rights management, the Electronic Communication Privacy Act deals with electronic communication privacy, and the Computer Misuse Act of 1990 is a UK law that deals with computer-related offenses.

Question 17

Lori just purchased a brand new lawnmower for $500.When she got home and tried to use it,it would not work.She became angry and shouted,"I'd sell this thing for $50." Her neighbor heard her and said,"I'll take it," and offered Lori the $50 in cash.Which of the following best describes this situation?
A) This is an enforceable bilateral contract.
B) This is an express contract.
C) This situation does not result in the creation of a contract.
D) Contract formation in this case depends on whether the neighbor subjectively thought Lori was serious.

Accepted Answer

This situation does not result in the creation of a contract because there was no agreement on the essential terms of the sale, such as the condition of the lawnmower. Additionally, Lori's statement was likely just an expression of frustration, rather than a serious offer to sell the item. Finally, there was no consideration given by the neighbor in exchange for the supposed acceptance of the offer. Therefore, there was no meeting of the minds, no intention to create a legal relationship and no offer, acceptance or consideration, the three essential elements of a contract.

Question 18

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) Supremacy Clause
C) doctrine of equity
D) common law of contracts

Accepted Answer

The objective theory of contracts states that the intent to enter into a contract is judged by the objective, reasonable person standard rather than the subjective intent of the parties. This means that the parties' actions, words, and circumstances are analyzed to determine whether a contract exists, rather than their personal beliefs or intentions.

Question 19

The consent of the parties to create a valid contract must be obtained by ________.
A) duress
B) undue influence
C) fraud
D) genuine means

Accepted Answer

The consent of the parties to create a valid contract must be obtained by genuine means which implies that the parties must have agreed to the contract freely and voluntarily without any coercion or manipulation. Duress, undue influence, and fraud are all forms of coercion that can invalidate the consent of the parties and make the contract voidable or unenforceable.

Question 20

A major source of contract law is the ________,which developed from early court decisions that became precedent for later decisions.
A) civil law
B) the Restatement of the Law of Contracts
C) Uniform Commercial Code
D) common law of contracts

Accepted Answer

The common law of contracts is a major source of contract law, as it is based on past court decisions that set a precedent for future cases. The Restatement of the Law of Contracts and the Uniform Commercial Code are also important sources, but they are secondary to the common law. Civil law would not be a major source of contract law in common law jurisdictions.

Quiz 9: Nature of Traditional and E-Contracts

Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of ________.

Which of the following statements best describes the Restatement of the Law of Contracts?

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

Which of the following is a characteristic of a valid contract?

In a unilateral contract,the offeror ________.

Which of the following is one of the four basic requirements for contract formation and enforcement?

Mike is a painter who makes a verbal offer to paint Betty's house for $2,000 by May 1??.Betty verbally promises to pay Mike $2,000 for the paint job if he completes it by May 1??.This is an example of a(n) ________.

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

A unilateral contract is ________.

Which of the following is true of the equity doctrine?

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

Equity was resorted to when ________ would not be the proper remedy.

The court of equity that was developed in England was called ________.

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

Which of the following is true of contracts?

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

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

The consent of the parties to create a valid contract must be obtained by ________.

A major source of contract law is the ________,which developed from early court decisions that became precedent for later decisions.