Question 1

The ability of a corporation to enter into contracts is limited by __________.
A) its powers as contained in or inferred from its articles of incorporation
B) approval requirements
C) ratification
D) agents

Accepted Answer

The ability of a corporation to enter into contracts is primarily limited by the powers granted to it in its articles of incorporation, which define the scope of its activities and authority.

Question 2

A contractor who agrees to undertake work without being under the direct control or direction of another and is personally responsible for his or her negligent acts is a/an __________.
A) agent
B) independent contractor
C) employee
D) supervisor

Accepted Answer

An independent contractor is someone who performs work for another entity under terms specified in a contract or within a verbal agreement, without being under the direct control of the hiring party, and is personally responsible for their own negligent acts.

Question 3

Ordinarily, substantial performance by one party to a contract will obligate the other parties __________.
A) to perform their obligations under the contract
B) not to perform their obligations under the contract
C) to void the contract
D) to invalidate the contract

Accepted Answer

Substantial performance generally means that a party has fulfilled enough of its contract obligations to warrant payment or performance from the other party, even if there are minor deviations.

Question 4

A mistake in law __________.
A) is required in order to successfully execute a contract
B) is an obligatory element of a contract
C) is a necessary element of a contract
D) can result in a nonbinding contract

Accepted Answer

A mistake in law can lead to a contract being nonbinding if it affects the fundamental terms or assumptions of the contract, making it voidable.

Question 5

When a party to a contract has breached the contract and refuses to or cannot perform, the general rule is that the law will attempt to __________.
A) creates separate agreements for the parties to a the contract
B) require specific performance of the contract
C) create a new contract
D) make the contract non-binding

Accepted Answer

The general rule is that the law may require specific performance, which means the breaching party must fulfill their obligations as per the contract terms, especially when monetary damages are inadequate.

Question 6

A policy that temporarily denies new appointments to a medical staff is __________.
A) moratorium
B) restraint of trade
C) exclusive contract
D) reduced market approach

Accepted Answer

A moratorium is a temporary suspension or delay of an activity, in this case, new appointments to a medical staff.

Question 7

A __________ occurs when there is a violation of one or more of the terms of the contract.
A) completed contract
B) valid contract
C) breach of contract
D) executed contract

Accepted Answer

A breach of contract occurs when one or more parties fail to fulfill the terms agreed upon in the contract.

Question 8

Medical staff membership that admits only physicians with academic appointments is a/an __________.
A) open staff
B) closed staff
C) full staff privileges
D) temporary privileges

Accepted Answer

A closed staff refers to a medical staff membership that restricts membership to physicians with specific qualifications, such as academic appointments.

Question 9

A contract with a firm of anesthesiologists that requires that all anesthesia services for a hospital's patients be performed by that firm is a/an __________.
A) open-ended contract
B) closed contract
C) exclusive contract
D) inclusive contract

Accepted Answer

An exclusive contract is an agreement where one party grants another party the sole rights to provide certain services, in this case, anesthesia services for a hospital's patients.

Question 10

The federal agency responsible for monitoring the marketplace and enforcing antitrust laws is the ___________.
A) National Labor Relations Board
B) Food and Drug Administration
C) National Practitioner Data Bank
D) Federal Trade Commission

Accepted Answer

The Federal Trade Commission (FTC) is the federal agency responsible for monitoring the marketplace and enforcing antitrust laws to promote competition and protect consumers.

Question 11

A contract serves to provide one or more parties with a legal remedy to __________.
A) require the parties to a contract not perform its legal obligations pursuant to the terms of the contract
B) require that all oral agreements to a written contract have more validity then the written contract
C) require the parties to perform its legal obligations pursuant to the terms of the contract.
D) prevent compliance with the contractual obligations under the contract

Accepted Answer

A contract provides a legal remedy to require the parties to perform their legal obligations as per the terms of the contract.

Question 12

A contract that is inferred by law is a/an __________.
A) implied contract
B) illegal contract
C) preferred contract
D) written contract

Accepted Answer

An implied contract is one that is not written or spoken but is inferred by the actions or circumstances of the parties involved, and is recognized by law.

Question 13

If a contract is to be considered valid, an offer must be __________.
A) assumed
B) tacit
C) communicated
D) inferred

Accepted Answer

For a contract to be valid, an offer must be communicated to the offeree so that they are aware of the terms and can accept or reject it.

Question 14

Acceptance of a contract requires a meeting of the __________.
A) attorneys for the both parties to a contract
B) minds
C) defendants
D) plaintiffs

Accepted Answer

Acceptance of a contract requires a meeting of the minds, meaning that both parties must agree to the terms of the contract.

Question 15

The federal contract that provides that every contract in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states is illegal is the __________.
A) Federal Statute Act
B) Commonwealth Antitrust Act
C) Fair Labor Standards Act
D) Sherman Antitrust Act

Accepted Answer

The Sherman Antitrust Act is the federal statute that declares illegal any contract, trust, or conspiracy in restraint of trade or commerce among the several states.

Question 16

An __________ is a promise by one party to do (or not to do) something if the other party agrees to do (or not do) something.
A) offer
B) denial
C) implied contract
D) consideration

Accepted Answer

An offer is a promise by one party to do (or not to do) something if the other party agrees to do (or not do) something.

Question 17

A special kind of agreement, either written or oral, that involves legally binding obligations between two or more parties is a __________.
A) nondiscriminatory
B) moratorium
C) communication
D) contract

Accepted Answer

A contract is a legally binding agreement between two or more parties that creates obligations that are enforceable by law.

Question 18

An agreement between an employee and employer that specifies the terms of a contract is __________.
A) an oral agreement
B) completed contract
C) unenforceable contract
D) employment contract

Accepted Answer

An employment contract is a formal agreement between an employee and employer that outlines the terms and conditions of employment.

Question 19

The ever-increasing number of alternative healthcare delivery systems has resulted in a __________.
A) closed market for hospital nurses
B) wide range of employment opportunities for physicians
C) wide range of competitive schemes between an employer and employee that are questionable from an antitrust standpoint
D) failure to admit qualified physicians to medical staff membership

Accepted Answer

The ever-increasing number of alternative healthcare delivery systems has resulted in a wide range of competitive schemes between an employer and employee that are questionable from an antitrust standpoint.

Question 20

Contracts, particularly those in writing, serve to minimize misunderstandings and offer a means for parties to __________.
A) be inconsistent in an agreement
B) resolve disputes
C) solve personal financial issues
D) institute disputes

Accepted Answer

Contracts provide a means for parties to resolve disputes because they establish the terms of the agreement and provide a framework for resolving any disagreements that may arise.

Quiz 5: Contracts

The ability of a corporation to enter into contracts is limited by __________.

A contractor who agrees to undertake work without being under the direct control or direction of another and is personally responsible for his or her negligent acts is a/an __________.

Ordinarily, substantial performance by one party to a contract will obligate the other parties __________.

A mistake in law __________.

When a party to a contract has breached the contract and refuses to or cannot perform, the general rule is that the law will attempt to __________.

A policy that temporarily denies new appointments to a medical staff is __________.

A __________ occurs when there is a violation of one or more of the terms of the contract.

Medical staff membership that admits only physicians with academic appointments is a/an __________.

A contract with a firm of anesthesiologists that requires that all anesthesia services for a hospital's patients be performed by that firm is a/an __________.

The federal agency responsible for monitoring the marketplace and enforcing antitrust laws is the ___________.

A contract serves to provide one or more parties with a legal remedy to __________.

A contract that is inferred by law is a/an __________.

If a contract is to be considered valid, an offer must be __________.

Acceptance of a contract requires a meeting of the __________.

The federal contract that provides that every contract in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states is illegal is the __________.

An __________ is a promise by one party to do (or not to do) something if the other party agrees to do (or not do) something.

A special kind of agreement, either written or oral, that involves legally binding obligations between two or more parties is a __________.

An agreement between an employee and employer that specifies the terms of a contract is __________.

The ever-increasing number of alternative healthcare delivery systems has resulted in a __________.

Contracts, particularly those in writing, serve to minimize misunderstandings and offer a means for parties to __________.