Question 1

This ancient Babylonian document covered contract law.

Accepted Answer

The Code of Hammurabi is an ancient Babylonian document that is one of the earliest and most complete written legal codes, known for covering various aspects of contract law among other societal rules and norms.

Question 2

__________ is a medieval European law established a uniform and unbiased system for deciding commercial disputes across borders and political boundaries.

Accepted Answer

The Lex Mercatoria, also known as the Law Merchant, was a body of commercial law that emerged in the medieval period, used by merchants throughout Europe. It was developed to deal with issues of trade across different jurisdictions, providing a more uniform and equitable system for resolving disputes among merchants, regardless of local laws or borders.

Question 3

Kailen is a huge fan of Justin Bieber. She pays him $140.00 to purchase his hair clippings from a recent haircut. Which statement is correct according to contract law?

Accepted Answer

Under the theory of freedom to contract, courts generally support the rights of individuals to enter into contracts and do not interfere with the terms of the agreement, assuming it is legal and all parties are competent to contract. The wisdom or fairness of the contract's terms (such as the price paid for an item) is not typically a concern for enforcement.

Question 4

__________ is a model law that most states have adopted to govern service contracts and real estate contracts.

Accepted Answer

The answer of __________ is a model law that most...

Question 5

How many states have adopted the Uniform Commercial Code?

Accepted Answer

All states have adopted the Uniform Commercial Code.

Question 6

The court determined Jimmy John's non-competition clause was all the following except

Accepted Answer

The court likely found Jimmy John's non-competition clause to be overly broad and restrictive, particularly for low-wage workers like sandwich makers and delivery drivers, by preventing them from seeking employment in similar roles elsewhere, which would not be considered "completely reasonable."

Question 7

Becker Corporation hires a social media influencer, Bekah, to use their product and post about it on social media. This is an example of which type of an agreement?

Accepted Answer

The answer of Becker Corporation hires a social media influencer,...

Question 8

NASA hires Connor, an Aerospace Engineer, to research and to develop a wing design to increase the speed of rockets in outer space. This is an example of what type of agreement?

Accepted Answer

The answer of NASA hires Connor, an Aerospace Engineer, to...

Question 9

To fund a new building project, Kuhl Corporation enters into a contract with Bank of Highlander to lend them the money. This is an example of which type of agreement?

Accepted Answer

This is an example of a loan agreement, where Bank of Highlander agrees to lend money to Kuhl Corporation for their new building project.

Question 10

In the United States, the law presumes that every contract is entered into with

Accepted Answer

The law presumes that every contract is entered into with good faith, meaning that the parties involved are assumed to act honestly and not mislead or deceive each other.

Question 11

"Honesty in fact and the observance of reasonable commercial standards of fair dealing" is the definition of good faith according to

Accepted Answer

The Uniform Commercial Code (UCC) and common law define "good faith" as honesty in fact and the observance of reasonable commercial standards of fair dealing. This concept is particularly relevant in commercial transactions and contracts.

Question 12

In the case of United States v. Apple, the court determined that the Sherman Antitrust Act

Accepted Answer

The court determined that the Sherman Antitrust Act made only unreasonable restraints of trade illegal, reflecting the Act's intention to prohibit certain competitive practices deemed harmful to consumers.

Question 13

Valerie promised to mow Laura's yard for Laura's promise to pay her $50.00 to mow it. This is an example of what type of contract?

Accepted Answer

This is an example of a bilateral contract because it involves a promise for a promise. Valerie promises to mow Laura's yard, and Laura promises to pay Valerie $50.00 in return.

Question 14

The Schalaefer Law Firm promises to pay $4000.00 a month for office space from Waymeier Properties for their promise to provide the space and all utilities. This is an example of a _____________ contract.

Accepted Answer

This is an example of a bilateral contract because both parties are making a promise. The Schalaefer Law Firm promises to pay $4000.00 a month, and Waymeier Properties promises to provide office space and all utilities.

Question 15

Evan promises to pay Joseph $100.00 if he does not swear for the entire weekend. This is an example of a __________ contract.

Accepted Answer

This is an example of a unilateral contract because it involves a promise from one party (Evan) in exchange for a specific action (not swearing for the entire weekend) by another party (Joseph). In unilateral contracts, only one party is obligated to perform if the condition is met.

Question 16

Most business contracts are bilateral because they are enforceable before the other party performs because

Accepted Answer

Bilateral contracts involve promises made by both parties, allowing either party to seek enforcement if the other fails to perform, without waiting for a breach to occur.

Question 17

This rule requires that some agreements must be in writing to be a contract.

Accepted Answer

The Statute of Frauds is the rule that requires certain types of contracts to be in writing in order to be enforceable. This includes contracts for the sale of land, contracts that cannot be performed within one year, and contracts for the sale of goods over a certain value, among others.

Question 18

Purchasing a soda from a soda machine is an example of a __________ contract.

Accepted Answer

An implied contract is one where the agreement is not expressly stated but is inferred from the actions of the parties involved. When you purchase a soda from a soda machine, the contract is implied by your action of inserting money and selecting a soda, and the machine's action of dispensing the soda.

Question 19

Oral contracts, also sometimes known as a "handshake" contract are not preferred in the business environment because

Accepted Answer

Oral contracts are indeed considered valid contracts, but they are not preferred in business due to the difficulty in proving their terms, which can lead to increased risk and uncertainty. This makes written contracts the preferred choice for most businesses.

Question 20

Cell phone contracts are an example of which type of contract?

Accepted Answer

Cell phone contracts are transactional because they involve a specific exchange of services (access to a cell phone network) for payment, typically with clearly defined terms and conditions.

Quiz 6: Contracts: Overview, Definition, Categories, and Source of Law