BUS 210 LATEST 2026 CORE EXAM TEST QUESTIONS
AND ANSWERS GRADED A+
✔✔BLUE QUESTION: Party A pledges $250 to a charity but later refuses to pay,
claiming they changed their mind. Can the charity enforce the pledge?
A. No, because charitable pledges are considered mere gifts.
B. No, unless the charity proves it relied on the promise and suffered an actual loss.
C. Yes, because charitable subscriptions are enforceable by law.
D. Yes, but only for the amount of the charity's reliance damages. - ✔✔C
✔✔GREEN QUESTION: What is the goal of enforcing promissory estoppel?
A. To enforce all oral agreements
B. To prevent a correct and agreed contract from being enforced
C. To prevent an injustice when one party reasonably relied on another party's promise
D. To allow parties to withdraw from contracts with no consequence - ✔✔C
✔✔GREY QUESTION: Which of the following best describes consideration in a valid
contract?
A. A moral obligation or promise made out of kindness.
B. A bargained-for exchange where each party gives something of legal value, not just a
gift.
C. Any promise made in good faith, even without any exchange of value.
D. A statement of intent that does not require definite or certain terms. - ✔✔B`
✔✔RED QUESTION: What classifies a child of tender years?
RED QUESTION: What classifies a child of tender years?
B. A child between 7-14
C. A natural infant
D. Someone younger than 18 - ✔✔B
✔✔BLUE QUESTION: A debtor may still be held legally liable to repay their debt
AFTER being fully discharged of the debt by courts under the Debtor's Promises rule if
they
A. Express guilt for not repaying the debt
B. Fail to notify the creditor that the debt was discharged
C. Keep possession of property they bought on credit before discharged
D. Verbally tell creditor they will still pay back the debt - ✔✔D
✔✔GREEN QUESTION: Who won the court case and what state did the following case
originate in? Achee Holdings, LLC v. Silver Hill Financial, LLC
A. The defendant, Silver Hill Financial, LLC in Texas
B. The plaintiff, Achee Holdings, LLC in Ohio
C. The plaintiff, Achee Holdings, LLC in Texas
D. The defendant, Silver Hill Financial, LLC in North Carolina - ✔✔A
,✔✔GREY QUESTION: In Burgoon v. Narconon of Northern California, what was the
main issue in the case?
A. Whether Narconon provided medical treatment at a reasonable cost.
B. Whether the clients truly and fairly agreed to the contracts for Narconon's drug
program.
C. Whether the plaintiffs failed to pay for Narconon's services.
D. Whether Narconon violated state environmental laws. - ✔✔B
✔✔GREEN QUESTION: In a contract, which of the following best describes a unilateral
mistake?
A. One party intentionally misleads another to agree to a contract
B. One party unintentionally makes an error in a contract
C. Both parties mistakenly agree to a contract
D. One party understands and agrees to a correctly done contract - ✔✔B
✔✔GREY QUESTION: Which situation best represents undue influence?
A. A patient agrees to a medical treatment after discussing risks and benefits with their
doctor.
B. A financial advisor convinces their elderly client to transfer assets to a joint account in
the advisor's name.
C. Two friends sign a rental agreement after one suggests it's a "great deal."
D. A business owner agrees to new contract terms after several negotiation meetings. -
✔✔B
✔✔BLUE QUESTION: Which of the following scenarios does NOT call into question
one of the parties' contractual intent when entering into a contract?
A. A party signs a contract while severely intoxicated and unable to comprehend the
terms.
B. A party enters into a contract based on fraudulent misrepresentation by the other
side.
C. A party mistakenly believes the contract includes a clause that was never actually
written.
D. A party later regrets the bargain they made because the deal turned out less
profitable than expected. - ✔✔D
✔✔RED QUESTION: Which answer, as seen in the Case Study, best fits the blank
below: "Intertape relied on Provision 12 of the Purchase Agreement, contending that
Intertape '____________' was able to elect the remedy for the defective Pouch
Machine".
A. unconscionably
B. at its unilateral opinion
C. ethically
D. at its sole discretion - ✔✔D
, ✔✔RED QUESTION: According to the Fourth Primary Rule of Construction, what is the
order of precedence when it comes to reflecting intent?
A: Typing prevails handwriting, handwriting prevails mechanical printing
B: Mechanical printing prevails typing, typing prevails handwriting
C: Handwriting prevails typing, typing prevails mechanical printing
D: Handwriting prevails mechanical printing, mechanical printing prevails typing - ✔✔C
✔✔BLUE QUESTION: Can a valid contract exist in the following hypothetical using
implied-in-law (constructive) conditions? Person A agrees to install new flooring in
Person B's home for $4,000. The agreement does NOT state when either party must
perform. Person A begins work one week later, but Person B refuses to pay, arguing
that no contract existed because no time for performance was specified.
A. No, because a contract cannot be valid without expressly stated timing provisions.
B. No, because only written contracts can include implied-in-law conditions.
C. Yes, because the law supplies reasonable and fair timing requirements when the
parties do not specify them.
D. Yes, but only if both parties later agreed on an exact date for payment in writing. -
✔✔C
✔✔GREY QUESTION: What does the Statute of Frauds mainly deal with in relation to
contracts?
A. Deciding if a contract is valid based on whether it meets the six required elements
B. Requiring all contracts to be in writing in order to be legally valid
C. Determining whether certain types of contracts can be enforced in court, not whether
they are valid
D. Changing the meaning and interpretation of contract clauses and terms - ✔✔C
✔✔GREEN QUESTION: Which of the following statements about conditions precedent
is true?
A. Once conditions are met, the obligations of a contract have been complete
B. Once conditions are met, a contract is now enforceable
C. There are no legal effects on a contract's enforceability
D. Both parties must fulfill contractual obligations at the same time - ✔✔B
✔✔RED QUESTION: Which of the following is not one of the three obligations on all
parties who come within the purview of its provisions?
A. Perform in a reasonable time
B. Perform in good faith
C. Perform with liberal interpretation
D. Perform according to past business dealings and practices - ✔✔C
✔✔BLUE QUESTION: Which of the following best explains a purchase money security
interest (PMSI) under Article IX of the UCC?
A. A creditor's rights automatically attach to any property the debtor currently owns,
regardless of how it was acquired.
AND ANSWERS GRADED A+
✔✔BLUE QUESTION: Party A pledges $250 to a charity but later refuses to pay,
claiming they changed their mind. Can the charity enforce the pledge?
A. No, because charitable pledges are considered mere gifts.
B. No, unless the charity proves it relied on the promise and suffered an actual loss.
C. Yes, because charitable subscriptions are enforceable by law.
D. Yes, but only for the amount of the charity's reliance damages. - ✔✔C
✔✔GREEN QUESTION: What is the goal of enforcing promissory estoppel?
A. To enforce all oral agreements
B. To prevent a correct and agreed contract from being enforced
C. To prevent an injustice when one party reasonably relied on another party's promise
D. To allow parties to withdraw from contracts with no consequence - ✔✔C
✔✔GREY QUESTION: Which of the following best describes consideration in a valid
contract?
A. A moral obligation or promise made out of kindness.
B. A bargained-for exchange where each party gives something of legal value, not just a
gift.
C. Any promise made in good faith, even without any exchange of value.
D. A statement of intent that does not require definite or certain terms. - ✔✔B`
✔✔RED QUESTION: What classifies a child of tender years?
RED QUESTION: What classifies a child of tender years?
B. A child between 7-14
C. A natural infant
D. Someone younger than 18 - ✔✔B
✔✔BLUE QUESTION: A debtor may still be held legally liable to repay their debt
AFTER being fully discharged of the debt by courts under the Debtor's Promises rule if
they
A. Express guilt for not repaying the debt
B. Fail to notify the creditor that the debt was discharged
C. Keep possession of property they bought on credit before discharged
D. Verbally tell creditor they will still pay back the debt - ✔✔D
✔✔GREEN QUESTION: Who won the court case and what state did the following case
originate in? Achee Holdings, LLC v. Silver Hill Financial, LLC
A. The defendant, Silver Hill Financial, LLC in Texas
B. The plaintiff, Achee Holdings, LLC in Ohio
C. The plaintiff, Achee Holdings, LLC in Texas
D. The defendant, Silver Hill Financial, LLC in North Carolina - ✔✔A
,✔✔GREY QUESTION: In Burgoon v. Narconon of Northern California, what was the
main issue in the case?
A. Whether Narconon provided medical treatment at a reasonable cost.
B. Whether the clients truly and fairly agreed to the contracts for Narconon's drug
program.
C. Whether the plaintiffs failed to pay for Narconon's services.
D. Whether Narconon violated state environmental laws. - ✔✔B
✔✔GREEN QUESTION: In a contract, which of the following best describes a unilateral
mistake?
A. One party intentionally misleads another to agree to a contract
B. One party unintentionally makes an error in a contract
C. Both parties mistakenly agree to a contract
D. One party understands and agrees to a correctly done contract - ✔✔B
✔✔GREY QUESTION: Which situation best represents undue influence?
A. A patient agrees to a medical treatment after discussing risks and benefits with their
doctor.
B. A financial advisor convinces their elderly client to transfer assets to a joint account in
the advisor's name.
C. Two friends sign a rental agreement after one suggests it's a "great deal."
D. A business owner agrees to new contract terms after several negotiation meetings. -
✔✔B
✔✔BLUE QUESTION: Which of the following scenarios does NOT call into question
one of the parties' contractual intent when entering into a contract?
A. A party signs a contract while severely intoxicated and unable to comprehend the
terms.
B. A party enters into a contract based on fraudulent misrepresentation by the other
side.
C. A party mistakenly believes the contract includes a clause that was never actually
written.
D. A party later regrets the bargain they made because the deal turned out less
profitable than expected. - ✔✔D
✔✔RED QUESTION: Which answer, as seen in the Case Study, best fits the blank
below: "Intertape relied on Provision 12 of the Purchase Agreement, contending that
Intertape '____________' was able to elect the remedy for the defective Pouch
Machine".
A. unconscionably
B. at its unilateral opinion
C. ethically
D. at its sole discretion - ✔✔D
, ✔✔RED QUESTION: According to the Fourth Primary Rule of Construction, what is the
order of precedence when it comes to reflecting intent?
A: Typing prevails handwriting, handwriting prevails mechanical printing
B: Mechanical printing prevails typing, typing prevails handwriting
C: Handwriting prevails typing, typing prevails mechanical printing
D: Handwriting prevails mechanical printing, mechanical printing prevails typing - ✔✔C
✔✔BLUE QUESTION: Can a valid contract exist in the following hypothetical using
implied-in-law (constructive) conditions? Person A agrees to install new flooring in
Person B's home for $4,000. The agreement does NOT state when either party must
perform. Person A begins work one week later, but Person B refuses to pay, arguing
that no contract existed because no time for performance was specified.
A. No, because a contract cannot be valid without expressly stated timing provisions.
B. No, because only written contracts can include implied-in-law conditions.
C. Yes, because the law supplies reasonable and fair timing requirements when the
parties do not specify them.
D. Yes, but only if both parties later agreed on an exact date for payment in writing. -
✔✔C
✔✔GREY QUESTION: What does the Statute of Frauds mainly deal with in relation to
contracts?
A. Deciding if a contract is valid based on whether it meets the six required elements
B. Requiring all contracts to be in writing in order to be legally valid
C. Determining whether certain types of contracts can be enforced in court, not whether
they are valid
D. Changing the meaning and interpretation of contract clauses and terms - ✔✔C
✔✔GREEN QUESTION: Which of the following statements about conditions precedent
is true?
A. Once conditions are met, the obligations of a contract have been complete
B. Once conditions are met, a contract is now enforceable
C. There are no legal effects on a contract's enforceability
D. Both parties must fulfill contractual obligations at the same time - ✔✔B
✔✔RED QUESTION: Which of the following is not one of the three obligations on all
parties who come within the purview of its provisions?
A. Perform in a reasonable time
B. Perform in good faith
C. Perform with liberal interpretation
D. Perform according to past business dealings and practices - ✔✔C
✔✔BLUE QUESTION: Which of the following best explains a purchase money security
interest (PMSI) under Article IX of the UCC?
A. A creditor's rights automatically attach to any property the debtor currently owns,
regardless of how it was acquired.
