HMGT 4244 TEST 2 QUESTIONS WITH VERIFIED
ANSWERS
A contract has to be in writing to be enforceable by the courts - Answers - False
A valid contract needs consideration flowing to both parties - Answers - True
It is the responsibility of the courts to decide the relative fairness of consideration -
Answers - False
Acceptance of an offer must mirror exactly the terms of the offer in order for the
acceptance to make the contract vaild - Answers - True
The UCC is the acronym for the law regulating purchasing agreements which give
protection to buyers seller and financial lenders when good are purchased under
contract - Answers - True
What are the 3 requirements under the UCC? - Answers - 1) Sales more then $500
must b win writing
2) Sellers must provide goods that are not defect and should meet the standard that are
stated in the contract
3) Buyer has right to inspect goods and notify the seller right away
"Consideration" in the hospitality industry is often?
A) Money
B) Sue of property
C) The promise to act or not act
D) All of the above - Answers - D
The best way for a hotelier to indicate acceptance of an offer is?
A) Verbal or non-verbal agreement
B) Acceptance of a deposit
C) Acceptance of partial or full payment
D) Agree to the offer in writing - Answers - D
The latin phrase "Caveat Emptor" in the hospitality industry refers to?
A) The burden of determining the quality and price of a product falls to the buyer
B) The burden of determine the quality and price of a product falls to the seller
C) The burden of determining the quality and price of product is decided by the courts
D) There is no burden to determine the quality and price of a product - Answers - A
Caveat emptor - Answers - Buyer beware
, The Uniform Commercial Code require you to?
A) Contribute to the cost of your employees uniforms
B) Ensure that all of your establishment's commercials contain a similar theme and logo
C) Fulfill any promises made in a punching or sales contract
D) To place "wholesales" identity code on all products received in the event that a
problem arises in the future - Answers - C
"Capacity to contract" means?
A) The building has enough space to house the purchases product or service
B) The individuals creating a contract must meet minimum age, mental, and physical
requirements in order to make the contract legal
C) The business must not receive more contract than it is capable of fulfilling
D) The parties must contract according to the limitation of the law - Answers - B
All contacts, whether verbal or written, must be for a legal purpose and in order to be
enforceable, must consist of an offer, acceptance and consideration - Answers - True
Which of the following is one of the Eight steps to follow when entering into contracts?
A) Always rely on a verbal agreement
B) Make sure to skim through the entire contact
C) Discard copies of all contract documents
D) Use good faith when negotiating contracts - Answers - D
8 steps to entering a contact - Answers - 1) Get it in writing
2) Read the contact thoroughly
3) Keep copies of all contact documents
4) Use good faith when negotiating contracts
5) Note and calendar time deadlines for performance
6) Ensure the performance of third parties
7) Share contract information with those who need to know, and educate staff on the
consequences of contract breach
8) Resolve ambiguities as quickly and fairly as possible
Mediation - Answers - a process in which an appointed, neutral 3rd party (mediator)
assists those involved in a dispute with resolving their differences
Statue of limitations - Answers - Various laws that set maximum time periods in which
lawsuits must be initiate.
Breach of contract - Answers - when somebody is not meeting terms of contract and
violating it
Breach of contract remedies - Answers - - Suit for specific performance
- Liquidated damages
- Economic loss
- Alternative dispute resolution
ANSWERS
A contract has to be in writing to be enforceable by the courts - Answers - False
A valid contract needs consideration flowing to both parties - Answers - True
It is the responsibility of the courts to decide the relative fairness of consideration -
Answers - False
Acceptance of an offer must mirror exactly the terms of the offer in order for the
acceptance to make the contract vaild - Answers - True
The UCC is the acronym for the law regulating purchasing agreements which give
protection to buyers seller and financial lenders when good are purchased under
contract - Answers - True
What are the 3 requirements under the UCC? - Answers - 1) Sales more then $500
must b win writing
2) Sellers must provide goods that are not defect and should meet the standard that are
stated in the contract
3) Buyer has right to inspect goods and notify the seller right away
"Consideration" in the hospitality industry is often?
A) Money
B) Sue of property
C) The promise to act or not act
D) All of the above - Answers - D
The best way for a hotelier to indicate acceptance of an offer is?
A) Verbal or non-verbal agreement
B) Acceptance of a deposit
C) Acceptance of partial or full payment
D) Agree to the offer in writing - Answers - D
The latin phrase "Caveat Emptor" in the hospitality industry refers to?
A) The burden of determining the quality and price of a product falls to the buyer
B) The burden of determine the quality and price of a product falls to the seller
C) The burden of determining the quality and price of product is decided by the courts
D) There is no burden to determine the quality and price of a product - Answers - A
Caveat emptor - Answers - Buyer beware
, The Uniform Commercial Code require you to?
A) Contribute to the cost of your employees uniforms
B) Ensure that all of your establishment's commercials contain a similar theme and logo
C) Fulfill any promises made in a punching or sales contract
D) To place "wholesales" identity code on all products received in the event that a
problem arises in the future - Answers - C
"Capacity to contract" means?
A) The building has enough space to house the purchases product or service
B) The individuals creating a contract must meet minimum age, mental, and physical
requirements in order to make the contract legal
C) The business must not receive more contract than it is capable of fulfilling
D) The parties must contract according to the limitation of the law - Answers - B
All contacts, whether verbal or written, must be for a legal purpose and in order to be
enforceable, must consist of an offer, acceptance and consideration - Answers - True
Which of the following is one of the Eight steps to follow when entering into contracts?
A) Always rely on a verbal agreement
B) Make sure to skim through the entire contact
C) Discard copies of all contract documents
D) Use good faith when negotiating contracts - Answers - D
8 steps to entering a contact - Answers - 1) Get it in writing
2) Read the contact thoroughly
3) Keep copies of all contact documents
4) Use good faith when negotiating contracts
5) Note and calendar time deadlines for performance
6) Ensure the performance of third parties
7) Share contract information with those who need to know, and educate staff on the
consequences of contract breach
8) Resolve ambiguities as quickly and fairly as possible
Mediation - Answers - a process in which an appointed, neutral 3rd party (mediator)
assists those involved in a dispute with resolving their differences
Statue of limitations - Answers - Various laws that set maximum time periods in which
lawsuits must be initiate.
Breach of contract - Answers - when somebody is not meeting terms of contract and
violating it
Breach of contract remedies - Answers - - Suit for specific performance
- Liquidated damages
- Economic loss
- Alternative dispute resolution
