BUS LAW TEST 2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. An act or a promise can have legal value if, in exchange
for the promisor's promise, the promisee does, or refrains
from doing something that she has a legal right to do.
Answer:
True
Question:
2. Creditors have the legal right to collect debts even when
a bankrupt debtor is granted a discharge
Answer:
false
Question:
3. The UCC provides that an agreement to modify a
contract for the sale of goods needs some new
consideration to be binding
Answer:
false
Question:
4. According to classical contract law, a person who did not
attempt to discover readily discoverable fact was
generally justified in relying on the other party's
statement about them.
Answer:
false
Question:
5. As long as there is consideration, it does not matter
whether the contract is legal.
Answer:
false
,Question:
6. A voidable contract is one that meets the basic legal
requirements for a contract but may not be enforceable
because of some other legal rule.
Answer:
false
Question:
7. Many Restatement (Second) provisions are similar to their
analogous provisions in UCC Article 2.
Answer:
true
Question:
8. A quasi-contract is also called unjust enrichment or
contract implied in law.
Answer:
true
Question:
9. Promissory estoppel is a doctrine used to prevent
injustice by not allowing one to enforce a promise, even
if a contract may not have been formed.
Answer:
true
Question:
10. Which of the following is usually not considered an
element of valid contract formation?
Answer:
Writing
Question:
11. Standardized online contracts that come along with
downloaded software from the Internet are often called:
Answer:
clickwrap contract
, Question:
12. A(n) _____ contract is one in which one or more of the
parties have the legal right to cancel their obligations
under the contract.
Answer:
voidable
Question:
13. The mutual agreement necessary to create a contract
may also be demonstrated by the conduct of the parties.
When the surrounding facts and circumstances indicate
an agreement, it is called a(n):
Answer:
implied contract.
Question:
14. A contract is _____ when all of the parties have fully
performed their contractual duties.
Answer:
executed
Question:
15. Ryland told Lane that he would give him $50 if Lane
mowed his lawn. Lane said nothing, but mowed Ryland's
lawn. Ryland then gave Lane $50. This is an example of a
contract that is now:
Answer:
unilateral and executed.
Question:
16. Article 2 of the UCC expressly applies only to contracts
for:
Answer:
the sale of goods.
Question:
17. Which of the following is true of the UCC?
Answer:
It recognizes the concept of good faith dealing.
CORRECT ANSWERS
Question:
1. An act or a promise can have legal value if, in exchange
for the promisor's promise, the promisee does, or refrains
from doing something that she has a legal right to do.
Answer:
True
Question:
2. Creditors have the legal right to collect debts even when
a bankrupt debtor is granted a discharge
Answer:
false
Question:
3. The UCC provides that an agreement to modify a
contract for the sale of goods needs some new
consideration to be binding
Answer:
false
Question:
4. According to classical contract law, a person who did not
attempt to discover readily discoverable fact was
generally justified in relying on the other party's
statement about them.
Answer:
false
Question:
5. As long as there is consideration, it does not matter
whether the contract is legal.
Answer:
false
,Question:
6. A voidable contract is one that meets the basic legal
requirements for a contract but may not be enforceable
because of some other legal rule.
Answer:
false
Question:
7. Many Restatement (Second) provisions are similar to their
analogous provisions in UCC Article 2.
Answer:
true
Question:
8. A quasi-contract is also called unjust enrichment or
contract implied in law.
Answer:
true
Question:
9. Promissory estoppel is a doctrine used to prevent
injustice by not allowing one to enforce a promise, even
if a contract may not have been formed.
Answer:
true
Question:
10. Which of the following is usually not considered an
element of valid contract formation?
Answer:
Writing
Question:
11. Standardized online contracts that come along with
downloaded software from the Internet are often called:
Answer:
clickwrap contract
, Question:
12. A(n) _____ contract is one in which one or more of the
parties have the legal right to cancel their obligations
under the contract.
Answer:
voidable
Question:
13. The mutual agreement necessary to create a contract
may also be demonstrated by the conduct of the parties.
When the surrounding facts and circumstances indicate
an agreement, it is called a(n):
Answer:
implied contract.
Question:
14. A contract is _____ when all of the parties have fully
performed their contractual duties.
Answer:
executed
Question:
15. Ryland told Lane that he would give him $50 if Lane
mowed his lawn. Lane said nothing, but mowed Ryland's
lawn. Ryland then gave Lane $50. This is an example of a
contract that is now:
Answer:
unilateral and executed.
Question:
16. Article 2 of the UCC expressly applies only to contracts
for:
Answer:
the sale of goods.
Question:
17. Which of the following is true of the UCC?
Answer:
It recognizes the concept of good faith dealing.
