BUSINESS LAW CHAPTER 11 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Jerry offers to shovel the snow from Ben's driveway for
$35. Ben replies "OK." This is an example of
a. an implied, unilateral contract.
b. an express, unilateral contract.
c. an implied, bilateral contract.
d. an express, bilateral contract.
Answer:
d. an express, bilateral contract.
Question:
2. What element of a contract refers to the parties involved
being "adults of sound mind"?
a. Consideration
b. Capacity
c. Consent
d. Legality
Answer:
b. Capacity
Question:
3. When Myrtle comes home from work one evening, she
finds that her yard has been mowed and trimmed. Later, a
man comes to collect for the yard work done. Myrtle
refuses to pay for the work since she has never seen the
man before and did not hire him to do her yard work.
Which of the following answers is most accurate?
a. This is an implied, unilateral contract and she must pay
the price requested by the man.
b. This is an express, voidable contract that either party
may avoid.
c. The court would order Myrtle to pay the reasonable
value of the yard work because of the benefit conferred
on her.
d. Myrtle would not have to pay for the yard work.
Answer:
d. Myrtle would not have to pay for the yard work.
, Question:
4. As English judges were developing the common law of
contracts in the twelfth and thirteenth centuries,
a. most promises were found to be enforceable.
b. promises were found not binding unless written and
sealed.
c. the term "contract" became common.
d. changes in the law occurred rapidly.
Answer:
b. promises were found not binding unless written and sealed.
Question:
5. Miles purchased a lawnmower with an attached warning
that said, "The manufacturer is not responsible in the case
of an injury caused by the lawnmower." If Miles is injured
because of a defect in the mower and sues the
lawnmower manufacturer, he will most likely
a. lose, as he agreed to not hold the lawnmower
manufacturer liable.
b. lose, as he assumed the risk.
c. win, as this warning would be unenforceable.
d. win, as all lawnmower manufacturers are strictly liable.
Answer:
c. win, as this warning would be unenforceable.
Question:
6. Mike made the following offer to Mick: "I will pay you
$500 if you agree to paint my house." Mick replied that he
would. At this point, the contract is an
a. executed, bilateral, express contract.
b. executory, bilateral, implied-in-law contract.
c. executed, unilateral, express contract.
d. executory, bilateral, express contract.
Answer:
d. executory, bilateral, express contract.
QUESTIONS AND CORRECT ANSWERS
Question:
1. Jerry offers to shovel the snow from Ben's driveway for
$35. Ben replies "OK." This is an example of
a. an implied, unilateral contract.
b. an express, unilateral contract.
c. an implied, bilateral contract.
d. an express, bilateral contract.
Answer:
d. an express, bilateral contract.
Question:
2. What element of a contract refers to the parties involved
being "adults of sound mind"?
a. Consideration
b. Capacity
c. Consent
d. Legality
Answer:
b. Capacity
Question:
3. When Myrtle comes home from work one evening, she
finds that her yard has been mowed and trimmed. Later, a
man comes to collect for the yard work done. Myrtle
refuses to pay for the work since she has never seen the
man before and did not hire him to do her yard work.
Which of the following answers is most accurate?
a. This is an implied, unilateral contract and she must pay
the price requested by the man.
b. This is an express, voidable contract that either party
may avoid.
c. The court would order Myrtle to pay the reasonable
value of the yard work because of the benefit conferred
on her.
d. Myrtle would not have to pay for the yard work.
Answer:
d. Myrtle would not have to pay for the yard work.
, Question:
4. As English judges were developing the common law of
contracts in the twelfth and thirteenth centuries,
a. most promises were found to be enforceable.
b. promises were found not binding unless written and
sealed.
c. the term "contract" became common.
d. changes in the law occurred rapidly.
Answer:
b. promises were found not binding unless written and sealed.
Question:
5. Miles purchased a lawnmower with an attached warning
that said, "The manufacturer is not responsible in the case
of an injury caused by the lawnmower." If Miles is injured
because of a defect in the mower and sues the
lawnmower manufacturer, he will most likely
a. lose, as he agreed to not hold the lawnmower
manufacturer liable.
b. lose, as he assumed the risk.
c. win, as this warning would be unenforceable.
d. win, as all lawnmower manufacturers are strictly liable.
Answer:
c. win, as this warning would be unenforceable.
Question:
6. Mike made the following offer to Mick: "I will pay you
$500 if you agree to paint my house." Mick replied that he
would. At this point, the contract is an
a. executed, bilateral, express contract.
b. executory, bilateral, implied-in-law contract.
c. executed, unilateral, express contract.
d. executory, bilateral, express contract.
Answer:
d. executory, bilateral, express contract.
