BUS 250 CHAPTER 13 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. A debt that is disputed because the parties disagree over
its existence or amount is an unliquidated debt.
Answer:
true
Question:
2. An illusory promise is valid consideration.
Answer:
false
Question:
3. "I'll sell you my car if I decide to sell it" is an example of
Answer:
an illusory promise
Question:
4. If Rudy offers Oscar $200 for his laptop valued at $600
and Oscar agrees, a court will probably
Answer:
not set aside the agreement based on the adequacy of the consideration.
Question:
5. The UCC requires consideration for agreements
modifying contracts for the sale of goods.
Answer:
false
Question:
6. Police Officer Paul apprehends a wanted criminal and
then demands the $10,000 reward offered by Crime
Stoppers. Which of the following statements is true?
Answer:
Police Officer Paul is not entitled to the reward because he was under a pre-
existing duty to make the arrest.
, Question:
7. An unliquidated debt can be described as
Answer:
a debt in which the existence or amount is in dispute
Question:
8. Under the Uniform Commercial Code, an agreement
modifying a contract
Answer:
may not require consideration.
Question:
9. Walter worked nights as a clerk in a fast-food store. On
his last work shift, Walter's boss told him, "I'm really
grateful for the year that you have worked here. I am
going to give you a bonus of $1,000 in your last
paycheck." When Walter got his last paycheck, there was
no bonus. If Walter sues, the likely result will be
Answer:
Walter will lose, as he gave no consideration.
Question:
10. A promise by Derkin Restaurants to buy all of the
produce it needs this next year at an established price
from Elfredo's Produce would be an
Answer:
enforceable requirements contract
Question:
11. In January, Alex promised to pay Y-K Inc. $5,000 if it
would refrain from filing suit against him on a breach of
contract action. Y-K agreed and accepted a $5,000 check
from Alex. Which of the following statements is correct?
Answer:
Y-K's promise to refrain from suing Alex was supported by legal consideration and
is enforceable.
AND CORRECT ANSWERS
Question:
1. A debt that is disputed because the parties disagree over
its existence or amount is an unliquidated debt.
Answer:
true
Question:
2. An illusory promise is valid consideration.
Answer:
false
Question:
3. "I'll sell you my car if I decide to sell it" is an example of
Answer:
an illusory promise
Question:
4. If Rudy offers Oscar $200 for his laptop valued at $600
and Oscar agrees, a court will probably
Answer:
not set aside the agreement based on the adequacy of the consideration.
Question:
5. The UCC requires consideration for agreements
modifying contracts for the sale of goods.
Answer:
false
Question:
6. Police Officer Paul apprehends a wanted criminal and
then demands the $10,000 reward offered by Crime
Stoppers. Which of the following statements is true?
Answer:
Police Officer Paul is not entitled to the reward because he was under a pre-
existing duty to make the arrest.
, Question:
7. An unliquidated debt can be described as
Answer:
a debt in which the existence or amount is in dispute
Question:
8. Under the Uniform Commercial Code, an agreement
modifying a contract
Answer:
may not require consideration.
Question:
9. Walter worked nights as a clerk in a fast-food store. On
his last work shift, Walter's boss told him, "I'm really
grateful for the year that you have worked here. I am
going to give you a bonus of $1,000 in your last
paycheck." When Walter got his last paycheck, there was
no bonus. If Walter sues, the likely result will be
Answer:
Walter will lose, as he gave no consideration.
Question:
10. A promise by Derkin Restaurants to buy all of the
produce it needs this next year at an established price
from Elfredo's Produce would be an
Answer:
enforceable requirements contract
Question:
11. In January, Alex promised to pay Y-K Inc. $5,000 if it
would refrain from filing suit against him on a breach of
contract action. Y-K agreed and accepted a $5,000 check
from Alex. Which of the following statements is correct?
Answer:
Y-K's promise to refrain from suing Alex was supported by legal consideration and
is enforceable.
