MGMT 311 EXAM 3 - COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Courts will look at objective indications of the
intoxicated persons condition to determine if:
Answer:
He or She lacked the required capacity
Question 2: If the person proves he was too intoxicated to contract,
then he may:
Answer:
Disaffirm the contract
Question 3: Contracts made by mentally incompetent persons may
be:
Answer:
Void, Voidable, or Valid
Question 4: If a court has previously determined a person to be
mentally incompetent, any contract made by that person is:
Answer:
Automatically Void
Question 5: A party who has NOT been previously determined to be
mentally incompetent by court may disaffirm a contract if at the
time of the contracting that person:
,Answer:
1. Did not know he was entering into a contract
2. Lacked the mental capacity to understand its nature, purpose, and consequences
Question 6: For a contract to be valid and enforceable, it must be
formed for a:
Answer:
Legal Purpose
Question 7: A contract to do something that is prohibited by the
law is:
Answer:
Illegal, void from the outset, and unenforceable
Question 8: A contract to commit a tort is:
Answer:
Contrary to public policy, illegal, and unenforceable
Question 9: What is Usury?
Answer:
When a person loans money to another at an interest rate above the states lawful
maximum interest rate.
Question 10: What is Gambling?
Answer:
, The creation of risk for the purpose of assuming it.
Question 11: What are Contracts in Restraint of Trade?
Answer:
If two or more parties enter into an agreement not to compete against each other
and their only objective is to restrict competition, the agreement is void.
Question 12: What does in pari delicto mean?
Answer:
Equally at fault
Question 13: What contracts must be in writing and signed in order
to be enforceable?
Answer:
- Contracts involving interests in land
- Contracts that cannot be performed within one year from the day after the date of
formation.
Question 14: Land is _____ and includes all physical objects that
are permanently attached to the soil.
Answer:
Real Property
Question 15: The lack of voluntary consent can be used as a:
Answer:
, Defense to the contracts enforceability
Question 16: Consent may be lacking due to:
Answer:
- Mistake
- Fraudulent Misrepresentation
- Undue Influence
-Duress
Question 17: A mistake of fact occurs when:
Answer:
The parties entered into a contract with different understandings of one or more
material facts relating to the contracts performance.
Question 18: What is a Unilateral Mistake of Fact?
Answer:
A mistake made by only one of the parties does not generally give the mistaken
party any right to relief from the contract.
Question 19: What is a Bilateral (mutual) Mistake?
Answer:
A mistake by both contracting parties about one or more material facts. In this case,
either party may rescind the contract since both parties are mistaken about the same
material fact.
Question 20: What is a mistake of future value?
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Courts will look at objective indications of the
intoxicated persons condition to determine if:
Answer:
He or She lacked the required capacity
Question 2: If the person proves he was too intoxicated to contract,
then he may:
Answer:
Disaffirm the contract
Question 3: Contracts made by mentally incompetent persons may
be:
Answer:
Void, Voidable, or Valid
Question 4: If a court has previously determined a person to be
mentally incompetent, any contract made by that person is:
Answer:
Automatically Void
Question 5: A party who has NOT been previously determined to be
mentally incompetent by court may disaffirm a contract if at the
time of the contracting that person:
,Answer:
1. Did not know he was entering into a contract
2. Lacked the mental capacity to understand its nature, purpose, and consequences
Question 6: For a contract to be valid and enforceable, it must be
formed for a:
Answer:
Legal Purpose
Question 7: A contract to do something that is prohibited by the
law is:
Answer:
Illegal, void from the outset, and unenforceable
Question 8: A contract to commit a tort is:
Answer:
Contrary to public policy, illegal, and unenforceable
Question 9: What is Usury?
Answer:
When a person loans money to another at an interest rate above the states lawful
maximum interest rate.
Question 10: What is Gambling?
Answer:
, The creation of risk for the purpose of assuming it.
Question 11: What are Contracts in Restraint of Trade?
Answer:
If two or more parties enter into an agreement not to compete against each other
and their only objective is to restrict competition, the agreement is void.
Question 12: What does in pari delicto mean?
Answer:
Equally at fault
Question 13: What contracts must be in writing and signed in order
to be enforceable?
Answer:
- Contracts involving interests in land
- Contracts that cannot be performed within one year from the day after the date of
formation.
Question 14: Land is _____ and includes all physical objects that
are permanently attached to the soil.
Answer:
Real Property
Question 15: The lack of voluntary consent can be used as a:
Answer:
, Defense to the contracts enforceability
Question 16: Consent may be lacking due to:
Answer:
- Mistake
- Fraudulent Misrepresentation
- Undue Influence
-Duress
Question 17: A mistake of fact occurs when:
Answer:
The parties entered into a contract with different understandings of one or more
material facts relating to the contracts performance.
Question 18: What is a Unilateral Mistake of Fact?
Answer:
A mistake made by only one of the parties does not generally give the mistaken
party any right to relief from the contract.
Question 19: What is a Bilateral (mutual) Mistake?
Answer:
A mistake by both contracting parties about one or more material facts. In this case,
either party may rescind the contract since both parties are mistaken about the same
material fact.
Question 20: What is a mistake of future value?
