BUSINESS LAW FINAL-COCHRAN FREQUENTLY TESTED
ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS
Question 1.
Agreement
ANSWER
Offer and Acceptance
Question 2.
Advertisement
ANSWER
Invitations for you to make an offer/invitations to negotiate
Question 3.
Auction with reserve
ANSWER
can withdraw goods. There is a minimum bid acceptable by the auctioneer, and if offer doesn't
exceed reserve the bidder doesn't get what he was bidding on.
Question 4.
Action without reserve
ANSWER
cannot withdraw goods. The highest bidder wins, no matter what
Question 5.
Definiteness of Terms in an Agreement
ANSWER
Identification of parties, object or subject matter of the contract, consideration to be paid, and time of
payment, delivery, or performance
Question 6.
Revocation of the offer by the offeror:
ANSWER
offer can be withdrawn anytime before offer accepts the offer. Becomes effective when the offeree
receives it
1
,Question 7.
Rejection of the offer by the offeree:
ANSWER
terminates the offer. Effective only when it is received by the offeror
Question 8.
Acceptance
ANSWER
The voluntary act by the offeree that shows agreement to the terms of an offer.
Question 9.
mailbox rule
ANSWER
acceptance of offer is valid once offer places the ACCEPTANCE to the offer in the mailbox
Question 10.
Function of Contract Law
ANSWER
Provides stability and predictability for commerce
Question 11.
Definition of a Contract
ANSWER
Promise or set of promises for breach of which the law provides a remedy or the performance of
which the law in some way recognizes as a duty
Question 12.
Objective theory of contracts it means can be inferred from the parties' conduct T/F
ANSWER
we determine what a contract means by what the parties did, not by what the parties tell us they
meant
Question 13.
Executed contract
ANSWER
a contract that has been fully performed on both sides
2
, Question 14.
executory
ANSWER
a contract that has not been fully performed on either one of the sides
Question 15.
valid contract
ANSWER
agreement, consideration, contractual capacity, and legality
Question 16.
void
ANSWER
no contract.
Question 17.
voidable
ANSWER
may be rendered unenforceable
Question 18.
Quasi contract
ANSWER
no actual contract exists, it's just implied in law.
Question 19.
The assent/willingness of parties to enter into a contract must be voluntary T/F
ANSWER
T
Question 20.
The intent to enter in to a contract depends on what parties think T/F
ANSWER
F
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ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS
Question 1.
Agreement
ANSWER
Offer and Acceptance
Question 2.
Advertisement
ANSWER
Invitations for you to make an offer/invitations to negotiate
Question 3.
Auction with reserve
ANSWER
can withdraw goods. There is a minimum bid acceptable by the auctioneer, and if offer doesn't
exceed reserve the bidder doesn't get what he was bidding on.
Question 4.
Action without reserve
ANSWER
cannot withdraw goods. The highest bidder wins, no matter what
Question 5.
Definiteness of Terms in an Agreement
ANSWER
Identification of parties, object or subject matter of the contract, consideration to be paid, and time of
payment, delivery, or performance
Question 6.
Revocation of the offer by the offeror:
ANSWER
offer can be withdrawn anytime before offer accepts the offer. Becomes effective when the offeree
receives it
1
,Question 7.
Rejection of the offer by the offeree:
ANSWER
terminates the offer. Effective only when it is received by the offeror
Question 8.
Acceptance
ANSWER
The voluntary act by the offeree that shows agreement to the terms of an offer.
Question 9.
mailbox rule
ANSWER
acceptance of offer is valid once offer places the ACCEPTANCE to the offer in the mailbox
Question 10.
Function of Contract Law
ANSWER
Provides stability and predictability for commerce
Question 11.
Definition of a Contract
ANSWER
Promise or set of promises for breach of which the law provides a remedy or the performance of
which the law in some way recognizes as a duty
Question 12.
Objective theory of contracts it means can be inferred from the parties' conduct T/F
ANSWER
we determine what a contract means by what the parties did, not by what the parties tell us they
meant
Question 13.
Executed contract
ANSWER
a contract that has been fully performed on both sides
2
, Question 14.
executory
ANSWER
a contract that has not been fully performed on either one of the sides
Question 15.
valid contract
ANSWER
agreement, consideration, contractual capacity, and legality
Question 16.
void
ANSWER
no contract.
Question 17.
voidable
ANSWER
may be rendered unenforceable
Question 18.
Quasi contract
ANSWER
no actual contract exists, it's just implied in law.
Question 19.
The assent/willingness of parties to enter into a contract must be voluntary T/F
ANSWER
T
Question 20.
The intent to enter in to a contract depends on what parties think T/F
ANSWER
F
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