LES 305 Exam 2 Study Guide Clark
Modules 6-14
When one person has more or better information than the other is an
example of - ✔ ✔ Information asymmetry
When one person has more or better information than the other is an
example of - ✔ ✔ Information asymmetry
When the reason and outcome of a contract are legal, the contract has -
✔ ✔ legal purpose
When the reason and outcome of a contract are legal, the contract has -
✔ ✔ legal purpose.
Which of the following is an example of when a person acquires an
insurable interest? - ✔ ✔ Title
Which of the following is classified as an equitable remedy? - ✔ ✔
reformation
Which of the following is classified as an equitable remedy? - ✔ ✔
reformation
Which of the following statements is true about states' police power? -
✔ ✔ The states are given the authority to enact laws that regulate
inter-state commerce
- subject to balancing power - must show that benefit on citizens out
ways burden it plays on interstate commerce
,Which of the following would not be considered tangible? - ✔ ✔ The
right of ownership
Which statement below is correct about the adoption of the Uniform
Commercial Code? - ✔ ✔ Every state has adopted all or
substantially all of the UCC.
While driving across country, Katherine and Ryan play their favorite
game, "What would you do if you won the Mega-millions lottery?"
Katherine states, "If I won the Mega-million I would give you
$10,000,000.00." Two years later, Katherine actually wins the Mega-
millions and Ryan demands his promised money. Katherine refused.
What would likely be the outcome of the case? - ✔ ✔ Katherine's
statement is an illusory promise(a promise that lacks consideration);
therefore, the court will not enforce it.
Without genuiness of assent - ✔ ✔ A promise made is not legally
binding.
__________ is a medieval European law established a uniform and
unbiased system for deciding commercial disputes across borders and
political boundaries. - ✔ ✔ The Lex Meracatoria
1. privilege against self incrimination
2. 5th amendment - ✔ ✔ Miranda rights refer to the (blank)
provision of the (blank) amendment of the U.S constitution
16 year old Grace agrees to quit school to work for Andrew in his flower
shop full-time. When Grace's mom finds out what she has done, she
orders her to tell Andrew that she will quit the job. This is called - ✔ ✔
Disaffirmance
,A complete and well-written contract should contain all of the following
except - ✔ ✔ Philosophy
A complete and well-written contract should contain all of the following
except - ✔ ✔ Philosophy (Termination conditions
Clauses
Definitions)
A court order to refrain from performing a particular act is known as -
✔ ✔ Injunctive relief
A fact is material if - ✔ ✔ It concerns a basic assumption in the
agreement that could change the value of the contract.
A legally enforceable promise is - ✔ ✔ A contract
A meeting of the mind requires - ✔ ✔ a true understanding, and
acceptance, of the terms of the offer.
A person who acts honestly and provides reasonable value for good is
called a - ✔ ✔ Good faith buyer
A preprinted form with some blanks in the form to be filled out for
specific negotiated terms unique to the transaction is called a - ✔ ✔
Purchase order
A professor tells a student that if she writes a 5,000-word paper on the
evils of plagiarism by May 13, he will pay her $750. Which of the
following is true? - ✔ ✔ The offer is for a unilateral contract.
, A rule under the UCC where conflicting clauses cancel each other out
and neither clause will become part of the contract but rather will be
determined by UCC gap-filler rules is called - ✔ ✔ A knockout rule
A-phone Corporation, a California corporation, enters into an
agreement with Matt to sell him a phone. In the contract, Matt
specifically states that a representative from A-phone must travel to his
home in Uganda and deliver it to Matt in person and title will pass once
the phone is safely placed in Matt's hands in Uganda. A-phone drops
the phone in the mail as they realize it is too expensive to travel to
Uganda to deliver it in person. Which statement below is correct
according to the UCC as to when title actually passed? - ✔ ✔ The
UCC allows the parties to the contract to determine when title passes
and the court will enforce the parties' agreement.
Abdullah purchases a couch from Murphy Interiors for $500.00 which
includes delivery to his house the next day. During transit, the delivery
truck gets into an accident and the fabric on the couch is damaged.
Who bears the risk of loss in this situation? - ✔ ✔ Murphy Interiors
since the risk of loss transfers only upon delivery of a conforming good.
According to the International Chamber of Commerce abbreviations, CF
requires - ✔ ✔ The buyer must ascertain whether the goods are
properly insured during transit.
According to the mailbox rule, an acceptance if effective - ✔ ✔ when
dispatched by the offeree in a commercially reasonable manner.
According to the UCC if a time period of acceptance is not stated in the
offer to sell goods, the time period for acceptance will be - ✔ ✔
Three months
Modules 6-14
When one person has more or better information than the other is an
example of - ✔ ✔ Information asymmetry
When one person has more or better information than the other is an
example of - ✔ ✔ Information asymmetry
When the reason and outcome of a contract are legal, the contract has -
✔ ✔ legal purpose
When the reason and outcome of a contract are legal, the contract has -
✔ ✔ legal purpose.
Which of the following is an example of when a person acquires an
insurable interest? - ✔ ✔ Title
Which of the following is classified as an equitable remedy? - ✔ ✔
reformation
Which of the following is classified as an equitable remedy? - ✔ ✔
reformation
Which of the following statements is true about states' police power? -
✔ ✔ The states are given the authority to enact laws that regulate
inter-state commerce
- subject to balancing power - must show that benefit on citizens out
ways burden it plays on interstate commerce
,Which of the following would not be considered tangible? - ✔ ✔ The
right of ownership
Which statement below is correct about the adoption of the Uniform
Commercial Code? - ✔ ✔ Every state has adopted all or
substantially all of the UCC.
While driving across country, Katherine and Ryan play their favorite
game, "What would you do if you won the Mega-millions lottery?"
Katherine states, "If I won the Mega-million I would give you
$10,000,000.00." Two years later, Katherine actually wins the Mega-
millions and Ryan demands his promised money. Katherine refused.
What would likely be the outcome of the case? - ✔ ✔ Katherine's
statement is an illusory promise(a promise that lacks consideration);
therefore, the court will not enforce it.
Without genuiness of assent - ✔ ✔ A promise made is not legally
binding.
__________ is a medieval European law established a uniform and
unbiased system for deciding commercial disputes across borders and
political boundaries. - ✔ ✔ The Lex Meracatoria
1. privilege against self incrimination
2. 5th amendment - ✔ ✔ Miranda rights refer to the (blank)
provision of the (blank) amendment of the U.S constitution
16 year old Grace agrees to quit school to work for Andrew in his flower
shop full-time. When Grace's mom finds out what she has done, she
orders her to tell Andrew that she will quit the job. This is called - ✔ ✔
Disaffirmance
,A complete and well-written contract should contain all of the following
except - ✔ ✔ Philosophy
A complete and well-written contract should contain all of the following
except - ✔ ✔ Philosophy (Termination conditions
Clauses
Definitions)
A court order to refrain from performing a particular act is known as -
✔ ✔ Injunctive relief
A fact is material if - ✔ ✔ It concerns a basic assumption in the
agreement that could change the value of the contract.
A legally enforceable promise is - ✔ ✔ A contract
A meeting of the mind requires - ✔ ✔ a true understanding, and
acceptance, of the terms of the offer.
A person who acts honestly and provides reasonable value for good is
called a - ✔ ✔ Good faith buyer
A preprinted form with some blanks in the form to be filled out for
specific negotiated terms unique to the transaction is called a - ✔ ✔
Purchase order
A professor tells a student that if she writes a 5,000-word paper on the
evils of plagiarism by May 13, he will pay her $750. Which of the
following is true? - ✔ ✔ The offer is for a unilateral contract.
, A rule under the UCC where conflicting clauses cancel each other out
and neither clause will become part of the contract but rather will be
determined by UCC gap-filler rules is called - ✔ ✔ A knockout rule
A-phone Corporation, a California corporation, enters into an
agreement with Matt to sell him a phone. In the contract, Matt
specifically states that a representative from A-phone must travel to his
home in Uganda and deliver it to Matt in person and title will pass once
the phone is safely placed in Matt's hands in Uganda. A-phone drops
the phone in the mail as they realize it is too expensive to travel to
Uganda to deliver it in person. Which statement below is correct
according to the UCC as to when title actually passed? - ✔ ✔ The
UCC allows the parties to the contract to determine when title passes
and the court will enforce the parties' agreement.
Abdullah purchases a couch from Murphy Interiors for $500.00 which
includes delivery to his house the next day. During transit, the delivery
truck gets into an accident and the fabric on the couch is damaged.
Who bears the risk of loss in this situation? - ✔ ✔ Murphy Interiors
since the risk of loss transfers only upon delivery of a conforming good.
According to the International Chamber of Commerce abbreviations, CF
requires - ✔ ✔ The buyer must ascertain whether the goods are
properly insured during transit.
According to the mailbox rule, an acceptance if effective - ✔ ✔ when
dispatched by the offeree in a commercially reasonable manner.
According to the UCC if a time period of acceptance is not stated in the
offer to sell goods, the time period for acceptance will be - ✔ ✔
Three months
