BUL Exam 2 Questions and Answers
Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?
a. The sale of a building.
b. The sale of new furniture.
c. An agreement to have the sidewalk shoveled.
d. A sale of stock in ABC, Inc. - Answer-B
Any property other than an interest in real property, is/are:
a. tangible property.
b. intangible property.
c. goods.
d. personal property. - Answer-D
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Which of the following is NOT always necessary in order for a valid contract to be formed?
a. Mutual assent
b. Legality of purpose
c. A writing
d. Consideration - Answer-C
,In order to have a valid contract, in addition to the four basic requirements of a contract, which of the
following must also occur?
a. The consideration that one party is giving the other must be of the same value as the consideration
that is being received.
b. There must be the sale of goods from one party to another.
c. There must be an absence of invalidating conduct, such as duress.
d. Both parties must already have performed (done what they promised to do). - Answer-C
What is a requirement of an express contract?
a. It is written and signed.
b. It is based on the conduct of the parties.
c. The terms are stated in words.
d. It consists of a promise in exchange for an act. - Answer-C
If both parties exchange promises, the contract is:
a. bilateral.
b. void.
c. implied.
d. executed. - Answer-A
When might a contract might be unenforceable?
a. If the purpose of the contract was to commit a tort.
b. If one party has not yet performed, but the other party has fully performed.
c. If the statute of limitations has passed.
d. If the parties could not reach an agreement. - Answer-C
,The doctrine of promissory estoppel:
a. is a doctrine enforcing contractual promises.
b. applies even if the promisor should not have expected the promisee to rely on the promise.
c. applies even if the promisee does not rely on the promise.
d. is a doctrine that relies on justice and not contractual rights. - Answer-D
Another name for a quasi contract is:
a. promissory estoppels.
b. an implied in fact contract.
c. an implied in law contract.
d. an unenforceable contract. - Answer-C
Which of the following is required in order to recover in quasi contract?
a. An implied or express promise
b. A valid contract
c. Acceptance or retention of a benefit conferred on the defendant by the plaintiff
d. A voidable contract - Answer-C
Contracts that are implied in law:
a. are obligations imposed by law on grounds of justice and equity.
b. are really contracts.
c. are also called implied in fact contracts
d. require the assent of the contracting parties. - Answer-A
, Molly signs a contract with a publishing company to edit text manuscripts. This contract is governed by
a. federal statute.
b. the law of quasi contract.
c. Article 2 of the UCC.
d. state common law. - Answer-D
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts Sally's
offer and tells her he will pay her on Friday when he gets his paycheck. A contract is formed:
a. when Sally offers to sell her book to Bob.
b. when Bob accepts Sally's offer
c. when Bob gets his paycheck.
d. when Bob pays Sally. - Answer-B
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show up for
jury duty, but will go to work instead. Aaron knows that this is against the law, but he would rather be
paid $500 from his boss than the $30 that the court will pay him for jury duty. Aaron calls in sick and is
excused from jury duty. This agreement between Aaron and his boss is:
a. a unilateral contract.
b. a bilateral contract.
c. a quasi contract
d. not a contract. - Answer-D
Sid makes a material representation of fact regarding his car to Barbara while out driving one day. The
next day, Barbara calls Sid and offers to buy his car. Sid accepts Barbara's offer without correcting the
misrepresentation of fact that he made the previous day. What is the effect of the material
representation on the agreement between Sid and Barbara?
a. There is no effect because it was made the day before the offer was made.
b. Sid may avoid the contract.
Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?
a. The sale of a building.
b. The sale of new furniture.
c. An agreement to have the sidewalk shoveled.
d. A sale of stock in ABC, Inc. - Answer-B
Any property other than an interest in real property, is/are:
a. tangible property.
b. intangible property.
c. goods.
d. personal property. - Answer-D
Check My Work
Which of the following is NOT always necessary in order for a valid contract to be formed?
a. Mutual assent
b. Legality of purpose
c. A writing
d. Consideration - Answer-C
,In order to have a valid contract, in addition to the four basic requirements of a contract, which of the
following must also occur?
a. The consideration that one party is giving the other must be of the same value as the consideration
that is being received.
b. There must be the sale of goods from one party to another.
c. There must be an absence of invalidating conduct, such as duress.
d. Both parties must already have performed (done what they promised to do). - Answer-C
What is a requirement of an express contract?
a. It is written and signed.
b. It is based on the conduct of the parties.
c. The terms are stated in words.
d. It consists of a promise in exchange for an act. - Answer-C
If both parties exchange promises, the contract is:
a. bilateral.
b. void.
c. implied.
d. executed. - Answer-A
When might a contract might be unenforceable?
a. If the purpose of the contract was to commit a tort.
b. If one party has not yet performed, but the other party has fully performed.
c. If the statute of limitations has passed.
d. If the parties could not reach an agreement. - Answer-C
,The doctrine of promissory estoppel:
a. is a doctrine enforcing contractual promises.
b. applies even if the promisor should not have expected the promisee to rely on the promise.
c. applies even if the promisee does not rely on the promise.
d. is a doctrine that relies on justice and not contractual rights. - Answer-D
Another name for a quasi contract is:
a. promissory estoppels.
b. an implied in fact contract.
c. an implied in law contract.
d. an unenforceable contract. - Answer-C
Which of the following is required in order to recover in quasi contract?
a. An implied or express promise
b. A valid contract
c. Acceptance or retention of a benefit conferred on the defendant by the plaintiff
d. A voidable contract - Answer-C
Contracts that are implied in law:
a. are obligations imposed by law on grounds of justice and equity.
b. are really contracts.
c. are also called implied in fact contracts
d. require the assent of the contracting parties. - Answer-A
, Molly signs a contract with a publishing company to edit text manuscripts. This contract is governed by
a. federal statute.
b. the law of quasi contract.
c. Article 2 of the UCC.
d. state common law. - Answer-D
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts Sally's
offer and tells her he will pay her on Friday when he gets his paycheck. A contract is formed:
a. when Sally offers to sell her book to Bob.
b. when Bob accepts Sally's offer
c. when Bob gets his paycheck.
d. when Bob pays Sally. - Answer-B
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show up for
jury duty, but will go to work instead. Aaron knows that this is against the law, but he would rather be
paid $500 from his boss than the $30 that the court will pay him for jury duty. Aaron calls in sick and is
excused from jury duty. This agreement between Aaron and his boss is:
a. a unilateral contract.
b. a bilateral contract.
c. a quasi contract
d. not a contract. - Answer-D
Sid makes a material representation of fact regarding his car to Barbara while out driving one day. The
next day, Barbara calls Sid and offers to buy his car. Sid accepts Barbara's offer without correcting the
misrepresentation of fact that he made the previous day. What is the effect of the material
representation on the agreement between Sid and Barbara?
a. There is no effect because it was made the day before the offer was made.
b. Sid may avoid the contract.
