Business Law Exam 3 (Ch. 9, 10, 11,
12, 13, 14, 15, 16, 17, 18) Test
Questions and Actual Answers.
Why is it important for us to have contracts? - Answer Gives us predictability and
transparency
The Uniform Commercial Code for 1946 does what to contracts? - Answer Makes contracts
for the sale of goods move more rapidly
What contracts does the Uniform Commercial Code cover? - Answer All contracts for the
sale & lease of goods; we use it to put a higher responsibility on people who trade goods that
are merchants
What is the point of the United Nations on Contracts? - Answer Created to provide standard
rules (CISG); International contracts bring to international contract what the UCC brings to
national contracts
If we contract for something illegal, that contract would be called - Answer Void
If a court concludes there is no contract, then the parties are left without recourse, except -
Answer unless there's estoppel or quasi contract
The person that controls the terms of an agreement is - Answer the offeror
What is a contract? - Answer A legally enforced promise
What are not offers? - Answer Auctions,price quotes, invitation to bid, price tags on stuff at
the store
What are the 4 elements of a contract that we discussed many times? - Answer Offer,
Acceptance, Consideration, Consideration
When can an offer be revoked? - Answer Anytime prior to acceptance
, What can prevent revocation of an offer? - Answer If you pay to keep an offer open (an
option contract) keeps it open for as long as you bought; If you put it in writing how long it is
open
When the offeree communicates back with a different proposal or different terms, this is -
Answer a counteroffer
Other than rejection, what can terminate a pending offer? - Answer Counteroffer, a
revocation, destruction of the contract corpus
What is the rule that says acceptance must be identical to the offer? - Answer Mirror image
rule
Why can merchants in a specific type of good avoid contract constraints that affect the rest of
us? - Answer They are sophisticated and know more than us
If the offer is "I will pay you $50 to wash my car," that would be - Answer a unilateral
contract
If the offer is "Will you wash my car for $50," that would be most likely be - Answer a
bilateral contract
Who can accept a contract offer? - Answer Only the person the offer is directed toward
If I say "I will give you this pen," can your taking it form a contract? - Answer No, it is a gift
What is consideration? - Answer Anything you wouldn't normally do; not doing something
you normally would
Which of these offers might form a valid, enforceable contract? - Answer
How do courts decide if consideration for a contract is adequate? - Answer Courts don't get
involved in the adequacy of consideration; You need to be the one to ask if it is enough
consideration
If I agree to grade your test if you send me $5.00, - Answer we cannot make a contract
because he already has an obligation to grade the test; Forbearance
12, 13, 14, 15, 16, 17, 18) Test
Questions and Actual Answers.
Why is it important for us to have contracts? - Answer Gives us predictability and
transparency
The Uniform Commercial Code for 1946 does what to contracts? - Answer Makes contracts
for the sale of goods move more rapidly
What contracts does the Uniform Commercial Code cover? - Answer All contracts for the
sale & lease of goods; we use it to put a higher responsibility on people who trade goods that
are merchants
What is the point of the United Nations on Contracts? - Answer Created to provide standard
rules (CISG); International contracts bring to international contract what the UCC brings to
national contracts
If we contract for something illegal, that contract would be called - Answer Void
If a court concludes there is no contract, then the parties are left without recourse, except -
Answer unless there's estoppel or quasi contract
The person that controls the terms of an agreement is - Answer the offeror
What is a contract? - Answer A legally enforced promise
What are not offers? - Answer Auctions,price quotes, invitation to bid, price tags on stuff at
the store
What are the 4 elements of a contract that we discussed many times? - Answer Offer,
Acceptance, Consideration, Consideration
When can an offer be revoked? - Answer Anytime prior to acceptance
, What can prevent revocation of an offer? - Answer If you pay to keep an offer open (an
option contract) keeps it open for as long as you bought; If you put it in writing how long it is
open
When the offeree communicates back with a different proposal or different terms, this is -
Answer a counteroffer
Other than rejection, what can terminate a pending offer? - Answer Counteroffer, a
revocation, destruction of the contract corpus
What is the rule that says acceptance must be identical to the offer? - Answer Mirror image
rule
Why can merchants in a specific type of good avoid contract constraints that affect the rest of
us? - Answer They are sophisticated and know more than us
If the offer is "I will pay you $50 to wash my car," that would be - Answer a unilateral
contract
If the offer is "Will you wash my car for $50," that would be most likely be - Answer a
bilateral contract
Who can accept a contract offer? - Answer Only the person the offer is directed toward
If I say "I will give you this pen," can your taking it form a contract? - Answer No, it is a gift
What is consideration? - Answer Anything you wouldn't normally do; not doing something
you normally would
Which of these offers might form a valid, enforceable contract? - Answer
How do courts decide if consideration for a contract is adequate? - Answer Courts don't get
involved in the adequacy of consideration; You need to be the one to ask if it is enough
consideration
If I agree to grade your test if you send me $5.00, - Answer we cannot make a contract
because he already has an obligation to grade the test; Forbearance
