MGMT 254 EXAM 3 QUESTIONS AND ANSWERS | MGMT 254 EXAM 3 STUDY
GUIDE & PRACTICE TEST 2026/2027
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 - ✔✔c. Acceptance or retention of a benefit conferred on the defendant by the
plaintiff
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. not a contract.
d. a quasi contract - ✔✔c. not a contract.
A legally binding agreement that can be avoided by one of the parties is called a:
a. revocable contract.
b. an illegal contract.
c. a voidable contract.
d. a void contract. - ✔✔c. a voidable contract.
A valid contract is:
a. any agreement between two or more parties.
b. an agreement between two or more parties that the law will enforce.
c. an agreement where one party has to do what that party promised to do but the other party does not.
d. an agreement that either party can get out of for any reason. - ✔✔b. an agreement between two or
more parties that the law will enforce.
Mr. Smith owns an apartment complex with extensive lawns and garden areas. He enters into an
informal written contract with A1-Lawn Service to perform all of the lawns and garden work including
mowing, weeding and watering. What does the fact that it is an informal contract mean to the parties?
a. Either party can change the terms of the contract at any time.
b. It is a legally binding contract.
c. The contract is oral, not written.
d. No contract has been formed. - ✔✔b. It is a legally binding contract.
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. - ✔✔c. The terms are stated in words.
,The spirit of the law that underlies the concept of quasi contract is to:
a. prevent unjust enrichment.
b. prevent charitable giving.
c. discourage unilateral contracts.
d. make sure that those to voluntarily help others get paid. - ✔✔a. prevent unjust enrichment.
Jennifer and Jamal are having lunch together and Jennifer mentions that she is thinking about selling her
3 year old car. Jamal asked several questions about the car such as its gas mileage and handling abilities
and how much she might be asking for the car. At the end of lunch, Jamal asks Jennifer to let him know if
she decides to sell the vehicle and she agrees. What type of contract is this?
a. Unilateral Contract
b. Bilateral Contract
c. Quasi Contract
d. No contract was formed - ✔✔d. No contract was formed
A contract that where neither party has performed (or done what the party promised to do) is:
a. revocable contract.
b. an illegal contract.
c. unilateral.
d. executory. - ✔✔d. executory.
Bill surfs the net and finds a website for some awesome bikes. He notices that the bikes cost less online
than they do in the local bike store in his home town. Bill orders the bike online and pays for it using his
credit card. Bill receives an email telling him that his order has been accepted and that the bike is being
shipped. Bill then decides that he really can't afford the bike and tries to cancel the order. He does not
hear back from the seller and he sees that his credit card has been charged for the bike. The bike arrives
the next day. Bill:
a. has a legally binding agreement with the online seller that has been executed.
b. can return the bike when it arrives because he tried to cancel his order.
c. can get his money back because this was not a contract.
d. can get his money back because he did not read all of the terms of the sale that were on the website. -
✔✔a. has a legally binding agreement with the online seller that has been executed.
Mrs. Boyle contracted with All-Around-Roofing to repair and replace her entire roof for $4,000 which
included labor and materials. After working off and on for 4 weeks, the contractor called Mrs. Boyle and
told her the materials she requested were going to cost more than expected and asked if he should
purchase them. Frustrated because it was taking so long, Mrs. Boyle told him yes, go ahead. Three days
later the job was completed and she got a bill for $6,000 because of the added cost of the materials she
requested. How much is Mrs. Boyle obligated to pay?
a. Only the original $4,000 as stated in the contract
b. $6,000 because she agreed to the higher price
c. $4,000 because when she agreed, she didn't realize how much it would be
d. Nothing, the roofer breached the contract and it is not invalid. - ✔✔b. $6,000 because she agreed to
the higher price
If both parties exchange promises, the contract is:
a. bilateral.
b. void.
, c. implied.
d. executed. - ✔✔a. bilateral.
Making a purchase online:
a. will always be a voidable contract.
b. can never be a contract.
c. cannot be enforced by the seller.
d. should follow the same rules with respect to contracts as any other purchase. - ✔✔d. should follow
the same rules with respect to contracts as any other purchase.
Taylor bought several lottery tickets at the local quick-stop store. What type of contract is this?
a. Quasi contract
b. Unilateral contract
c. Bilateral contract
d. No contract at all - ✔✔b. Unilateral contract
Tanner posted a guitar for sale on-line. Several emails about the guitar were then exchanged with Andre
who asked about the style, age and condition of the guitar. They never discussed price or shipping
methods, however the next week, Andre receives a package with the guitar and a bill for $250. Andre
refuses to pay. What would likely be the result in the case?
a. Andre would have to pay for the guitar because it had already been shipped.
b. Andre would have to pay for the guitar because the emails constitute a contract.
c. Andrew would not have to pay because the transaction took place on-line, not actually in "writing."
d. Andre would not have to pay because no contract was formed due to lack of specific terms. - ✔✔d.
Andre would not have to pay because no contract was formed due to lack of specific terms.
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 - ✔✔c. A writing
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 gets his paycheck.
c. when Bob pays Sally.
d. when Bob accepts Sally's offer - ✔✔d. when Bob accepts Sally's offer
Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's home and
repave Harry's driveway in exchange for Bill's payment to Harry of several thousand dollars once all of
the projects have been completed. If the driveway has not yet been completed, but the addition has
been completed, which term describes the type of contract in existence?
a. Executory
b. Implied-in-fact
c. Quasi-contract
d. Voidable - ✔✔a. Executory
GUIDE & PRACTICE TEST 2026/2027
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 - ✔✔c. Acceptance or retention of a benefit conferred on the defendant by the
plaintiff
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. not a contract.
d. a quasi contract - ✔✔c. not a contract.
A legally binding agreement that can be avoided by one of the parties is called a:
a. revocable contract.
b. an illegal contract.
c. a voidable contract.
d. a void contract. - ✔✔c. a voidable contract.
A valid contract is:
a. any agreement between two or more parties.
b. an agreement between two or more parties that the law will enforce.
c. an agreement where one party has to do what that party promised to do but the other party does not.
d. an agreement that either party can get out of for any reason. - ✔✔b. an agreement between two or
more parties that the law will enforce.
Mr. Smith owns an apartment complex with extensive lawns and garden areas. He enters into an
informal written contract with A1-Lawn Service to perform all of the lawns and garden work including
mowing, weeding and watering. What does the fact that it is an informal contract mean to the parties?
a. Either party can change the terms of the contract at any time.
b. It is a legally binding contract.
c. The contract is oral, not written.
d. No contract has been formed. - ✔✔b. It is a legally binding contract.
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. - ✔✔c. The terms are stated in words.
,The spirit of the law that underlies the concept of quasi contract is to:
a. prevent unjust enrichment.
b. prevent charitable giving.
c. discourage unilateral contracts.
d. make sure that those to voluntarily help others get paid. - ✔✔a. prevent unjust enrichment.
Jennifer and Jamal are having lunch together and Jennifer mentions that she is thinking about selling her
3 year old car. Jamal asked several questions about the car such as its gas mileage and handling abilities
and how much she might be asking for the car. At the end of lunch, Jamal asks Jennifer to let him know if
she decides to sell the vehicle and she agrees. What type of contract is this?
a. Unilateral Contract
b. Bilateral Contract
c. Quasi Contract
d. No contract was formed - ✔✔d. No contract was formed
A contract that where neither party has performed (or done what the party promised to do) is:
a. revocable contract.
b. an illegal contract.
c. unilateral.
d. executory. - ✔✔d. executory.
Bill surfs the net and finds a website for some awesome bikes. He notices that the bikes cost less online
than they do in the local bike store in his home town. Bill orders the bike online and pays for it using his
credit card. Bill receives an email telling him that his order has been accepted and that the bike is being
shipped. Bill then decides that he really can't afford the bike and tries to cancel the order. He does not
hear back from the seller and he sees that his credit card has been charged for the bike. The bike arrives
the next day. Bill:
a. has a legally binding agreement with the online seller that has been executed.
b. can return the bike when it arrives because he tried to cancel his order.
c. can get his money back because this was not a contract.
d. can get his money back because he did not read all of the terms of the sale that were on the website. -
✔✔a. has a legally binding agreement with the online seller that has been executed.
Mrs. Boyle contracted with All-Around-Roofing to repair and replace her entire roof for $4,000 which
included labor and materials. After working off and on for 4 weeks, the contractor called Mrs. Boyle and
told her the materials she requested were going to cost more than expected and asked if he should
purchase them. Frustrated because it was taking so long, Mrs. Boyle told him yes, go ahead. Three days
later the job was completed and she got a bill for $6,000 because of the added cost of the materials she
requested. How much is Mrs. Boyle obligated to pay?
a. Only the original $4,000 as stated in the contract
b. $6,000 because she agreed to the higher price
c. $4,000 because when she agreed, she didn't realize how much it would be
d. Nothing, the roofer breached the contract and it is not invalid. - ✔✔b. $6,000 because she agreed to
the higher price
If both parties exchange promises, the contract is:
a. bilateral.
b. void.
, c. implied.
d. executed. - ✔✔a. bilateral.
Making a purchase online:
a. will always be a voidable contract.
b. can never be a contract.
c. cannot be enforced by the seller.
d. should follow the same rules with respect to contracts as any other purchase. - ✔✔d. should follow
the same rules with respect to contracts as any other purchase.
Taylor bought several lottery tickets at the local quick-stop store. What type of contract is this?
a. Quasi contract
b. Unilateral contract
c. Bilateral contract
d. No contract at all - ✔✔b. Unilateral contract
Tanner posted a guitar for sale on-line. Several emails about the guitar were then exchanged with Andre
who asked about the style, age and condition of the guitar. They never discussed price or shipping
methods, however the next week, Andre receives a package with the guitar and a bill for $250. Andre
refuses to pay. What would likely be the result in the case?
a. Andre would have to pay for the guitar because it had already been shipped.
b. Andre would have to pay for the guitar because the emails constitute a contract.
c. Andrew would not have to pay because the transaction took place on-line, not actually in "writing."
d. Andre would not have to pay because no contract was formed due to lack of specific terms. - ✔✔d.
Andre would not have to pay because no contract was formed due to lack of specific terms.
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 - ✔✔c. A writing
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 gets his paycheck.
c. when Bob pays Sally.
d. when Bob accepts Sally's offer - ✔✔d. when Bob accepts Sally's offer
Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's home and
repave Harry's driveway in exchange for Bill's payment to Harry of several thousand dollars once all of
the projects have been completed. If the driveway has not yet been completed, but the addition has
been completed, which term describes the type of contract in existence?
a. Executory
b. Implied-in-fact
c. Quasi-contract
d. Voidable - ✔✔a. Executory
