BUSA TEST 3 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Vernon claims that his contract with Ulani is voidable. If
their contract is avoided
a. both parties are released from it.
b. both parties must fully perform their obligations under
it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties
had agreed.
`
Answer:
a. both parties are released from it
Question:
2. InTown Delivery Service promises to deliver a certain
couch to Kurt, who promises to pay for the service. If
InTown does not perform, the firm may be required to
a. do nothing.
b. make another promise.
c. pay damages.
b. perform a different service.
Answer:
c. pay damages
Question:
3. Clay offers to pay Dot $50 for a golf lesson for Eula. They
agree to meet the day after tomorrow to exchange the
cash for the lesson. These parties have
a. bilateral contract
b. a trilateral contract
c. a unilateral contract
d. no contract
Answer:
a. bilateral contract
,Question:
4. On Monday, Neil tells Outdoor Landscaping, Inc., that he
will pay Outdoor $500 if a variety of tasks are completed
by Friday. On Wednesday, when Outdoor is more than
halfway done with the work, Neil says he has changed his
mind. These parties had:
a. an expired contract when Neil said he changed his
mind
b. a quasi contract when Neil said he would pay for
certain work
c. a unilateral contract as soon as Outdoor began to
perform
d. no contract
Answer:
c. a unilateral contract as soon as Outdoor began to perform.
Question:
5. Phil enters into a contract with Vacation Resorts, Inc., to
work as a chef. Under the plain meaning rule, the
meaning of this contract must be deter¬mined by
reference to
a. any available evidence.
b. any relevant extrinsic evidence.
c. the face of the writing
d. the later testimony of the parties.
Answer:
c. the face of the writing
Question:
6. On behalf of the rock group Uno, their manager Thalia
agrees to a performance in Seaside amphitheater on July
4. Rex, acting for Seaside productions, sends a written
copy of the agreement to Thalia to be signed. Typically,
businesspersons put their contracts in writing to:
a. ensure proof of the contracts' existence
b. create substance from form
c. obtain a check or other negotiable instrument
d. practice their " letters of credit"
Answer:
a. ensure proof of the contracts' existence
, Question:
7. Flo tells Gregor that she will buy his textbook from last
semester for $65. Gregor agrees. Flo and Gregor have
a. an executed contract
b. an express contract
c. an implied-in-fact contract
d. a quasi contract
Answer:
b. an express contract
Question:
8. employment services, Inc., enters into a contract with
Fred. If Fred is a minor, this contract is most likely:
a. enforceable
b. unenforceable
c. voidable
d. void
Answer:
c. voidable
Question:
9. Opie offers to sell his guitar to Pinky for $100. Pinky
agrees. They complete and sign a printed form that
includes, near the blanks for their signatures, the word
"seal." This is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
Answer:
a. a formal contract
Question:
10. Jack promises to buy Kris's computer for $400. Jack is
a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
Answer:
d. a promisor
CORRECT ANSWERS
Question:
1. Vernon claims that his contract with Ulani is voidable. If
their contract is avoided
a. both parties are released from it.
b. both parties must fully perform their obligations under
it.
c. a wholly different contract is agreed to.
d. a wholly different contract is imposed "as if" the parties
had agreed.
`
Answer:
a. both parties are released from it
Question:
2. InTown Delivery Service promises to deliver a certain
couch to Kurt, who promises to pay for the service. If
InTown does not perform, the firm may be required to
a. do nothing.
b. make another promise.
c. pay damages.
b. perform a different service.
Answer:
c. pay damages
Question:
3. Clay offers to pay Dot $50 for a golf lesson for Eula. They
agree to meet the day after tomorrow to exchange the
cash for the lesson. These parties have
a. bilateral contract
b. a trilateral contract
c. a unilateral contract
d. no contract
Answer:
a. bilateral contract
,Question:
4. On Monday, Neil tells Outdoor Landscaping, Inc., that he
will pay Outdoor $500 if a variety of tasks are completed
by Friday. On Wednesday, when Outdoor is more than
halfway done with the work, Neil says he has changed his
mind. These parties had:
a. an expired contract when Neil said he changed his
mind
b. a quasi contract when Neil said he would pay for
certain work
c. a unilateral contract as soon as Outdoor began to
perform
d. no contract
Answer:
c. a unilateral contract as soon as Outdoor began to perform.
Question:
5. Phil enters into a contract with Vacation Resorts, Inc., to
work as a chef. Under the plain meaning rule, the
meaning of this contract must be deter¬mined by
reference to
a. any available evidence.
b. any relevant extrinsic evidence.
c. the face of the writing
d. the later testimony of the parties.
Answer:
c. the face of the writing
Question:
6. On behalf of the rock group Uno, their manager Thalia
agrees to a performance in Seaside amphitheater on July
4. Rex, acting for Seaside productions, sends a written
copy of the agreement to Thalia to be signed. Typically,
businesspersons put their contracts in writing to:
a. ensure proof of the contracts' existence
b. create substance from form
c. obtain a check or other negotiable instrument
d. practice their " letters of credit"
Answer:
a. ensure proof of the contracts' existence
, Question:
7. Flo tells Gregor that she will buy his textbook from last
semester for $65. Gregor agrees. Flo and Gregor have
a. an executed contract
b. an express contract
c. an implied-in-fact contract
d. a quasi contract
Answer:
b. an express contract
Question:
8. employment services, Inc., enters into a contract with
Fred. If Fred is a minor, this contract is most likely:
a. enforceable
b. unenforceable
c. voidable
d. void
Answer:
c. voidable
Question:
9. Opie offers to sell his guitar to Pinky for $100. Pinky
agrees. They complete and sign a printed form that
includes, near the blanks for their signatures, the word
"seal." This is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
Answer:
a. a formal contract
Question:
10. Jack promises to buy Kris's computer for $400. Jack is
a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
Answer:
d. a promisor
