CLEP Introductory Business Law QUESTIONS AND DETAILED PASSED ANSWERS 2023/2024

CLEP Introductory Business Law QUESTIONS AND DETAILED PASSED ANSWERS 2023/2024 The authority of a court to hear and decide cases is known as - correct answer Jurisdiction Law that is formed by a group of individuals, acting as representatives for other individuals, is best termed - correct answer legislative law A contract will be unenforceable if - correct answer a statute declares such a contract illegal Angela promises to work for Barbara during the month of July, and Barbara promises to pay Angela $600 for her services. In this situation, what kind of contract has been made? - correct answer Bilateral Which of the following is an essential element of fraud? - correct answer Misrepresentation of a material fact Clyde received the following letter from Joe: "I will sell you the books you examined yesterday for $10 each or $100 for the entire set." Clyde, not sure he would get much use from the books, told his brother, Michael, about the offer. Michael tendered Joe $100 for the books, but Joe refused to sell the books to Michael. If Michael sued Joe, the court would probably hold that Michael - correct answer cannot accept the offer unless he does so in writing All of the following have the right to enforce a contract EXCEPT (A) an assignee (B) a transferee (C) a third-party creditor beneficiary (D) a third-party donee beneficiary (E) a third-party incidental beneficiary - correct answer a third-party incidental beneficiary A method of discharging a contract that returns each party to his or her original position is - correct answer a novation A contract clause that requires both parties to act simultaneously is called a - correct answer condition concurrent Benson, a seventeen-year-old college freshman, was adequately supplied with clothes by his father. Smith, a clothing merchant, learned that Benson was spending money freely and solicited clothing orders from him. Benson bought $750 worth of luxury clothing from Smith on credit. Benson failed to pay Smith. If Smith sued Benson, the court would probably hold that - correct answer Benson can disaffirm the contract, return the clothing, and escape liability The enforcement of a contract may be barred, according to the operation of law, by - correct answer the statute of limitations A purchase from each of the following would be considered a purchase in the ordinary course of trade or business EXCEPT a purchase from a (A) pawnshop (B) department store (C) supermarket (D) discount department store (E) used car lot - correct answer pawnshop Which of the following promises would be enforceable by the majority of courts? (A) Avery finds Bond's dog and returns it to Bond. Later, Bond promises to pay Avery a reward. (B) Husband, in consideration of the love and affection given him by Wife, promises to pay her $1,000. (C) Avery is extremely ill and placed in a hospital. Avery's neighbor, Bond, mows Avery's yard while Avery is recuperating. Later, Avery promises to pay Bond the reasonable value of his services. (D) Avery owes Bond $100, but the collection of this debt is barred by the statute of limitations. Later, Avery writes Bond a letter promising to pay Bond the $100. (E) Daughter mows the family yard. In absence of an express agreement, Daughter can claim an implied promise on Father's part to pay for her services. - correct answer Avery owes Bond $100, but the collection of this debt is barred by the statute of limitations. Later, Avery writes Bond a letter promising to pay Bond the $100.