Business Law 期末考试 From Renowned
Educators Worldwide EXAMS FROM THE BEST
INSTITUTIONS ACROSS THE Expert-Reviewed
Questions and Answers Handpicked from Elite
Universities
25. What is the legal effect of placing a seal on a contract?
a. The party applying the seal is "estopped" from breaching the contract.
b. The promise in the contract will be enforceable even if it is gratuitous.
c. The application of a seal is ceremonial and has no legal implications.
d. The seal replaces the party's name in the contract. - CORRECT ANSWER- -B
26. Under what circumstances would a judge who is determining a remedy to a
commercial dispute consider that a contract does not exist even though all of the required
elements of reaching an agreement are present?
a. A phrase indicates the agreement is subject to formal contract.
b. A contract lacks sufficient consideration for both parties.
c. A contract lacks adequate consideration for both parties.
d. A phrase indicates the agreement is subject to its exact wording. - CORRECT ANSWER- -
A
27. Which statement best expresses the effect of the decision of the court in NAV Canada v
Greater Fredericton Airport Authority Inc?
a. All variations of a contract must be supported by "fresh" consideration.
,b. A promise to pay more than set out in the contract is worthless and unenforceable
without some corresponding concession.
c. Provided that the party who agrees to a gratuitous variation did so voluntarily, it is
enforceable.
d. A pre-existing legal duty cannot be consideration for a new contractual promise. -
CORRECT ANSWER- -C
28. Which of the following is a requirement of the doctrine of promissory estoppel?
a. the plaintiff must have changed its position in reliance on the promise
b. the plaintiff must have given valuable consideration for the promise
c. the plaintiff can only use promissory estoppel to enforce a promise
d. the defendant's promise must be in writing - CORRECT ANSWER- -A
29. Panda Industries agreed to supply 500 tons of steel rebar to ABC Builders for a price of
$250 per ton. Shortly after the contract came into effect, the market price of rebar rose to
$275 per ton. Fortunately, ABC Builders was agreeable to paying the hew higher price. Why
might ABC Builder's promise to pay an additional $25 per ton be unenforceable?
a. the lack of sufficient consideration b. the absence of fresh consideration
c. the lack of adequate consideration d. the absence of formalization - CORRECT
ANSWER- -B
30. What element must be present to enable an innocent party to commence a lawsuit
when a promise is broken?
a. The innocent party must agree to a "price" for the defendant's promise.
b. The work must be performed.
c. The consideration must be adequate.
d. The promise must be accepted. - CORRECT ANSWER- -A
, 31. Caroline agreed to purchase organic hemp fabric from an Ontario manufacturer. While
making an inquiry to purchase organic dyes from a Manitoba producer, she learned they
offered a superior organic hemp fabric at a much lower price than the Ontario
manufacturer. Knowledge of what legal principle would immediately let Caroline know she
made a costly error?
a. Parties must be informed as to the adequacy of price, as it is usually not open to
challenge.
b. The consideration to be given for each party's duties is the other party's duties.
c. Parties must pay the price for a promise before they can sue when it is broken.
d. The traditional perspective that alteration of a pre-existing duty is enforceable. -
CORRECT ANSWER- -A
32. In what ways are the use of seals and the doctrine of promissory estoppel similar?
a. Both are ways to create contracts.
b. Both may render a gratuitous promise enforceable.
c. Both may be arbitrarily revoked.
d. Both are exceptions to the rule that offers lapse after a reasonable period of time. -
CORRECT ANSWER- -B
33. Which statement most accurately describes the requirement of consideration?
a. As long as one party provides consideration, the promise will be binding.
b. All promises are legally binding, whether or not consideration is provided.
c. Consideration must be fair and adequate.
d. Consideration may take the form of a promise in exchange for a promise. - CORRECT
ANSWER- -D
34. A cancer hospital asked its privately-owned medical isotope source to arrange an
earlier shipment of an urgent order. The private supplier confirmed an earlier shipment was
possible for a 30 percent surcharge on the contractual price. Because the hospital's cancer
Educators Worldwide EXAMS FROM THE BEST
INSTITUTIONS ACROSS THE Expert-Reviewed
Questions and Answers Handpicked from Elite
Universities
25. What is the legal effect of placing a seal on a contract?
a. The party applying the seal is "estopped" from breaching the contract.
b. The promise in the contract will be enforceable even if it is gratuitous.
c. The application of a seal is ceremonial and has no legal implications.
d. The seal replaces the party's name in the contract. - CORRECT ANSWER- -B
26. Under what circumstances would a judge who is determining a remedy to a
commercial dispute consider that a contract does not exist even though all of the required
elements of reaching an agreement are present?
a. A phrase indicates the agreement is subject to formal contract.
b. A contract lacks sufficient consideration for both parties.
c. A contract lacks adequate consideration for both parties.
d. A phrase indicates the agreement is subject to its exact wording. - CORRECT ANSWER- -
A
27. Which statement best expresses the effect of the decision of the court in NAV Canada v
Greater Fredericton Airport Authority Inc?
a. All variations of a contract must be supported by "fresh" consideration.
,b. A promise to pay more than set out in the contract is worthless and unenforceable
without some corresponding concession.
c. Provided that the party who agrees to a gratuitous variation did so voluntarily, it is
enforceable.
d. A pre-existing legal duty cannot be consideration for a new contractual promise. -
CORRECT ANSWER- -C
28. Which of the following is a requirement of the doctrine of promissory estoppel?
a. the plaintiff must have changed its position in reliance on the promise
b. the plaintiff must have given valuable consideration for the promise
c. the plaintiff can only use promissory estoppel to enforce a promise
d. the defendant's promise must be in writing - CORRECT ANSWER- -A
29. Panda Industries agreed to supply 500 tons of steel rebar to ABC Builders for a price of
$250 per ton. Shortly after the contract came into effect, the market price of rebar rose to
$275 per ton. Fortunately, ABC Builders was agreeable to paying the hew higher price. Why
might ABC Builder's promise to pay an additional $25 per ton be unenforceable?
a. the lack of sufficient consideration b. the absence of fresh consideration
c. the lack of adequate consideration d. the absence of formalization - CORRECT
ANSWER- -B
30. What element must be present to enable an innocent party to commence a lawsuit
when a promise is broken?
a. The innocent party must agree to a "price" for the defendant's promise.
b. The work must be performed.
c. The consideration must be adequate.
d. The promise must be accepted. - CORRECT ANSWER- -A
, 31. Caroline agreed to purchase organic hemp fabric from an Ontario manufacturer. While
making an inquiry to purchase organic dyes from a Manitoba producer, she learned they
offered a superior organic hemp fabric at a much lower price than the Ontario
manufacturer. Knowledge of what legal principle would immediately let Caroline know she
made a costly error?
a. Parties must be informed as to the adequacy of price, as it is usually not open to
challenge.
b. The consideration to be given for each party's duties is the other party's duties.
c. Parties must pay the price for a promise before they can sue when it is broken.
d. The traditional perspective that alteration of a pre-existing duty is enforceable. -
CORRECT ANSWER- -A
32. In what ways are the use of seals and the doctrine of promissory estoppel similar?
a. Both are ways to create contracts.
b. Both may render a gratuitous promise enforceable.
c. Both may be arbitrarily revoked.
d. Both are exceptions to the rule that offers lapse after a reasonable period of time. -
CORRECT ANSWER- -B
33. Which statement most accurately describes the requirement of consideration?
a. As long as one party provides consideration, the promise will be binding.
b. All promises are legally binding, whether or not consideration is provided.
c. Consideration must be fair and adequate.
d. Consideration may take the form of a promise in exchange for a promise. - CORRECT
ANSWER- -D
34. A cancer hospital asked its privately-owned medical isotope source to arrange an
earlier shipment of an urgent order. The private supplier confirmed an earlier shipment was
possible for a 30 percent surcharge on the contractual price. Because the hospital's cancer
