BUL 5810 Study Guide Exam
Questions and Answers 100% Pass
Contracts are primarily governed by the Uniform Commercial Code. - ✔✔False
The difference between an express contract and an implied in fact contract is the
manner in
which assent is manifested. - ✔✔True
A negotiable instrument, such as a check, is not a formal contract. - ✔✔False
A quasi contract is another name for an oral contract. - ✔✔False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer
for a
unilateral contract. - ✔✔False
A contract for the sale of a copyright is governed by Article 2 of the Uniform
Commercial Code. - ✔✔False
Maria posted several signs in the neighborhood offering $50 for the return of her lost
cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is
formed by
Dave's call to Maria - ✔✔False
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
,Malaki has a contract to purchase a new smartphone. The law governing this contract is
Article 2
of the UCC. - ✔✔True
All written contracts are considered to be formal contracts. - ✔✔False
If a person who has been declared incompetent by the courts enters into an agreement,
that
agreement is void, because it does not meet all the requirements of a binding contract. -
✔✔True
A contract to sell five acres of land is governed by Article 2 of the UCC. - ✔✔False
The Restatement is not law, but is highly persuasive in the courts. - ✔✔True
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as
an inducement to the other party to make a return exchange. - ✔✔True
There are two principal types of contracts: commercial contracts between a business and
a
customer and personal contracts between two individuals. - ✔✔True
Quasi contract is another name for a contract that is implied in fact. - ✔✔False
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. -
✔✔True
The usual method of showing the mutual assent necessary to create a contract is by
offer and acceptance. - ✔✔True
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
,A valid contract is one that meets all of the requirements of a binding contract. -
✔✔True
The Restatement defines a contract as "a promise or set of promises for the breach of
which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty." - ✔✔True
A non contractual promise may be enforceable where there has been justifiable reliance
on the promise. - ✔✔True
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these
facts, no contract is formed until Jeff finishes mowing the lawn. - ✔✔True
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial
Code. - ✔✔False
Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and
wants to get
out of the contract. This contract is voidable at Lila's option. - ✔✔True
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This
contract is
voidable at Ann's option. - ✔✔False
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier.
Nothing,
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 3
, however, is said by either party about the price or method of payment. The supplier
ships the yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the
yogurt. - ✔✔True
Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments
in the
law and business practices and to accommodate electronic commerce. - ✔✔True
Common law relating to the formation of contracts has little relevance in the business
world
today. - ✔✔False
An implied in fact contract is formed by the conduct. - ✔✔True
Ron says to Matt, "If you design and landscape my front lawn by the time I return from
Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done
by the time
Ron returns. This is an example of a unilateral contract. - ✔✔True
If a contract is not clearly unilateral or bilateral, the courts presume that the parties
intended a
unilateral contract. - ✔✔False
The Uniform Commercial Code would be applied in which of the following situations?
- ✔✔D A contract to buy living room furniture
Lee has been declared incompetent by the court and is under the care of his sister.
Without his
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 4
Questions and Answers 100% Pass
Contracts are primarily governed by the Uniform Commercial Code. - ✔✔False
The difference between an express contract and an implied in fact contract is the
manner in
which assent is manifested. - ✔✔True
A negotiable instrument, such as a check, is not a formal contract. - ✔✔False
A quasi contract is another name for an oral contract. - ✔✔False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer
for a
unilateral contract. - ✔✔False
A contract for the sale of a copyright is governed by Article 2 of the Uniform
Commercial Code. - ✔✔False
Maria posted several signs in the neighborhood offering $50 for the return of her lost
cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is
formed by
Dave's call to Maria - ✔✔False
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
,Malaki has a contract to purchase a new smartphone. The law governing this contract is
Article 2
of the UCC. - ✔✔True
All written contracts are considered to be formal contracts. - ✔✔False
If a person who has been declared incompetent by the courts enters into an agreement,
that
agreement is void, because it does not meet all the requirements of a binding contract. -
✔✔True
A contract to sell five acres of land is governed by Article 2 of the UCC. - ✔✔False
The Restatement is not law, but is highly persuasive in the courts. - ✔✔True
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as
an inducement to the other party to make a return exchange. - ✔✔True
There are two principal types of contracts: commercial contracts between a business and
a
customer and personal contracts between two individuals. - ✔✔True
Quasi contract is another name for a contract that is implied in fact. - ✔✔False
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. -
✔✔True
The usual method of showing the mutual assent necessary to create a contract is by
offer and acceptance. - ✔✔True
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
,A valid contract is one that meets all of the requirements of a binding contract. -
✔✔True
The Restatement defines a contract as "a promise or set of promises for the breach of
which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty." - ✔✔True
A non contractual promise may be enforceable where there has been justifiable reliance
on the promise. - ✔✔True
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these
facts, no contract is formed until Jeff finishes mowing the lawn. - ✔✔True
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial
Code. - ✔✔False
Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and
wants to get
out of the contract. This contract is voidable at Lila's option. - ✔✔True
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This
contract is
voidable at Ann's option. - ✔✔False
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier.
Nothing,
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 3
, however, is said by either party about the price or method of payment. The supplier
ships the yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the
yogurt. - ✔✔True
Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments
in the
law and business practices and to accommodate electronic commerce. - ✔✔True
Common law relating to the formation of contracts has little relevance in the business
world
today. - ✔✔False
An implied in fact contract is formed by the conduct. - ✔✔True
Ron says to Matt, "If you design and landscape my front lawn by the time I return from
Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done
by the time
Ron returns. This is an example of a unilateral contract. - ✔✔True
If a contract is not clearly unilateral or bilateral, the courts presume that the parties
intended a
unilateral contract. - ✔✔False
The Uniform Commercial Code would be applied in which of the following situations?
- ✔✔D A contract to buy living room furniture
Lee has been declared incompetent by the court and is under the care of his sister.
Without his
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 4
