Contemporary Business Law 8 Edition By Henry
Cheeseman Test Bank (All Chapters Covered)
Ellen gave First Bank a security interest in her home to secure a loan of
$400,000. In this transaction Ellen is the ______________and First Bank is the
______________. - answer-Mortgagor-------mortgagee
John got a loan from First Bank for $600,000 to purchase a new home. He
executed two documents with First Bank: one document acknowledged his
debt of $600,000 and his obligation to pay it in 15 years at 5%interest; the
second document gave First Bank a security interests in the property. The
document acknowledging the debt is a________________; the document
granting the security interest is a __________________. - answer-Promissory
note--------------mortgage
Which of the following is not a cloud on the title of real property because it is
not recorded in the land records? - answer-A license
Deeds of trust are used in some states as substitutes for ______________. -
answer-Mortgages
All of the following remedies are available to landlords whose tenants stop
paying rent except _____________. - answer-Foreclosures
,Tamara left her car in a line of other cars waiting to be washed. Tamara
expects to pay for the service and the car wash expects to be paid. The
contract that exists between Tamara and the car wash is an implied in fact
contract. - answer-True
General damages are also called compensatory damages. - answer-True
Excessive punitive damage awards may violate the constitutional protection of
due process. - answer-True
The winning party in a breach of contract case is normally entitled to attorney's
fees, witness fees and filing costs. - answer-False
Hadley v. Baxendale is the famous British case that created the equitable
remedy of specific performance. - answer-False
Restitution is used by courts of equity to prevent unjust enrichment in actions
based on quasi-contract. - answer-True
Failure to rescind a contract within a reasonable time amounts to an
affirmation of the contract. - answer-True
The Uniform Commercial Code is an important source of contract law for
businesses in the United States. - answer-True
, The innocent party in a contract breach must choose between collecting
punitive damages or compensatory damages because a court cannot grant
both. - answer-False
Since it is up to the parties to determine the dollar amount in a liquidated
damages clause, courts will enforce any amount called for in the contract. -
answer-False
Courts generally cannot order specific performance when the contract is for
personal services because of the Thirteenth Amendment. - answer-True
Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The
construction work has been completely finished, but Hailey has not yet paid
Cal. This is an example of a partially executed contract. - answer-True
The source of law for construction contracts, employment contracts and
contracts for the sale of land is_____________________. - answer-State
common law
Mike and Charlie are neighbors in a subdivision. There is an undeveloped lot
between their homes that is owned by Charlie. Charlie offered to sell the lot to
Mike for $100,000. Mike wanted time to see if could arrange financing, so he
gave Charlie a check for $1000 to keep the offer open for 6 months. Charlie
and Mike have entered into a (n) ______________contract. - answer-Option
The mailbox rule is also known as the ________________rule. - answer-
Deposited acceptance
Cheeseman Test Bank (All Chapters Covered)
Ellen gave First Bank a security interest in her home to secure a loan of
$400,000. In this transaction Ellen is the ______________and First Bank is the
______________. - answer-Mortgagor-------mortgagee
John got a loan from First Bank for $600,000 to purchase a new home. He
executed two documents with First Bank: one document acknowledged his
debt of $600,000 and his obligation to pay it in 15 years at 5%interest; the
second document gave First Bank a security interests in the property. The
document acknowledging the debt is a________________; the document
granting the security interest is a __________________. - answer-Promissory
note--------------mortgage
Which of the following is not a cloud on the title of real property because it is
not recorded in the land records? - answer-A license
Deeds of trust are used in some states as substitutes for ______________. -
answer-Mortgages
All of the following remedies are available to landlords whose tenants stop
paying rent except _____________. - answer-Foreclosures
,Tamara left her car in a line of other cars waiting to be washed. Tamara
expects to pay for the service and the car wash expects to be paid. The
contract that exists between Tamara and the car wash is an implied in fact
contract. - answer-True
General damages are also called compensatory damages. - answer-True
Excessive punitive damage awards may violate the constitutional protection of
due process. - answer-True
The winning party in a breach of contract case is normally entitled to attorney's
fees, witness fees and filing costs. - answer-False
Hadley v. Baxendale is the famous British case that created the equitable
remedy of specific performance. - answer-False
Restitution is used by courts of equity to prevent unjust enrichment in actions
based on quasi-contract. - answer-True
Failure to rescind a contract within a reasonable time amounts to an
affirmation of the contract. - answer-True
The Uniform Commercial Code is an important source of contract law for
businesses in the United States. - answer-True
, The innocent party in a contract breach must choose between collecting
punitive damages or compensatory damages because a court cannot grant
both. - answer-False
Since it is up to the parties to determine the dollar amount in a liquidated
damages clause, courts will enforce any amount called for in the contract. -
answer-False
Courts generally cannot order specific performance when the contract is for
personal services because of the Thirteenth Amendment. - answer-True
Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The
construction work has been completely finished, but Hailey has not yet paid
Cal. This is an example of a partially executed contract. - answer-True
The source of law for construction contracts, employment contracts and
contracts for the sale of land is_____________________. - answer-State
common law
Mike and Charlie are neighbors in a subdivision. There is an undeveloped lot
between their homes that is owned by Charlie. Charlie offered to sell the lot to
Mike for $100,000. Mike wanted time to see if could arrange financing, so he
gave Charlie a check for $1000 to keep the offer open for 6 months. Charlie
and Mike have entered into a (n) ______________contract. - answer-Option
The mailbox rule is also known as the ________________rule. - answer-
Deposited acceptance
