Reference no: EM131555843

1. Contract duties are obligations imposed by law.
True
False

2. Contract law reduces the cost of economic transactions.
True
False

3. A quasi-contract is not a contract, but a fiction created by the courts to prevent injustice.
True
False

4. An agreement that is illegal is void.
True
False

5. A contract need not be in writing to be enforceable.
True
False

6. Specific performance is a limited remedy as it is only available for breach of contract to sell a unique item.
True
Fasle

7. A _____ is a promise or a 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.
tort
tender
contract
law
bailment

8. A(n) _____ contract is one in which the terms are spelled out directly and the parties are conscious that they are making an enforceable agreement.
quasi-
implied
express
voidable
void

9. An agreement that is lacking one of the legal elements of a contract is said to be _____.
valid
unenforceable
voidable
void
lawful

10. _____ is the quid pro quo between the contracting parties, in the absence of which the law will not enforce the promise or promises made.
Restitution
Capacity
Quasi-contract
Consideration
Compensation

11. In practice, a person asserting a claim for breach of warranty will have a good chance of success under an express warranty or implied warranty theory of merchantability or fitness for a particular purpose.
True
False

12. The Uniform Commercial Code permits sellers to exclude warranties in whole or in part.
True
False

13. _____ imposes a liability on a merchant-seller of defective goods without fault.
Statute of repose
Strict products liability
Limited warranty
Negligence
Preemption

14. Strict liability is liability without proof of negligence and without privity.
True
False

15. A limited warranty may cover only parts, not labor.
True
False

16. A contract is no less binding when negotiated by an agent than by the principal.
True
False

17. A general agent has the authority to act in any way required by the principal's business.
True
False

18. Most agencies are created by contracts.
True
False

19. The fiduciary responsibility of an agent is imposed by law.
True
False

20. A(n) _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.
grantor
insured
agent
testator
tenant

21. Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely, the principal may still be liable if he ratifies or adopts the agent's acts before the third party withdraws from the contract.
True
False

22. A principal can be held liable for actions by an agent that the principal had no knowledge of.
True
False

23. If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm, then the principal is liable.
True
False

24. Which of the following is true of ratification by the principal?
It can only occur prior to the actions of the agent.
It is a voluntary act by the principal.
It discharges the principal of liability for the agent's actions.
It requires the usual consideration of contract law.
It must be made in writing to be effective.

25. According to the doctrine of _____, a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.
employment-at-will
shop rights
ultra vires
respondeat superior
estoppel