Reference no: EM133297752

Question 1.

An output contract is an agreement of a buyer to purchase a seller's entire output for a stated period.

True

False

Question 2.

If no time is stated, an offer will terminate automatically after a reasonable period of time.

True

False

Question 3.

A promisee's consideration is effective only if given directly to the promisor by the promisee.

True

False

Question 4.

Alice says to Brian, "If I decide to buy a digital camera next year, I will buy it from you." This is an example of:

an illusory promise.

past consideration.

the pre-existing duty rule.

good consideration.

Question 5.

Consideration is the inducement to make a promise enforceable.

True

False

Question 6.

A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

True

False

Question 7.

An exculpatory clause may excuse one party from liability for her own tortious conduct.

True

False

Question 8.

A contract that requires a person to commit a tort will be enforced by the courts.

True

False

Question 9.

Edward, an engineer, is working on a new design for some highly technical equipment which Martus, Inc. hopes to market within the next five years. The employment agreement between Edward and Martus states that Edward will not go to work for another company in the same business for a period of two years after termination of his employment with Martus, Inc. This agreement is void and unenforceable because, although Martus is a very specialized company, it would make it difficult for Edward to find other employment.

True

False

Question 10.

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.

True

False