Reference no: EM13781303

Question 1: Roberto offered to sell Doug 10 cases of a particular brand of cigarettes for a specific price on a specific date. Included in the contract are the provisions that neither party will pay the legally required cigarette tax by not disclosing the sale to the state. Doug accepted the ofer within 2 days, including all the terms set out by Doug. There is now undeniably a legally enforceable contract.
True
False

Question 2: Which of the following is NOT a key element of a contract?
offer
acceptance
consideration
reformation

Question 3: Aurelia lost her absolutely adorable dog. She hung posters up on all over town. The posters proclaimed that Aurelia would pay $1,000 to anyone for the return of herdog. Meanwhile, Gladys found Aurelia's dog just outside the town bakery, begging in an absolutely adorable manner. Gladys noticed the tags on the dog's collar identifying the dog as belonging to Aurelia. "Aurelia must be going crazy looking for this absolutely adorable dog. I'm going to bring the dog to her at once," said Gladys. And with a big heart, she quickly brought the dog to Aurelia's doorstep. Aurelia thanked Gladys liberally, picked up her dog and closed the door. On her way back to her car, Gladys noticed the posters offering the $1,000 reward for the return of Aurelia's dog. "Hey," said Gladys, "Isn't this wonderful? I'm looking forward to that cash. I'd better go back and claim it now." Based upon this scenario and the information in your text, which of the following is true?
Under contract law, Gladys is owed the $1,000.
Under contract law, Aurelia does NOT owe Gladys $1,000.
Gladys was aware of the offer when she returned the dog.
The dog could not have been all that adorable.

Question 4: Lil' Kim is aware that Lil' Bro has been waiting to save up enough money to buy a good laptop and that once he is within a month of his goal, Lil' Bro plans to drum up graphic design business. Lil' Kim agrees to give Lil' Bro a free new top-of-the-line Dell laptop, with excellent graphics features, a TV tuner, Bluetooth(TM) and a 17 inch screen by Friday. Based upon this promise, Lil' Bro enters into a contract to perform some graphic design, with the work to be completed within 2 weeks. He spent 20 hours working on getting the contract. He also purchased a wireless keyboard and mouse to go with the Bluetooth(TM) in the laptop. Which of the following is true?
Because Lil' Kim has given a gift promise, she may back out of it at any time without any legal consequences.
Due to the doctrine of promissory estoppel (or detrimental reliance), the promise made by Lil' Kim is enforceable.
Because there is no consideration on the part of Lil' Bro, this promise is not enforceable.
Lil' Bro paid consideration to Lil' Kim.

Question 5: A contract entered into based upon an innocent misrepresentation of a material fact, without knowledge that the statement is false and without intent to misrepresent, may NOT be voidable.
True
False

Question 6: Brad offered to produce the movie Dramatic Contracts for Bruno for $200,000. Bruno responded that he agreed to let Brad produce the movie, so long as it was for $199,998 dollars or less. Now there is a binding contract between Brad and Bruno.
True
False

Question 7: Courts will not order specific performance of personal services such as performing particular job as this would be like involuntary servitude.
True
False

Question 8: Gerardo offers to make 2 quarts of homemade ice cream for Rico's Saturday night party for $10 a quart. Rico agrees. Which of the following is true?
Rico has given no consideration.
Rico does not need to give up consideration for there to be a contract.
Gerardo has given up no consideration since he has not agreed to pay out any money.
Gerardo's consideration is his agreement to make the 2 quarts of ice cream.

Question 9: Jane is 17 years old, she signs a contract to join the U.S. Army, including a signing bonus of $10,000, which of the following is true?
After she receives the $10,000 Jane may disavow the contract.
Army contracts are nonvoidable, even by a minor. Jane might have made a better choice if she had paid better attention in Bus 140.
Because she is only 17, Jane can rest assured that she will not be shipped off to Iraq with the Army.
Since she is a minor, Jane can opt not to join the U.S. Army after all and can still walk away with the $10,000.

Question 10: A contract induced by fraud may be rescinded.
True
False.