Reference no: EM13840848

1. Because ______ does not favor intoxication, the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.
Public policy
Medical literature
Popular opinion
Religion
Morality

2. Historically, which of the following were considered people with limited or no capacity?
Women
Minors and insane persons, but not women
Insane persons
Minors
Minors, insane persons, and married women

3. Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.
True
False

4. Reference: "Beauty shop woes." Reference: "Beauty shop woes." When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, she quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer who was threatening to sue her because her hair turned green after Janice worked on it. Janice said that she knew that the customer's hair was damaged; but that she told the customer that odd results could result from a dye attempt, and had her sign a contract that she released Janice from all liability and would not sue. The customer, however, sued anyway. Which of the following is true regarding Janice's claim that no judge in the country would enforce such an agreement?
She is incorrect because all courts approve such agreements so long as it can be shown the employee gained a benefit other than pay from the employment.
She is correct because such agreements are considered in restraint of trade in every state.
She is incorrect because such agreements are criminally illegal in every state.
She is incorrect because courts across the country vary in regards to the enforceability of such agreements.
She is incorrect because while no court would approve a geographical restriction, some courts recognize time restrictions as being valid.

5. Reference: "Scheming Friends." Willy very much wants to rent a basement apartment in Weaver's home. Willy threatens to tell all Weaver's friends that he and Weaver had been arrested for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per month. (This was true.) Weaver reluctantly agrees to rent the apartment to Willy for that amount. Willy also wants to buy Weaver's car. Weaver runs back the odometer on the car before Willy test drives it. Willy is impressed by the low mileage and agrees to buy the car. Weaver also offers to sell Willy a ring for Willy's fiancée. Weaver tells Willy that the ring is a diamond and believes that to be true. After the deal is made, however, a jeweler friend of Weaver's informs him that the ring is a fake. When Willy shows up with the money, Weaver says nothing. He just hands Willy the ring and takes the money. Later, Willy finds out that the odometer was run backwards from another friend to whom Weaver confided. Willy also finds out from his girlfriend that the ring is a fake. Which of the following is the proper legal term for Willy's action in regard to running back the odometer?
There is no legal term because although he acted illegally, Willy had no duty to disclose his action and incriminate himself.
Concealment
Active duress
Conscious disregard
Nondisclosure

6. A(n) ______ mistake is the result of an error by one party about a material fact.
Unilateral
Single
Unclear
Clear
Mutual

7. Threatening physical harm or extortion to gain consent to a contract is classified as undue influence.
True
False

8. Which of the following occurs when one of the parties to a contract has so much more bargaining power than the other that he or she dictates the terms of the agreement?
Unconscionability
Cohesiveness
Disconnection
Unprovable
Unfairness

9. Which of the following are debts incurred in an initial contract?
Secondary promises
Suretyship promises
Collateral promises
Secondary obligations
Primary obligations

10. Which of the following are exceptions to when the statute of frauds would apply although under normal circumstances it would apply?
All of the above
Partial performance
Admission and partial performance, but not promissory estoppel
Admissions
Promissory estoppel

11. TF The purpose of the parol evidence rule is to prevent attempts to use only oral evidence to prove agreements.
True
False

12. What is a purpose of the parol evidence rule?
To restrict written evidence from being admitted that supports an agreement in its written form.
To restrict evidence from being admitted that substantially contradicts an agreement in its written form.
To restrict hearsay from being admitted that supports or contradicts an agreement in its written form.
To restrict oral and written evidence from being admitted that supports an agreement in its written form.
To restrict oral evidence from being admitted that supports an agreement in its written form.

13. A factor that courts consider in determining whether a party is an incidental or intended beneficiary is whether the contract directly states that the third party is the benefiting party.
True
False

14. Which of the following is true regarding assignment of rights in China?
Assignment of rights is illegal.
Free assignment of rights is permitted only when a contract with a private party is involved unless the contract is one considered "for the good of the people."
Free assignment of rights is permitted.
Free assignment of rights is permitted only when a contract with a state authority is involved.
When a private party is involved, the assignor must first get the obligor's approval before an assignment is made.

15. When parties include a[n] ______ clause in their contract, the parties are attempting to limit their ability to assign their rights under the contract.
Anticontract
Integration
Severability
Antiassignment
Antiobligation

16. A third party, who is not part of an original contract, but to whom duty to perform contained in the original contract is transferred is called a[n] ______.
Assignee
Assignor
Transferor
Delegatee
Delegator

17. When a party's obligations under a contract are terminated, the party is said to be ______.
Recoursed
Terminated
Completed
Discharged
Finished

18. Which of the following requires that the breaching party fulfill the terms of the agreement?
Specific absolute
Absolute obligation
Specific obligation
Specific performance
Absolute performance

19. Which of the following is a way in which a contract may be discharged by operation of law?
Objective impossibility of performance
Alteration of the contract and bankruptcy, but not objective impossibility of performance
Alteration of the contract
Bankruptcy
All of the above

20. A contract or contract provision is said to be ______ if it is so unfair that a court would be unreasonable if it enforced the contract.
Ancillary
Voidable
Unreasonable
Viable
Unconscionable

21. Which of the following are considered goods under the UCC?
All of the above
Soil taken from real estate and sold by the owner.
Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner, but not the right to remove soil from the real estate sold by the owner to another party.
The right to remove soil from the real estate sold by the owner to another party.
Minerals taken from real estate and sold by the owner.

22. Assuming both parties are merchants, which of the following is an exception to the writing requirement contained in the UCC?
When parties admit in pleadings, testimony, or in court that a sales or lease contract was made, the contract is enforceable up to the quantity of goods admitted; and an oral sales or lease contract is enforceable to the extent that payment has been made and accepted, or goods have been received and accepted; but a past history of dealings in similar matters does not result in an oral sales or lease contract being enforceable.
All of the above.

23. An oral sales or lease contract is enforceable so long as the parties have a history of past dealings in similar matters.
When parties admit in pleadings, testimony, or in court that a sales or lease contract was made, the contract is enforceable up to the quantity of goods admitted.
An oral sales or lease contract is enforceable to the extent that payment has been made and accepted, or goods have been received and accepted.

24. Which of the following is true regarding the status of a common carrier in relation to the seller?
The common carrier is a true carrier of the seller.
The common carrier is an agent of the seller.
The common carrier is an independent contractor.
The common carrier is both an employee and an agent of the seller.
The common carrier is an employee of the seller.

25. With a simple delivery contract, when does title transfer to the buyer?
When goods are identified to the contract
When the buyer takes possession
When the items are delivered
One day after goods are identified to the contract
When money is transferred

26. What does the term "FAS" when used as a shipping term represent?
Found as Seen
Found as Selected
Free Alongside
Freedom Alongside
Fee as Selected

27. Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.
True
False

28. A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects _____ the value of the goods.
Violated the perfect tender rule
Reduced by 10%
Reduced by 5%
Reduced in any manner
Substantially impaired

29. Under sections of the UCC, sellers and lessors have the right to ______ or fix problems with nonconforming goods.
Reject
Defend
Cure
Deduct
Renounce

30. What does the UCC provide regarding the availability of punitive damages?
That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 30 percent of the purchase price or $1,000, whichever is more, as punitive damages.
That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 20 percent of the purchase price or $500, whichever is less, as punitive damages.
That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 20 percent of the purchase price or $500, whichever is more, as punitive damages.
Nothing other than in its voiding of liquidated damages that are punitive in nature.
That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 30 percent of the purchase price or $1,000, whichever is less, as punitive damages.

31. Which of the following was the result in Almetals Inc., v. Wickeder Westfalenstahl, GMBH, the case in the text involving the sale of a specialty metal in which the plaintiff sued the defendant for breach of contract seeking specific performance?
That specific performance was the appropriate remedy because the goods at issue were unique with no known alternative sources of supply.
That specific performance was unavailable because real estate was not involved.
That specific performance was unavailable because a foreign defendant was involved and jurisdiction for specific performance was, therefore, lacking.
That specific performance was unavailable because the goods at issue were scarce.
That specific performance was unavailable because a requirements contract was involved.

32. Which of the following is true regarding the right of a lessor to seek incidental damages in the event of a breach by a lessee of goods?
A lessor may seek incidental damages only if the damages are in an amount over $500.
A lessor may seek incidental damages only if the damages are in an amount over $1,000.
A lessor may seek incidental damages only if the lessee agreed in writing to pay them.
A lessor may seek incidental damages.
A lessor may seek incidental damages only if the lessee agreed orally or in writing to pay them.

33. Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ______ after receiving the first payment due under the agreement.
15 days
30 days
5 days
60 days
10 days

34. What Western law refers to as a warranty is called a[n] _____ in Kazakhstan.
Acknowledgment
Promise estopped
Pledge
Agreement
Confirmation

35. A[n] _____ is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.
Consequential warranty
Acknowledged warranty
Implied warranty
Claimed warranty
Express warranty

36. Which of the following options have most states adopted in regard to warranty rights of third parties?
Seller's warranties extend to the buyer's household members and guests.
Seller's warranties extend to anyone injured by the good.
Seller's warranties extend to the buyer only.
Seller's warranties extend to any reasonable and foreseeable user.
Seller's warranties extend to the buyer and the buyer's family only.

37. If a principal agrees to hire no other agent for a period of time or until a particular job is done, the principal and agent have entered into a[n] ______ agency contract.
Exclusive
Encompassing
Exact
Identified
Specific

38. An agency relationship may be created only for a lawful purpose.
True
False

39. Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?
An exact legal empowerment
An exact order of authority
A specific power of attorney
A specific power of order
A limited power of responeat superior

40. Which of the following types of agency occurs when a principal leads a third party to believe another individual serves as his or her agent, but the principal has actually made no agreement with the so-called agent?
Ratification
Implied agency
Endorsement
Apparent agency
Expressed agency

41. Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?
That the plaintiff was barred from proceeding because vicarious liability is not recognized in the medical malpractice arena.
That because the plaintiff dismissed the hospital's alleged agent from the lawsuit, she could not proceed even though she had sued the hospital before dismissing the agent.
That the hospital could be held vicariously liable if the plaintiff established that a wrongful act harming her occurred within the scope of the agent's employment.
That a defendant in the position of the hospital is vicariously liable for injuries received within its premises without a need for further proof.
That the plaintiff could proceed but only because she had already established liability on the part of the physician employees involved.

42. Which of the following is false regarding the relationship between a principal and an independent contractor?
The principal does not control the details of the independent contractor's performance.
An independent contractor is not an employee of the principal.
A principal is not liable for extremely dangerous actions engaged in by the independent contractor.
An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior.
If an independent contractor commits a crime without the authorization of the principal, the principal is not liable for the agent's crime.

43. Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?
The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
The principal is not liable on the contract.
The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
The principal is liable on the contract only if the principal is a partially disclosed principal.
The principal is liable on the contract only if the principal is an unidentified principal.

44. Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?
Vicarious liability
There is no such concept
Contributory liability
Comparative liability
Responsible liability

45. A limited partnership is one in which the partners share management responsibilities equally, but some partners are limited in regards to the amount of profit distribution to which they are entitled.
True
False

46. Which of the following establishes how a franchise agreement will be terminated?
The Franchise Termination Act
The Franchisee Protection Act
The Franchise Wrap-Up Act
The franchise agreement
The Franchisor-Franchisee Protection Act

47. An S corporation cannot have more than 75 shareholders.
True
False

48. Which of the following does the duty of obedience that one partner owes to another reference?
The duty to reimburse the partnership for any personal expenditures.
The duty to obey instructions of any other partner.
The duty to obey the articles of partnership.
The duty to keep other partners informed of partnership debts.
The duty to keep other partners informed of the finances of the partnership.

49. In relation to partnerships between local and multinational companies, what is meant by the term "keiretsu"?
A group of businesses in which each individual business has a stake in the others.
A type of offshore partnership in which the strengths of outside firms is combined with those of firms in developing countries.
A type of industrial district in which an attempt is made to encourage foreign investment.
An agreement between a local and a multinational company to equally share in profits and losses.
A partnership with one local and one multinational company in an information and communication technology project.

50. Which of the following is false regarding the implied authority of partners?
The implied authority of partners is usually determined by the nature of the business.
Implied authority permits partners to enter into agreements necessary to carry on partnership business.
A partner has the authority to purchase goods necessary to perpetuate the business.
Partners generally have less authority than typical agents.
A partner does not have implied authority to sell partnership property without the consent of all other partners.