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BUSAD 120 - Business Law » Summer 2022 » Chapter 11 Study Guide Quiz

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Question #1

Avatar, Inc., agrees to deliver t-shirts emblazoned with video game characters for a certain price to Bling Bling Corporation. To constitute a contract, the terms of this deal

A. must all be implied.

B. may be express or implied, but not both.

C. must all be express.

D. may be express, implied, or a mixture of both.

Question #2

Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex. These parties have

A. no contract.

B. an express contract.

C. an implied contract.

D. a quasi contract.

Question #3

Brady accepts what he believes is an offer to work for Canyon River Adventures, Inc., as a tour and fishing guide. In determining whether a contract has been formed, an element of prime importance is

A. the price to be paid.

B. the subject of the contract.

D. the intent of the parties.

E. the duration of the work.

Question #4

Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires

A. a price and a subject.

B. an offer and an acceptance.

C. a duration and termination provision.

D. specific quality standards.

Question #5

Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park’s buildings. This means that the parties’ contract

A. is freely open to either party’s interpretation.

B. is subject to change by either party, within reason.

C. is not yet completely formed.

D. requires no special form.

Question #6

Francie drives into Gage’s Auto Service and asks Hong, a Gage’s employee, to replace a tire on Francie’s car. After Hong replaces the tire, but before Francie pays for it, any contract between Francie and Gage’s is

A. void.

B. unenforceable.

C. executory.

D. executed.

Question #7

Gilbert promises to buy Hadley’s iPod for $75. Hadley is

A. a promisee.

B. an offeror.

C. an offeree.

D. a promisor.

Question #8

Jonah tells Levi he will give him an Xbox if Levi does Jonah’s chores for a month. Levi promises to do the chores. Jonah and Levi have formed a

A. no contract.

B. a formal contract.

C. a unilateral contract.

D. a bilateral contract.

Question #9

Lark promises to buy Mac’s used textbook for $60. Lark is

A. a promisee.

B. a promisor.

C. an offeror.

D. an offeree.

Question #10

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided,

A. a wholly different contract is imposed “as if” the parties had agreed.

B. both parties must fully perform their obligations under it.

C. both parties will agree to a wholly different contract.

D. both parties are released from it.

Question #11

Sal assures Tom that she will deliver a truckload of hay to his cattle ranch. A person’s declaration to do a certain act is part of the definition of

A. a moral obligation.

B. an expectation.

C. a promise.

D. a prediction.

Question #12

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they

A. are not conscious of those rules.

B. have a moral obligation to do so.

C. are conscious of those rules.

D. want to avoid potential disputes.

Question #13

When Hester’s car breaks down, she asks Insta-Tow, Inc., to tow it to Jerry’s Repair Shop. There is no discussion of a price, and Hester and Insta-Tow do not sign any documents. Later, Insta-Tow sends Hester a bill. With respect to Hester’s obligation to pay the bill, this is

A. a quasi contract.

B. an implied contract.

C. no contract.

D. an express contract.

Question #14

A bilateral contract comes into existence at the moment promises are exchanged.

A. True

B. False

Question #15

A contract that has been fully performed by the parties is called an executory contract.

A. False

B. True

Question #16

A party who has conferred a benefit on someone else unnecessarily can invoke the principle of quasi contract to recover the cost.

A. True

B. False

Question #17

A unilateral contract is formed at the moment when the contract is performed.

A. True

B. False

Question #18

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

A. False

B. True

Question #19

If a contract term is ambiguous, a court can consider extrinsic evidence.

A. True

B. False

Question #20

If a voidable contract is avoided, the promisee, but not the promisor, is released from it.

A. True

B. False

Question #21

In an express contract, the terms are fully and explicitly stated in words.

A. False

B. True

Question #22

Informal contracts include all contracts other than formal contracts.

A. True

B. False

Question #23

The doctrine of quasi contract generally can only be used when there is an actual contract that covers the matter in controversy.

A. True

B. False

Question #24

The term consideration refers to the legality of the subject matter of a contract.

A. False

B. True

Question #25

When a contract’s writing is not clear, a court will enforce it according to its obvious terms.

A. False

B. True

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