Multiply Choice
1. For consideration to exist, there must be:
(a) A bargained-for exchange
(b) A manifestation of mutual assent
(c) Genuineness of assent
(d) Substantially equal economic benefits to both parties

2. Which of the following requires consideration in order to be binding on the parties?
(a) Modification of a contract involving the sale of real estate
(b) Modification of a sale of goods contract under the UCC
(c) Both A and B
(d) None of the above

3. Ted’s wallet is as empty as his bank account, and he needs $3,500 immmediately. Fortunately, he has three gold coins that he inherited from his grandfather. Each is worth $2,500, but it is Sunday, and the local rare coins store is closed. When approached, Ted’s neighbor Andrea agrees to buy the first coin for $2,300. Another neighbor, Cami, agrees to buy the second for $1,100. A final neighbor, Lorne, offers “all the money I have on me”—$100—for the last coin. Desperate, Ted agrees to the proposal. Which of the deals is supported by consideration?
(a) Ted’s agreement with Andrea only
(b) Ted’s agreements with Andrea and Cami only
(c) All three of the agreements
(d) None of the agreements

4. In a(n) contract, the seller guarantees to sell 100 percent of its output to one buyer, and the buyer agrees to accept the entire quantity. This kind of arrangement acceptable under the UCC.
(a) Output; is
(b) Output; is not
(c) Requirements; is
(d) Requirements; is not
5. Noncompete agreements are common features of employment contracts. Currently, courts enforce these clauses.
(a) Always
(b) Usually
(c) Rarely
(d) Never