4. What is a FALSE statement about the contractual capacity requirement of a contract?

Contract capacity means that one has the intellectual sense and business "savvy" to enter into good deals.

Minors' contracts generally are voidable at the option of the minor.

Disaffirmance is the legal right of a party without contractual capacity to set aside the contract.

3. One advantage of the Utilitarian ethical principle is that:

It is very egalitarian as all people and groups affected are counted.

It has a broad stakeholder component that is similar to modern business constituent group analysis.

It conforms to the way most people think about acting by focusing on the consequences of an action.

All are advantages.

2. Which of the following is a true statement?

Third parties cannot acquire enforceable rights under a contract.

The beneficiary of a life insurance policy is an intended third party beneficiary.

A party who wants to get out of a contract that he or she entered into because it was not as good a deal as originally thought of can successfully interpose the doctrine of unconscionability.

If a court finds that the subject matter of a contract is illegal, the court usually will undo the contract and place the parties back in the status quo.

1. If the buyer breaches the contract before the goods are completed, the seller can:

Complete the goods and resell them.

Stop work on the goods and resell them as scrap.

Recover damages from the buyer.

All of the above.

32. The Uniform Commercial Code requirement that goods tendered to a buyer must conform in all respects to the terms of the contract is called the:

Part Performance rule.

Perfect tender rule.

No right to cure rule.

Substantial performance rule.