An offer to form a bilateral contract is accepted by a promise to perform an act. True False Question 2 Joe strolls into a rural local drugstore and picks up a can of spray. Joe is well known at the store and carries an account there. He walks past the clerk waiving the price tag. Without a word, the clerk acknowledges him and Joe leaves the store. This is an example of: A. Unilateral Contract B. Express Contract C. Implied Contract D. Quasi-Contract Question 3 Maria posts several signs in the neighborhood offering $50 for the return of her lost dog, Fluffy. Apple telephones to get a full description of the dog and tells Maria, "I promise to look for your dog, you owe me $50." A contract is formed by Apple's call to Maria. True False Question 4 Suppose Apple finds the dog and returns it to Maria unaware of Maria's reward offer. If days later, he finds out about the reward, Apple can still collect the money. True False Question 5 Statements made in stress or great excitement are usually held to be offers. True False Question 6 Mr. Smith awakens one morning to the sound of construction in his back yard. When he looks out the window, he sees the 3 Stooges Construction Company apparently beginning to erect a garage on his property. He had not spoken or contracted with the 3 Stooges for this service. However, Mr. Smith wanted a new garage, so he let them continue and hid in his house. Later, it was discovered that the garage was intended to go next door. The 3 Stooges sue Mr. Smith for the price of the garage. What is the probable result? A Smith wins: there was no contract upon which the 3 Stooges could . recover, people are not liable for gifts they receive. B The 3 Stooges wins; while there is no real contract, this is unjust . enrichment. C Smith wins; unjust enrichment does not apply, because Smith never . contracted with the 3 Stooges. D None of above. . Question 7 Betty was seriously injured in a traffic accident. While she was unconscious, bystanders summoned Dr. Dudley, who performed a delicate operation on Betty, and later sent her a bill for $1,500. Betty is contractually bound to pay this amount. True False Question 8 What development of contract law is described in both Questions #6 and #7? A. Promissory Estoppel B. Quasi-Contract C. Consideration D. Option Question 9 An Offeree is a person who makes an offer. True False Question 10 An offer, a rejection and a revocation are all effective as soon as dispatched or sent. True False Question 11 Charlie hears about a reward being offered by a local TV station for information leading to the arrest and conviction of a local crook. He supplies the requested information to "crime stoppers", and the suspect is then arrested and convicted. What best describes the situation? ACharlie cannot collect the money unless the offer was specifically . made directly to him by the TV station. B The offer by the TV station was an offer made to the general public . to enter into a unilateral contract, which offer Charlie has accepted. C Because Charlie failed to notify the station of his intention to supply . the information before actually doing so, she has not accepted the offer. DCharlie was just doing his duty as a citizen and has no right to the . payment of any money. Question 12 Don offers to sell his diamond ring to Emily. Diane overhears the offer and says to Don, "I accept the offer." What best describes this situation? A. Diane cannot accept the offer, because it wasn't made to her. B. This is a valid acceptance. C. This is an invitation seeking offers and not an offer. D. This is a counteroffer. Question 13 Mary reads an ad in the school newspaper offering $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Mary called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. AThe advertiser may revoke the offer since Mary has already accepted . it. BThe advertiser may not revoke the offer since Mary has already . accepted it. CThe advertiser must permit Mary the opportunity to finish her attempt . to swim the 500 laps, or pay damages if he interferes with the completion of the laps. DThe advertiser must pay Mary $920, because she has performed 92% . of the offer. Question 14 When does acceptance of an offer to enter into a Unilateral Contract generally occur? A. Upon B. Upon C. Upon D. Upon notice of intent to accept by the Offeree. full performance by the Offeror. commencement of performance by the Offeree. full performance by the Offeree. Question 15 Which of the following will terminate an offer? A. Revocation B. Rejection C. Lapse of Time D. All of Above Question 16 On August 1, Addie wrote to Barb offering to sell her house for $100,000. The letter stated that the offer would remain in effect for only five days. Barb received the letter on August 3. Assume that the house was destroyed by fire on August 6, and Barb sent her letter of acceptance the next day on August 7 unaware of the fire. Is there a contract? A. YES B. NO Question 17 Assume Barb received the letter on August 3, and mailed an acceptance of the offer on August 7. The acceptance was received by Addie on August 9th. Has a contract been formed? A. YES B. NO Question 18 In the above Question #17, on what day would the acceptance become effective? A. August 3 B. August 7 C. August 9 D. None of the above - No Contract Question 19 Assume Addie telephoned Barb on August 5, saying, "I revoke my offer." Barb replied, "You can't revoke because you promised that the offer would remain in effect for five days." If Barb immediately delivered a written acceptance, is there a valid contract? A. YES B. NO Question 20 On April 1, James offers to sell 4 acres of land to Darby for $80,000 and further offers to keep the offer open for one month if Darby will pay him $1000 for the privilege. Darby pays James $1000. Which statement best describes the payment of $1000? A. An implied contract has been formed. B. A unilateral contract has been formed. C. This created an option contract. D. This created a formal contract. Question 21 In the above Question #20, assume that on April 15th, James faxes Darby revoking the offer, Can Darby accept the offer before the end of the month in spite of the revocation? YES NO Question 22 On Tuesday morning, John sends a letter to Arlene rejecting her offer, but later that same day John changes his mind and sends a letter of acceptance to Arlene. The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection. True False Question 23 The XYZ Bank is robbed. The Bank posts a reward of $5000 for information leading to the capture and arrest of the robber. Paul Policeman, (a real policeman) captures the robber. May Paul recover the reward? A. YES B. NO Question 24 How would you classify the above Question #23? A. Pre-Existing Obligation B. Option C. Quasi-Contract D. Unforeseen Difficulties Question 25 Aunt Ellie promises her 21 year old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract? A. No, B. No, C. Yes, D. Yes, because Robbie gave no benefit to Aunt Ellie. because Robbie did not suffer any detriment. because stopping smoking will benefit all of society. because Robbie gave up a legal right. Question 26 Questions 26-27-28-29 are related to this hypothetical. Rev. FeelGood, a minister in a small country Church, retires without a pension. At the reception following his last sermon, the Church congregation lead by the deacon board promised to pay the good Reverend a pension of $500 a month for the rest of his life. Is the Church's promise enforceable as a contract? A. Yes B. No Question 27 At the retirement reception, if the Church had conditioned its promise upon Rev. FeelGood writing a collection of his sermons for the new preacher or any such task such as teaching Sunday School would the Church's promise be enforceable? A. Yes B. No Question 28 In Question #26, suppose that acting in reliance upon the promise of a pension, Rev. FeelGood sold the home he owned and moved his family and furniture to Florida where he purchased a new home. Is the Church's promise enforceable as a contract? A. YES B. No Question 29 The above Question #28, would best be described fitting under the theory of: A. Mistake B. Quasi-Contract C. Promissory Estoppel D. Impossibility Question 30 Questions 30 & 31 Billy agrees to drill a well up to 200 feet deep for Jack's rural cabin. The contract price is $6500. After drilling 100 feet, Billy strikes solid granite rock. He talks to Jack and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. Billy offers to get a special drill, (priced at $2000) but says the contract will cost more money (perhaps as much as an additional $3500), so that he will be unable to complete the project for the agreed price. What theory of contract governs this problem? A. Past Consideration B. Promissory Estoppel C. Moral Consideration D. Unforeseen Difficulties Question 31 Because Jack is anxious to have the well, he agrees to pay Billy $2000 for the drill and the additional cost of $3500 to complete the job. However, once the well is finished, Jack changes his mind and now says he will pay only the originally agreed upon amount. AUnder the present circumstances, the parties have agreed to substitute . or create a new contract which discharges the original contract. Jack's promise makes him responsible for all the additional costs. BBilly is in breach of the contract, Jack need not pay any additional . money. CBilly is under a pre-existing moral duty to perform at the originally . agreed upon price. DNone of the above. . Question 32 In general, if a Minor lies about her age, in order to induce the seller to contract with her, she can NOT set aside or disaffirm that contract. True False Question 33 Brian, age 17, who looks 18 or older, makes a contract to buy a car from Mary, who is the age of 35. Mary finds out Brian's age. Mary may avoid the contract even if Brian did not misrepresent his age. True False Question 34 A Minor is responsible for the following life's essentials or necessaries: A. Shelter B. Food C. Clothing D. Medicine E. All of above Question 35 Under which of the following conditions would the signing of a contract by Adam not be considered Duress? A. Ben holds a gun to Adam's head. B. Ben is holding Adam on the ground threatening to beat him. C. Ben threatens a criminal prosecution against Adam. D. All of the above would constitute Duress by Ben upon Adam Question 36 The essence of Fraud is the intentional misrepresentation of a material fact. True False Question 37 A seller of oranges who selects the best ones and places them on top of others of inferior quality cannot be sued for Fraud because he has NOT made a false statement . True False Question 38 Andy Youngman called at the used car lot of Shearem & Co. and saw a 1979 automobile with $1000 painted on the windshield. Shearem told Andy that the car was a 1980 model, but Andy knew that it was not, because Andy knew the 1980 models were smaller. Is the contract voidable for Fraud because Shearem said it was 1980 model? A. YES B. NO Question 39 If Andy had NOT known that it was a 1979 model, would the contract have been rescindable or voidable for Fraud? A. YES B. NO Question 40 Was there an offer to sell the car for $1000? A. YES B. NO Question 41 The above Question #40 is an example of: A. Promissory Estoppel B. Consideration C. An Invitation D. Pre-Existing Obligation Question 42 A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances. True False Question 43 Carlos owns a store in Hamilton County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and as part of the transaction agrees not to engage in the same business anywhere within the entire state for a period of four years. A. The agreement is reasonable. B. The agreement is unreasonable. C. The agreement falls under quasi-contract. D. None of the above. Question 44 Carlos owns a store in Hamilton County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and as a part of the transaction agrees not to engage in the same business anywhere in River City for a period of four years. A. The agreement is reasonable. B. The agreement is unreasonable. C. The agreement falls under quasi-contract. D. None of the above. Question 45 The person who makes an assignment is the assignee. True False Question 46 When the rights under a contract are highly personal, they are assignable. True False Question 47 In an Assignment of rights under a contract, the rights are transferred from the: Assignee to the Assignor. Obligor to the Assignee. Assignor to the Obligor. Assignor to the Assignee. Question 48 A condition is an event whose happening or nonhappening of which creates, suspends or terminates the obligations of the contracting parties. True False Question 49 Cindy signs a contract to buy Pat's property for $100,000 "If I am able to obtain a mortgage loan at seven percent interest, payable over twenty years." Assume that Pat tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Is Pat in breach of contract? A. Yes B. No Question 50 The above Question, is an example of an: A. Consideration B. Condition Precedent C. Quasi-Contract D. Promissory Estoppel