1. Consideration is the value given in return for a promise or performance in a contractual agreement.

   True

   False

2. Online contracts may be formed not only for the sale of goods and services, but also for

   	a.	advertising.
   	b.	licensing.
   	c.	distributing.
   	d.	manufacturing.

3. 1 points

   QUESTION 18

4. Which is not a basic requirement for an e-contract?

   	a.	bargained-for exchange.
   	b.	consideration.
   	c.	agreement.
   	d.	legality.

5. Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

   	a.	specific quality standards.
   	b.	a duration and a termination.
   	c.	an offer and an acceptance.
   	d.	a price and a subject.

6. A third person who receives an unintentional benefit from a contract even though the contract was not made for that persons benefit is

   	a.	an incidental beneficiary.
   	b.	an indented beneficiary.
   	c.	None of these choices.
   	d.	a third party beneficiary.

7. 1 points

   QUESTION 22

8. A mistake that occurs when both parties to a contract are mistaken about the same material fact is

   	a.	duress.
   	b.	unilateral.
   	c.	undue influence.
   	d.	bilateral.

9. 1 points

   QUESTION 23

10. An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called

    	a.	reformation.
    	b.	rescission.
    	c.	specific performance.
    	d.	consequential damages.

11. 1 points

    QUESTION 24

12. Courts also may reform contracts when the parties have executed a written

    	a.	condition precedent.
    	b.	anticipatory repudiation.
    	c.	oath.
    	d.	covenant not to compete.

13. 1 points

    QUESTION 25

14. Privity of contract is the relationship that exists between the promisor and the promisee of a contract.

    True

    False

15. 1 points

    QUESTION 26

16. Steel Mill, Inc., agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within 9 days, although the parties intend 90 days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is

    	a.	specific performance.
    	b.	rescission.
    	c.	damages.
    	d.	reformation.

17. 1 points

    QUESTION 27

18. If the delegation of duties are not performed, then the obligee can sue

    	a.	the delegatee.
    	b.	Both a and b.
    	c.	Neither a nor b.
    	d.	the delegator.

19. 1 points

    QUESTION 28

20. For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

    True

    False

21. 1 points

    QUESTION 29

22. The transfer of contractual duties to a third party is known as

    	a.	an assignment.
    	b.	a consideration.
    	c.	a delegation.
    	d.	an agreement.

23. 1 points

    QUESTION 30

24. Under the doctrine of mitigation of damages, the duty owned depends on the nature of the damages.

    True

    False

25. 1 points

    QUESTION 31

26. A merchant who deals in goods of the kind sold (or leased), automatically gives rise to an implied warranty of merchantability.

    True

    False

27. 1 points

    QUESTION 32

28. According to the UCC, a merchant is

    	a.	a person who deals in the goods of the kind.
    	b.	a person who employs a merchant as a broker, agent, or other intermediary.
    	c.	a person who, by occupation, holds himself or herself out as having knowledge and skill.
    	d.	All of these choices.

29. 1 points

    QUESTION 33

30. Article 2 sets forth the requirements for

    	a.	oral contracts.
    	b.	sales contracts.
    	c.	electronic contracts.
    	d.	lease contracts.

31. 1 points

    QUESTION 34

32. Rice Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, We agree to buy five hundred bushels only if the rice is Grade A quality. Without more, their contract is formed according to

    	a.	the terms of the original offer.
    	b.	the new terms of the acceptance.
    	c.	None of the terms.
    	d.	whatever is reasonable.

33. 1 points

    QUESTION 35

34. Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

    True

    False

35. 1 points

    QUESTION 36

36. If goods of delivery fail in any respect to conform to the contract, the buyer (or lessee) may accept the goods, reject the entire shipment, or accept part and reject part. This is called the

    	a.	statute of frauds.
    	b.	reasonable standard rule.
    	c.	perfect tender rule.
    	d.	predominant-factor test.

37. 1 points

    QUESTION 19