QUESTION 1 Silence can never be an acceptance.

True False

QUESTION 2 On March 20, Gordon orally agrees to work for Carrham, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.

True False

QUESTION 3 If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

True False

QUESTION 4 Rescission is usually permitted where the parties to a contract are both mistaken about a material fact.

True False

QUESTION 5 Edward, an engineer, is working on a new design for some highly technical equipment which XYZ, Inc. hopes to market within the next five years. The employment agreement between Edward and XYZ states that Edward will not go to work for another company in the same business for a period of two years after termination of his employment with XYZ, Inc. This agreement is void and unenforceable, because it would make it difficult for Edward to find other employment.

True False

QUESTION 6 Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo. Alicia is entitled to the reward.

True False

QUESTION 7 For a misrepresentation to be actionable as fraud, it must be a misrepresentation of opinion.

True False

QUESTION 8 The UCC requires that all contracts for the sale of goods must be in writing.

True False

QUESTION 9 A material breach by the seller will discharge the buyer from his obligations under a contract.

True False

QUESTION 10 Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

True False