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Contract Law Basics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why did Labriola seek a declaratory judgment against the Pollard Group?

Question 2 2.

Cathy Smith is planning a family reunion at a local park. Her first call is to High Hat Catering. In order for the contract between Cathy and High Hat Catering to be valid, it must contain:

1. Names of the parties

2. Price

3. A clause that expressly states agreement to the terms of the contract

4. Credit card offer

Question 3 3. What differentiates a bilateral contract from a unilateral contract?

Question 4 4.

In order for a contract to be enforceable, some things it must contain include:

1. An offer that vaguely details what will be provided

2. Acceptance, which is the agreement by the other party to the offer presented

3. Consideration, money or something of interest being exchanged between the parties

4. Capacity of the parties in terms of age and mental ability

Question 5 5. Paul and Mary want to live together. Neither of them want to be obligated to the other party's share of rent because they are not sure things will work out as planned. What should they do?

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Question 6 6. Martha has always been self-conscious of her weight. Her mom Dolly wanted to help her lose weight. Dolly offered Martha a sum of $10.00 for every pound she lost over a period of three months. Martha lost 17 pounds in that time by eliminating shakes, fries and pizza from her diet. Martha requested a whopping $170 from Dolly, but she refused to fork over the money. Did Martha have an enforceable contract according to the doctrine of legal detriment?

Question 7 7. Ordering pork-fried rice at your favorite Chinese delivery restaurant is a type of contract known as:

Question 8 8. Kelly went to the beauty shop. She asked the stylist to color her hair brown. Confused by so many customers, the stylist accidentally highlighted Kelly's hair. She also applied make-up and gave her a neck massage. Kelly said nothing during the course of a three-hour treatment. At the end of the day, the stylist realized that she messed up big time. She demanded $250 from Kelly to pay for the services she received. Kelly refused. Who's right?

Question 9 9. John, a homeowner, contracts Pete to paint his house for the sum of $100. Pete loads his truck with ladders, brushes and a well-balanced lunch. On the way to grab his paint cans, Pete trips over a pebble and breaks his leg. Pete cannot fulfill the promises made in the contract. To evaluate impossibility of performance, the court looks at the _ based on the circumstances to determine whether performance cannot be met.

Question 10 10. Which is NOT an element of a contract?

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Question 11 11. When Simon misbehaved in class, his teacher made him sign a Behavioral Agreement. The very next day, he dipped Suzie's braids in finger paint. Does Simon have to adhere to the contract?

Question 12 12. Bob wants to purchase Nancy's home but needs financing. Nancy signed an option contract with Bob. While Bob secures the financing, Nancy finds a cash buyer who wants to make the purchase immediately. Which scenario is most likely to follow?

Question 13 13. Which is necessary to form a contract?

Question 14 14. Ethel, owner of Biddy's Bonnets, needed to purchase a few cases of straw hats for an upcoming event. She faxed a purchase order to Island Top Hats, a company with whom she often does business. They received the request and immediately shipped Ethel's order. Why does the Uniform Commercial Code deem this to be a legal transaction?

Question 15 15.

True or false:

1. Mutual assent is considered the meeting of the minds between three or more parties that forms the foundation of a contract.

2. At the time of mutual assent, it can be said that a legally binding contract does not exist.

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Question 16 16. Mary decides that she wants to purchase a zippy new scooter so she visits Joe's Used Scooter Shop. After a lengthy discussion with his customer, Joe draws up an executory contract which Mary happily signs and becomes the proud new owner of a scooter. Which of the following situations BEST describes why an executory contract was used for the sale of the scooter?

Question 17 17. When Justin collapsed after a workout, he was lucky that a doctor was on hand to help him. The doctor provided immediate medical care and sent Justin the bill afterwards. Justin refused to pay because he did not ask for medical care from the doctor. Justin is obligated to pay because:

Question 18 18. Have you ever wished a pizza would just show up at your door? How about if that pizza has mushrooms and pepperoni on it? Better yet, how about if that pizza is free? By accepting a free pizza that is not intended for you, you have been what the court calls _.

Question 19 19. An offer is considered to be valid when

Question 20 20. Unlike common law, the deals specifically with commercial contracts.

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Question 21 21.

Suppose you are the principal of a small high school. A musician approaches you to discuss implementing a music program on campus. Excited about the possibilities this will bring to your students, you order construction of a new building complete with soundproofing and a stage. Then, in one fell swoop, the promise is retracted. The musician simply changes his mind.

What can help you recover your losses?

Question 22 22. What is a promisor?

Question 23 23. If an acceptance of an offer is lost in the mail, the contract will ultimately be

Question 24 24. Bernice was in the process of getting a manicure when she realized she has no money to pay for it. After the manicure is completed, Bernice runs out of the nail salon without paying. Which type of contract is she violating?

Question 25 25. Bill ordered a bushel of zucchini from Zeke's Farm. The order was made over the phone. Zeke delivered the vegetables the next day, and Bill paid him. What made this an enforceable contract under the Uniform Commercial Code?

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Question 26 26. Better Gets Appliance Shop ordered 15 Big Screen TVs from EuroTelly Industries over the Internet. Each television costs $1,000. According to the Statute of Frauds of the Uniform Commercial Code, what should be done?

Question 27 27. There are essentially six elements in a contract. Once an offer is made, the next element is . Offer and this term combined with consideration make for the glue that creates a(n)_.

Question 28 28. In Labriola v. Pollard, which legal issue finally settled the case?

Question 29 29. Stanley and Dawn purchased a home in Miami, Florida. When they arrived at the real estate closing, they were asked to sign what type of contract?

Question 30 30.

You've been eyeing that 60-inch television in the appliance store window for weeks. Finally, it's payday, and you sprint to the store and make the purchase. It's simple. Fork over the cash and walk away with your very own television. See, the promisor, the appliance store, promised to give you a spanking new TV for $500, and you, the promisee, promised to pay for it. Done!

This is an example of an:

Contract Law Basics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

CLEP Introductory Business Law: Study Guide & Test Prep  /  Business Courses
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