Set 1
1. (TCO 4) Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word “seal.” This is (Points : 2)
a formal contract.
an informal contract.
a social contract.
no contract.
2. (TCO 4) A contract between Lou and Mike requires a transfer of stolen goods for counterfeit currency. This contract is (Points : 2)
enforceable.
void.
voidable at the option of either party.
voidable at the option of the party having less bargaining power.
3. (TCO 4) Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, “Forget it. I changed my mind.” Elmore’s offer was terminated by (Points : 2)
Elmore.
Ford.
Grace.
no one Elmore’s offer is still open.
4. (TCO 4) Hubert mistakenly pays property taxes that should have been assessed against Jesse. Hubert can recover the amount from Jesse in quasi-contract (Points : 2)
even if Jesse was not aware of the error.
only if Jesse tried to conceal the error.
only if Jesse was aware of the error.
under no circumstances.
5. (TCO 4) Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay’s acceptance by e-mail will be considered effective when (Points : 2)
received.
sent.
followed up by a confirmation letter sent by regular mail.
composed on a Relay computer.
6. (TCO 4) Regular Insurance Company violates a state statute when selling an insurance policy to Simone. As a member of the class of persons protected by the state statute, Simone can (Points : 2)
do nothing with respect to the contract.
enforce the contract or recover the payment.
only enforce the contract.
only recover the payment.
7. (TCO 4) Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated’s parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include (Points : 2)
consideration.
capacity.
legality.
practicality.
8. (TCO 4) Tomato Farms (TF) offers to sell United Grocers, Inc., a boxcar load of tomatoes. The offer is sent via fax. An acceptance is required urgently. It would be most reasonable for United to accept via (Points : 2)
a fax, a letter, or a phone call to TF within two weeks.
a fax sent to TF as soon as the offer is received.
a letter mailed to TF within two days.
a phone call to TF within five business days.
9. (TCO 4) Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the “cost of doing business.” Bucolic agrees but later refuses to pay. Their agreement is (Points : 2)
unenforceable because Agro’s performance was a preexisting duty.
unenforceable because Bucolic’s promise was illusory.
enforceable.
unenforceable because its performance is unforeseeably difficult.
10. (TCO 4) Wally’s Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wally’s must obtain (Points : 2)
a forklift for Value if Wally’s insurance covers the loss.
a forklift for Value if it still wants one.
Set 2
1. (TCO 4) Wally’s Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wally’s must obtain (Points : 2)
a forklift for Value if Wally’s insurance covers the loss.
a forklift for Value if it still wants one.
nothing for Value because that would extend the time of the offer.
nothing for Value because the theft terminated the offer.
Question 2. 2. (TCO 4) Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first, then changes his mind and sends an acceptance. Whether they have a contract is determined by (Points : 2)
Kyle’s rejection.
Kyle’s subjective intent.
whatever Jane decides.
whether Kyle’s rejection or acceptance is received first.
Question 3. 3. (TCO 4) Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word “seal.” This is (Points : 2)
a formal contract.
an informal contract.
a social contract.
no contract.
Question 4. 4. (TCO 4) Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, “Forget it. I changed my mind.” Elmore’s offer was terminated by (Points : 2)
Elmore.
Ford.
Grace.
no one- Elmore’s offer is still open.
Question 5. 5. (TCO 4) Superior-Plus Properties, Inc., and Topps Construction Company sign a contract that specifies the amounts to be paid for a building project at various stages and on its completion. Additional compensation may be justified by (Points : 2)
any business obstacles that arise after the time of the contract.
changes in the market price of needed materials during the contract.
extraordinary difficulties unforeseen at the time of the contract.
no circumstances.
Question 6. 6. (TCO 4) When Jeff’s car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff’s obligation to pay the bill, this is (Points : 2)
an express contract.
an implied-in-fact contract.
an implied-in-law contract.
no contract.
Question 7. 7. (TCO 4) Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay’s acceptance by e-mail will be considered effective when (Points : 2)
received.
sent.
followed up by a confirmation letter sent by regular mail.
composed on a Relay computer.
Question 8. 8. (TCO 4) Lou claims that he and Myra entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that (Points : 2)
a court imposed a promise in the interest of fairness.
Lou expected to be paid for providing services or property.
Lou provided Myra with services or property.
Myra failed to reject services or property provided by Lou.
Question 9. 9. (TCO 4) Tomato Farms (TF) offers to sell United Grocers, Inc., a boxcar load of tomatoes. The offer is sent via fax. An acceptance is required urgently. It would be most reasonable for United to accept via (Points : 2)
a fax, a letter, or a phone call to TF within two weeks.
a fax sent to TF as soon as the offer is received.
a letter mailed to TF within two days.
a phone call to TF within five business days.
Question 10. 10. (TCO 4) Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have (Points : 2)
a bilateral contract.
a trilateral contract.
a unilateral contract.
no contract.
