Every contract has both: a. a buyer and seller b. an offeror and offeree c. a breaching party and a nonbreaching party d. an initiator and a responder
61) Which of the following is needed to impose a quasi-contract? a. a benefit having been conferred and injustice if the benefit were not paid for b. actions implying a contract and an agreement as to the price c. a promise asking for action and the requested action having been completed d. a benefit having been conferred and objective intent that it be conferred
62) Otto approaches Edie and says, “If you pick up my new suit for me at the mall tomorrow, I’ll pay you $20.” Edie replies, “I don’t know if I’ll have time to get it, but I’ll see if I get a chance.” As a result of this conversation, which of the following is true? a. Otto and Edie have formed a bilateral contract. b. Edie has a legal obligation to use her best efforts to pick up the suit. c. A contract will be formed only if Edie picks up the suit. d. The contract which they have formed is voidable because Edie did not obligate herself.
63) Frank says to Mary, “If you wash every window in my house today, I’ll pay you $200. I don’t care if you do it, but there is $200 in it for you if you do.” Mary washes 12 of the 20 windows in Frank’s house by 2:00 p.m. At this point, which of the following is true? a. Frank can revoke his offer to pay Mary the $200 for washing the windows. b. There is a contract in this situation. c. Mary has formed a contract by beginning to wash the windows. d. Mary is obligated to finish washing the windows in order to receive $200.
64) Janet pulls her car into a line for a car wash. Janet says nothing and her car is washed by the employees there. Janet then refuses to pay for the car wash, stating that there is no contract. What would the results be in a lawsuit over this situation? a. Janet wins; because she said nothing, there can be no contract. b. Car wash wins; this is an express, unilateral contract that has been accepted. c. Janet wins; because the car wash made no promise to wash her car, there is no contract. d. Car wash wins; this is an implied-in-fact contract that has been accepted.
65) Which of the following are necessary to meet the requirements of a definite offer? a. identification of the parties, subject matter, and quantity b. consideration to be paid c. time of performance d. A, B, and C e. A and B only
66) The communication of an offer can be made by: a. the offeror only b. the offeror or an agent of the offeror c. the agent of the offeror only d. the offeror, the offeror’s agent, or any other party who learns of an offer
67) What is the legal effect of an auction being with reserve? a. The seller has the right to reject all of the bids. b. Certain bidders have reserved bids of specified amounts in advance. c. The bidders must be given an opportunity to inspect the items prior to the bidding. d. Bidders must make a cash deposit in advance to show the financial ability to carry through with the purchase of any item for which they are the highest bidder. Final Examination 16 BAM 317 Business Law
68) Silence will operate as acceptance in the following circumstances EXCEPT: a. when the offeree indicates that silence will operate as acceptance b. when the offeror indicates that silence will operate as acceptance c. when prior dealings between the parties indicate that silence is acceptance d. when the offeree signs an agreement that future shipments would be accepted until further notification
69) Pam offers a reward for the return of the pet snake that escaped from her purse while she was having dinner at a restaurant. Fred finds the snake and returns it to her. Which of the following is relevant in deciding whether Pam must pay the reward? a. whether Fred is a minor b. whether Fred knew about the reward when he returned the snake c. whether Fred intended to get the reward d. whether the offer for the reward was in writing
70) A promise to deliver merchandise in the future: a. is not consideration because the merchandise has not yet been delivered b. is not consideration because the person delivering the goods does not necessarily receive a benefit for doing so c. is consideration because it involves a new legal duty d. is consideration so long as the party to deliver the goods received payment before they were delivered
71) Two friends, Ann and Mary, are having margaritas at happy hour. There had been no discussion of who would pay for the drinks. After the third round of drinks, Ann said, “I will pay for everything tonight including your drinks.” A couple of minutes later, Ann says, “I’ve changed my mind. I just remembered that they might be having layoffs at my job tomorrow.” Mary wants to force Ann to perform on her promise and threatens to sue. In this circumstance, a court would: a. not require Ann to follow through on the promise because it was a gratuitous promise b. require Ann to follow through on the promise under the doctrine of promissory estoppel c. require Ann to follow through on the promise if Mary had previously paid a comparable amount for food or drinks consumed by Ann d. require Ann to follow through on the promise if it would be a hardship for Mary to pay for her own drinks e. not require Ann to follow through on the promise because it would encourage Mary to drink