Question: What source of law applies if a contract is not under Article 2 of the UCC?

Answer Choices: A. Article 1
B. Restatement of Laws
C. The common law
D. Federal rules of contracts
E. Statutory laws

Answer: C. The common law

 

Question: All contracts can be categorized as either ___ or ___.

Answer Choices: A. Unilateral; complete
B. Unilateral; trilateral
C. Bilateral; trilateral
D. Unilateral; bilateral
E. Bilateral; complete

Answer: D. Unilateral; bilateral

 

Question: ___ is what a person receives in return for performing a contract obligation.

Answer Choices: A. Consideration
B. Accent
C. Accord
D. Money
E. Accession

Answer: A. Consideration

 

Question: If a ___ misunderstanding exists, there is no contract.

Answer Choices: A. Mutual
B. Unilateral
C. Comprehensive
D. Subjective
E. Reasonable

Answer: A. Mutual

 

Question: What are the two most important sources of contract law in the U.S.?

Answer Choices: A. Case law and Restatement
B. Case law and UCC
C. UCC and CISG
D. Case law and CISG
E. CISG and Restatement

Answer: B. Case law and UCC

 

Question: What references the requirement that a contract not be illegal or against public policy?

Answer Choices: A. Consideration
B. Capacity
C. Legal object
D. Illegal prohibition
E. Ethical requirement

Answer: C. Legal object

 

Question: Which is NOT a required element of a valid offer?

Answer Choices: A. Serious intent
B. Intent to be bound
C. Reasonably definite terms
D. Communication to offeree
E. Written document setting forth terms

Answer: E. Written document setting forth terms

 

Question: Which rule says acceptance must match the offer exactly?

Answer Choices: A. Substantial performance doctrine
B. Commercial impracticability
C. Mirror-image rule
D. Mailbox rule
E. Parol evidence rule

Answer: C. Mirror-image rule

 

Question: Tareek sells smuggled jewels to Herman. This is:

Answer Choices: A. Void contract
B. Executory contract
C. Unenforceable contract
D. Executed contract
E. Voidable contract

Answer: A. Void contract

 

Question: Who administers international treaties for intellectual property?

Answer Choices: A. United Nations Intellectual Property Association
B. Geneva Intellectual Property Organization
C. Global Intellectual Property Protection Agency
D. World Intellectual Property Organization
E. No agency has this responsibility

Answer: D. World Intellectual Property Organization

 

Question: An agreement consists of which two elements?

Answer Choices: A. Consideration and capacity
B. Capacity and legality
C. Coherence and adherence
D. An offer and acceptance
E. An offer and capacity

Answer: D. An offer and acceptance

 

Question: A contract is a promise or set of promises where the law provides a remedy if breached.

Answer Choices: A. A promise or set of promises
B. An offer and acceptance
C. An offer only
D. Obligations on only one party
E. Legal objective

Answer: A. A promise or set of promises

 

Question: Which is true of consideration?

Answer Choices: A. Not required in bilateral contracts
B. Not required in unilateral contracts
C. Required in all contracts
D. Never required
E. Valid only in equal exchange

Answer: C. Required in all contracts

 

Question: Under common law, valid acceptance must meet the same requirements as a valid offer.

Answer Choices: A. True
B. False

Answer: A. True

 

Question: A contract for the sale of a good falls under Article 2 of the UCC.

Answer Choices: A. True
B. False

Answer: A. True

 

Question: Covenants not to compete restrict employee actions post-employment.

Answer Choices: A. True
B. False

Answer: A. True