Business Law And The Legal Environment Standard Edition 7th Edition By Jeffrey – Test Bank

1. One purpose of contract law is to determine which agreements are worthy of legal enforcement.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

2. Some of the elements of a contract are acceptance, consideration, legality, and capacity.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

3. Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

4. Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
KEYWORDS: Bloom’s: Application

5. The element of a contract that states the parties must be adults of sound mind is consent.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

6. Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

7. A valid contract can legally be voided by either party.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge

8. Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick’s promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
KEYWORDS: Bloom’s: Application

9. All oral contracts are quasi-contracts until they are completely executed.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
KEYWORDS: Bloom’s: Comprehension

10. Mary goes into Honest Harry’s Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store’s “30 days same as cash” plan. This is an executory contract.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
KEYWORDS: Bloom’s: Application