Business Law Today Comprehensive Text and Cases 9th Edition By Roger LeRoy Miller – Test Bank

TRUE/FALSE QUESTIONS

1. In contract law, “consideration” refers to the courtesy that one party shows another in negotiating a deal.

ANSWER: F PAGE: 248 TYPE: =
NAT: AACSB Analytic AICPA Legal

2. Use of the word consideration in an agreement means that consideration has been given.

ANSWER: F PAGE: 248 TYPE: =
NAT: AACSB Reflective AICPA Legal

3. In contract law, “consideration” refers to the time that a party takes to evaluate a deal.

ANSWER: F PAGE: 248 TYPE: =
NAT: AACSB Analytic AICPA Legal

4. If a promise is made, it will be enforced.

ANSWER: F PAGE: 248 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking

5. Failing to use the word consideration in an agreement means that no consideration has been given.

ANSWER: F PAGE: 248 TYPE: =
NAT: AACSB Reflective AICPA Legal

6. For consideration to have “legally sufficient value,” it must con¬sist of goods or money.

ANSWER: F PAGE: 249 TYPE: =
NAT: AACSB Analytic AICPA Legal

7. A promise by one party to pay another for refraining from an act is enforceable.

ANSWER: T PAGE: 249 TYPE: =
NAT: AACSB Reflective AICPA Legal

8. To be legally sufficient, consideration must include something of economic value.

ANSWER: F PAGE: 249 TYPE: =
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9. Parties are not generally free to make bad bargains.

ANSWER: F PAGE: 249 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking

10. Inadequate consideration may indicate undue influence.

ANSWER: T PAGE: 249 TYPE: =
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11. Courts typically consider the adequacy of consideration.

ANSWER: F PAGE: 249 TYPE: N
NAT: AACSB Analytic AICPA Legal