Cengage Advantage Books Essentials Of Business Law 5th Edition By Beatty – Test Bank

1. Courts enforce all promises in the interests of simple morality.
a. True
b. False
ANSWER: False

2. Consideration can be a promise or an act.
a. True
b. False
ANSWER: True

3. Agreeing not to open a competing business could be consideration.
a. True
b. False
ANSWER: True

4. The UCC requires consideration for agreements modifying contracts for the sale of goods.
a. True
b. False
ANSWER: False

5. Billy owes a liquidated debt of $3000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, “Payment in Full.” If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.
a. True
b. False
ANSWER: False

6. Boris sky dives out of a plane and gets hung up in a tree, hopelessly suspended and swinging precariously in his parachute from the branches of the tree. Natasha sees that he is in trouble and comes to his rescue. Once Boris is safely on the ground, he gratefully promises to give Natasha half of his life savings. When he changes his mind, Natasha will probably be unsuccessful in enforcing his promise.
a. True
b. False
ANSWER: True

7. Raul agrees to paint Mike’s house for $1,000. Before finishing, Raul states it is too hot to finish, and Mike offers to pay $1,200 if Raul finishes. Mike’s statement that he will pay $1,200 is unenforceable.
a. True
b. False
ANSWER: True

8. Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.
a. True
b. False
ANSWER: False

9. An illusory promise is a valid consideration.
a. True
b. False
ANSWER: False

10. Contracts generally do not require bargaining which leads to an exchange between the parties.
a. True
b. False
ANSWER: False

11. Courts normally require consideration to be approximately equal on both sides of the bargain.
a. True
b. False
ANSWER: False

12. Section 2-306 of the UCC expressly disallows output contracts in the sale of goods.
a. True
b. False
ANSWER: False