Name:

Business Law
QUIZ 3

I. Choose the correct answer

1. Which of the following is NOT characteristic of a valid contract?

A) It can be viewed as private law between the parties.
B) A court will enforce its terms if the parties do not voluntarily perform.
C) The parties must have the contract's terms approved by the appropriate court.
D) It will have at least two parties.

2. The Uniform Commercial Code has been adopted by:

A) fewer than half of the states
B) at least in part by all states
C) most, but not all, states
D) in its entirety by all states

3. To create an enforceable contract, which of the following is(are) needed?

A) agreement
B) agreement and consideration
C) agreement, consideration, and contractual capacity
D) agreement, consideration, contractual capacity, and a lawful objective

4. A(n) ________ is an equitable doctrine whereby a court may award monetary damages to a
plaintiff for providing work or services to a defendant even though no actual contract existed.
A) quasi-contract
B) bilateral contract
C) common law of contracts
D) implied-in-fact contract

5. A promise lacks consideration if a person promises to perform an act or do something he is

already under an obligation to do. This is called a(n) ________.
A) illegal consideration
B) preexisting duty
C) gift promise
D) illusory promise

6. Hartman, who has worked for Aratize Inc. for 25 years, is retiring. Upon hearing the news of his
retirement, the president of Aratize announces a bonus of $250,000 to Hartman for his exceptional
services toward Aratize thus far. But upon retiring, Hartman isn't paid the bonus. Hartman decides
to sue the president and Aratize to recover the promised bonus. Which of the following is true of
this case?
A) It will be enforceable in court because it is a gift promise.
B) It will not be enforceable in court because of past consideration.
C) It will not be enforceable because the president is not authorized to make such a promise.
D) It will not be enforceable because it is an unlawful consideration.
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7. In general, who can effectively accept an offer for a unilateral contract?
A) Any person who performs the action requested in the offer, which can occur either before or
after learning of the offer.
B) Any person who performs the action requested in the offer, so long as the offer had been
communicated to that person prior to the performance of the act.
C) Any person who promises to perform the action requested in the offer, which can occur either
before of after learning of the offer.
D) Any person who promises to perform the action requested in the offer, so long as the offer had
been communicated to that person prior to the making of the return promise.

8. In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he
must ________.
A) disaffirm the contract before reaching the age of majority
B) complete his or her contractual duties of restitution and restoration
C) place the adult in status quo till reaching the age of maturity
D) ratify the contract after reaching the age of majority

9. ________ is a rule that states that if a minor has transferred money, property, or other valuables to
the competent party before disaffirming the contract, that party must place the minor in status quo.
A) Emancipation doctrine
B) Infancy doctrine
C) Duty of restitution
D) Duty of restoration

10. Advertisements are usually considered to be:

A) offers that can be accepted only by those who have seen the advertisement
B) invitations to deal/invitation to treat
C) offers that can be accepted by anyone attempting to purchase the item whether or not that
person has seen the actual advertisement
D) counteroffers to any previous advertisements

THE END