Business Law

The intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party amounts to:

	A. fraud.
	B. duress.
	C. mistake.
	D. misrepresentation.

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An injured party who can successfully prove fraud may have the remedy to:

	A. claim specific performance.
	B. extend the contract.
	C. accept the contract.
	D. bring suit for damages.

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Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. If this power is improperly used to his or her personal advantage, then it amounts to:

	A. mistake.
	B. misrepresentation.
	C. undue influence.
	D. duress.

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Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. Such relationships are found in all of the following, EXCEPT that of a(n):

	A. employer and an employee.
	B. physician or nurse and a patient.
	C. attorney and a client.
	D. client and vendor.

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While courts have long been reluctant to uphold unconscionable contracts, more recently, however, the UCC has made such contracts even less likely to be:

	A. enforced.
	B. reduced into writing.
	C. agreed.
	D. notified.

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According to the __________, uncertainty with respect to specific terms does not necessarily invalidate a contract.

	A. Uniform Civil Code
	B. Uniform Commercial Code
	C. United States Commercial Code
	D. Uniform Contract Code

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The offer and acceptance by the conduct of the parties is called as a(n) __________ contract.

	A. express
	B. implied
	C. conduct
	D. social

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A call for a bid or estimate for materials to be furnished or work to be done is not considered a(n):

	A. offer.
	B. acceptance.
	C. request for proposal.
	D. invitation to acceptance.

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Advertising is generally regarded as a(n):

	A. invitation to trade.
	B. firm offer.
	C. commitment to sell.
	D. executory contract.

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The general rule regarding the effective date and time an acceptance becomes binding is:

	A. when the parties intend.
	B. three days after receipt of the acceptance.
	C. three days after acceptance is sent.
	D. upon receipt by the offeree.

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A legally enforceable contract:

	A. must not violate the law.
	B. can be void.
	C. may contain a malafide intention.
	D. need not be valid.

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Jack promised to pay his nineteen year-old nephew $300 on his twenty-second birthday if he refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:

	A. pledge or subscription.
	B. forbearance as consideration.
	C. general release.
	D. implied contract.

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The three essential characteristics of valid consideration are:

	A. accuracy, brevity, and clarity.
	B. fulfillment of social, moral and ethical obligations.
	C. legality, adequacy, and the possibility of performance.
	D. intention, practices, and policies.

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The element of consideration in a contract refers to the:

	A. competence of the parties.
	B. purpose of the contract.
	C. parties’ exchange of promises.
	D. form of the contract.

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If only one party promises something, such as paying a certain amount of money, and the other party promises nothing, then the agreement lacks:

	A. consideration.
	B. competence.
	C. legality of purpose.
	D. offer and acceptance.

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Certain contracts, such as those involving the sale of personal property for $500 or more:

	A. must be orally accepted to be enforceable.
	B. must be written to be enforceable.
	C. need not be signed to be enforceable.
	D. must be divisible in nature.

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A contract in which some future act or obligation remains to be performed under its terms is known as a(n) __________ contract.

	A. executed
	B. statutory
	C. contingent
	D. executory

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With respect to pledges and subscriptions, courts have generally held that these promises are:

	A. unenforceable.
	B. enforceable.
	C. enforceable only in cases involving amounts greater than $500.
	D. unenforceable if it is not made for a reasonable period of time.

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The Uniform Commercial Code dispenses with the requirement for consideration in contracts that involve:

	A. a merchant’s firm written offer of the irrevocable contract.
	B. an oral discharge of a claim for an alleged breach of contract.
	C. modifications on future contracts.
	D. modifications to executed contracts.

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Courts may justify the enforcement of some contracts, even though there is no consideration, by stating that there was __________ consideration.

	A. monetary
	B. moral
	C. pecuniary
	D. fiscal

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