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WorksheetsBusiness Ethics
Total questions: 77
Worksheet time: 39mins
An oral contract is _______
Legal
Not enforceable
Not for money
Not legal
Offer, acceptance and consideration are all parts of a
Covers
Loans
Applications
Contract
An agreement between two parties that creates an obligation is a(n)
Contract
Tort
Offer
Purpose
When someone is authorized to act on behalf of another it governed by _______ law
Agency
Tort
Statutory
Administrative
An _______ is one in which some of the terms are not expressed in words.
Oral contract
Verbal contract
Written contract
Implied contract
_______ of an offer is agreement to the terms of the offer.
Competency
Consideration
Acceptance
Offer
A contract between two parties for illegal activities is not valid.
True
False
A minor has the capacity to contract when...
Always
Only valid on contracts valuing over $1 Million
For necessities like food, clothing, and lodging
It depends on the state you live in
Consideration is...
a set of mutual promises in which each party agrees to give up something to the benefit of the other.
The amount of time one has to accept an offer.
The 5 minutes following an offer that must elapse before an acceptance can take place.
The element of a contract that says the value of what each party is giving up must be equal.
Which of the following is the most common/ acceptable reason to discharge a contract.
Performance
Fraud
Breach
Agreement
Offering a reward to anyone who can return your lost pet is an example of a...
Bilateral contract
Unilateral Contract
Which of the following is a remedy to a breached contract?
Money Damages
Restitution
Specific Performance
All of the above
After talking to the salesman on the phone, Molley agree to buy a set of glassware. What type of contract is this?
Oral
Unenforceable
Valid
Written
John and Jenni sign a real estate contract to purchase a historic home. In the body of a contract, a change is handwritten. What law requires the contract to be in writing?
Statute of Frauds
Statute of Limitations
Statute of realtors
Uniform Commercial Code
Jim purchases a rare antique piece for $5,000. The contract was signed by both parties. in this scenario, who is Jim?
donee
donor
offeree
offeror
Robert offered a reward for anyone who returns his lost wallet. What type of contract is this?
Bilateral
implied
unilateral
void
Agreeing to give false testimony violates which element?
capacity
consideration
legality
offer
A threat against a person's business would violate which element?
capacity
consideration
genuine agreement
legality
What elements would NOT cause grounds for avoidance due to lack of genuine agreement?
Duress
Undue Influence
Misrepresentation
Promises
Mistakes
Jenn asked Lucas if he wanted to buy her car for $5,000. Who is Jenn is this transaction?
donee
donor
offeree
offeror
Lucas' agreeing to accept Jenn's proposal to sell her car is which element of a contract?
acceptance
consideration
rejection
revocation
Jacob negotiates with Herman over the purchase of his car. How is this contract accepted?
novation
refusal
counteroffer
mirror image rule
Lauren, Avery, and Patrick, all age 15, enter into a contract, what term describes this type of contract?
bilateral
valid
void
voidable
Kyree decides to sell her music collection for $550. Does this contract have to be in writing?
Yes
No
What is the definition of an offer?
An expression of willingness to negotiate.
A declaration that one party will contract with another.
Expression of willingness to contract with the party to whom it is addressed, as soon as the latter accepts its terms.
An invitation for other parties to consider whether they are able to purchase the goods/services.
An agreement to commit a crime could be considered a legal contract.
True
False
An arrangement between two friends to attend a concert is not a contract.
True
False
An offeror must appear to be serious when making an offer.
True
False
Words spoken in anger are not considered an offer.
True
False
Preliminary negotiations are considered to be offers.
True
False
An offer that lacks essential information is legally ineffective.
True
False
Advertisements are usually considered legal offers.
True
False
A person who is not the intended offeree can accept the offer.
True
False
Advertisements that ask the offeree to perform an act as a way of accepting an offer cannot be considered offers.
True
False
An offer can be made to a particular group or to the public.
True
False
A mental decision to accept an offer is not an acceptance.
True
False
In a continuing relationship, parties may regard silence as an acceptance.
True
False
Oral acceptances are effective the moment the words are spoken directly to the offeror.
True
False
The mirror image rule requires that the terms in the acceptance must be close to the terms contained in the offer.
True
False
Any variation made to a contract dealing with the sale of goods is a counteroffer if agreed in advance.
True
False
Contractual communications such as offers and counteroffers can only be communicated in writing.
True
False
The following are the elements of a valid contract except
Offer
Acceptance
Performance
Capacity
What is an offer?
a proposal made by the offeree
a proposal accepted by the offeror
a proposal made by the offeror
a proposal accepted by the offeree
An offer is complete when
the offeree accepts it
the offer letter is posted
the offeree has the knowledge of the offer
the acceptance letter is posted
A house is put on auction by Waheed, a licensed auctioneer. Under the law of contract, Waheed is making
an invitation to treat
an acceptance
an offer
a counter offer
______________ is generally defined as an agreement between two or more persons that create obligations.
An offer
A contract
A meeting
A promise
The person to whom an offer is made is the __________________.
offeree
offeror
offer
advertiser
The person who makes the offer is termed the _____________________.
offeree
offer
offeror
advertiser
What is required to form a legally binding contract?
Offer, Acceptance, Consideration, Intention, Certainty.
Duty, Breach, Causation, Damages
Invitation to treat, Offer, Counter Offer, Acceptance.
Offer, Counter Offer, revocation of offer and acceptance.
The followings are the requirements of a valid offer EXCEPT
offer must be communicated
offer must be complete
offer must be absolute and unqualified
An oral contract is _______
Legal
Not enforceable
Not for money
Not legal
Offer, acceptance and consideration are all parts of a
Covers
Loans
Applications
Contract
An agreement between two parties that creates an obligation is a(n)
Contract
Tort
Offer
Purpose
An _______ is one in which some of the terms are not expressed in words.
Oral contract
Verbal contract
Written contract
Implied contract
_______ of an offer is agreement to the terms of the offer.
Competency
Consideration
Acceptance
Offer
Minimum number of members to form a private company is------------
2
3
5
7
Minimum number of members to form a public company is-------------
5
7
12
21
Application for approval of name of a company is to be made to------------------------------
SEBI
Registrar of Companies
Government of India
Government of the State in which Company is to be registered
A proposed name of Company is considered undesirable-----------------
It is identical with the name of an existing company
It resembles closely with the name of an existing company
It is an emblem of Government of India, United Nations etc.
In case of any of the above
A prospectus is issued by---------------------
A private company
A public company seeking investment from public
A public enterprise
A public company
It is necessary to get every company incorporated, whether private or public.
True
False
Not sure
A private company can commence business after incorporation.
True
False
If a company is registered on the basis of fictitious names, its incorporation is invalid.
True
False
A company cannot come into existence without:
Electing Directors
Getting certificate of incorporation
Issuing a prospectus
All of these
The shares of -------- company can be freely transferable.
Private company
Public Company
Partnership
All the above
A prospectus is issued by---------------------
A private company
A public company seeking investment from public
A public enterprise
A public company
It is necessary to get every company incorporated, whether private or public.
True
False
Not sure
The shares of -------- company can be freely transferable.
Private company
Public Company
Partnership
All the above
Which of the following is not a major advantage of a company?
Separate legal entity
Continuous life
Government regulations
Transferable ownership rights
Which is the safest form of investment in a limited company?
Long-term debentures
Ordinary shares
Preference shares
Short-term debentures
What is are some characteristics of a public limited company?
A name, unlimited liabilities, perpetual succession
A name, limited liabilities, perpetual succession
A single person, shares, advertisements
A song, a dance, a clown
What are some documents required for the formation of a public limited company?
Article and memorandum of association.
A car.
An already established business.
A private jet.
What are the main managers/owners of a public limited company called?
Owners and managers
Bosses and mentors
Directors and shareholders
Principals and boards
