wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Business Law Exam 2

Total questions: 54

Worksheet time: 28mins

Name
Class
Date
1.

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high, I will pay $75,000." Hanna has

a)

Accepted the offer

b)

made a counteroffer without rejecting the offer

c)

rejected the offer and made an counteroffer

d)

rejected offer without making a counteroffer

2.

The offeror's act of withdrawing an offer is referred to asL

a)

Repudiation

b)

counteroffer

c)

revocation

d)

invitation to offer

3.

Rita Contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc. which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover..

a)

$0

b)

$1,000

c)

$4,500

d)

$3,500

4.

Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as

a)

undue influence

b)

material breach

c)

anticipatory repudiation

d)

duress

5.

Ordinarily, every party to a contract has a duty to come forward and disclose facts

a)

True

b)

False

6.

A seller who places goods at the disposal of a buyer has tendered delivery, but cannot yet demand payment

a)

True

b)

False

7.

Once the electronic record ____ or comes under the control of the recipient, the UETA deems it to have been sent

a)

is told in person

b)

is told over the phone

c)

leaves control of the sender

d)

is mailed via U.S mail

8.

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

a)

Efrons intoxication was purely voluntary

b)

Gretel fraudulently induced Efron to become Intoxicated

c)

Gretel was also intoxicated

d)

Efron understood the legal consequences

9.

Some torts can be criminal as well as civil, depending on the laws in place

a)

True

b)

False

10.

To avoid a contract, both parties must fully perform their respective legal obligations

a)

True

b)

False

11.

A covenant not to compete imposed, as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable

a)

True

b)

False

12.

If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void

a)

True

b)

False

13.

Main St Market Inc, and Natural food corporation discuss the terms of a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Between these parties, the e-mails are

a)

a pre-contract

b)

no contract

c)

a written contract

d)

an oral contract

14.

Jill enters into a contract to buy a certain office building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to

a)

reform the contract to reflect the parties' true intentions

b)

return the parties to the positions they occupied before the contract

c)

make the terms reasonable, and enforce the contract as reformed

d)

obtain the exact bargain promised in the contract

15.

Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as an anticipatory repudiation

a)

True

b)

False

16.

Persuasion that induces a person to act according to the will of a dominant party is undue influence

a)

True

b)

False

17.

Luke puts his motorcycle up for sale via a post on an online auction site. This is

a)

a price list, not an offer

b)

an offer

c)

an invitation to negotiate, not an offer

d)

a request, not an offer

18.

These basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance (Choose all applicable answers)

a)

when the specific subject matter is destroyed

b)

When an essential party to the completion of the contract dies

c)

it is a little more expensive to fulfill the contract

d)

when a change in the law renders performance illegal

19.

If a contract performance is rendered directly to a third party, the third party is an incidental beneficiary

a)

True

b)

False

20.

If a condition to a lease for university housing that the tenant must be student is not satisfied, then the landlords obligations under the lease are discharged

a)

True

b)

False

21.

Kohl receives from Lily a camera stolen from Mark. Kohl knows the camera is stolen, and he intends to keep it, Kohl is..

a)

tortiously liable

b)

civilly liable

c)

criminally liable

d)

none of the choices

22.

Under the UETA if an electronic record or signature is the act of a particular person, the record, or signature may be _____ that person

a)

attributed to

b)

any symbol of

c)

forced upon

d)

legally obligated to

23.

Debt collection service unto a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation, and when presents fails to adequately do her job. This

a)

Suspends the employers duty to perform

b)

discharges the employer from the contract

c)

has no effect on the employers performance

d)

changes the employers duties under the contract

24.

The Racketeer influenced and corrupt organizations act has become an effective tool in attacking

a)

defenses that excuse criminal behavior

b)

organized crime

c)

criminal activities occurring online

d)

business persons who use bribery to secure foreign contracts

25.

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

a)

must pay Josh half of the contract price as a compromise

b)

must pay Josh only the cost of his materials

c)

does not have to pay Josh

d)

must pay Josh the contract price

26.

Donald is a minor. He can enter into any contract an adult can, provided

a)

the adult is willing to enter contracts with minors

b)

the contract is not one prohibited by law for minors

c)

Donald is willing to disaffirm the contract

d)

an adult is willing to ratify the contract

27.

At an auction, Ben bids on 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

a)

Not liable on the bid, because the auctioneer misrepresented the value

b)

Not liable on the bid, because he underestimated the cost of the repairs

c)

not liable on the bid, because the need for the repair is not a material fact

d)

still liable on the bid

28.

Dean solicits investors for a nonexistent business, eApps. Dean is arrested and charged with "mail fraud". This requires intent to

a)

claim that an item is "in the mail" when its not

b)

defraud postal authorities

c)

defraud the public

d)

use the U.S mail

29.

Quasi Contracts are imposed on parties in the interest of fairness and justice

a)

True

b)

False

30.

Reed agrees to sell his sports equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

a)

invalid because of the unreasonable terms of area and time

b)

valid because it is part of a sale of an ongoing business

c)

valid if both parties are justifiably ignorant of the facts

d)

invalid because because it is part of a sale of an ongoing business

31.

If a breach of contract is minor, the nonbreaching party's duty to perform is discharged

a)

True

b)

False

32.

A written contract must consist of a single document to constitute an enforeable contract

a)

True

b)

False

33.

Red offers to pay Sara to deliver Certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

a)

a bilateral contract

b)

a void contract

c)

an executive contract

d)

a unilateral contract

34.

Under self-defense, a person may use whatever force necessary if they fear

a)

any threat

b)

imminent danger

c)

offense

d)

any injury

35.

Under a contract with River Valley Farm, Sancho begins grading a terraced hillside for planting. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business" The farm agrees, but later refuses to pay. The agreement to pay more is

a)

enforceable

b)

unenforceable, because Sanchos request modified the contract

c)

unenforceable, because the farms promise was illusory

d)

Unenforceable, because Sanchos performance was a preexisting duty

36.

Sal is mentally incompetent but has not been adjuged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown office building. Most likely the contract is

a)

enforceable if Sam is the owner of the building

b)

Voidable if Sal did not comprehend the consequences

c)

enforceable if Tony did not know that Sam was mentally incompetent

d)

void

37.

Oceans, Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legit limit. This agreement is most likely

a)

Voidable

b)

Quasi

c)

enforceable

d)

void

38.

For a promissory estoppel to occur, the following requirements need to be met: (choose all applicable answers)

a)

The promisor should have expected the promisee to rely on the promise

b)

There must be a clear and definite promise

c)

the promisee has a reasonable reliance on the promise in a definite and substantial manner

d)

enforcement is necessary to prevent an injustice

e)

the parties changed their minds so there can be no enforcement

39.

A party who has justifiably relied on an oral contract may use ___ if the courts will not enforce it, because of the failure of a writing

a)

undue influence

b)

duress

c)

promissory estoppel

d)

breach of contract

40.

Oscar owns Payroll company, a bookkeeping service. Oscar pays ripley $5,000 to steal a list of competitors clients. This deal is

a)

voidable at the option of the party having less bargaining power

b)

Voidable at the option of either party

c)

void

d)

enforceable

41.

Fez enters into a contract to buy 350 acres from Grain farm to cultivate hops and open a brewery. Fez fails to make the purchase. Grain Farm's remedy is most likely

a)

the amount that Fez expected to invest in the brewery

b)

a percentage of Fezs unrealized profit

c)

nothing--Grain farm still owns the land

d)

the difference between the contract and market prices of the land

42.

Data Inc., offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $15,400. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is that

a)

the price was below the prices of comparable services

b)

a mistake of value does not afford relief from a contract

c)

a unilateral mistake does not afford relief from a contract

d)

a bilateral mistake does not afford relief from a contract

43.

The crime victim must bring the case against the defendant

a)

True

b)

False

44.

A court will only impose a quasi-contract if the parties originally had a contract with one another

a)

True

b)

False

45.

State University provides housing on campus, and in some adjacent off-Campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

a)

a breach of contract

b)

an operation of law

c)

a novation

d)

a condition

46.

Generally neither party to an illegal contract can sue for breach

a)

True

b)

False

47.

All of these are types of damages in a breach of contract action ( choose all applicable answers)

a)

punitive

b)

wrongful

c)

compensatory

d)

nominal

48.

A minor can enter into any contract an adult can, without exception

a)

True

b)

False

49.

Restore Inc, contracts to resurface the pools at swim park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the Job June 15. In a suit for breach, Swim Park can recover

a)

nothing the work is done

b)

the loss of profit from the delayed opening

c)

the cost of new pools

d)

the difference between the contract and market prices for the work

50.

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlenes 100- acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. With respect to the duties under the original contract, this transfer

a)

is invalid transfer of non-transferable obligation

b)

does not relieve Bill of the potential obligation to perform

c)

extinguishes Bills obligation to perform

d)

Requires a special form to constitute a valid transfer

51.

Crimes are offenses against society as a whole

a)

True

b)

False

52.

____ states that all evidence derived from illegal means, normally must be excluded from the trial proceedings

a)

the Miranda rule

b)

Exclusionary Rule

c)

Fruit of the poisonous tree

d)

self-incrimination

53.

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

a)

profit from Max's performance

b)

be unjustly enriched

c)

be restored to the status quo

d)

obtain a reasonable exchange of values

54.

A person arrested for a crime must ask for a lawyer specifically, Saying "maybe it would be a good idea to get a lawyer" is not enough

a)

True

b)

False