WorksheetsChapter 6 Quiz
Total questions: 16
Worksheet time: 8mins
A contract in business is:
a legally binding agreement between two or more parties.
a casual agreement with no legal obligations.
an informal understanding between friends.
a verbal promise with no written documentation.
Which of the following is NOT a purpose of a contract?
Establish an agreement
Communicate rights and responsibilities
Protect people and businesses
Increase profits
The person to whom an offer is made is the
Offeror
Offer maker
Offeree
Offer Receiver
Moral responsibility in the context of business ethics refers to:
The obligation of businesses to maximize profits at any cost.
The duty of businesses to act in accordance with ethical principles and consider the impact of their actions on stakeholders.
The responsibility of businesses to comply with all legal regulations only.
The need for businesses to focus solely on shareholder interests.
What are the three elements required for a contract to be legally binding?
Offer, Acceptance, Consideration
Intention, Agreement, Execution
Proposal, Consent, Fulfillment
Negotiation, Signature, Delivery
What is required for someone to be considered a competent party in a contract?
Legal age and sound mind
Financial stability
Employment status
Educational qualification
A contract should include which of the following to address legal consequences?
Terms and conditions
Legal consequences
Signatures
All of the above
A person who makes an offer is the
Offeree
Offer Maker
Offerer
Offeror
Consideration is that both sides must give up something of legal value
True
False
An offer made in jest is a legal offer.
False
True
"Stop thief - I'll give anyone $100 if you catch that guy that just took my purse!" This is an example of:
Preliminary Negotiations
Jests
Statements made in anger or terror
Lying
You ditch me to go to the movies, but I already bought your ticket. Can I sue you for the damages of the ticket price?
Yes
No
If an offeror decides to pull back an offer and take it off the table, this is called a
scam
rejection
revocation
counteroffer
If the offeree changes the offer and then sends it back to the offeror, this is called a
rejection
counteroffer
revocation
crime
Jake and Sam entered into a contract to purchase a set of Pokemon cards. They are going to meet on Thursday to exchange the cards for money. On Wednesday, Jake's house burns down and the cards are destroyed. Is there still a valid contract?
No
Yes
No, but in yellow
A special rule that applies only to merchants who makes offers in writing that contains a term in the offer that states low long it is to be open is called a
hard offer
firm offer
Option
UCC
