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WorksheetsBusiness Law - Final Exam Review: Contracts
Total questions: 86
Worksheet time: 43mins
Fill in the blank: A ________ is a promise for a promise.
Bilateral contract
Unilateral contract
Void agreement
Executed contract
Fill in the blank: A ________ is a contract where one party makes a promise in exchange for the performance of a specific act by another party. Unlike bilateral contracts, which involve mutual promises, a ________ is formed when one party's action completes the agreement.
Unilateral contract
Bilateral contract
Void contract
Implied contract
Fill in the blank: A ________ can be done by one or more parties.
Voidable contract
Unilateral mistake
Executed contract
Illegal agreement
Fill in the blank: The ________ requires contracts to be done in writing.
Statute of Frauds
Parol Evidence Rule
Doctrine of Consideration
Uniform Commercial Code
Fill in the blank: A ________ is a legal obligation imposed by law to prevent unjust enrichment.
Quasi Contract
Bilateral Contract
Void Agreement
Executed Contract
Fill in the blank: An ________ is a minor who is free from parental control.
Emancipated minor
Dependent minor
Adopted minor
Foster minor
Fill in the blank: ________ in law refers to exaggerated or promotional language used in sales and advertising that is considered too broad to be reasonably relied upon as a factual statement.
Puffery
Defamation
Warranty
Misrepresentation
Fill in the blank: A ________ is a promise to perform a duty one is already legally obligated to perform and is not valid consideration for a new contract.
Pre-existing duty
Unilateral contract
Illusory promise
Executory contract
Fill in the blank: To ________ a contract means to cancel it.
Rescind
Enforce
Draft
Execute
Fill in the blank: ________ allows a promise to be enforced even without formal consideration.
Promissory estoppel
Parol evidence rule
Statute of Frauds
Quantum meruit
Who is the person or party who has suffered harm or injury and is suing the defendant for damages?
Plaintiff
Defendant
Witness
Jury
What is the term for court decisions from higher courts that are legally required to be followed by lower courts in the same jurisdiction when deciding similar cases?
Binding precedent
Judicial review
Amicus curiae
Summary judgment
What is a court order that compels a party to either take a specific action (mandatory injunction) or refrain from a specific action (prohibitory injunction)?
Injunction
Summons
Affidavit
Subpoena
What is the intentional tort that occurs when someone unlawfully interferes with another person's personal property, depriving them of their right to possess or use it?
Conversion
Battery
Defamation
False Imprisonment
What occurs when someone intentionally enters or remains on another's property without permission, or causes an object or third party to do so?
Trespass to land
Nuisance
Defamation
Conversion
What is the legal concept where a plaintiff's recovery for an injury is barred or reduced because they voluntarily and knowingly exposed themselves to a known risk?
Assumption of risk
Strict liability
Res ipsa loquitur
Contributory negligence
What is the key legal principle established in Leonard v. Pepsico?
Unilateral – offer lacks serious intent if a joke – no offer/no contract
A contract is always formed if an advertisement is published
Silence always constitutes acceptance in contract law
Consideration is not required for a valid contract
What is the key legal principle established in Carlill v. Carbolic Smoke Ball?
Unilateral – An ad that make you do something is a valid offer/ valid contract
Consideration must move from the promisee only
Silence amounts to acceptance
Intention to create legal relations is not required
What is the key legal principle established in Lucy v. Zehmer?
Bilateral – to be considered a joke, it must be obvious – valid offer / valid contract
Unilateral – contracts require only one party’s intent
Consideration is not necessary for contract formation
Contracts must be in writing to be enforceable
What is the key legal principle established in Lefkowitz v. Great Minneapolis Surplus Store?
Unilateral – An ad that make you do something is a valid offer / valid contract
Advertisements are always invitations to negotiate, never offers
A contract requires consideration from both parties to be valid
Only written contracts are enforceable in court
What is the key legal principle established in Hamer v. Sidway?
Consideration/Forbearance – giving up right to do something is valid consideration / valid contract
Promissory estoppel – a promise is enforceable even without consideration
Parol evidence rule – written contracts cannot be contradicted by prior agreements
Statute of Frauds – certain contracts must be in writing to be enforceable
What is the key legal principle established in Stambovsky v. Ackley?
Genuine Assent/Active Concealment – hiding a material fact is same as fraud / no contract
Caveat Emptor – buyer beware applies in all real estate transactions
Specific Performance is always available as a remedy for breach of contract
Parol Evidence Rule prohibits any oral statements in real estate contracts
What is the key legal principle established in Palsgraff v. LIRR?
For something to be negligence, it must be foreseeable
Negligence always results in liability regardless of foreseeability
A defendant is liable for all consequences of their actions
Intent is required for liability in negligence cases
What is the key legal principle established in Liebeck v. McDonalds?
Negligence / Comparative Negligence
Strict Liability
Res Ipsa Loquitur
Assumption of Risk
What is the significance of the Kelo v. New London case regarding eminent domain?
It established that property can be taken for public purpose and that private to private transfer is okay.
It limited the government's power to take private property for any reason.
It abolished the use of eminent domain in the United States.
It required compensation only for commercial properties taken by the government.
In Civil Law, who brings the case to court?
An individual or company (Sue)
The judge
The police
The government
In Criminal Law, who charges the case?
The Government
The Victim
The Judge
The Defense Attorney
What is a precedent in law?
A judicial decision that serves as an example or authority for a similar case or issue in the future.
A law passed by the legislature that applies to all future cases.
A contract between two parties that is legally binding.
A regulation issued by a government agency.
What is the main function of a Trial Court?
To determine facts and apply the law in a case, hear witnesses and evidence, and reach a verdict or decision.
To review decisions made by lower courts and ensure laws are interpreted correctly.
To create new laws and amend existing legislation.
To enforce court decisions and manage correctional facilities.
Which court reviews decisions of lower courts and does not hear new evidence?
Appellate Court
Trial Court
Family Court
Small Claims Court
Fill in the blank: The written contract between you and the insurance company that outlines the terms of your coverage, including what is covered, exclusions, and conditions, is called a _______.
Policy
Invoice
Receipt
Application
Fill in the blank: The amount you pay out-of-pocket before your insurance coverage kicks in for a covered loss is called the _______.
Premium
Deductible
Copayment
Claim
Fill in the blank: _______ refers to the chance of a loss or adverse event, such as accidents or natural disasters, that an insurance company covers.
Risk
Premium
Policyholder
Deductible
Fill in the blank: The amount you pay out-of-pocket before your insurance coverage kicks in for a covered loss is called the _______.
Deductible
Premium
Copayment
Claim
Fill in the blank: The specific types of risks or losses that are covered by the insurance policy are called _______.
Coverage
Premiums
Deductibles
Exclusions
What is the definition of 'Peril' in insurance? Fill in the blank: A specific risk or cause of loss, such as fire, windstorm, or theft, that is covered by an insurance policy is called a ________.
Peril
Deductible
Premium
Exclusion
What is 'Risk Pooling' in insurance? Fill in the blank: A financial mechanism where risks are shared among a group, typically used in insurance and finance, is called ________.
Risk Pooling
Underwriting
Premium Loading
Deductible
What does the 'Law of Large Numbers' state in insurance? Fill in the blank: The principle that as the number of insured individuals increases, the actual loss experience will more closely match the expected loss experience is known as the ________.
Law of Large Numbers
Principle of Indemnity
Doctrine of Subrogation
Rule of Proximate Cause
In automobile insurance, what does the first number in a liability policy (e.g., 25/50/10) represent?
Bodily injury per person
Property damage per accident
Bodily injury per accident
Comprehensive coverage limit
In automobile insurance, what does the second number in a liability policy (e.g., 25/50/10) represent?
Bodily injury per incident
Property damage per incident
Medical payments per person
Uninsured motorist coverage
In automobile insurance, what does the third number in a liability policy (e.g., 25/50/10) represent?
Property damage per accident
Bodily injury per person
Medical payments per accident
Uninsured motorist coverage
What is No-Fault (Medical Payments) coverage in automobile insurance also known as?
Personal Injury Protection (PIP)
Comprehensive Coverage
Collision Coverage
Uninsured Motorist Coverage
What does 'Uninsured Motorist' insurance protect you from?
It protects you if you're in an accident with a driver who doesn't have liability insurance. It covers medical bills, lost wages, and property damage if an uninsured driver is at fault for an accident.
It protects you from damage caused by natural disasters such as floods or earthquakes.
It covers routine maintenance and repairs for your vehicle.
It pays for your car if it is stolen or vandalized.
Which type of insurance pays for repairs or replacement of your vehicle if it's damaged in an accident with another vehicle or object, regardless of fault?
Collision
Liability
Comprehensive
Personal Injury Protection
Comprehensive insurance is also known as what?
Other than collision coverage
Liability coverage
Personal injury protection
Uninsured motorist coverage
What does 'Underinsured' insurance provide?
It provides financial protection if you're injured in a car accident caused by someone who doesn't have enough insurance to cover your damages.
It covers routine maintenance costs for your vehicle.
It pays for damages to your car caused by natural disasters.
It provides coverage for theft of personal belongings from your car.
What does 'Covered' mean in Homeowner’s / Renter’s Insurance?
Damage to your home's structure, personal belongings, and liability in case of injuries on your property.
Only theft of personal belongings is included.
It refers to coverage for car accidents only.
It means your home is protected from all types of natural disasters without exceptions.
Which perils are not covered under Homeowner’s / Renter’s Insurance?
Floods, earthquakes, termite or rodents, neglect
Fire, theft, vandalism, lightning
Smoke damage, windstorm, hail, explosion
Water damage from burst pipes, falling objects, weight of ice/snow
What does 'Dwelling' coverage pay for?
It pays to repair or rebuild your house if damaged by covered perils like fire, wind, or hail.
It pays for your medical expenses if you are injured at home.
It pays for your car repairs after an accident.
It pays for your lost personal belongings anywhere in the world.
Personal Property coverage protects which items?
Your belongings like furniture, clothing, and electronics if damaged, stolen, or destroyed.
The structure of your home, including walls and roof.
Vehicles parked on your property.
Landscaping and outdoor fences only.
What does 'Other Structures' coverage pay for?
It pays for damage to detached structures like fences, sheds, or garages.
It pays for damage to the main house only.
It pays for personal belongings inside the home.
It pays for medical expenses of guests injured on your property.
What does 'Loss of Use' coverage provide?
It may cover costs like temporary housing if your home is uninhabitable after a covered loss.
It pays for routine home maintenance costs.
It covers damage to your car in an accident.
It provides life insurance benefits.
What does 'Personal Liability' insurance protect you from?
It protects you from lawsuits and medical expenses if someone is injured on your property.
It covers damage to your own car in an accident.
It pays for routine maintenance of your home appliances.
It reimburses you for lost luggage during travel.
What does the Co-insurance Clause require you to do regarding your property insurance?
It requires you to insure your property for a specific percentage of its replacement cost (typically 80%).
It requires you to pay your insurance premiums in advance for five years.
It requires you to insure your property only for its market value.
It requires you to insure your property for the full appraised value regardless of replacement cost.
Typically, the policy will cover up to what percentage of the personal property limit for items kept off-premises, like in a dorm?
10%
25%
50%
75%
What does General Liability insurance protect against?
Claims for bodily injury or property damage caused by your business operations.
Losses from employee theft or dishonesty.
Damages to your own business property from fire or theft.
Injuries to employees while on the job.
Workers Compensation insurance covers:
Medical expenses and lost wages for employees injured on the job
Damage to company vehicles
Data breaches
Professional negligence
Commercial Property Insurance protects your physical assets, such as buildings, equipment, and inventory.
True
False
Commercial Auto insurance covers vehicles used for business purposes, including company cars and commercial trucks.
True
False
Professional Liability (Errors and Omissions) insurance protects businesses that provide professional services against claims of ________.
negligence or errors
property damage
theft or burglary
fire or flood
Business Interruption insurance covers lost income and expenses if your business is temporarily closed due to what?
A covered loss
A change in management
A routine inspection
A voluntary closure
Cyber Insurance covers losses from which of the following?
Fire damage
Data breaches and cyberattacks
Employee injuries
Vehicle accidents
Umbrella Insurance provides extra liability coverage beyond the limits of other insurance policies like auto or homeowners insurance.
True
False
What is the term for movable things that people OWN?
Personal property
Real estate
Intellectual property
Public property
What is the term that primarily refers to land and anything permanently attached to it, including buildings, structures, and natural resources like crops and minerals?
Real property
Personal property
Intellectual property
Movable property
What is the legal arrangement where an individual, known as the life tenant, is granted the right to use and possess a property for the duration of their life, and upon their death, the property interest reverts to the original owner, their heirs, or a designated third party known as the remainderman?
Life estate
Fee simple absolute
Tenancy in common
Joint tenancy
What is the most comprehensive and complete form of property ownership, granting the owner virtually unrestricted rights to use, sell, lease, or transfer the property without limitations?
Fee simple absolute
Life estate
Leasehold estate
Easement
What is the term for property that automatically reverts to the original owner if a specific condition or event occurs?
Fee simple determinable
Life estate
Tenancy in common
Fee simple absolute
What is the legal agreement in real estate that grants someone the right to use another person's property for a specific purpose, without owning the property?
Easement
Lien
Deed
Mortgage
What is the legal framework that protects and establishes rights related to creations of the mind, such as inventions, designs, and creative works?
Intellectual property
Contract law
Tort law
Criminal law
What is the act of violating or breaching a law, agreement, or right, often referring to the unauthorized use or replication of someone else's protected work, particularly in intellectual property law?
Infringement
Compliance
Authorization
Consent
What does the ™ symbol mean in the context of trademarks?
It means the trademark is unregistered.
It means the trademark is registered with the government.
It means the trademark is expired.
It means the trademark is internationally recognized.
What does the ® symbol mean in the context of trademarks?
It means a registered trademark.
It means a trademark is pending approval.
It means a trademark is expired.
It means a trademark is not protected.
What is a patent?
A license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention. Generally good for 20 years.
A document granting citizenship to a foreign national.
A certificate of completion for an academic course.
A legal document transferring property ownership.
What is copyright?
A legal right granted to the creator of original works of authorship, giving them exclusive ownership and control over how their work is used, reproduced, and distributed. Generally good for life of the author plus 70 years.
A government-issued license to use patented inventions for commercial purposes.
A trademark symbol used to identify brands and logos in the marketplace.
A type of contract that allows two parties to share confidential information.
What does the Fifth Amendment (Takings Clause) require the government to provide when it takes ownership of private property for public use?
Just compensation (fair market value) for the property.
A public apology to the property owner.
A replacement property of equal size.
A tax deduction for the property owner.
What is condemnation in the context of property law?
The government's power to seize private property for public use, also known as eminent domain.
A legal process to transfer property between private individuals.
A method of resolving disputes between neighbors over property boundaries.
A type of insurance for protecting property owners from loss.
What is inverse condemnation?
A legal claim where a property owner sues the government to seek compensation for property damage or restrictions caused by a public project or regulation, even if the government hasn't formally initiated an eminent domain proceeding to acquire the property.
A process where the government voluntarily returns property to its original owner after a public project is completed.
A legal doctrine that allows private individuals to claim ownership of abandoned government property.
A type of zoning regulation that increases the value of private property without compensation.
What are the 5 main elements of adverse possession?
Actual, exclusive, open and notorious, hostile, and continuous possession of the property for the statutory period.
Written agreement, payment of taxes, neighbor's consent, public notice, and government approval.
Exclusive, temporary, secret, permissive, and partial possession of the property.
Actual, shared, open, permissive, and sporadic use of the property.
What is a tenancy at will?
A rental agreement where either the landlord or tenant can end the agreement at any time with proper notice, rather than a fixed term.
A lease that automatically renews every year unless terminated by the landlord.
A rental agreement that only lasts for one month and cannot be renewed.
A lease that requires the tenant to purchase the property at the end of the term.
Fill in the blank: ________ is a situation where a tenant remains in possession of a property after their lease has expired, without the landlord's permission.
Estate at sufferance
Estate at will
Estate for years
Periodic tenancy
Fill in the blank: ________ is a leasehold estate with a definite beginning and ending date.
Estate for years
Estate at will
Estate from period to period
Estate at sufferance
Fill in the blank: ________ is a rental agreement where the tenant occupies the property with the landlord's permission, but without a formal lease or fixed term.
Estate at will aka tenancy at will
Estate for years
Estate at sufferance
Periodic tenancy
Fill in the blank: ________ is a type of rental agreement that continues indefinitely unless terminated by either the landlord or tenant.
Periodic tenancy
Fixed-term lease
Tenancy at sufferance
Tenancy at will
Fill in the blank: ________ is the person who receives possession of property from a bailor, while a bailor is the person who delivers property to a bailee.
Bailee
Lessor
Lessee
Mortgagor
Fill in the blank: ________ is a temporary transfer of possession of property for a specific purpose, with the understanding that the property will be returned to the bailor.
Bailment
Lease
Mortgage
Gift
