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Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.

A) True
B) False

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"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed. -Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?


A) She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract.
B) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract.
C) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract.
D) She is correct. The neighbor will be required to pay Jackson based upon an express contract.
E) She is incorrect. The neighbor will not be required to pay Jackson.

F) A) and E)
G) C) and D)

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Which of the following was the result in In Re Zappos.com Inc., v. Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos?


A) The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time.
B) The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs lack of assent.
C) The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time.
D) The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable.
E) The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.

F) All of the above
G) D) and E)

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In a[n] _____________ contract, the offeror wants a performance to form the contract.


A) Trilateral
B) Bilateral
C) Unilateral
D) Complete
E) Anticipatory

F) B) and D)
G) None of the above

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Which of the following states that if a writing, or term in question, appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to outside evidence, with the words being given their ordinary meaning?


A) The Interpretation Rule
B) The Simple Rule
C) The Understandable Rule
D) The Plain Meaning Rule
E) The Comprehensive Rule

F) A) and C)
G) C) and E)

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How many states still allow a contract without consideration to be enforced if it is under seal?


A) Five
B) Eight
C) Ten
D) Twenty
E) Thirty

F) B) and C)
G) A) and D)

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"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class. -Which of the following is true regarding Beverly's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract, therefore, existed?


A) She is correct because contract law is based upon a subjective theory of contracts.
B) She is correct because her genuinely held belief establishes that she did not commit fraud.
C) She is correct because agreements for the sale of goods are based on a subjective theory.
D) She is incorrect because her subjective belief would not be the basis for a determination of whether the contract would be enforced in this case and also because fraud is not necessary in order to find a breach of contract.
E) She is correct but only if Rick subjectively believed the same as she did.

F) B) and E)
G) A) and B)

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If a contract is valid, then it is enforceable.

A) True
B) False

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Millie mows her own yard to save money. Her neighbor Paul, however, hires a lawn service to mow his yard. One day Millie is looking out of the window and sees Paul's lawn service drive up. Surprisingly, they begin to mow her yard, not Paul's yard. Millie thinks that is great and keeps her mouth shut while they mow the yard. Later, she gets a bill. She calls the owner of the lawn service and says that she does not have to pay because there was no contract where she agreed to have her yard mowed. The lawn service says that she is liable for the full amount of its contract. Discuss whether the lawn service is entitled to any recovery and why or why not.

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The lawn service will be entitled to rec...

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Once all the terms of the contract have been fully performed, the contract is said to be ___________.


A) Executory
B) Executed
C) Anticipatory
D) Ended
E) Stopped

F) A) and C)
G) D) and E)

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A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.


A) Contract
B) Offer
C) Consideration
D) Acceptance
E) Legal object

F) A) and E)
G) All of the above

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Which of the following consists of an offer by one party and an acceptance of the terms by another party?


A) Legal object
B) Agreement
C) Coherence
D) Alliance
E) Concurrence

F) A) and C)
G) B) and E)

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Any contract that is not a formal contract is an informal contract, also called a simple contract.

A) True
B) False

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The person who agrees to the terms of an offer made by the other party is called the _________.


A) Offeree
B) Offeror
C) Agreeor
D) Agree
E) Inquirer

F) A) and C)
G) A) and D)

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The law of contracts is primarily _______________ law.


A) Comprehensive
B) Statutory
C) Common
D) Restated
E) Modified

F) B) and E)
G) A) and B)

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Which of the following is a definition for consideration?


A) Being cordial in the negotiation of contracts.
B) Refraining from unethical behavior in the negotiation of contracts.
C) Being cordial and refraining from unethical behavior in the negotiation of contracts.
D) The bargained-for exchange.
E) A contract negotiated in person as opposed to by telephone or e-mail.

F) C) and D)
G) C) and E)

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If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.

A) True
B) False

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A[n] ______________ contract is commonly defined as a promise in exchange for a promise.


A) Unilateral
B) Trilateral
C) Complete
D) Bilateral
E) Classified

F) A) and C)
G) A) and D)

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An attorney who says that a contract lacks "the proper form" is typically referencing which of the following?


A) The agreement lacked a proper offer.
B) The contract lacked a proper acceptance.
C) The contract lacked consideration.
D) The contract lacked a writing.
E) The contract lacked both an appropriate offer and an appropriate acceptance.

F) A) and D)
G) A) and C)

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A contract is ______________ if one or both of the parties, without breaching the contract, have the ability to either withdraw from the contract or enforce it.


A) Voidable
B) Executory
C) Implied
D) Executed
E) Void

F) C) and D)
G) A) and D)

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