Subject: General Questions / General General Questions
Question 1.1.(TCO 4) Which of the following is an informal contract? (Points : 2)
RecognizanceQuestion 2.2.(TCO 4) Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated’s parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include _____ (Points : 2)
practicality.Question 3.3.(TCO 4) What is the key difference between an agreement and a contract? (Points : 2)
A contract is always enforceable in the court of law, while an acceptance may or may not be.
A contract can only be between two individuals, while an acceptance can have two or more people involved.
A contract required mutual assent from all parties, while an acceptance need only be accepted a majority of people involved.
A contract need not be legally binding, while an agreement must be legally binding.Question 4.4.(TCO 4) Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have _____ (Points : 2)
a bilateral contract.
a trilateral contract.
a unilateral contract.
no contract.Question 5.5.(TCO 4) When Jeff’s car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff’s obligation to pay the bill, this is _____ (Points : 2)
an express contract.
an implied-in-fact contract.
an implied-in-law contract.
no contract.Question 6.6.(TCO 4) Which of the following is true of a minor’s duty towards a contract for necessaries of life? (Points : 2)
Minors need to reach the age of majority to enter into contracts for necessaries of life.
Minors are exempt from paying for contracts of necessaries of life.
Minors must pay the reasonable value of necessaries of life for which they contract.
Parents are liable to provide necessaries of life to their minor children if they become emancipated.Question 7.7.(TCO 4) Corey desperately needs to get to the airport and decides to take his neighbor Tanner’s help. Tanner agrees to help and drives Corey to the airport. Upon arrival at the airport, Corey promises to pay Tanner $25 towards gas money. Which of the following contracts does Corey’s promise fall under? (Points : 2)
Past considerationQuestion 8.8.(TCO 4) 16-year-old Frank bought a video game console from John for $150. Frank is a minor, while John is a competent adult. A month later, the console started malfunctioning on its own. Frank returned the console to John. If Frank disaffirms his contract with John for buying the console, which of the following will be considered true? (Points : 2)
John is not bound by the contract any more as the exchange has been completed.
Frank can reclaim full refund of the amount he paid.
Frank can only ask for full refund once he has reached the age of majority.
Frank is legally obligated to fix the console before returning it to John.Question 9.9.(TCO 4) Sonic Board Corporation files a suit against Custom Fabricators Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if _____ (Points : 2)
there is a large disparity in the amount of consideration exchanged.
Sonic asserts that there is inadequate consideration.
something of value passed between the parties.
the consideration is worth less than $100.Question 10.10.(TCO 4) Poweroxi Inc. produces rocket propellant fuel that is used in space shuttles. NASA is an agency that requires rocket propellant fuel to send its rockets to space. NASA enters into a contract with Poweroxi Inc. to purchase all of the propellant fuel it will need this year from Poweroxi. What would this contract be an example of? (Points : 2)