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Multiple Choice
Identify the letter
of the choice that best completes the statement or answers the
question.
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1.
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To be legally binding,
a contract must have all but one of the following elements. Which
one is not an element?
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a.
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offer and acceptance
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c.
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consideration
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b.
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moral obligation
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d.
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consent
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2.
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Which of the following can
be legal contracts?
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a.
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verbal contract
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d.
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b and c but not a
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b.
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written contract
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e.
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all of the above
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c.
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implied contract
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3.
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Which of the following statements
can be considered an offer in law?
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a.
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For 50 cents, I'd unload this
loser skidoo!
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c.
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I'm offering $300
for your bike.
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b.
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I've been thinking
of buying a bike like yours one of these days ...
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d.
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I'd give two cents
for that group's music -- if they're lucky!
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4.
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In law, when is the customer
considered to be making a definite offer to purchase?
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a.
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by viewing the goods
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d.
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by comparing the price
with others
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b.
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by asking about the
price
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e.
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none of the above
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c.
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by selecting advertised
items
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5.
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If one party dies after
accepting an offer, which of the following happens?
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a.
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the heirs can ignore
the contract
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c.
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the heirs can sue
the other party
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b.
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the contract is still
valid (with estate)
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d.
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the heirs can decide
whether to accept
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6.
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Which of the following methods
can be used to accept a contract?
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a.
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fax
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d.
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a and b but not c
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b.
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telephone
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e.
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all these methods
are accepted
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c.
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mail
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7.
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Which of the following type
of consideration is not legally binding?
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a.
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present consideration
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c.
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future consideration
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b.
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past consideration
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d.
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b and c but not a
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8.
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Under what circumstances
might courts set aside a contract because the consideration is not
great enough?
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a.
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One party was pressured.
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d.
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a and b but not c
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b.
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One party seems very
naive.
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e.
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a and c but not b
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c.
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The consideration
is very inadequate.
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9.
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If minor lies about age,
which of the following happens?
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a.
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Contract is automatically
void.
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d.
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both a and b
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b.
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Minor loses legal
protection.
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e.
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both a and c
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c.
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Minor retains legal
protection.
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10.
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Innocent misrepresentation
means which of the following in contract law?
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a.
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no criminal charges
can be laid
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c.
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misrepresentation
benefits buyer
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b.
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misrepresentation
does not harm buyer
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d.
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seller believes statement
is true
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