Navigation » List of Schools » El Camino College » Law » Law 4 – The Legal Environment of Business » Spring 2020 » Midterm Exam 2
Below are the questions for the exam with the choices of answers:
Question #1
A Statutory Damages.
B Compensatory Damages.
C Liquidated Damages.
D Special Damages.
Question #2
A Rescission.
B Accord and Satisfaction.
C Substitution.
D Substantial performance.
Question #3
A Perfect Tender.
B Utilitarian.
C Quasi Contract.
D Mailbox Rule.
Question #4
A It does not lack any elements. It is a valid contract
B Offer
C Acceptance
D Consideration
Question #5
A a void contract because of the UCC.
B a voidable contract, one that Jennifer can void.
C a void agreement because of the fraud involved.
D a voidable contract, one that Jack can void.
Question #6
A Jill can be held personally liable to the customer since she is a partner.
B Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.
C Jill has no potential liability to the customer.
D Jill can only be liable to the amount of her investment.
Question #7
A A general partner in a limited partnership.
B A sole proprietor.
C A partner in a general partnership.
D A limited partner in a limited partnership.
Question #8
A Matt would win; this is an implied contract.
B Walter would win because of the UCC.
C Walter would win as there was no contract.
D Matt would win in quantum meruit.
Question #9
A There is no contract until January 27.
B On January 16, the contract was executed.
C This contract is a unilateral contract.
D On January 16, the contract was executory.
Question #10
A the shares are publicly traded.
B the corporation can typically operate without a board of directors.
C minority shareholders are provided more protection than in regular corporations.
D the shareholders usually restrict share transfer.
Question #11
A The contract is unenforceable because it is exculpatory.
B The contract is enforceable, but only up to the value of the water system.
C The contract is fully enforceable as written.
D The contract is unenforceable because it is unconscionable.
Question #12
A If Beth pays the obligation in full under the terms of the note.
B Only if Mona dies before Beth’s obligation is discharged.
C When Beth turns 18.
D Only if Mona pays half of the value of the note.
Question #13
A conduct of the parties indicates they intended an agreement.
B justice demands it.
C there is promissory estoppel.
D there is undue influence.
Question #14
A one is enforceable, the other is not.
B only one promise is involved in a unilateral contract.
C only one promise is involved in a bilateral contract.
D the Statute of Frauds applies to one and not the other.
Question #15
A The law would enforce this valid, enforceable contract.
B Jane would win as this is a voidable contract.
C The law would not enforce Jane’s promise, as it does not have a lawful purpose.
D Shelly would win as this is a unilateral contract.
Question #16
A A general partnership.
B A limited partnership.
C A limited liability company.
D A close corporation.
Question #17
A A false statement that a $30,000 car attracts members of the opposite sex.
B A false prediction that a painting’s value will rise.
C Silence as to a toxic waste problem on real property that the buyer would not reasonable be able to find or see after investigating.
D A false statement that a used car is “the best deal in town.”
Question #18
A acceptance must mirror the offer.
B written contracts must be signed and mailed.
C acceptance is deemed when received.
D acceptance is deemed when dispatched.
Question #19
A All the above.
B Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.
C Cyndi is personally liable for any negligent act committed by Rachel in the scope of the business activity.
D Rachel is personally liable for any business contracts entered into by Cyndi.
Question #20
A not enforceable because Becky is a minor and could disaffirm the contract.
B enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
C not enforceable because Becky does not have a legal right to drink alcohol.
D enforceable because the agreement accomplishes Ben’s goal of keeping Becky from drinking.
Question #21
A the Statute of Frauds applies.
B the contract has been fully performed by both parties.
C the written agreement is a full and final expression of the parties’ agreement.
D the contract was a full and final oral explanation of the parties’ agreement.
Question #22
A at any time so long as the contract was created when they were a minor.
B when it provides them with necessities.
C if they misrepresent their age.
D as long as they are they age of minority.
Question #23
A Offer
B Consideration
C Performance
D Legality
Question #24
A general partnership.
B corporation.
C S corporation.
D limited liability company.
Question #25
A This is an implied, unilateral contract and she must pay the price requested by the man.
B Myrtle would not have to pay for the yard work.
C The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.
D This is an express, voidable contract that either party may avoid.
Question #26
A Employee agrees to never work for a competing company.
B Seller is not responsible for property damage regardless of the cause of the injury.
C Buyer agrees to pay any costs of litigation.
D Creditor charges 38% interest on a loan.
Question #27
A Doctor and patient.
B Debtor and creditor.
C Chief executive officer and corporation.
D Husband and wife.
Question #28
A real estate.
B employment.
C services.
D All of the above.
Question #29
A $50,000
B whatever they receive from the partnership.
C $100,000.
D None of the above. The partnership itself will pay the taxes on the business’s profit.
Question #30
A Walter will lose because he can’t use past acts to satisfy consideration.
B Walter will lose based upon the preexisting duty rule.
C Walter will win, as no consideration is required to modify an employment contract.
D Walter will win, as the promise is enforceable.
Question #31
A an illusory promise.
B a conditional offer.
C an unliquidated offer.
D a unilateral contract.
Question #32
A If the parties agree to settle for less than the full amount, there is no consideration to make the agreement enforceable.
B If Wilde’s agrees to accept less than the full amount, the agreement is only binding if it is in writing and signed by Bernie.
C If Wilde’s agrees to accept less than the full amount as full payment, the agreement is not binding.
D The disputed amount is also known as an unliquidated amount.
Question #33
A bilateral, express contract.
B unilateral, express contract.
C bilateral, implied contract.
D unilateral, implied contract.
Question #34
A Be able to recover the $12,000.
B Not be able to recover the $12,000.
C Be able to recover the $3 million lost on the contract.
D Be able to recover the $2,000 but not the $10,000.
Question #35
A provide consideration as a substitute for the offer.
B ensure the contract is legally enforceable.
C accept the offer any time before termination.
D revoke the offer any time before acceptance.
Question #36
A Don must pay the value of the benefit received, but doesn’t have to pay the full price because Ron did not wax the car.
B Don must prove that Ron was supposed to wax the car by showing the notes he took during their negotiations.
C Ron is under no obligation to wax the car, even if Ron and Don had discussed the possibility.
D If waxing had been discussed, Ron must wax the car before he can get paid.
Question #37
A TRUE
B FALSE
Question #38
A FALSE
B TRUE
Question #39
A TRUE
B FALSE
Question #40
A FALSE
B TRUE
Question #41
A TRUE
B FALSE
Question #42
A TRUE
B FALSE
Question #43
A TRUE
B FALSE
Question #44
A FALSE
B TRUE
Question #45
A TRUE
B FALSE
Question #46
A FALSE
B TRUE
Question #47
A TRUE
B FALSE
Question #48
A FALSE
B TRUE
Question #49
A TRUE
B FALSE
Question #50
A TRUE
B FALSE