Question 6
Business and Ethics Quiz. In order to have mutual asset, there must be
- An offer and good-faith acceptance
- An offer and a benefit to both parties
- An equitable offer and an acceptance
- An offer and an acceptance that is the precise mirror image of the offer
Question 7
Once a minor reaches majority, if that person continues with the terms of the contract they have ________ the contract. Business and Ethics Quiz
- Ratified
- Renegotiated
- Affirmed
- Rescinded
Question 8
The common sense of the community is often referred to as
- morals.
- public policy.
- unsociable.
- the law.
Question 9
The bright-line rule, such as the age of majority, is ________.
- complex
- flexible
- reasonable
- simple
Question 10
In general, an unlawful act will not be enforced by the courts. For example, if a statute is declared prohibited, it is absolute ________.
- valid
- unavoidable.
- legal.
- void.
Question 11
An action by a minor to avoid the obligations under a contract that has been performed is Business and Ethics Quiz
- An affirmance
- A revocation
- A disaffirmance
- A reaffirmance
Question 12
For a contract to be enforceable it must not violate some ________.
- Requirement of wisdom
- Standard of reasonableness
- Standard of fairness
- Public policy
Question 1
Timon and Alexander, both 22 years old, make promises to each other regarding the sale and purchase of Timon’s car. If the agreement has all the required elements, it will be considered a(n) ________ contract.
- voidable
- unenforceable
- valid
- avoidable
Question 2
Suppose Willem’s beloved German Shepard Max goes missing, and Willem posts a $1,000 reward in his neighborhood for the return of his pet. One day, Mandy, Willem’s neighbor, spots Max in her backyard and returns him to Willem. Willem and Mandy have a ________ contract, and Willem owes Mandy ________.
- voidable; nothing
- unilateral; $1,000
- bilateral; $1,000
- void; nothing
Question 3
Jamila and Karol agree to rob a bank and equally divide the money they take. This agreement is ________.
- void
- avoidable
- voidable
- unenforceable
Question 4
If Ricardo and Joseph sign a contract for the sale of a $37,500 tractor, their agreement will most likely be categorized as a ________ contract.
- UCC sales
- common law
- voidable
- statutory
Question 5
A contract is ________ when the law gives one or more parties the right to cancel an otherwise valid contract under the circumstances.
- void ab initio
- unenforceable
- voidable
- void
Question 6
A(n) ________ contract lacks explicit terms and is solely inferred by the parties’ behavior or through social custom. Business and Ethics Quiz
- transactional
- relational
- implied
- express
Question 7
Contracts can be categorized in which of the following ways? (Check all that apply.) Business and Ethics Quiz
- Contractual commitment
- Nature of the business relationship
- Source of equity
- Level of explicitness
- Source of law
Question 8
Which of the following is not a recognized section of a contract that has well-established structure? Business and Ethics Quiz
- Preamble
- Abstract
- Clauses
- Recitals
Question 9
In a bilateral contract, legal detriment is incurred through the mutual promises the parties make to each other.
- True
- False
Question 10
In a unilateral contract, one party’s legal detriment arises from its action or inaction rather than a promise.
- True
- False
Question 11
________ attorneys have the skills and qualifications to work with managers to generate opportunities and value.
- Transactional
- Relational
- Strategically qualified
- Licensed
Question 12
Contracts for services or real estate are referred to as ________ contracts, while contracts dealing with the sale of goods are referred to as ________ contracts.
- statutory; common law
- UCC sales; common law
- bilateral; unilateral
- common law; UCC sales
Question 13
________ contracts are those where the terms are clearly stated and defined by the parties, either orally or in writing.
- Explicit
- Relational
- Implied
- Statute of frauds
Question 14
________ is characterized by long, complex sentences written in a passive voice with many embedded clauses that employ obscure archaic terms such as “hereby,” “sayeth,” or “witnesseth.”
- Transactional verbiage
- Legalese
- Voidable verbiage
- Relational verbiage
Question 15
Commitment in a contract relates to the required element of ________.
- assent
- capacity
- legality of purpose
- consideration
Question 16
Legally astute managers ________. (Check all that apply.)
- have superior knowledge of the law as it relates to their business
- work proactively with legal counsel to find ethical and value-creating solutions to business challenges
- realize that there are substantial gray areas in the law
- exclusively rely on legal counsel when it comes to understanding and applying the law as it relates to their business, since attorneys are the legal experts
Question 17
Daniel Brown: “Wait, does this mean I’m stuck mowing her lawn for the rest of the summer? At only $30 a week??”
- This was a valid contract. If you don’t perform your obligations under the contract, then you’re in breach.
- This was an invalid contract because there was no meeting of the minds. You are not obligated to provide any services. Ms. Black also owes you the extra $20 for the work you already performed.
