0

Contract Basics: Business Law Online Quiz

Description: contracts #offer #acceptance #consideration #obligation #enforcement #express contract #implied contract #bilateral contract #unilateral contract #breach #contract law #business law
Number of Questions: 20
Created by:
Tags: business law
Attempted 0/20 Correct 0 Score 0

While always a last resort, when a contract is breached, aggrieved parties may

  1. Claim a tort and prove the other parties are negligent

  2. Have the party breaching the contract arrested

  3. Retaliate with action of their choice as "payback"

  4. Sue for damages & relief including legal fees


Correct Option: D

Implied contract

  1. Not in writing, but enforcable

  2. Item is fit for intended purpose (merchantable)

  3. As is, buyer beware

  4. Not in writing & not enforcable


Correct Option: B

An express warranty

  1. Guarantee to repair/replace a defective product

  2. A written contract to guarnantee product

  3. Guarnantees quality of product

  4. Warrantees the quality of a product


Correct Option: A

A breach of a contract is one that has been:

  1. Voided with legitimate legal excuse

  2. Broken without legitimate legal excuse

  3. Performed per terms of agreement

  4. Counteroffer to change agreement


Correct Option: B

The best advise BEFORE signing a contract is to:

  1. Don't put it in writing

  2. Each party writes part of the contract

  3. One party writes all the contract

  4. Have a lawyer review & explain the contract


Correct Option: D

Void or voidable contracts are (select best best answer)

  1. Imposes no legal rights; one party can cancel contract

  2. One party can cancel contract; imposes no legal rights

  3. Broken contract that judge must enforce

  4. Broken contract that results in a tort & negligence


Correct Option: A

Adhesion contracts

  1. Are based on uncertain events that are not predictable

  2. Unjust and duly one-sided, favoring a powerful interest

  3. Written by party with greater power as "take it or leave it"

  4. Sticky situations that only a court can get us out of


Correct Option: C

An insurance policy is a contract and is an example of a:

  1. Bilateral contract

  2. Unilateral contract


Correct Option: B

An example of a unilateral contract

  1. Home buyer pays for house, seller gives buyer title to house

  2. Party A finds a lost dog and earns reward from party B

  3. A student agrees to pay a teacher to earn an A

  4. Part A pays reward for winning a drag race on city street


Correct Option: B

An example of a bilateral contract

  1. Home buyer pays for house, seller gives buyer title to house

  2. Party A finds a lost dog and earns reward from party B

  3. A student agrees to pay a teacher to earn an A

  4. Part A pays reward for winning a drag race on city street


Correct Option: A

A unilateral contract

  1. Can only have 2 parties and 2 obligations

  2. Can only have 2 parties, with at least 1 obligation

  3. 2 promises, the first leads to a reciprocal promise

  4. Promise is made by only 1 party


Correct Option: D

A bilateral contract

  1. Can only have 2 parties and 2 obligations

  2. Can only have 2 parties, with at least 1 obligation

  3. 2 promises, the first leads to a reciprocal promise

  4. Promise is made by only 1 party


Correct Option: C

Executed & executory contract (which statement best describes EACH)

  1. Nothing remains to be done; contract needs future action

  2. Contract needs future action; nothing remains to be done

  3. Agreed terms in writing; not signed

  4. Agreed terms terms; signed by one party


Correct Option: A

Implied contracts

  1. Assumed through facts and law, not verbally expressed

  2. Expressed in writing

  3. Explained and defined in detail

  4. Expressed verally


Correct Option: A

Obligation is:

  1. A reply to a proposed agreement for change

  2. A change to an offer

  3. Things each party promises to do for consideration

  4. Final agreement that negotiations are done


Correct Option: C

Counteroffer

  1. A reply to a proposed agreement for change

  2. A reply to change a proposed agreement

  3. Things each side promises to do for consideration

  4. Final agreement that negotiations are done


Correct Option: B

Acceptance is:

  1. The beginning of a contract. Someone proposes action

  2. A reply to change a proposed agreement

  3. Things each side promises to do for consideration

  4. Final agreement that negotiations are done


Correct Option: D

Mutual Agreement

  1. Know better than to commit torts, not "presumed negligent"

  2. Are not held liable as there's no need for 4-part test

  3. "Reasonable" persons that can be held accountable by law

  4. Meeting of the minds, agreeing on contract terms


Correct Option: D

Competent parties

  1. Know better than to commit torts, not "presumed negligent"

  2. Are not held liable as there's no need for 4-part test

  3. "Reasonable" persons that can be held accountable by law

  4. Meeting of the minds, agreeing on contract terms


Correct Option: C

What is a contract?

  1. Guide for behavior and imposed duties

  2. How torts are defined

  3. The document that determines liability

  4. Enforceable agreement, 2 or more parties, mutual obligations


Correct Option: D
- Hide questions