Nj

Question 1

Why are contracts important in business?

Answer 1

The law provides a remedy to a party if the other fails to perform.

Question 2

Who has made a promise in the case of a $5,000 reward for information about a robbery?

Answer 2

Only Adams has made a promise.

Question 3

What does unjust enrichment offend?

Answer 3

It offends our ethical principles.

Question 4

What must a valid offer appear to be?

Answer 4

Must appear to be seriously intended.

Question 5

What is required for a valid contract?

Answer 5

An offer and an acceptance.

Question 6

What must happen for an offer to be accepted?

Answer 6

The acceptance must be communicated to the person making the offer.

Question 7

When does a revocation of an offer occur?

Answer 7

The revocation is communicated to the offeree prior to acceptance.

Question 8

What varies with each case when no time is specified in the offer?

Answer 8

The reasonable time an offer is open.

Question 9

When is a sales letter considered an offer?

Answer 9

It is a personal sales letter containing an offer.

Question 10

How can an offer be accepted?

Answer 10

By putting a properly mailed acceptance in a mailbox.

Question 11

What happens if an intended acceptance varies the offer?

Answer 11

It is a rejection of the original offer.

Question 12

When does a promise to pay part of a debt constitute consideration for cancellation of the entire debt?

Answer 12

If the amount of the debt is in dispute.

Question 13

When is a new contract replacing an old one enforceable?

Answer 13

If features are added that benefit both parties.

Question 14

When is refraining from doing something valid consideration?

Answer 14

When the act refrained from is something the promisor has a right to do.

Question 15

Is partial payment of a past-due debt consideration for the cancellation of the balance of the debt?

Answer 15

No, it is not consideration.

Question 16

Is the agreement of Agnes to give $1,000 to her college enforceable?

Answer 16

Yes, it is enforceable without consideration.

Question 17

What does the doctrine of promissory estoppel require?

Answer 17

It requires the promisor to reasonably expect the promise to induce action by the promisee.

Question 18

What does a mutual mistake concerning a material fact do to a contract?

Answer 18

Makes the contract unenforceable.

Question 19

What applies when the contract specifies what is to happen in the case of a mistake?

Answer 19

The contract provision applies even if the law would be otherwise.

Question 20

When does a mutual mistake make a contract defective?

Answer 20

When enforcing the contract would cause a harsh result.

Question 21

What is required to establish fraud to invalidate a contract?

Answer 21

A false statement could be made recklessly rather than intentionally.

Question 22

When would a contract be invalid as a result of duress?

Answer 22

If one party to a contract threatened to harm the other party’s child.

Question 23

Does a mutual mistake as to value, quality, or price affect the validity of a contract?

Answer 23

No, it does not affect the validity.

Question 24

What can the injured party do when a contract is voidable?

Answer 24

The injured party may sue to have it declared void.

Question 25

What can the innocent party do if a contract is entered into as a result of fraud, duress, or undue influence?

Answer 25

May ratify the contract by some act or word indicating an intention to be bound.

Question 26

What is the status of a contract that is not for a lawful purpose?

Answer 26

It is normally void.

Question 27

What will the courts generally do with private gambling contracts?

Answer 27

Generally leave the parties where it finds them.

Question 28

What happens if a person operates a business without the required license?

Answer 28

May not be competent to operate the business or profession.

Question 29

What is considered an unreasonable restraint of trade?

Answer 29

To contract to limit production to reduce supply.

Question 30

What is contrary to public policy in terms of marriage?

Answer 30

A contract that limits the freedom of marriage.

Question 31

What is NOT considered injuring the public service?

Answer 31

To agree to appear before a public authority to oppose passage of a bill.

Question 32

What is an example of a warranty?

Answer 32

The 'Cheesier' pizza has a pound of cheese.

Question 33

What warranty do all sellers make?

Answer 33

Warranty of title.

Question 34

What do full warranties permit?

Answer 34

Permit a refund or replacement if the product contains a defect after reasonable attempts to remedy it.

Question 35

What can parties to a sales contract do regarding warranties?

Answer 35

They can orally agree to exclude warranties if the provision is not unconscionable.

Question 36

Who makes the warranty against encumbrances?

Answer 36

All sellers.

Question 37

What power does the Consumer Product Safety Commission have?

Answer 37

Has broad power to promulgate safety standards for many products.

Question 38

How long does a valid stop payment order on a check bind a bank if the order is oral?

Answer 38

Binds a bank for six months.

Question 39

What must a draft be payable in?

Answer 39

Must be payable in the United States.

Question 40

What is a check?

Answer 40

A special type of draft which is drawn on a bank and payable on demand.

Question 41

What may happen with a postdated check?

Answer 41

May be paid by the bank before its date.

Question 42

What are among the duties a bank owes its customer?

Answer 42

To maintain secrecy regarding information acquired by it in connection with the depositor-bank relationship.

Question 43

Does the law presume that all parties have the legal competence to contract?

Answer 43

Yes.

Question 44

Must a minor always disaffirm a voidable contract during minority or within a reasonable time after becoming of age?

Answer 44

No.

Question 45

Is the age in which a person is considered a minor the same in all states?

Answer 45

No.

Question 46

May a minor ratify a contract at any time?

Answer 46

No.

Question 47

If a person on drugs cannot understand the meaning of the contract, what does that make the contract?

Answer 47

It makes the contract voidable.

Question 48

According to most courts, is a loan to enable a person to gamble a gambling debt?

Answer 48

No.

Question 49

Are most violators of Sunday acts rarely prosecuted?

Answer 49

Yes.

Question 50

Is an agreement not to prosecute a thief if stolen goods are returned void?

Answer 50

Yes.

Question 51

What is one of the advantages of a written contract?

Answer 51

Its existence cannot be denied.

Question 52

Is an oral contract to sell mineral rights enforceable?

Answer 52

No.

Question 53

Must the note or memorandum required by the Statute of Frauds always set forth all the material terms of the transaction?

Answer 53

No.

Question 54

Is a note actually a type of draft?

Answer 54

No.

Question 55

Is order paper negotiated merely by handing the paper to another person?

Answer 55

No.

Question 56

Does the law require a person to accept a negotiable instrument in payment of a debt?

Answer 56

No.

Question 57

Are banks required to supply legible copies of checks at a customer's request for seven years?

Answer 57

Yes.

Question 58

Can an unsigned instrument be negotiable?

Answer 58

No.

Question 59

May a note still be negotiable when the amount in words on the instrument calls for a different amount than the figures?

Answer 59

No.

Question 60

Is an instrument payable in gold bullion negotiable?

Answer 60

No.

Question 61

Can a check that reads, 'Pay to Jones' be negotiable?

Answer 61

Yes.

Question 62

If no time is specified, is commercial paper payable on demand?

Answer 62

Yes.

Question 63

Is order paper negotiated as soon as it is indorsed by the person to whom it is then payable?

Answer 63

No.

Question 64

May an instrument be signed by an agent?

Answer 64

Yes.

Question 65

Does a restrictive indorsement prohibit further negotiation of an instrument?

Answer 65

No.

Question 66

If an instrument is payable to 'Betty or Bob Jones', must both Betty and Bob indorse it to negotiate it?

Answer 66

No.

Question 67

Whenever a negotiable instrument has multiple payees, must all of them indorse it if the word 'and' is not between them?

Answer 67

No.

Question 68

Does the law require that an indorsement on a check be on the back and within one and a half inches of the trailing edge?

Answer 68

No.

Question 69

Does return of a check lacking a proper indorsement constitute dishonor?

Answer 69

No.

Question 70

May notice of dishonor be given by any commercially reasonable means?

Answer 70

Yes.