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