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