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 Statutory Damages.
C Compensatory Damages.
D Special Damages.
Question #2
A Rescission.
B Accord and Satisfaction.
C Substitution.
D Substantial performance.
Question #3
A Quasi Contract.
B Perfect Tender.
C Utilitarian.
D Mailbox Rule.
Question #4
A Consideration
B It does not lack any elements. It is a valid contract
C Offer
D Acceptance
Question #5
A a void contract because of the UCC.
B a voidable contract, one that Jack can void.
C a voidable contract, one that Jennifer can void.
D a void agreement because of the fraud involved.
Question #6
A Jill has no potential liability to the customer.
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 can be held personally liable to the customer since she is a partner.
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 Walter would win because of the UCC.
B Walter would win as there was no contract.
C Matt would win in quantum meruit.
D Matt would win; this is an implied contract.
Question #9
A On January 16, the contract was executed.
B There is no contract until January 27.
C This contract is a unilateral contract.
D On January 16, the contract was executory.
Question #10
A the shareholders usually restrict share transfer.
B the shares are publicly traded.
C the corporation can typically operate without a board of directors.
D minority shareholders are provided more protection than in regular corporations.
Question #11
A The contract is enforceable, but only up to the value of the water system.
B The contract is fully enforceable as written.
C The contract is unenforceable because it is unconscionable.
D The contract is unenforceable because it is exculpatory.
Question #12
A When Beth turns 18.
B Only if Mona dies before Beth’s obligation is discharged.
C If Beth pays the obligation in full under the terms of the note.
D Only if Mona pays half of the value of the note.
Question #13
A there is promissory estoppel.
B there is undue influence.
C conduct of the parties indicates they intended an agreement.
D justice demands it.
Question #14
A only one promise is involved in a bilateral contract.
B one is enforceable, the other is not.
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 Shelly would win as this is a unilateral contract.
B Jane would win as this is a voidable contract.
C The law would enforce this valid, enforceable 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 limited liability company.
D A general partnership.
Question #17
A A false prediction that a painting’s value will rise.
B A false statement that a $30,000 car attracts members of the opposite sex.
C Silence as to a toxic waste problem on real property that the buyer would not reasonable be able to find or see after investigating.
D A false statement that a used car is “the best deal in town.”
Question #18
A acceptance is deemed when dispatched.
B acceptance must mirror the offer.
C written contracts must be signed and mailed.
D acceptance is deemed when received.
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 Rachel is personally liable for any business contracts entered into by Cyndi.
D Cyndi is personally liable for any negligent act committed by Rachel in the scope of the business activity.
Question #20
A enforceable because the agreement accomplishes Ben’s goal of keeping Becky from drinking.
B enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
C not enforceable because Becky is a minor and could disaffirm the contract.
D not enforceable because Becky does not have a legal right to drink alcohol.
Question #21
A the written agreement is a full and final expression of the parties’ agreement.
B the Statute of Frauds applies.
C the contract was a full and final oral explanation of the parties’ agreement.
D the contract has been fully performed by both parties.
Question #22
A if they misrepresent their age.
B as long as they are they age of minority.
C when it provides them with necessities.
D at any time so long as the contract was created when they were a minor.
Question #23
A Legality
B Offer
C Performance
D Consideration
Question #24
A limited liability company.
B S corporation.
C corporation.
D general partnership.
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 Creditor charges 38% interest on a loan.
C Employee agrees to never work for a competing company.
D Seller is not responsible for property damage regardless of the cause of the injury.
Question #27
A Doctor and patient.
B Chief executive officer and corporation.
C Debtor and creditor.
D Husband and wife.
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 lose because he can’t use past acts to satisfy consideration.
B Walter will lose based upon the preexisting duty rule.
C Walter will win, as no consideration is required to modify an employment contract.
D Walter will win, as the promise is enforceable.
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 as full payment, the agreement is not binding.
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 The disputed amount is also known as an unliquidated amount.
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 unilateral, express contract.
B unilateral, implied contract.
C bilateral, implied contract.
D bilateral, express contract.
Question #34
A Not be able to recover the $12,000.
B 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 ensure the contract is legally enforceable.
B revoke the offer any time before acceptance.
C accept the offer any time before termination.
D provide consideration as a substitute for the offer.
Question #36
A If waxing had been discussed, Ron must wax the car before he can get paid.
B Ron is under no obligation to wax the car, even if Ron and Don had discussed the possibility.
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 Don must prove that Ron was supposed to wax the car by showing the notes he took during their negotiations.
Question #37
A FALSE
B TRUE
Question #38
A FALSE
B TRUE
Question #39
A FALSE
B TRUE
Question #40
A TRUE
B FALSE
Question #41
A FALSE
B TRUE
Question #42
A TRUE
B FALSE
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