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Mar 23

1. Question

Smalltown is a small municipality within the state of
Florida. Smalltown derives its lawful authority from:

the U.S. Constitution.

its charter.

the state of Florida.

all of the above.

Question 2. Question

An acceptance occurs when:

a particular form of words is stated to the

a particular mode of expression is made to the

offeree reserves the right to reject the offer.

a clear expression of acceptance occurs.

Question 3. Question

Adam speaks with Sally on the telephone about purchasing a
soda machine for $200 and makes notes about the model number, the price, and
the delivery date. Sally also makes notes. Adam agrees to take delivery. They

contract until these terms are in writing.

an implied in fact contract.

an express contract.

none of the above.

Question 4. Question

A merchant cannot revoke a firm offer to buy or sell goods
if the merchant has clearly:

promised to keep the offer open.

declared in the presence of two or more
reputable witnesses that the offer will be kept open.

received consideration to keep the offer open.

stated in a signed letter that the offer would
not be revoked.

Question 5. Question

Farida tells Jose that her boss, Marco, takes illegal drugs
at the office. Marco does not take illegal drugs.

This is slander whether it is true or not.

This is slander only because it is untrue.

This is an intentional tort.

This is malice.

Question 6. Question

Ralph Travelor, a U.S. businessperson, owns a gold mine in Brazil.
The government of Brazil seizes the mine and asserts that his previous profits
are just compensation.

Under the act of state doctrine, Ralph may
have little or no protection against the loss of his property.

Ralph will be protected under the act of state

Brazil will not be protected under the
doctrine of sovereign immunity.

None of the above.

Question 7. Question

The supremacy clause within the U.S Constitution:

establishes the Constitution as the only law
of the land.

establishes the Constitution as the supreme
law of the land.

establishes the Constitution and the treaties
of the U.S. as the supreme law of the land.

none of the above.

Question 8. Question

A portable trailer is an example of:

real property.

personal property.

subsurface property right.

none of the above.

Question 9. Question

The Parole Evidence Rule:

prohibits the introduction at trial of
evidence of the parties’ prior negotiations, prior agreements, or
contemporaneous oral agreements if that evidence contradicts or varies the
parties’ written contract.

provides an exception for evidence of
subsequent modification.

provides an exception for oral evidence that
shows that the contract is voidable or void.

all of the above.

Question 10. Question

The willingness of an offeror to enter into a contractual
agreement is a(n):

Student Answer: CORRECT offer.


INCORRECT contract.


Question 11. Question

If a liquidated-damages clause is unreasonably high, the
clause will be held to be void as a(n):


unliquidated damages clause.


both A and C.

Question 12. Question

An agreement is not binding when:

one party makes a mistake regarding a material

both parties make a mistake regarding a
material fact.

one party makes a mistake of law.

both parties make a mistake of law.

Question 13. Question

Sally agrees to buy Will’s motorcycle for $300.00. This is

Student Answer: unilateral
contract since it is only one motorcycle.

CORRECT bilateral contract.

unilateral contract since it is only one

any of the above.

Question 14. Question

If an offeree accepts an offer before it is revoked:

a void contract is formed.

a voidable contract is formed.

an unenforceable contract is formed.

a valid
contract is formed.

Question 15. Question

In which of these cases is a contract between Y and Z

Y makes a mistake of material fact.

Y and Z make the same mistake of material

Y recklessly but honestly misrepresents a
material fact.

Y innocently misrepresents a material fact.

Question 16. Question

The Parole Evidence Rule:

allows no exception for oral evidence.

may prohibit the introduction of oral

never provides for a modification of a written

all of the above.

Question 17. Question

Damages in case of default that are specified in a contract
are called:

nominal damages.

contract damages.

liquidated damages.

breach payments.

Question 18. Question

Statutes of limitations apply, for the most part, to:

both criminal and civil wrongs.

criminal wrongs only.

civil wrongs only.

none of the above.

Question 19. Question

Under the Uniform Commercial Code (UCC), a firm offer
applies to:

a written signed offer by a merchant to buy or
sell goods.

an unwritten but definite offer to buy or sell

a written signed offer, by anyone, to buy or
sell goods.

an unlimited stipulated period of time.

Question 20. Question

Steve says to Sarah, “If you mow my lawn each week, I
will pay you $300 a month.” Sarah mows the lawn each week for a month. A
court would most likely:

uphold the unilateral contract and order Steve
to pay $300.00.

find Sarah in breach of the contract.

conclude that no contract exists.

none of the above.



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