1 Which of the following examples is a bilateral contract? Mary pays Bob for Bob’s promise to paint her house on Saturday. Bob paints Mary’s house and Mary promises to pay Bob on Saturday. Mary pays Bob for painting her house. Mary promises to pay Bob if Bob promises to paint her house. 2 Parties enter into a contract for services and one party commits a breach. The party who breached wants to continue with the contract but wants the terms revised. What is his best method of dispute resolution? Arbitration Negotiation Mediation Med-Arb 3 To create an enforceable contract, which of the following are needed? Agreement, consideration, contractual capacity, and a lawful object Offerer, offeree, agreement, and capacity Agreement, consideration, objectives, and contractual capacity Offerer, acceptance, agreement, and consideration • 4 Which of the following is true when someone mistakenly makes an improvement to the personal property of another? The property owner automatically gets to keep all of the improvement and is not required to pay for it. The party who made the improvement can remove it if this is possible; otherwise, the owner of the property must keep the improvement and must pay the party who improved it the reasonable value of the improvement. The party who made the improvement must remove all easily removable improvements, paying any damages from the removal, otherwise the owner of the property gets to keep the improvement and is not required to pay for it. The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement. 5 An individual who finds the personal property of another, acquires legal title to that property against the entire world, only if it is what type of personal property? Stolen property Mislaid property Lost property Abandoned property 6 Wildboards Company introduces a product called a “Rollerboard” for which it is granted a registered trademark. The Rollerboard is a snowboard with a removable row of wheels along the center of the underside. With the wheels attached, the user can attain extremely high speed in hard-packed snow conditions. In addition, many users have found that they can use their snowboards on streets with the wheels attached. This new use of snowboards becomes very popular and many competing snowboard makers introduce similar products. The sport becomes known generally as rollerboarding and most people refer to all such wheeled snowboards as rollerboards. What is the consequence of this scenario? Wildboards can no longer use the name Rollerboard on its boards. Competitors must pay royalties to Wildboards for using the term “rollerboard”. Competitors must put a disclaimer on their boards that they are not the original Rollerboard. Wildboards cannot stop competitors from using the term “rollerboard” for their products. 7 Consideration, which is required in a contract, consists of which two elements? Legal value is appropriate and the value is paid. Money must be received and a promise fulfilled Legal value must be given and there must be a bargained-for exchange Money must be paid and funds received. o Incorrect • 8 Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1,000 for shoveling the snow from his driveway throughout the winter. Jenson, who was paid before work commenced, breached the contract on the very first day. He should refund $1,000 to Johnson as liquidated damages consequential damages compensatory damages restitution 9 A(n) ________ is an agreement that is stated orally or in written words. implied-in-fact contract quasi-contract implied-in-law contract express contract 10 Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no actual conract exists? The doctrine of implied-in-law contract The doctrine of formal contracts The doctrine of Quantum meruit The express contract doctrine • 11 Apart from recovering damages, and recovering profits made by the offender, successful plaintiffs in a misappropriation of a trade secret case can also ask to acquire the offender’s trade secrets as payoff obtain an injunction prohibiting the offender from divulging the trade secret obtain the offender’s trademarks or brand name as payoff ask for transfer of any of the offender’s patents to the plaintiff 12 What federal statute governs the legal use of electronic contracts? Uniform Commercial Code Federal Enforcement Act Uniform Computer Information Transactions Act Federal Banking Act of 2010 13 Some trees were cut down and made into lumber, and the lumber was used to build a house. What type of property were the trees while they were growing, when they were lumber, and when they became part of the house, respectively? Real, personal, real Real, real, personal Personal, personal, real Personal, real, real 14 Oral agreements may be legally enforceable contracts with the exception of some types of contracts specified in which law? Statute of Frauds Statute of Limitations Common Law Statute Statute of Verbal Contracts 15 Contracts are discussed primarily in Sections 2 and 2A of the Uniform Commercial Code pertaining to which of the following transactions? Financing of consumer goods Sale of real property Sale of commercial goods Sale of goods and lease of goods 16 Which of the following is true about the public use doctrine? A patent will not be granted if the invention was already in public use for one year before filing application The invention will come into the public domain once its term period has expired An invention cannot be used in the public domain prior to it being granted a patent The inventor has to test his invention in the public domain, to measure its validity, before being granted a patent 17 Which of the following is the best definition for the legal term promissory estoppels? A promise made in a contract must be an express promise in order to be valid A party to a contract cannot promise to provide illegal consideration A party to a contract cannot withdraw a promise if the other party to the contract relied upon the promise to his or her detriment A gift promise made in an estate is valid and legal 18 Which of the two parties are involved in every contract? A breaching party and a nonbreaching party An offeror and offeree An initiator and a responder A buyer and seller 19 In order for a response to be considered a legal acceptance to an offer, and not a counter offer, what rule must apply? The voluntary performance rule The public law rule The lapse of time rule The mirror image rule 20 Which of the following types of real property rights can be sold separately from the land? Building fixtures on the land Improvements under the land Minerals in the subsurface Buildings and improvements on the land 21 Both the Statute of Frauds and the Uniform Commercial Code require a valid, enforceable contract to be signed by whom? All parties to the contract None of the parties to the contract Party enforcing the contract Party against whom the contract enforcement is sought 22 If a contract ends in a dispute, and the parties want to have the matter resolved without going to court, which is the most common method for them to pursue? Discovery Minitrial Arbitration Mediation 23 What is the highest type of ownership estate in real property? Freehold estate Fee simple absolute estate Leasehold estate Life estate 24 Which of the following examples is a unilateral contract? Debbie pays Larry for Larry’s promise to paint her house on Saturday. Debbie pays Larry for painting her house. Debbie promises to pay Larry when Larry paints her house. Larry promises to paint Debbie’s house if Debbie promises to pay him. 25 Under Section 2 of the Uniform Commercial Code (UCC), a contract for the sale of goods must be written if that contract is for what monetary value? $100 or more $250 or more $1,000 or more $500 or more • 25 Contracts are discussed primarily in Sections 2 and 2A of the Uniform Commercial Code pertaining to which of the following transactions? Sale of goods and lease of goods Financing of consumer goods Sale of commercial goods Sale of real property
