Liberty University BUSI 301 Quiz 2 Exam correct answers over 300 questions

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Liberty University BUSI 301 Quiz 2 Exam correct answers over 300 questions.Ally, a minor, purchases a car from a used-car dealer. The law allows minors the right to cancel a contract until the time the minor turns18. The contract between Ally andthe dealer is:ABC Land Co. is negotiating the sale of an office building to Mega Co. Which laws will govern the contract for the sale of the building?Offers that the offeree partly performed or detrimentally relied on are:If the offer specifies no time limit in which to accept:Generally, courts do enforce a strict compliance standard for contract conditions.Incidental beneficiaries are known about when the contract is entered into.Just as in common law, the UCC recognizes the concept of anticipatory repudiation, allowing a breach to be declared prior toperformance being due.In a shipping contract, the risk of loss passes to the buyer when:What is the test to determine whether an entity has monopoly power?Proof of a seller's economic power in the market is necessary to prove an antitrust violation under the Clayton Act A promisethat can beaccepted only by the performance of the person to whom it is offered is an example of:A unilateral contract is a promise that can be accepted only by performance.Most contracts require a specific format or ceremony.Most contracts, while they require evidence that the elements are met, do not require a specific format or ceremony.The mailbox rule provides that the acceptance of an offer is generally effective upon receipt of the acceptance when sent inacommercially reasonable manner.Acceptance of an offer is generally effective upondispatchof the acceptance when sent in a commercially reasonable manner.Which of the following promises ordinarily need not be in writing to be enforceable?A contract with a personal trainer is for services and is not covered under the statute of frauds.Which of the following involves a third-party substitution?In a novation a third party substitutes for one of the original contracting parties.When an assignment is made, the assignee has the right to reform the contract and change the obligor's rights and duties as theassignee wishes.The assignment is invalid if the contract is materially altered such that the obligor's duties are increased and additional burdens or risksare created.UCC gap fillers will not be used and are not applicable to contracts when the contract clearly specifies a contract term or condition.If the parties clearly state their terms andconditions, the UCC need not fill in gaps to make the contract enforceable.The UCC permits a contract to be considered formed entirely by the parties' conduct even if no definite time of formation canbedetermined.The UCC lowers the bar for formation of contracts by allowing an enforceable contract to arise in any sufficient manner, suchasexamining the parties' conduct.An entity's share of the relevant market is used to determine whether the entity has a monopoly.The Sherman Act does not prevent an entity from becoming a monopoly.It outlaws affirmative action toward monopolizing. A naturally created monopoly does not violate the law.Aimee goes online and orders a pair of jeans, three T-shirts, and a pair of boots. This is an example of:This is an example of a divisible contract because it can be broken into independent parts and each part is able to stand alone.A unilateral contract is formed by an exchange of promises.A bilateral contract is formed by an exchange of promises.Larry has had a few beers and is starting to get a bit drunk. He isn't acting strange, and in conducting conversations with others he'sslurring only an occasional word or two. Larry, should he enter into a contract in this condition, would be considered mentallyincompetent and his contract would be void.Larry is not unable to understand or unable to act in a reasonable manner, so his contract would likely be valid or, at most,voidable.An offer may be terminated in all but which of the following ways?An offer may be terminated by action of the parties in one of three ways: (1) revocation, in which the offeror withdraws theoffer prior toacceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, in which the offeree rejects the original offer andproposes a new offer with different terms. Offers may also be terminated by operation of law.In a delegation situation, the nondelegating party is called the:When an accord and satisfaction is agreed to, the original obligation subject to the accord is immediately discharged.The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is:InAmerican Needle Inc.v. National Football League,the 32 football teams were treated as a single entity because they belong to thesame sports league.The court order for Microsoft to break apart into multiple entities inU.S. v. Microsoftwas overturned on appeal.Unjust enrichment is a theory used to impose an obligation in the absence of an actual agreement.Divisible contracts are often referred to as severable contracts in many states.Jon owns two cars. He says to Rachel, "I'll sell you either car for $8,000." This is a valid offer.Each of the following is a discharge by mutual consent except:Frustration of purpose discharges a contract by operation of law.A party to a contract may be discharged from performance due to operation of law if the other party unilaterally alters the contract.UCC risk of loss provisions will govern the terms of a contract even if the parties have specified risk allocation in the contract.The test for determining a monopoly under the Sherman Act is the entity's share of the relative market.There is a bright-line test for determining the amount of market sharenecessary to be considered a monopoly.Mike is walking through a parking lot and finds Kathy lying unconscious. He puts her in his car and takes her to the hospital. Thehospital saves her life, and when she becomes conscious, it presents her with a bill.Real estate deeds and mortgages that require a seal to be enforceable are considered:The termoptioncontractrefers to the choices that one has when entering into a contract.On February 1, Frank's Fedora Manufacturers sends an offer to Metropolitan Outfitters by letter with all price, quality, quantity, anddelivery terms clearly stated, indicating that the offer will remain open until October 1. On September 1 Metropolitan sendsanacceptance of the offer to Frank's with no material alterations to any of the stated terms in the offer. The acceptance makesthe contractvalid and enforceable.Your cousin, who is a CPA, calls you and says that a client paid him in diamonds and he's selling them. If you purchase one of thosediamonds, at the time of the sale your cousin would be considered a merchant of those diamonds.The per se standard applies to nonprice vertical restraints.The courts use the rule of reason standard.Which act does the Robinson-Patman Act amend?

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An offer of a reward, if it is fulfilled, forms:All of the following are necessary elements of a contract except:Which of the following is not required for promissory estoppel to apply?Bud calls Lou and says, "I'll sell you my car for a thousand bucks, interested?" Lou says, "I'll look it up on the Internet.If the Blue Bookprice is close, I'll pay you $1,000 in the morning." At sunrise Lou shows up with $1000.In which of the following scenarios would enforcement of specific performance be appropriate?If a seller has delivered nonconforming goods that have been rejected, upon notice of an intent to cure, the seller automatically then has15 days to deliver conforming goods.Absent specific agreements between the parties, the reasonableness requirement of the UCC governing delivery of goods requireseach of the following except:Circumstantial evidence is not enough to show a meeting of the minds.The Clayton Act was enacted to limit the provisions of the Sherman Act.Any meeting of the minds resulting in mutual assent to do or refrain from doing something is called a contract.Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend,agreed to pay the loan should Amanda default. Ted's promise is enforceable as long as he goes to the bank, declares his promise toguarantee Amanda's loan in front of witnesses, and shakes hands on the deal, giving his word.An option contract is a contract that gives one of the parties a choice of consideration to accept.When a party breaches a contract, the nonbreaching party always has the option of seeking legal or equitable remedies.An anticipatory repudiation is allowed when a party has verifiable knowledge that the other party will not or cannot perform.Courts donot permit speculation or mere supposition to support an anticipatory repudiation.Beth has a contract with Annie in which Annie is to deliver 1,000 hand-decorated beverage holders in 60 days. When Beth calls thePsychic Hotline for her weekly reading, the psychic informs her that she has entered into a contract and the other party willnot performall the conditions and specifications in accordance with the agreement. Beth may sue for an anticipatory repudiation.Shovels R Us sends a purchase order to Acme Snow Shovel Inc., for 500 shovels to be delivered by September 30, 2014, in timeforthe winter season. Acme returns an acknowledgment form indicating that the shovels will be delivered on March 1, 2015. Theacknowledgment letter forms a valid contract.Which economist/philosopher is cited in support of frequent meetings being circumstantial evidence of anticompetitive collusion?The U.S. Supreme Court held that the Sherman Act applies to commercial agreements in which the parties acted in ________ manner.Expresscontracts arise from the parties' conduct.In general, contracts for the sale of goods are governed by:Contractual consideration is defined as the thought process a party uses to decide whether or not to accept the offer and enter into acontract.In an assignment or delegation, any third-party rights or duties occur after the contract is formed.InMerchants Acceptance Inc., v. Jamison,Jamison ordered encyclopedias and the contract specified that delivery was to be made toJamison's home. Instead, the encyclopedias were delivered to her post office box and she never received them. She refuses topay forthem and is sued.Normally, the buyer's offer in a commercial transaction takes the form of:Price-fixing is a clear example of a per se violation.Antitrust legislation was enacted in response to the robber barons of the late 19thcentury.An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is:Void contracts are seemingly valid contracts that one party has the right to declare void.InLeonardv.PepsiCoInc.,the court ruled against Leonard and refused to enforce the purchase of a Harrier jet because:With regard to the court, adequacy of consideration means:Patios R Us contracts with Karl's Concrete to have 35 yards of concrete delivered to a job site it is working on. Payment isto be made30 days after delivery. Five days after the concrete is delivered, Patios R Us files for bankruptcy and the filing is accepted by the court.Karl's cannot sue to enforce the contract and receive payment.When a party successfully sues for an equitable remedy for a breach of contract, that party does not receive a monetary award.The 2003 revisions to the UCC have been adopted by only about half of the states.Adam Smith's book,The Wealth of Nations,is a source of support for some elements of antitrust law.Horizontal restraints are agreements between:1.value:10.00 pointsAlly, a minor, purchases a car from a used-car dealer. The law allows minors the right tocancel a contract untilthe time the minor turns 18. The contract between Ally and the dealer is:a voidable contract.a void contract.an unenforceable contract.a valid contract.2.value:10.00 points

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ABC Land Co. is negotiating thesale of an office building to Mega Co. Which laws will govern the contract for thesale of the building?state statutory law based on the Uniform Commercial Codestate common lawthe Uniform Commercial Codehybrid laws3.value:10.00pointsOffers that the offeree partly performed or detrimentally relied on are:revocable offers.irrevocable offers.option offers.firm offers.4.value:10.00 pointsIf the offer specifies no time limit in which to accept:theofferee has 10 days to accept.the offeree has an unlimited time to accept as long as a revocation has not been made.the offeree has a reasonable time to accept.the offeree has 30 days to accept.5.value:10.00 pointsGenerally,courts do enforce a strict compliance standard for contract conditions.TrueFalse6.value:10.00 pointsIncidental beneficiaries are known about when the contract is entered into.True

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False7.value:10.00 pointsJust as in commonlaw, the UCC recognizes the concept of anticipatory repudiation, allowing a breach to bedeclared prior to performance being due.TrueFalse8.value:10.00 pointsIn a shipping contract, the risk of loss passes to the buyer when:the goodsare delivered to the buyer.the goods are en route and at least halfway to the buyer.the contract is signed or finalized.the goods are delivered to the carrier.9.value:10.00 pointsWhat is the test to determine whether an entity hasmonopoly power?vertical integration testbright-line testshare of the relevant marketrule of reason10.value:10.00 pointsProof of a seller's economic power in the market is necessary to prove an antitrust violation under theClayton Act.TrueFalse1.award:10 out of10.00 pointsA promise that can be accepted only by the performance of the person to whom it is offered is an example of:

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a unilateral contract.a quasi-contract.an implied contract.abilateral contract.A unilateral contract is a promise that can be accepted only by performance.2.award:10 out of10.00 pointsMost contracts require a specific format or ceremony.TrueFalseMost contracts, while they requireevidence that the elements are met, do not require a specific format orceremony.3.award:0 out of10.00 pointsThe mailbox rule provides that the acceptance of an offer is generally effective upon receipt of the acceptancewhen sent in acommercially reasonable manner.TrueFalseAcceptance of an offer is generally effective upondispatchof the acceptance when sent in a commerciallyreasonable manner..award:10 out of10.00 pointsWhich of the following promisesordinarily need not be in writing to be enforceable?promises made as a part of a prenuptial agreementa $1,000 agreement with a personal trainer for 10 sessionsa lease of a warehouse for 24 monthsan agreement to sell a car for $1,500Acontract with a personal trainer is for services and is not covered under the statute of frauds.5.award:10 out of10.00 points

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Which of the following involves a third-party substitution?novationaccord and satisfactionrescissionsubstitute agreement/modificationIn a novation a third party substitutes for one of the original contracting parties.6.award:10 out of10.00 pointsWhen an assignment is made, the assignee has the right to reform the contract and change theobligor's rightsand duties as the assignee wishes.TrueFalseThe assignment is invalid if the contract is materially altered such that the obligor's duties are increased andadditional burdens or risks are created.7.award:10 out of10.00pointsUCC gap fillers will not be used and are not applicable to contracts when the contract clearly specifies a contractterm or condition.TrueFalseIf the parties clearly state their terms and conditions, the UCC need not fill in gaps tomake the contractenforceable.8.award:10 out of10.00 pointsThe UCC permits a contract to be considered formed entirely by the parties' conduct even if no definite time offormation can be determined.TrueFalseThe UCC lowers the bar forformation of contracts by allowing an enforceable contract to arise in any sufficientmanner, such as examining the parties' conduct.9.

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award:10 out of10.00 pointsWhat is the test to determine whether an entity has monopoly power?rule ofreasonshare of the relevant marketvertical integration testbright-line testAn entity's share of the relevant market is used to determine whether the entity has a monopoly.10.award:0 out of10.00 pointsThe Sherman Act does notprevent an entity from becoming a monopoly.TrueFalseIt outlaws affirmative action toward monopolizing. A naturally created monopoly does not violate the law.1.award:10 out of10.00 pointsAimee goes online and orders a pair ofjeans, three T-shirts, and a pair of boots. This is an example of:a formal contract.a quasi-contract.a divisible contract.an entire contract.This is an example of a divisible contract because it can be broken into independent parts andeach part is ableto stand alone.2.award:10 out of10.00 pointsA unilateral contract is formed by an exchange of promises.True

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FalseA bilateral contract is formed by an exchange of promises.3.award:10 out of10.00 pointsLarryhas had a few beers and is starting to get a bit drunk. He isn't acting strange, and in conductingconversations with others he's slurring only an occasional word or two. Larry, should he enter into a contract inthis condition, would be considered mentally incompetent and his contract would be void.TrueFalseLarry is not unable to understand or unable to act in a reasonable manner, so his contract would likely be valid or,at most, voidable.4.award:10 out of10.00 pointsAn offer may beterminated in all but which of the following ways?counterofferacceptancerejectionrevocationAn offer may be terminated by action of the parties in one of three ways: (1) revocation, in which the offerorwithdraws the offer prior toacceptance; (2) rejection, in which the offeree rejects the offer; and (3) counteroffer, inwhich the offeree rejects the original offer and proposes a new offer with different terms. Offers may also beterminated by operation of law.5.award:10 out of10.00 pointsIn a delegation situation, the nondelegating party is called the:delegator.delegate.obligee.obligor.In a delegation situation, the nondelegating party is called the obligee.6.

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award:10 out of10.00 pointsWhen anaccord and satisfaction is agreed to, the original obligation subject to the accord is immediatelydischarged.TrueFalseThe original obligation is not discharged until the terms of the accord are performed.7.award:10 out of10.00 pointsJust as in common law, the UCC recognizes the concept of anticipatory repudiation, allowing a breach to bedeclared prior to performance being due.TrueFalseWith appropriate evidence, the UCC recognizes the concept of anticipatoryrepudiation.8.award:10 out of10.00 pointsThe International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer andnot delivered is:FAS.FOB.FCA.EXW.The International Chamber of Commerceabbreviation indicating that goods are to be picked up by the buyer andnot delivered is EXW.9.award:0 out of10.00 pointsInAmerican Needle Inc.v. National Football League,the 32 football teams were treated as a single entitybecause theybelong to the same sports league.TrueFalseThe 32 teams were each treated as a separate entity.

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10.award:10 out of10.00 pointsThe court order for Microsoft to break apart into multiple entities inU.S. v. Microsoftwas overturned onappeal.TrueFalseThe appellate court overturned the district court's determination.1.award:10 out of10.00 pointsUnjust enrichment is a theory used to impose an obligation in the absence of an actual agreement.TrueFalseUnjust enrichment is a quasi-contract theory of recovery designed to prevent injustice when there is noenforceable agreement between the parties.2.award:10 out of10.00 pointsDivisible contracts are often referred to as severablecontracts in many states.TrueFalseIn many states, severable contracts have the same meaning as divisible contracts.3.award:10 out of10.00 pointsLarry has had a few beers and is starting to get a bit drunk. He isn't actingstrange, and in conductingconversations with others he's slurring only an occasional word or two. Larry, should he enter into a contract inthis condition, would be considered mentally incompetent and his contract would be void.TrueFalseLarry is not unable to understand or unable to act in a reasonable manner, so his contract would likely be valid or,at most, voidable.4.

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award:10 out of10.00 pointsJon owns two cars. He says to Rachel, "I'll sell you either car for $8,000." This is a valid offer.TrueFalseThis is not an insufficient or vague offer because the acceptance would specify which car is being contracted for.5.award:10 out of10.00 pointsEach of the following is a discharge by mutual consent except:accord and satisfaction.novation.rescission.frustration of purpose.Frustration of purpose discharges a contract by operation of law.6.award:10 out of10.00 pointsA party to a contract may be discharged from performance due tooperation of law if the other party unilaterallyalters the contract.TrueFalseWhen a party unilaterally alters a contract, the innocent party may be discharged from performance by operationof law.7.award:10 out of10.00 pointsJust asin common law, the UCC recognizes the concept of anticipatory repudiation, allowing a breach to bedeclared prior to performance being due.TrueFalseWith appropriate evidence, the UCC recognizes the concept of anticipatory repudiation.8.

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award:10 out of10.00 pointsUCC risk of loss provisions will govern the terms of a contract even if the parties have specified risk allocation inthe contract.TrueFalseIf the parties have specified risk allocation in the contract, UCCrisk of loss provisions will not be applicable.9.award:10 out of10.00 pointsThe test for determining a monopoly under the Sherman Act is the entity's share of the relative market.TrueFalseThis is the standard used under theSherman Act.10.award:10 out of10.00 pointsThere is a bright-line test for determining the amount of market share necessary to be considered a monopoly.TrueFalseThere is no test for determining the amount of necessary market share.Courts have held a variety ofpercentages as the necessary amount.1.award:10 out of10.00 pointsMike is walking through a parking lot and finds Kathy lying unconscious. He puts her in his car and takes her tothe hospital. The hospital saves herlife, and when she becomes conscious, it presents her with a bill.Kathy has to pay based on a unilateral contract.Kathy has to pay based on an implied contract.Kathy has to pay based on a quasi-contract.Mike has to pay because hebrought her to the hospital.Kathy would be unjustly enriched, so a quasi-contract would be formed to lessen the hospital's damages.2.

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award:10 out of10.00 pointsReal estate deeds and mortgages that require a seal to be enforceable areconsidered:implied contracts.quasi-contracts.formal contracts.informal contracts.Formal contracts entail specific requirements of construction, such as requiring a seal. Real estate documentssuch as deeds and mortgages require a sealto be enforceable under state laws.2.award:10 out of10.00 pointsReal estate deeds and mortgages that require a seal to be enforceable are considered:implied contracts.quasi-contracts.formal contracts.informal contracts.Formal contracts entail specific requirements of construction, such as requiring a seal. Real estate documentssuch as deeds and mortgages require a seal to be enforceable under state laws.4.award:0 out of10.00 pointsThe termoptioncontractrefers to the choices that one has when entering into a contract.TrueFalseAn option contract is an enforceable agreement to keep an offer open for a specified period of time.5.award:10 out of10.00 pointsWhen anassignment is made, the assignee has the right to reform the contract and change the obligor's rightsand duties as the assignee wishes.TrueFalse

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The assignment is invalid if the contract is materially altered such that the obligor's duties areincreased andadditional burdens or risks are created.6.award:10 out of10.00 pointsIn a delegation situation, the nondelegating party is called the:obligee.obligor.delegate.delegator.In a delegation situation, the nondelegating party is called the obligee.7.award:10 out of10.00 pointsOn February 1, Frank's Fedora Manufacturers sends an offer to Metropolitan Outfitters by letter with all price,quality, quantity, anddelivery terms clearly stated, indicating that the offer will remain open until October 1. OnSeptember 1 Metropolitan sends an acceptance of the offer to Frank's with no material alterations to any of thestated terms in the offer. The acceptance makes the contract valid and enforceable.TrueFalseFirm offers may be for only three months before they expire. Here, the firm offer indicated a 10-month span andthe offer was accepted in the seventh month. There is no contract.8.award:10 out of10.00 pointsYour cousin, who is a CPA, calls you and says that a client paid him in diamonds and he's selling them. If youpurchase one of those diamonds, at the time of the sale your cousin would be considered a merchant of thosediamonds.TrueFalseA merchant is one that is regularly engaged in the sale of a particular good. Your cousin is not a merchantbecause he doesn't regularly sell diamonds or other jewels.9.award:10 out of10.00 pointsThe per se standard applies tononprice vertical restraints.

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TrueFalseThe courts use the rule of reason standard.10.award:10 out of10.00 pointsWhich act does the Robinson-Patman Act amend?McCarthy ActSherman ActHart-Scott-Rodino ActClayton ActTheRobinson-Patman Act amends the Clayton Act.If a seller has delivered nonconforming goods that have been rejected1.award:10 out of10.00 pointsAn offer of a reward, if it is fulfilled, forms:an express contract.aquasi-contract.a unilateral contract.a bilateral contract.A reward offer creates a unilateral contract because it involves a promise to pay a reward that requiresperformance.2.award:10 out of10.00 pointsAll of the following arenecessary elements of a contract except:consideration.mutual assent.capacity.writing.

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