Ashford University BUS 311 Week 2 Quiz

1. Question : The party to whom a promise is made in the making of a contract is known as:

Student Answer: guarantor

promisee

underwriter

promisor
2. Question : In the case of a contract between a minor and a competent person, who has the privilege of disaffirmance?

Student Answer: neither the minor nor the competent person

only the competent person

only the minor

both the minor and the competent person
3. Question : A person who makes a promise without requiring some benefit in return has made a(n):

Student Answer: barren promise

moral promise

gratuitous promise

inadequate promise
4. Question : If a third party enters a contract as a result of a novation, the party whose rights or duties are assumed is:

Student Answer: never free from the contract until it is completely executed

completely relieved of any obligations

required to fulfill personal services

entitled to receive the benefits of the contract
5. Question : A call for a bid or estimate for materials to be furnished or work to be done is considered a(n):

Student Answer: general offer

request for an offer

request for a purchase order

public offer
6. Question : The terms of an implied contract can be understood from all of the following except:

Student Answer: the actions of the parties

the customs of the trade

the conditions or circumstances

the explicitly written words
7. Question : Once the minor reaches the legal age of majority, the contract must be:

Student Answer: ratified or voided

validated or voided

ratified or disaffirmed

validated or avoided
8. Question : Emancipated minors are generally liable for necessaries purchased for themselves.

Student Answer: True

False
9. Question : When an agreement is obtained through fraud, it is considered:

Student Answer: voidable

void

disaffirmed

canceled
10. Question : The UCC requires that sale of personal property be in writing if it is:

Student Answer: $100 or more

$1,000 or more

$500 or more

$5,000 or more
11. Question : FTC regulations give consumers a right to cancel contracts made in the consumer's home and to receive a full refund, within how many days?

Student Answer: five days

two days

three days

one week
12. Question : A court order prohibiting the performance of a certain act is known as:

Student Answer: injunction

restraining order

restrictive notice

either A or B
13. Question : To be legally enforceable, an agreement must impose both a legal and moral obligation.

Student Answer: True

False
14. Question : Consideration required in an enforceable contract can take any of the following forms except:

Student Answer: gratuitous promises

exchange of promises

forbearance

pledges or subscriptions
15. Question : Agreements that violate government statutes are not enforceable by the courts include all of the following except:

Student Answer: agreements made on Sundays or legal holidays

contracts of adhesion

unlicensed transactions

usurious agreements

16. Question : Examples of businesses that are government granted franchises include all of the following except:

Student Answer: bus lines

fast-food restaurants

railroads

electric power companies
17. Question : If a tender of performance of an act is refused, the person making the offer is:

Student Answer: required to mitigate damages

relieved of the obligation to perform

must maintain the offer indefinitely

required to return all compensation received
18. Question : Fraud is the intentional misstatement of a material fact made by one party with the hope of influencing the other party.

Student Answer: True

False
19. Question : When a loan is made at an interest rate higher than that allowed by state law, the lender is guilty of:

Student Answer: restraint of trade

unlicensed transaction

champerty

usury
20. Question : The Statute of Frauds applies only to:

Student Answer: illegal contracts

executory contracts

executed contracts

voidable contracts