Business Law Chapter 9 & 10 test

_____ is the exchange of benefits and sacrifices among parties that brings a contract into existence

Consideration

Which of the following can be a legal detriment?

Promising to give up something one has the right to have.

When an agreement involves a promise made in exchange for another promise, or an act, it is known as _____.

bargained-for exchange

Which of the following is true of adequacy of consideration?

A promise representing something of value is adequate consideration.

Which of the following is true of a promise not to sue?

Acceptance of an agreement not to sue terminates one's right to file any lawsuit.

Which of the following is one of the ways courts seek to uphold charitable pledges?

By applying promissory estoppel to enforce a charitable pledge.

Which of the following is oneway a dispute can be settled, and is the implied or expressed acceptance of less than what has been billed the debtor?

Accord

_____ restrict the time within which a party is allowed to bring a lawsuit.

Statutes of limitations

Which of the following agreements cannot be enforced in the court of law since they lack the rudimentary qualities of a valid consideration?

Illusory promise

The _____ covers the legal ramification involved in the process of comparison shopping using electronic agents by cyber-consumers.

Uniform Electronic Transactions Act

A promise not to sue, when there is the right, or at least the apparent right, to sue, is enforceable when it is supported by consideration

True

A part payment in lieu of full payment when accepted by a creditor cancels an undisputed debt.

False

The doctrine of estoppel honors rights to complaining parties that are shown to be the cause of their own injury

False

In case of a firm offer, when the time allowed is more than three months, merchants must be supported by consideration for that offer to be enforceable

True

While both buyers and sellers can be targeted, it is the sellers who are especially vulnerable to credit card fraud and identity fraud, because it is much easier for buyers to use stolen credit cards and identity information online.

True

Which of the following is true of emancipated minors?

They cannot void contracts despite their minority.

When applying the concept of _____, the court will require the parties to act as if there were a contract, even though a true contract does not exist.

quasi-contract

Making an installment payment, paying off the balance money, continuing to accept goods and services provided under the contract are all examples of:

ratification.

If it is proved that one of the parties that entered the contract suffered a mental problem at the time of signing the contract, which of the following rules apply?

The incompetent party may disaffirm the contract and must return all the consideration received.

Which of the following is true if a person enters a contract in a state of intoxication?

A return may be refused if it is proved that the party took advantage of the person's weakened condition.

Which of the following contracts will a court not uphold?

A contract between a landlord and a known criminal to threaten the former's tenant to leave the house.

What is the illegal practice of charging more than the amount of interest allowed by law called?

Usury

The general legal principle of _____ says no one should be allowed to do anything that injures the public at large.

public policy

When both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract, they are said to be _____.

in pari delicto

Sean and Joseph have entered a contract which the court finds partly legal and partly illegal. Which of the following is the court likely to do?

The court will enforce only the legal part without changing the essentials of the contract.

Executory contracts, those that have not been fully performed by both parties, may not repudiated by a minor at any time.

False

Parents are liable for a contract executed by a minor, even a contract for necessaries, only when they cosign the agreements.

True

Provisions of the UCC protect the rights of an innocent third party who purchases goods from an individual who originally purchased those same goods from a minor.

True

Agreements made on Sunday or any other day requiring performance on Sunday may be ruled valid.

False

Sometimes an agreement will be partly legal and partly illegal.

True