Unit 2Review for Test – Chapters 7-10, 12

Chapter 7

In misrepresentation, the statement must be one of:

a.Unimportant information

b.Fact

c.Slander

d.Opinion

Answer is B: FACT

Chapter 7Contracts entered into as a result of misrepresentation or fraud are voidable by

a.The UCC

b.The injured party

c.The uninjured party

d.None of these

ANSWER IS B – THE INJURED PARTY

Chapter 7Key elements in undue influence are unfair persuasion and

a.Ownership

b.Scope of authority

c.Relationship

d.None of these

Answer: C– RELATIONSHIP

Chapter 7A mistake from failure to read a contract before signing is called a

a.Unilateral mistake

b.Fraudulent mistake

c.Mutual mistake

d.Stupid mistake

ANSWER IS A– UNILATERAL MISTAKE

Chapter 7A genuine agreement may be lacking due to

a.Undue influence

b.Duress

c.Fraud

d.All of these

ANSWER IS D – ALL OF THESE

Chapter 7An untrue statement is NOT material if the

a.Defendant knew this plaintiff would rely on the statement

b.Statement was an honest opinion

c.Defendant knew the statement was false

d.Statement would cause a reasonable person to contract

ANSWER IS B – STATEMENT WAS AN HONEST OPINION

Chapter 7Generally, mistakes that have no effect upon the contract rights of the parties are

a.Mutual mistakes

b.Unilateral mistakes

c.Fraudulent mistakes

d.Stupid mistakes

ANSWER IS B – UNILATERAL MISTAKES

Chapter 8The statute of limitations specifies

a.The time limit for consideration

b.The maximum amount of money one can receive on a claim

c.The time limit for bringing a lawsuit

d.The maximum amount of people who can file on the same claim

ANSWER IS C – THE TIME LIMIT FOR BRINGING A LAWSUIT

Chapter 8Which of the following in NOT a part of consideration?

a.Immediate performance

b.Past performance

c.Present performance

d.Future performance

ANSWER IS B – PAST PERFORMANCE

Chapter 8When consideration is provided to keep an offer open, it creates a(n)

a.Option contract

b.Firm offer

c.Output contract

d.Promissory estoppel

ANSWER IS A – OPTION CONTRACT

Chapter 8An important exception to the general rule that mutual consideration is necessary for a valid contract or binding promise is

a.Option contract

b.Firm offer

c.Output contract

d.Promissory estoppel

ANSWER IS D– PROMISSORY ESTOPPEL

Chapter 8Which of the following does NOT require mutual consideration?

a.Forbearance

b.A promise

c.An act

d.A gift

ANSWER IS D – A GIFT

Chapter 8A big difference in economic value of what one gives and receives may be evidence of

a.Fraud

b.Mutual mistake

c.Duress

d.All of these

ANSWER IS D – ALL OF THESE

Chapter 8Legal value is found in

a.The exchange of a benefit for a detriment

b.The exchange of one benefit

c.The exchange of one detriment

d.All of these

ANSWER IS A – THE EXCHANGE OF A BENEFIT FOR A DETRIMENT

Chapter 9Acting toward a contract as though one intends to be bound by it is called

a.Ratification

b.Contractual capacity

c.Disaffirmance

d.All of these

ANSWER IS A - RATIFICATION

Chapter 9When a person has the capacity to bind an organization to a contract, they are said to have

a.Contractual capacity

b.Scope of authority

c.Free range

d.Majority

ANSWER IS B – SCOPE OF AUTHORITY

Chapter 9When the consideration by both parties has been returned, the contract is said to be

a.Necessary

b.Ratified

c.Emancipated

d.Disaffirmed

ANSWER IS D - DISAFFIRMED

Chapter 9Which of the following would most likely be classified as goods or services that were NOT necessaries?

a.Clothing

b.Food

c.Car

d.Cell phone

ANSWER IS D – CELL PHONE

Chapter 9The severance of the child-parent relationship is referred to as

a.Intoxication

b.Disaffirmance

c.Emancipation

d.Ratification

ANSWER IS C - EMANCIPATION

Chapter 10 Professionals such as physicians, teachers, architects and pharmacists must have a

a.Competency license

b.Federal license

c.Revenue license

d.Drivers license

ANSWER IS A– COMPETENCY LICENSE

Chapter 10Which of the following is NOT a practical and legally recognized purpose for marriage?

a.Economic needs

b.Companionship needs

c.Raising children

d.To obtain citizenship

ANSWER IS D – TO OBTAIN CITIZENSHIP

Chapter 10Illegal lotteries involve

a.Entry fee, skill and a prize

b.Paying to play, luck and a prize

c.Down payment, risk and a guaranteed award

d.All of these

ANSWER IS B – PAYING TO PLAY, LUCK AND A PRIZE

Chapter 10As an incentive to stop illegal acts, restitution is available

a.For unperformed illegal acts

b.To a party if they rescind before the illegal act occurs

c.For the legal part of every contract

d.All of these

ANSWER IS B – TO A PARTY IF THEY RESCIND BEFORE THE ILLEGAL ACT OCCURS

Chapter 10Some agreements that delay or prevent justice might include

a.Bribing jurors

b.Compounding a crime

c.Paying for false testimony

d.All of these

ANSWER IS D – ALL OF THESE

Chapter 12Typically, the minimum age for marriage without permission is

a.13

b.17

c.18

d.21

ANSWER IS C - 18

Chapter 12A problem leading to a voidable marriage might be

a.Husband gained too much weight

b.Refusal to have children

c.Husband not earning enough money

d.Wife is not a good cook

ANSWER IS B– REFUSAL TO HAVE CHILDREN

Chapter 12The law forces the parents of an illegitimate child to marry is known as the

a.Legitimate Child Law

b.Illegitimate Child Law

c.No Child Left Behind Law

d.There is no such law

ANSWER IS D – THERE IS NO SUCH LAW

Chapter 12When a couple has been living together and sharing common property for some time, it is called

a.Common-law marriage

b.Bigamy

c.A prenuptial agreement

d.A marital consortium

ANSWER IS A – COMMON-LAW MARRIAGE

Chapter 12The only restriction in the choice of marital partners is

a.Extremely different nationalities

b.Vast age difference

c.Being closely related to each other

d.All of these

ANSWER IS C – BEING CLOSELY RELATED TO EACH OTHER

Chapter 12Under the Marriage and Divorce Act, in awarding custody a court must consider all of the following factors EXCEPT

a.The child’s wishes as to custody

b.Who stands to benefit more financially

c.Physical and mental health of all persons concerned

d.The child’s adjustment to home, school and community

ANSWER IS B – WHO STANDS TO BENEFIT MORE FINANCIALLY