BAKERSFIELD COLLEGE BSAD 18 Business Law Quiz 2

Name: ______Due: 7/18/17 (Tuesday) Use a Scan-Tron 882E Form

1. Contracts are an area of law that society is willing to enforce. True False

2. Enforcing and interpreting contracts in the courts are built upon the concept of Stare Decisis. True False

3. A Business “Social Responsibility” is to act lawfully and to maximize profits. True False

4. The person who makes an offer to enter into a contract is the “offeree. True False

5. The fact that a contract is legally enforceable means that the police can be called to make the other party live up to the terms of the contract. True False

6. The offeree has the power to create a contract by accepting the offer. True False

7. The effectiveness of an offer is partially dependent upon whether or not it has been communicated to the offeree. True False

8. Under modern law, the court can supply a missing contract term if a reasonable term can be implied. True False

9. Which of the following is not characteristic of a valid contract? a. It can be viewed as private law between the parties. b. The parties must have the contract’s terms approved by the appropriate court. c. A court will enforce its terms if the parties do not voluntarily perform. d. It will have at least two parties.

10. To create an enforceable contract, which of the following is(are) needed? a. Agreement. b. Agreement and consideration. c. Agreement, consideration, and contractual capacity. d. Agreement, consideration, contractual capacity, and a lawful objective. 11. What is the common name for an agreement to protect one from having others disclose confidential information or ideas? a. A proprietary secrecy agreement. b. A silence or be-penalized agreement. c. A mute thoughts agreement. d. A hold-information-close agreement. e. A nondisclosure agreement.

12. What is required for a contract to be an express contract? a. It is stated in words. b. It is written. c. It is written and signed. d. It is performed immediately after formation. e. It is performed for mutual benefit.

13. Generally, advertisements, catalogs, price lists, etc. are not treated as offers. True False

14. An advertisement reading, “Our last Trailconquerer XL100 mountain bike, stock number T990234, will be sold to the first buyer with $700,” would not be treated as an offer. True False

15. Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror, such as the sale of property of the offeror. True False

16. If the object of an offer becomes illegal after the offer was made, but before it is accepted, the offer remains valid because it was legal when made. True False

17. If an offeree rejects an offer and then attempts to accept that same offer, the offer is now construed as a new offer that the original offeror is free to accept or reject. True False

18. Sandra accepts an out-of-court settlement in exchange for dropping a lawsuit. The settlement agreement is supported by consideration in the form of forbearance of a legal right. True False

19. Money is a common form of consideration to support a contract. True False

20. Under the law, written contracts are presumed to be supported by consideration. True False

21. Something of “legal” value must be given to support a contract. True False

22. The most prevalent age of majority for contractual purposes in the United States is 18 years of age for both males and females. True False 23. Generally speaking, a minor must return goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance. True False

24. When a person is adjudged insane, that person still has the ability to enter into contracts. True False

25. For a person who has alternating periods of sanity and insanity, any contracts made during a lucid interval are enforceable. True False

26. In most states, if a contract is disaffirmed due to intoxication, both parties must be returned to the status quo. True False

27. Joe Dokes is discovered unconscious on the sidewalk. A passer-by calls for an ambulance. The Ambulance Service crew arrives and determines that Joe needs to go to the hospital to be examined. (Joe is still asleep and cannot be awakened by the EMS crew.) Joe is treated at the Hospital and released. Two weeks later, Joe receives a bill from the Ambulance Service for services rendered. Is he required to pay the bill? Yes No

28. In the situation above, with Joe, if Joe does not pay the Ambulance Service bill, can the “passer-by” be forced to pay the bill, since s/he was the one who called for the ambulance? Yes No

29. Which of the following would be an affirmative defense and therefore, cause an agreement to not be enforceable? a. Fraud b. Undue Influence c. Duress d. Unconscionability e. All of the above.

30. Capacity is described as someone who cannot form the intent to know what is going on. True False