Business Law (Chapters 10 & 11)

Question 1 2 / 2 pts A pledge or a..

Business Law (Chapters 10 & 11)

2 / 2 pts
A pledge or a subscription, which is a promise to donate money, is unenforceable.

True
Correct!

False

Question 2

2 / 2 pts
Jack promised to pay his nineteen year-old nephew $300 on the nephew’s twenty-second birthday if the nephew refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:

pledge or subscription.
Correct!

forbearance as consideration.

general release.

implied contract.

Question 3

2 / 2 pts
Valid consideration must be either the performance of an act or the payment of money.

True
Correct!

False

Question 4

2 / 2 pts
A promise to repay someone for a benefit after the benefit has been received is known as:

a pre-ordained contract.

a pre-meditated contract.

prior consideration.
Correct!

past consideration.

Question 5

2 / 2 pts
Sometimes the unequal bargaining power of parties to a contract gives one party an unfair advantage when dealing with those who lack the economic power to enter into a contract on an equal footing.
Correct!

True

False

Question 6

0 / 2 pts
If a contract requires a person to do something he or she is already required to do, such as obey all traffic laws, the contract is:
You Answered

enforceable
Correct Answer

not enforceable.

illegal.

impossible.

Question 7

2 / 2 pts
The most common form of valid consideration is the promise of money by one party for the promise of an act by another.
Correct!

True

False

Question 8

2 / 2 pts
A promise to pay an existing debt or to obey the law, or a similar promise, is called a:

pledge.

gratuitous promise.

preexisting duty.
Correct!

barren promise.

Question 9

2 / 2 pts
The most common form of valid consideration is:
Correct!

the promise of money by one party for the promise of an act by another.

the promise of an act by one party for the promise of refraining from trade by the other party.

the promise of money by one party for the promise of restraining oneself from competitive trade by another.

the promise of an act by one party in exchange for a different act by another.

Question 10

2 / 2 pts
Contracts in which the parties have unequal bargaining power are known as unconscionable contracts.

True
Correct!

False

Question 11

2 / 2 pts
In any state a minor may disaffirm any contract, including contracts for necessaries, such as food, shelter, clothing, employment, and medical care.

True
Correct!

False

Question 12

2 / 2 pts
In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:

unenforceable contracts.
Correct!

enforceable contracts.

enforceable by the parents or the guardians of the minors.

not enforceable by the parents or the guardians of the minors.

Question 13

2 / 2 pts
Emancipated minors are generally liable for necessaries purchased for themselves or supplied to a spouse, just as if they were adults.
Correct!

True

False

Question 14

2 / 2 pts
As per the _________, a person attains the age of majority on the anniversary date of his or her birth.

coming of age rule

astrology predictions
Correct!

modern birthday rule

choice of that person

Question 15

0 / 2 pts
If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.
You Answered

True
Correct Answer

False

Question 16

2 / 2 pts
A mentally ill person may sometimes have lucid periods during which he or she may exercise sound judgment.
Correct!

True

False

Question 17

2 / 2 pts
If a minor enters into a contract relating to food, shelter, clothing, ¬employment, and medical care, then such a contract is known as a:

contract of forbearance.

contract for service.

contract of service.
Correct!

contract for necessaries.

Question 18

2 / 2 pts
Disaffirmance may be implied by the acts of the person who has reached legal age and wishes to disaffirm.
Correct!

True

False

Question 19

2 / 2 pts
Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one’s own interests is ___________.

indecency.

indifference.
Correct!

incompetency.

duress.

Question 20

2 / 2 pts
Once a minor reaches the age of majority, in order to make the contracts entered into by the minor enforceable, it must be:

avoided.

validated.

disaffirmed.
Correct!

ratified.

Question 1

2 / 2 pts
Sometimes the unequal bargaining power of parties to a contract gives one party an unfair advantage when dealing with those who lack the economic power to enter into a contract on an equal footing.
Correct!

True

False

Question 2

2 / 2 pts
Jack promised to pay his nineteen year-old nephew $300 on the nephew’s twenty-second birthday if the nephew refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:

pledge or subscription.
Correct!

forbearance as consideration.

general release.

implied contract.

Question 3

2 / 2 pts
If a contract requires a person to do something he or she is already required to do, such as obey all traffic laws, the contract is:

enforceable
Correct!

not enforceable.

illegal.

impossible.

Question 4

2 / 2 pts
Valid consideration must be either the performance of an act or the payment of money.

True
Correct!

False

Question 5

2 / 2 pts
Charitable organizations frequently raise money by asking for:

discounts.

bribes.

gifts.
Correct!

pledges.

Question 6

2 / 2 pts
A promise to pay an existing debt or to obey the law, or a similar promise, is called a:

pledge.

gratuitous promise.

preexisting duty.
Correct!

barren promise.

Question 7

2 / 2 pts
A barren promise is one that involves a promise:
Correct!

to do something one is already required to do.

to perform an illegal act.

to perform an act that involves an unreasonable period of time.

that cannot be performed.

Question 8

2 / 2 pts
______ is a promise that is generally not valid consideration and is considered a gratuitous promise, except in cases of moral consideration.

Present consideration
Correct!

Past consideration

A barren promise

An onerous contract

Question 9

2 / 2 pts
A promise to repay someone for a benefit after the benefit has been received is known as:

a pre-ordained contract.

a pre-meditated contract.

prior consideration.
Correct!

past consideration.

Question 10

2 / 2 pts
The most common form of valid consideration is the promise of money by one party for the promise of an act by another.
Correct!

True

False

Question 11

2 / 2 pts
A ________________ is a person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract.
Correct!

competent party

contracting party

valid participant

contractor

Question 12

2 / 2 pts
If a minor enters into a contract relating to food, shelter, clothing, ¬employment, and medical care, then such a contract is known as a:

contract of forbearance.

contract for service.

contract of service.
Correct!

contract for necessaries.

Question 13

0 / 2 pts
A minor is liable for the contract price of necessaries purchased even if the contract price is exorbitant.
You Answered

True
Correct Answer

False

Question 14

2 / 2 pts
As per the _________, a person attains the age of majority on the anniversary date of his or her birth.

coming of age rule

astrology predictions
Correct!

modern birthday rule

choice of that person

Question 15

2 / 2 pts
A competent party is a person of legal age, but fails to take into account the mental state of the individual.

True
Correct!

False

Question 16

2 / 2 pts
A mentally ill person may sometimes have lucid periods during which he or she may exercise sound judgment.
Correct!

True

False

Question 17

2 / 2 pts
Emancipated minors are generally liable for necessaries purchased for themselves or supplied to a spouse, just as if they were adults.
Correct!

True

False

Question 18

2 / 2 pts
If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.

True
Correct!

False

Question 19

2 / 2 pts
Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one’s own interests is ___________.

indecency.

indifference.
Correct!

incompetency.

duress.

Question 20

2 / 2 pts
Minors are protected against their own wrongdoing but not their own inexperience.

True
Correct!

False

Question 1

2 / 2 pts
Valid consideration must be either the performance of an act or the payment of money.

True
Correct!

False

Question 2

2 / 2 pts
A promise to repay someone for a benefit after the benefit has been received is known as:

a pre-ordained contract.

a pre-meditated contract.

prior consideration.
Correct!

past consideration.

Question 3

2 / 2 pts
A promise to pay an existing debt or to obey the law, or a similar promise, is called a:

pledge.

gratuitous promise.

preexisting duty.
Correct!

barren promise.

Question 4

2 / 2 pts
If a contract requires a person to do something he or she is already required to do, such as obey all traffic laws, the contract is:

enforceable
Correct!

not enforceable.

illegal.

impossible.

Question 5

2 / 2 pts
Courts may justify the enforcement of some contracts, even though there is no consideration, by stating that there was:

monetary consideration.
Correct!

moral consideration.

pecuniary consideration.

fiscal consideration.

Question 6

2 / 2 pts
A pledge or a subscription, which is a promise to donate money, is unenforceable.

True
Correct!

False

Question 7

2 / 2 pts
Charitable organizations frequently raise money by asking for:

discounts.

bribes.

gifts.
Correct!

pledges.

Question 8

2 / 2 pts
Contracts in which the parties have unequal bargaining power are known as unconscionable contracts.

True
Correct!

False

Question 9

2 / 2 pts
A person who makes a promise without requiring some benefit in return has made a:
Correct!

gratuitous promise.

barren promise.

pledge or subscription.

onerous contract.

Question 10

2 / 2 pts
A barren promise is one that involves a promise:
Correct!

to do something one is already required to do.

to perform an illegal act.

to perform an act that involves an unreasonable period of time.

that cannot be performed.

Question 11

2 / 2 pts
In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:

unenforceable contracts.
Correct!

enforceable contracts.

enforceable by the parents or the guardians of the minors.

not enforceable by the parents or the guardians of the minors.

Question 12

2 / 2 pts
In most cases, whether the contract has not yet been performed (an executory contract)
or has been fully performed (an executed contract), the minor may ________ the contract.
Correct!

disaffirm.

emancipate

necessitate

subordinate

Question 13

2 / 2 pts
An intoxicated person may not avoid a contract where, due to the extent of intoxication, he or she was unable to understand the nature and effect of the contract.

True
Correct!

False

Question 14

2 / 2 pts
Persons of unsound mind are considered emancipated.

True
Correct!

False

Question 15

2 / 2 pts
A minor is liable for the contract price of necessaries purchased even if the contract price is exorbitant.

True
Correct!

False

Question 16

2 / 2 pts
Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one’s own interests is ___________.

indecency.

indifference.
Correct!

incompetency.

duress.

Question 17

2 / 2 pts
Disaffirmance may be implied by the acts of the person who has reached legal age and wishes to disaffirm.
Correct!

True

False

Question 18

2 / 2 pts
In any state a minor may disaffirm any contract, including contracts for necessaries, such as food, shelter, clothing, employment, and medical care.

True
Correct!

False

Question 19

2 / 2 pts
If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.

True
Correct!

False

Question 20

2 / 2 pts
A ________________ is a person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract.
Correct!

competent party

contracting party

valid participant

contractor
Question 1

2 / 2 pts
A pledge or a subscription, which is a promise to donate money, is unenforceable.

True
Correct!

False

Question 2

2 / 2 pts
Jack promised to pay his nineteen year-old nephew $300 on the nephew’s twenty-second birthday if the nephew refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:

pledge or subscription.
Correct!

forbearance as consideration.

general release.

implied contract.

Question 3

2 / 2 pts
Valid consideration must be either the performance of an act or the payment of money.

True
Correct!

False

Question 4

2 / 2 pts
A promise to repay someone for a benefit after the benefit has been received is known as:

a pre-ordained contract.

a pre-meditated contract.

prior consideration.
Correct!

past consideration.

Question 5

2 / 2 pts
Sometimes the unequal bargaining power of parties to a contract gives one party an unfair advantage when dealing with those who lack the economic power to enter into a contract on an equal footing.
Correct!

True

False

Question 6

0 / 2 pts
If a contract requires a person to do something he or she is already required to do, such as obey all traffic laws, the contract is:
You Answered

enforceable
Correct Answer

not enforceable.

illegal.

impossible.

Question 7

2 / 2 pts
The most common form of valid consideration is the promise of money by one party for the promise of an act by another.
Correct!

True

False

Question 8

2 / 2 pts
A promise to pay an existing debt or to obey the law, or a similar promise, is called a:

pledge.

gratuitous promise.

preexisting duty.
Correct!

barren promise.

Question 9

2 / 2 pts
The most common form of valid consideration is:
Correct!

the promise of money by one party for the promise of an act by another.

the promise of an act by one party for the promise of refraining from trade by the other party.

the promise of money by one party for the promise of restraining oneself from competitive trade by another.

the promise of an act by one party in exchange for a different act by another.

Question 10

2 / 2 pts
Contracts in which the parties have unequal bargaining power are known as unconscionable contracts.

True
Correct!

False

Question 11

2 / 2 pts
In any state a minor may disaffirm any contract, including contracts for necessaries, such as food, shelter, clothing, employment, and medical care.

True
Correct!

False

Question 12

2 / 2 pts
In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:

unenforceable contracts.
Correct!

enforceable contracts.

enforceable by the parents or the guardians of the minors.

not enforceable by the parents or the guardians of the minors.

Question 13

2 / 2 pts
Emancipated minors are generally liable for necessaries purchased for themselves or supplied to a spouse, just as if they were adults.
Correct!

True

False

Question 14

2 / 2 pts
As per the _________, a person attains the age of majority on the anniversary date of his or her birth.

coming of age rule

astrology predictions
Correct!

modern birthday rule

choice of that person

Question 15

0 / 2 pts
If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.
You Answered

True
Correct Answer

False

Question 16

2 / 2 pts
A mentally ill person may sometimes have lucid periods during which he or she may exercise sound judgment.
Correct!

True

False

Question 17

2 / 2 pts
If a minor enters into a contract relating to food, shelter, clothing, ¬employment, and medical care, then such a contract is known as a:

contract of forbearance.

contract for service.

contract of service.
Correct!

contract for necessaries.

Question 18

2 / 2 pts
Disaffirmance may be implied by the acts of the person who has reached legal age and wishes to disaffirm.
Correct!

True

False

Question 19

2 / 2 pts
Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one’s own interests is ___________.

indecency.

indifference.
Correct!

incompetency.

duress.

Question 20

2 / 2 pts
Once a minor reaches the age of majority, in order to make the contracts entered into by the minor enforceable, it must be:

avoided.

validated.

disaffirmed.
Correct!

ratified.

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