Ashford University BUS 311 Week 2 Quiz (2014)

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 False14. 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