25

-Which of the two parties are involved in every contract?

An initiator and a responder
A buyer and seller
A breaching party and a nonbreaching party
*An offeror and offeree
-Some trees were cut down and made into lumber, and the lumber was used to build a house. What
type of propertywere the trees while they were growing, when they were lumber, and when they
became part of the house,respectively?
Real, real, personal
Personal, real, real
*Real, personal, real
Personal, personal, real

-If a contract ends in a dispute, and the parties want to have the matter resolved without going to court,
which is the most common method for them to pursue?
*Arbitration
Minitrial
Mediation
Discovery

-Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust
detriment where no actual contract exists?
The doctrine of formal contracts
*The doctrine of implied-in-law contract
The express contract doctrine
The doctrine of Quantum meruit

-An individual who finds the personal property of another, acquires legal title to that property against
the entire world, only if it is what type of personal property?
Mislaid property
Stolen property
Lost property
*Abandoned property

-Both the Statute of Frauds and the Uniform Commercial Code require a valid, enforceable contract to
be signed by whom?
None of the parties to the contract
All parties to the contract
*Party against whom the contract enforcement is sought
Party enforcing the contract

-Consideration, which is required in a contract, consists of which two elements?
*Legal value must be given and there must be a bargained-for exchange
Money must be paid and funds received.
Money must be received and a promise fulfilled
Legal value is appropriate and the value is paid

-Which of the following is the best definition for the legal term promissory estoppels?
A party to a contract cannot promise to provide illegal consideration
A gift promise made in an estate is valid and legal
*A party to a contract cannot withdraw a promise if the other party to the contract relied upon the
promise to his or her detriment
A promise made in a contract must be an express promise in order to be valid

A(n) ________ is an agreement that is stated orally or in written words.
implied-in-law contract
*express contract
quasi-contract
implied-in-fact contract

-In order for a response to be considered a legal acceptance to an offer, and not a counter offer, what
rule must apply?
The voluntary performance rule
The public law rule
The lapse of time rule
*The mirror image rule

-Which of the following examples is a bilateral contract?
Mary pays Bob for painting her house.
*Mary promises to pay Bob if Bob promises to paint her house.
Mary pays Bob for Bobs promise to paint her house on Saturday.
Bob paints Marys house and Mary promises to pay Bob on Saturday

What is the highest type of ownership estate in real property?
Leasehold estate
Life estate
*Fee simple absolute estate
Freehold estate

To create an enforceable contract, which of the following are needed?
Offerer, acceptance, agreement, and consideration
Agreement, consideration, objectives, and contractual capacity
*Agreement, consideration, contractual capacity, and a lawful object
Offerer, offeree, agreement, and capacity

-What federal statute governs the legal use of electronic contracts?
Federal Enforcement Act
Federal Banking Act of 2010
*Uniform Computer Information Transactions Act
Uniform Commercial Code

-Under Section 2 of the Uniform Commercial Code (UCC), a contract for the sale of goods must be
written if that contract is for what monetary value?
$1,000 or more
$250 or more
*$500 or more
$100 or more

-Contracts are discussed primarily in Sections 2 and 2A of the Uniform Commercial Code pertaining to
which of the following transactions?
Sale of real property
*Sale of goods and lease of goods
Financing of consumer goods
Sale of commercial goods

-Oral agreements may be legally enforceable contracts with the exception of some types of contracts
specified in which law?
Statute of Limitations
Common Law Statute
Statute of Verbal Contracts
*Statute of Frauds

-Which of the following is true when someone mistakenly makes an improvement to the personal
property of another?
The property owner gets to keep the improvement in all cases, but must pay the party who improved it
the reasonable value of the improvement.
The property owner automatically gets to keep all of the improvement and is not required to pay for it.

*The party who made the improvement must remove all easily removable improvements, paying any
damages from the removal, otherwise the owner of the property gets to keep the improvement and is
not required to pay for it.
The party who made the improvement can remove it if this is possible; otherwise, the owner of the
property must keep the improvement and must pay the party who improved it the reasonable value of
the improvement.

-Which of the following types of real property rights can be sold separately from the land?
Building fixtures on the land
*Minerals in the subsurface
Buildings and improvements on the land
Improvements under the land


-Wildboards Company introduces a product called a Rollerboard for which it is granted a registered
trademark. The Rollerboard is a snowboard with a removable row of wheels along the center of the
underside. With the wheels attached, the user can attain extremely high speed in hard-packed snow
conditions. In addition, many users have found that they can use their snowboards on streets with the
wheels attached. This new use of snowboards becomes very popular and many competing snowboard
makers introduce similar products. The sport becomes known generally as rollerboarding and most
people refer to all such wheeled snowboards as rollerboards. What is the consequence of this scenario?
*Wildboards cannot stop competitors from using the term rollerboard for their products.
Wildboards can no longer use the name Rollerboard on its boards.
Competitors must put a disclaimer on their boards that they are not the original Rollerboard.
Competitors must pay royalties to Wildboards for using the term rollerboard.

-Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1,000 for shoveling the
snow from his driveway throughout the winter. Jenson, who was paid before work commenced,
breached the contract on the very first day. He should refund $1,000 to Johnson as
consequential damages
liquidated damages
*restitution
compensatory damages

-Which of the following examples is a unilateral contract?
Larry promises to paint Debbies house if Debbie promises to pay him.
Debbie pays Larry for painting her house.
Debbie pays Larry for Larrys promise to paint her house on Saturday.
*Debbie promises to pay Larry when Larry paints her house

-Parties enter into a contract for services and one party commits a breach. The party who breached
wants to continue with the contract but wants the terms revised. What is his best method of dispute
resolution?
Med-Arb
*Negotiation
Arbitration
Mediation

-Which of the following is true about the public use doctrine?
The invention will come into the public domain once its term period has expired
An invention cannot be used in the public domain prior to it being granted a patent
The inventor has to test his invention in the public domain, to measure its validity, before being granted
a patent
*A patent will not be granted if the invention was already in public use for one year before filing
application

-Apart from recovering damages, and recovering profits made by the offender, successful plaintiffs in a
misappropriation of a trade secret case can also
ask to acquire the offenders trade secrets as payoff
*obtain an injunction prohibiting the offender from divulging the trade secret
obtain the offenders trademarks or brand name as payoff
ask for transfer of any of the offenders patents to the plaintiff