Business Law 2

Front 1

A contract is an agreement that cannot be enforced in court.

Back 1

False

Front 2

A REVOCATION can occur anytime before an acceptance.

Back 2

True

Front 3

When a creditor accepts a lesser amount owed and the debtor executes payment is known as
“Accord and Satisfaction.”

Back 3

True

Front 4

Contracts that can by their terms be performed within one year from the day after the contract is formed must be in writing.

Back 4

False

Front 5

A contract’s purpose must sometimes accomplish some goal that is legal and not against public
policy.

Back 5

Flase

Front 6

A CONDITION PRECEDENT in a contract is a condition that must be met before a party’s
promise becomes absolute.

Back 6

True

Front 7

The type of deed used by the seller determines the scope of the warranties the buyer is given.

Back 7

True

Front 8

The person that conveys real property by deed is called the grantee

Back 8

False

Front 9

A copyright is a government-granted right to exclude others from making, using, or selling an
invention.

Back 9

False

Front 10

A classic example of a trade secret is the formula for Coca-Cola

Back 10

True

Front 11

The packaging or dressing of a product may be protected under the trademark laws as trade

Back 11

True

Front 12

Trade secrets are protected for an indefinite time.

Back 12

True

Front 13

Registration with the Federal Trademark Register is a requirement for obtaining any rights in a
trademark.

Back 13

False

Front 14

A contract under which the offeror cannot revoke the offer for a stipulated time period is:

Back 14

None of the Above

Front 15

A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the
terms of the offeror’s offer for a valid contract to be formed is:

Back 15

The mirror-image rule

Front 16

The act of transferring to another all or part of one’s rights arising under a contract is:

Back 16

An Assignment

Front 17

The act of transferring to another all or part of one’s duties arising under a contract is:

Back 17

A Delegation

Front 18

A doctrine that applies when a promisor makes a clear and definite promise on which the
promisee justifiably relies and where the promise is binding if justice will be better served by the
enforcement of the promise.

Back 18

Promissory estoppel

Front 19

Which of the following is a type of damages that the parties specify in advance?

Back 19

Liquidated

Front 20

Which of the following is FALSE regarding written contracts?

Back 20

.All contracts must be in writing in order to be enforced.

Front 21

A person who has legal _________ to contract is one who has the mental ability to understand
his or her rights and obligations under a contract and, therefore, will presumably be able to
understand how to comply with the terms of the agreement

Back 21

capacity

Front 22

The principle, “pacta sunt servanda” means:

Back 22

Agreements must be kept

Front 23

The person conveying real property is the _______, and the person to whom the property is
conveyed is the ________

Back 23

grantor, grantee

Front 24

Which type of deed contains no express or implied warranties?

Back 24

Quitclaim

Front 25

The conveyance of a ________ interest conveys absolute ownership of real property.

Back 25

Fee simple

Front 26

Which of the following is not true regarding the legal requirements of a deed?

Back 26

It must signed by the named grantee.

Front 27

_________ occurs when a person acquires ownership on a piece of property by adversely
possessing a parcel of land for the period of time specified by a state statute.

Back 27

Adverse possession

Front 28

In a(n) ________, the potential buyer pays the seller for the right, but not the obligation, to purchase
the property during a given time period.

Back 28

Option contract

Front 29

After a period of ___ years from the application date for utility patents and ___ years for design
patents in the United States, the patent expires and the invention is dedicated to the public.

Back 29

20,14

Front 30

The federal trademark act is known as the _________ Act.

Back 30

Lanham

Front 31

The duration of a copyright granted to a known individual. not a work done for hire, will be

Back 31

the life of the author plus 70 years.

Front 32

A ________ placed on a product indicates that the product has met the certifier’s standards of
safety or quality.

Back 32

certification mark

Front 33

Which of the following is not one of the basic elements for formation of a valid contract?

Back 33

Promissory estoppel

Front 34

An offer can be terminated by __________.

Back 34

operation of law and also action of the parties

Front 35

A third party beneficiary is someone who is not

Back 35

a party to the original contract

Front 36

Which of the following are damages that give the plaintiff the benefit of its bargain, putting the
plaintiff in the case position it would have been in if the contract had been fulfilled?

Back 36

Expectations damages

Front 37

Which of the following is a type of conditional promise?

Back 37

Both a condition concurrent and a condition subsequent

Front 38

A contract entered into by a minor is

Back 38

voidable

Front 39

Under the doctrine of ________, a court
may invalidate an agreement if one party
had sufficient influence and power over
the other as to make genuine assent
impossible.

Back 39

undue influence

Front 40

Conditions ________ occur when the mutual duties of performance are to take place
simultaneously.

Back 40

Concurrent

Front 41

To which of the following does the statute of frauds apply?

Back 41

A promise to pay the debt of another person.

Front 42

Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked
Prudence if she would hold the offer open for him for one week for $50. Prudence said sure.
Meanwhile, the next day, Bobby offered Prudence $3,500 for the car, and Prudence sold it to him
on the spot. When Danny came to pick up the car the next day, it was gone. Prudence gave
Danny his $50 back and told him that was her only obligation and that if he had any complaints, he
could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.

Back 42

Danny had an option contract with prudence.