Review for Test – Chapters 7-10, 12 Unit 2 Review for Test – Chapters 7-10, 12

Chapter 7 In misrepresentation, the statement must be one of: Unimportant information Fact Slander Opinion Answer is B: FACT

Chapter 7 Contracts entered into as a result of misrepresentation or fraud are voidable by The UCC The injured party The uninjured party None of these ANSWER IS B – THE INJURED PARTY

Chapter 7 Key elements in undue influence are unfair persuasion and Ownership Scope of authority Relationship None of these Answer: C– RELATIONSHIP

Chapter 7 A mistake from failure to read a contract before signing is called a Unilateral mistake Fraudulent mistake Mutual mistake Stupid mistake ANSWER IS A– UNILATERAL MISTAKE

Chapter 7 A genuine agreement may be lacking due to Undue influence Duress Fraud All of these ANSWER IS D – ALL OF THESE

Chapter 7 An untrue statement is NOT material if the Defendant knew this plaintiff would rely on the statement Statement was an honest opinion Defendant knew the statement was false Statement would cause a reasonable person to contract ANSWER IS B – STATEMENT WAS AN HONEST OPINION

Chapter 7 Generally, mistakes that have no effect upon the contract rights of the parties are Mutual mistakes Unilateral mistakes Fraudulent mistakes Stupid mistakes ANSWER IS B – UNILATERAL MISTAKES

Chapter 8 The statute of limitations specifies The time limit for consideration The maximum amount of money one can receive on a claim The time limit for bringing a lawsuit The maximum amount of people who can file on the same claim ANSWER IS C – THE TIME LIMIT FOR BRINGING A LAWSUIT

Chapter 8 Which of the following in NOT a part of consideration? Immediate performance Past performance Present performance Future performance ANSWER IS B – PAST PERFORMANCE

Chapter 8 When consideration is provided to keep an offer open, it creates a(n) Option contract Firm offer Output contract Promissory estoppel ANSWER IS A – OPTION CONTRACT

Chapter 8 An important exception to the general rule that mutual consideration is necessary for a valid contract or binding promise is Option contract Firm offer Output contract Promissory estoppel ANSWER IS D– PROMISSORY ESTOPPEL

Chapter 8 Which of the following does NOT require mutual consideration? Forbearance A promise An act A gift ANSWER IS D – A GIFT

Chapter 8 A big difference in economic value of what one gives and receives may be evidence of Fraud Mutual mistake Duress All of these ANSWER IS D – ALL OF THESE

Chapter 8 Legal value is found in The exchange of a benefit for a detriment The exchange of one benefit The exchange of one detriment All of these ANSWER IS A – THE EXCHANGE OF A BENEFIT FOR A DETRIMENT

Chapter 9 Acting toward a contract as though one intends to be bound by it is called Ratification Contractual capacity Disaffirmance All of these ANSWER IS A - RATIFICATION

Chapter 9 When a person has the capacity to bind an organization to a contract, they are said to have Contractual capacity Scope of authority Free range Majority ANSWER IS B – SCOPE OF AUTHORITY

Chapter 9 When the consideration by both parties has been returned, the contract is said to be Necessary Ratified Emancipated Disaffirmed ANSWER IS D - DISAFFIRMED

Chapter 9 Which of the following would most likely be classified as goods or services that were NOT necessaries? Clothing Food Car Cell phone ANSWER IS D – CELL PHONE

Chapter 9 The severance of the child-parent relationship is referred to as Intoxication Disaffirmance Emancipation Ratification ANSWER IS C - EMANCIPATION

Chapter 10 Professionals such as physicians, teachers, architects and pharmacists must have a Competency license Federal license Revenue license Drivers license ANSWER IS A– COMPETENCY LICENSE

Chapter 10 Which of the following is NOT a practical and legally recognized purpose for marriage? Economic needs Companionship needs Raising children To obtain citizenship ANSWER IS D – TO OBTAIN CITIZENSHIP

Chapter 10 Illegal lotteries involve Entry fee, skill and a prize Paying to play, luck and a prize Down payment, risk and a guaranteed award All of these ANSWER IS B – PAYING TO PLAY, LUCK AND A PRIZE

Chapter 10 As an incentive to stop illegal acts, restitution is available For unperformed illegal acts To a party if they rescind before the illegal act occurs For the legal part of every contract All of these ANSWER IS B – TO A PARTY IF THEY RESCIND BEFORE THE ILLEGAL ACT OCCURS

Chapter 10 Some agreements that delay or prevent justice might include Bribing jurors Compounding a crime Paying for false testimony All of these ANSWER IS D – ALL OF THESE

Chapter 12 Typically, the minimum age for marriage without permission is 13 17 18 21 ANSWER IS C - 18

Chapter 12 A problem leading to a voidable marriage might be Husband gained too much weight Refusal to have children Husband not earning enough money Wife is not a good cook ANSWER IS B– REFUSAL TO HAVE CHILDREN

Chapter 12 The law forces the parents of an illegitimate child to marry is known as the Legitimate Child Law Illegitimate Child Law No Child Left Behind Law There is no such law ANSWER IS D – THERE IS NO SUCH LAW

Chapter 12 When a couple has been living together and sharing common property for some time, it is called Common-law marriage Bigamy A prenuptial agreement A marital consortium ANSWER IS A – COMMON-LAW MARRIAGE

Chapter 12 The only restriction in the choice of marital partners is Extremely different nationalities Vast age difference Being closely related to each other All of these ANSWER IS C – BEING CLOSELY RELATED TO EACH OTHER

Chapter 12 Under the Marriage and Divorce Act, in awarding custody a court must consider all of the following factors EXCEPT The child’s wishes as to custody Who stands to benefit more financially Physical and mental health of all persons concerned The child’s adjustment to home, school and community ANSWER IS B – WHO STANDS TO BENEFIT MORE FINANCIALLY