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

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

3. 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

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

5. 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

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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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

23. 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

24. 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

25. 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

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

27. 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

28. 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

29. 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

30. 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

31. 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