BUSINESS LAW 415 - QUIZ C
Covering Chapters 11, 12, 13, and 14

Follow the instructions from Quiz A to answer this quiz.

1. T F In the early days of our nation’s history, contracting was largely left up to the individual parties with little government regulation or oversight.

2. T F A reward advertisement in the paper stating, “Fifty dollars for the return of a black briefcase. Call 329-5862.” can be accepted by a promise to look for the briefcase.

3. T F An offer made in jest, where a reasonable person would conclude that it was made in jest, cannot result in a contract.

4. Generally, which of the following will not automatically terminate an open offer? a. Death of the offeror. b. Death of the offeree. c. Changed economic circumstances. d. Destruction of the subject matter of the contract.

5. “Legal Detriment” in the context of consideration means: a. Giving up an existing legal right. b. Taking on a new legal duty. c. Giving up an existing legal right or taking on a new legal duty. d. Being found guilty in a criminal case.

6. T F Generally, a unilateral mistake does not allow either party to rescind the contract.

7. T F The primary goal of compensatory damages is to place the parties in the position that they were in prior to the formation of the contract.

8. Where two parties contract for the purchase and sale of an ordinary item, such as a desk, that unknown to both parties is a rare and valuable example of that item, this is: a. A unilateral mistake. b. A case of fraud in the inception. c. A mutual mistake of fact. d. A mistake of value, but not a mistake of fact.

9. Which of the following best describes duress? a. A situation where a trust relationship has been violated in forming a contract. b. A situation