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Business Law Exam | 115 Questions with Correct Solutions
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Business Law Exam | 115 Questions with Correct Solutions
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Business Law Exam | 115 Questions with CorrectSolutions
In a bilateral contract, the consideration for each promise is _______________. - ✔✔A
return promise
In a unilateral contract, the consideration for a promise is ____________. - ✔✔Action
Which of the following is an exception to the rule requiring consideration? - ✔✔Promissory
estoppel
Which of the following is true regarding the adequacy of consideration? - ✔✔Courts seldom
consider the adequacy of consideration but will do so if fraud is involved.
Sam offers Betty his bicycle for $75. Which is an example of an illusory promise on the part of
Betty? - ✔✔"I'll take it if I decide to do so."
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. - ✔✔Capacity
In most states a person is given full legal capacity to enter into contracts when he or she
becomes ____________ before reaching the age of majority. - ✔✔Emancipated
In most cases, when a minor marries, she or he is considered _____________. -
✔✔Disaffirmed
, Because their contracts are ___________, minors have the right, until a reasonable time after
reaching the age of majority, to _____________ or avoid their contracts. - ✔✔Voidable,
disaffirm
What is the age of majority in New York? - ✔✔18
When must a disaffirmance of a contract based on minority occur? - ✔✔Before or within a
reasonable time of the minor's reaching the age of majority.
Which of the following is false regarding contracts for necessaries entered into by minors? -
✔✔A minor cannot disaffirm contracts for necessaries.
Which of the following occurs when a person reaches the age of majority and states, either
orally or in writing, that he or she intends to be bound by the contract entered in to as a minor?
- ✔✔Express ratification
An ____________ occurs when a former minor does not specifically state that he affirms a
contract entered into as a minor but takes some action that is consistent with intent to ratify
the contract. - ✔✔Implied ratification
Which of the following is a purpose of licensing statutes? - ✔✔-To give the government
some control over which people, and how many people, can perform jobs.
-To give the government a source of revenue.
-To protect the public's health, safety, and welfare.
If licensing statute is intended to protect the public's health, safety, and welfare, an agreement
with an unlicensed professional is typically deemed ___________. - ✔✔Illegal and
unenforceable
What occurs when a party gives a loan at an interest rate exceeding the legal maximum? -
✔✔Usury
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