Name: WD: A Class: Business Law Test #1 Maltiple Choice Identify the choice that best completes the statement or answers the question, 1 Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated! parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract do mor include a. capacity. b. consideration, c. legality. d. practicality. enter into a bilateral contract, which is created when Freida gives a promise in exchange for Freida and Gai Gail's 8. payment of money only. b. performance of a particular act only. ©. promise only 4d, prudent awareness only. Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have a. anexecuted contract b. an express contract ¢. an implied-in-fact contract, 4d, a quasi contract. When Jefi’s car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeffand Kwik do not sign any documents, After the tow, Kwik sends Jeffa bill. With respect to JefPs obligation to pay the bill, this is, a. an express contract. b. an implied-in-fact contract. ¢. an implied-in-law contract. 4, no contract ‘Stu makes an offer to Tina to enter into 8 contract. Tina accepts the offer. A valid contract requires a. avalid offer only. b. valid acceptance only, ¢. avalid offer and a valid acceptance. 4d. neither a valid offer nor a valid acceptance. Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rieh within 30 minutes. QD can accept the offer only by mecting the deadline. If QD performs as directed, these parties will have a. a bilateral contract b. attilateral contract. ¢.aunilateral contract, . no contract.Name: 9, I: A Macto Corporation and Miero, Ine., enter into an agreement. To constitute a contract all ferms must be expres b. all terms must be implied. ©. the terms may be express, implied, or a mix of both , the terms may be express or implied, but not both Nate tells Opal, “I might sell the skis that } bought last fall since I haven't used them and the skiing season is almost over." This is a, an acceptance of an offer. b. an invitation to accept an offer ©. an offer, d. a statement of future intent Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale, Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is a, acontract for the sale of the building, b. contract to consider the offer before any others. c. acontract to negotiate a sale of the building. 4. no contract. Yvon asks Zack, "Do you want fo buy one of my fishing rods?" This is, a. avalid offer. b. not a valid offer because the terms are not definite. €. nota valid offer because Yvon did not state an intent. 4, nota valid offer because Zack did not respond, Bob offers to sell Carol his computer but conditions the sale on Carol accepting the offer by May 1, Bob may revoke the offer a, before Carol accepts the offer. b. before May I, whether or not Carol has accepted the offer. cc, only after Carol accepts the offer. only after May 1 Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc, fifty bags of coffee beans, Java rejects the offer. The offer is terminated, bb. valid for a reasonable time to give Java a "second chance. &. _ valid for the period of time prescribed by a state statute 4, valid until ICBI revokes the offer Optimal Sales Conporation plans to move to a new office. Optimal offers to sell its office furniture to Plentiful Marketing, Inc., but does not specify a time for Plentiful to respond. ‘The offer expires a. aftera reasonable period of time, b. after thirty days c. after thirty minutes. neverName: 16. WD: A Kim sends an offer fo Leo to cut down ancl remove a tree for $400, Kim says, "If you say nothing, 1 will consider you to have accepted my offer." If Leo does not respond, he will be deemed to a. accept the offer. b, make @ counteroffer ©. reject the offer d. none of the choices. May tries to start her new car with no suecess. She yells that she will soll the car to anyone for $10. Nick, a passetby who owns Nick's Pre-owned Autos, hands May $10. This a. a valid acceptance because May is seriously frustrated b. _avalid acceptatice because Nick is a car dealer. ¢. not a valid acceptance because May does not seriously intend to sel. 4d, not a valid acceptance because Nick is a car dealer. Business Properties, Inc. (BPI), offers to sell « warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days, This 4, creates an illegal contract by adding a clause to BPI’ offer b. makes the offer intevocable for three days if BPI accepts. ¢. negates BPI’ offer by changing the price term. d. voids BPI's offer by extending the time term, Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much.” Callie's offer was terminated by a. Evan and Gwen, b. Evan only. c. Gwen only, d. neither Evan nor Gwen, First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent, Todd and the bank have a. have a contract for a loan at 15 percent interest b. havea contract for a foan at 12 percent interest ¢, have a contract for a loan at 0 percent interest. dno contract for # loan, Ida promises to pay Jon, her son, $15,000 if he obtains his degree at Kappa University, where he is currently in his second year. Jon graduates. Ida is a. not required to pay, because Jon was already at Kappa. b. not required to pay, because obtaining a degree benefits Jon c. required to pay, because a job can be hard to find after college . required to pay, because Jon obiained a degree at Kappa