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Seaport BUS C110 Quiz 2 (2014)

Question: Contract duties are obligations imposed by law.

Question: Contract law reduces the cost of economic transactions.

Question: A quasi-contract is not a contract, but a fiction created by the courts to prevent injustice.

Question: An agreement that is illegal is void.

Question: A contract need not be in writing to be enforceable.

Question: Specific performance is a limited remedy as it is only available for breach of contract to sell a unique item.

Question: A _____ is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.

Question: A(n) _____ contract is one in which the terms are spelled out directly and the parties are conscious that they are making an enforceable agreement.

Question: An agreement that is lacking one of the legal elements of a contract is said to be _____.

Question: _____ is the quid pro quo between the contracting parties, in the absence of which the law will not enforce the promise or promises made.

Question: In practice, a person asserting a claim for breach of warranty will have a good chance of success under an express warranty or implied warranty theory of merchantability or fitness for a particular purpose.

Question: The Uniform Commercial Code permits sellers to exclude warranties in whole or in part.

Question: _____ imposes a liability on a merchant-seller of defective goods without fault.

Question: Strict liability is liability without proof of negligence and without privity.

Question: A limited warranty may cover only parts, not labor.

Question: A contract is no less binding when negotiated by an agent than by the principal.

Question: A general agent has the authority to act in any way required by the principal’s business.

Question: Most agencies are created by contracts.

Question: The fiduciary responsibility of an agent is imposed by law.

Question: A(n) _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

Question: Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely, the principal may still be liable if he ratifies or adopts the agent’s acts before the third party withdraws from the contract.

Question: A principal can be held liable for actions by an agent that the principal had no knowledge of.

Question: If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm, then the principal is liable.

Question: Which of the following is true of ratification by the principal?

Question: According to the doctrine of _____, a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.

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