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ETH 321 Week 3 Knowledge Check
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ETH 321 Week 3 Knowledge Check

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1.

In which case is an offer irrevocable?

 

2.

What does the mailbox rule, in the context of common law contracts, state?

 

3.

Which of the following meets the consideration requirement of contracts?

 

4.

When does fraudulent misrepresentation occur in the context of contracts?

 

5.

Mr. Sanchez is a 70-year-old man with Parkinson’s disease. Jennifer, a full-time nurse, has been taking care of him for over four years. Mr. Sanchez depends on Jennifer and considers her to be a trustworthy caregiver. However, Jennifer informs Mr. Sanchez that she can no longer be his caregiver unless he promises to leave his estate to her in his will. Since Mr. Sanchez does not have anyone else to care for him, he accepts this agreement. Under which condition would a court of law allow Mr. Sanchez to void this agreement?

 

6.

Which defense can be used when one party to an agreement threatens violence against another party to the agreement to persuade the latter to modify the agreement?

 

7.

What is true about the statute of frauds for common law contracts?

 

8.

According to the statute of frauds, what is one component that is consistently required for a contract to be valid?

 

9.

To which of the following common law contracts will the statue of frauds best apply?

 

10.

Gadgetbug Corp. and Alba Inc. are two companies that have entered into a contract. According to the terms of this contract, if any one party breaches the contract, it will pay the nonbreaching party a fixed amount of $50,000. What type of remedy for contract breaches is best illustrated in the scenario?

 

11.

In the context of remedies to breach of contract, what is true about compensatory damages?

 

12.

Identify the type of remedy for contract breaches in which a nonbreaching party also recovers damages for foreseeable indirect losses.

 

13.

Identify the type of equitable remedy in which a court orders a party to refrain from taking a particular action.

 

14.

Adrian, who runs a café, has a contract with Mariam, who is a supplier. The contract states that Mariam will provide hundred cartons of cocoa powder to Adrian every week for a set price. However, after making the contract, Mariam realizes that there is an error in it. The price is much lower than had been agreed. Mariam decides to have the terms of contract changed. The court rules that the price term of the contract be revised. What type of remedy is illustrated in the scenario?

 

15.

What is true about specific performance as an equitable remedy for contract breaches?

 

16.

What is true about the formation of a sole proprietorship?

 

17.

Identify the true statement about general partnerships.

 

18.

Anita and Sameera own a salon together. Anita manages the business and takes management decisions herself. On the other hand, Sameera has only invested capital in the business. According to the agreement, Anita assumes responsibility for all the debts and liabilities of the salon, but Sameera is liable only for the amount that she contributed to the business. What type of business form is illustrated in the scenario, assuming necessary documents are filed with the appropriate jurisdiction?

 

19.

Which statement is true in the context of limited liability companies (LLCs)?

 

 

21.

Which of the following business firms is most likely to be a limited liability partnership (LLP)?

 

 

22.

Which of the following statements is true about corporations?

 

23.

What is one of the characteristics of a typical privately held corporation?

 

24.

Identify the true statement about corporations.

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