1. General Credit Corporation's promise to pay its employees a year-end bounds if it seems like good idea at the time is:
a. an enforceable contract
b. an illusory contract
c. an unconscionable contract
d. a untilateral contract
2. Auto Body Repair Shop (ABRS) promises to pay ben $1,000 a week to work for ABRS. Ben accepts and quits his job with car care service. ABRS fails to provide a job for Ben. Ben has a cause of action based on:
a. an illusory promise
b. a release
c. past consideration
d. promissory eatoppel
3. Ralph signs a covenant not to compete with his employer, super sales company. A court decides that the covenant is overly resttrictive. The court will most likely:
a. enforce it so as not to interfere with the partiesÂ’ freedom to contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burdens.
d. refuse to enforce it unless Super pays additional consideration.
4. Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract
a. only if he can prove that Fine New Autos did not know his true age.
b. only if he can prove that Fine New Autos knew his true age.
c. under any circumstances.
d. under no circumstances.
5. Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is
a. enforceable.
b. not enforceable because contracting parties can change their minds.
c. not enforceable because the contract clearly favors Wander Talk.
d. not enforceable because Uri was intoxicated when he agreed to it.
6. Joy signs a contract with Kent, an unlicensed physician, to perform a medical procedure. This contract is enforceable by
a. Joy only
b. Joy or Kent
c. Kent only
d. no one
7. Inadequate consideration may indicate undue influence (T/F)
a. an enforceable contract
b. an illusory contract
c. an unconscionable contract
d. a untilateral contract
2. Auto Body Repair Shop (ABRS) promises to pay ben $1,000 a week to work for ABRS. Ben accepts and quits his job with car care service. ABRS fails to provide a job for Ben. Ben has a cause of action based on:
a. an illusory promise
b. a release
c. past consideration
d. promissory eatoppel
3. Ralph signs a covenant not to compete with his employer, super sales company. A court decides that the covenant is overly resttrictive. The court will most likely:
a. enforce it so as not to interfere with the partiesÂ’ freedom to contract.
b. enforce it but evaluate its effects over time.
c. reform its terms to prevent any undue burdens.
d. refuse to enforce it unless Super pays additional consideration.
4. Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract
a. only if he can prove that Fine New Autos did not know his true age.
b. only if he can prove that Fine New Autos knew his true age.
c. under any circumstances.
d. under no circumstances.
5. Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is
a. enforceable.
b. not enforceable because contracting parties can change their minds.
c. not enforceable because the contract clearly favors Wander Talk.
d. not enforceable because Uri was intoxicated when he agreed to it.
6. Joy signs a contract with Kent, an unlicensed physician, to perform a medical procedure. This contract is enforceable by
a. Joy only
b. Joy or Kent
c. Kent only
d. no one
7. Inadequate consideration may indicate undue influence (T/F)