16. what kind of contract is formed when each party makes a promise

                 16. What kind of contract is formed when each party makes a promise in return for the other’s promise?

A unilateral contract.

A quasi contract.

A bilateral contract.

An implied moral contract by acceptance.
17. Which of the following is a true statement?

The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S, not subject to interpretation by the U.S. Supreme Court, and not capable of being infringed on by government.

Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that protection if its source is a corporation.

The Federal Trade Commission is an example of an independent federal level regulatory agency in the United States.

Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of administrative agencies are not elected.
18. State law provides that existing shareholders may buy new issues of stock in the same proportion as their current holdings. This is done to allow the current stockholders to keep the same voting and dividend rights they had before the new issue. This right is known as a right of:

Redemption.

Ratification.

Preemption.

First refusal.
19. Regarding sexual harassment claims filed by an employer against his or her employer:

a. Companies are absolutely liable for all sexual harassment claims since sexual harassment is a serious legal and moral wrong.

b. Companies are absolutely liable for sexual harassment inflicted by a manager or supervisor against a subordinate employee who suffers a tangible job loss or harm.

c. Companies are not liable for sexual harassment claims unless they actually knew of the sexual harassment and condoned it.

d. Companies are never liable for sexual harassment claims since the meaning of a “hostile” or “offensive” sexual work environment is too vague and subjective to impose legal liability.
20. Which of the following damages must be foreseeable in order to be collected?

Consequential.

Nominal and liquidated.

Compensatory, consequential and punitive.

Consequential and compensatory.
21. To be grounds for fraud, a misrepresentation must relate to a:

Material existing fact.

Any existing law

Statement of opinion.

Statement of prediction.
22. Which of the following is not a correct statement?

The common law of contracts governs all types of contracts in the U.S. without exception.

A contract is an agreement between two or more parties that can be enforced in court of law.

Pursuant to the objective theory of contracts, the intention to enter into a contract is determined by the objective facts that are interpreted by the “reasonable prudent person” standard.

The agreement component of a contract consists of an offer and an acceptance under the common law.
23. Under the UCC, between merchants, if a purported acceptance contains additional terms, there is an acceptance, and

The additional terms are not part of the contract.

The additional terms are part of the contract.

The additional terms do not become part of the contract if they materially alter the contract.

There is no contract.
24. An example of valid consideration is

Past gifts

Moral obligations

The performance of duties one is already obligated to perform

None of the above
25. Specific performance is generally awarded:

In cases where nominal damages are also awarded.

Where the contract involves the sale of property or goods that are unique.

Only under the U.C.C.

When the non-breaching party requests it.
26. A sues B in a state trial court for negligence. A loses the suit. If A wants to appeal, the most appropriate court in which to file the appeal is

the state appellate court.

the nearest federal district court.

the nearest federal court of appeals.

the United States Supreme Court.

27. Alpha Inc., a U.S. firm, signs a contract with Beta, Ltd., a Russian company, to give Beta the right to sell Alpha’s products in Russia. This is usually known as:

a distribution agreement.

a joint venture.

direct exporting.

licensing.
28. Consequential damages are:

Awarded to give the nonbreaching party the “benefit of the bargain.”

Are fixed in an amount prior to an actual breach.

Arise from foreseeable consequences related to the contract and its breach.

Are not awarded in the case of personal services contracts.
29. As to all tort lawsuits:

a. There must be a legal duty owed to the plaintiff by the defendant.

b. There must be the intent to harm by the actor.

c. There must be the showing of a defect.

d. None of the above.