Business Law: Exam 2 Material Flashcards
0
Q
Offer, acceptance, and reality of consent are examples of ____.
A
Mutual agreement
1
Q
Elements of a contract are ____, ____, and ____.
A
Mutual agreements
Competent parties
Consideration
2
Q
Expression of willingness of the offeror to enter a contractural agreement is ____.
A
Offer
3
Q
These are examples of \_\_\_\_ Must be definite Basis for agreement Seriously intended Not a joke Not offered in jest fear or ager Communicated between the offeror and offered Both parties must be cognizant of the agreement
A
Valid offers
4
Q
A person or party to whom an offer is made is an ____?
A
Offeree
5
Q
Person or party who initiates an offer is an ____?
A
Offeror
6
Q
Examples of invitations to deal are?
A
Advertisements
Price lists and quotations
Bids
Estiments
7
Q
What are not valid offers, but can eventually lead to one?
A
Invitations to deal.
8
Q
Examples of invitations to deal are?
A
Advertisements
Price lists and quotations
Bids
Estiments
9
Q
What are not valid offers, but can eventually lead to one?
A
Invitations to deal.
10
Q
A false statement made in the belief it is true is____?
A
Innocent misrepresentation
11
Q
A false statement of a matter of fact is ____?
A
Misrepresentation
12
Q
An intentional or reckless false statement of a material fact, upon which induced the injured Pratt to enter into a contract, at his detriment is ____?
A
Fraud
13
Q
Manners of committing fraud are:
A
By express misrepresentation
By concealment
By silence when you have a duty to speak
Not sharing info when asked or requested
14
Q
A person in a relationship of trust or confidence is a\_\_\_\_ Family relationships Attorneys and clients Physician and patient Funeral directs and family
A
Fiduciary
15
Q
An ____ is an improper influence that is asserted by one dominant person over another, without threat of harm, ofter a fiduciary realtionship.
A
Undue influence
16
Q
Mistake by one party to a contract is ____?
A
Unilateral Mistake
17
Q
Means of removing one’s free will, obtaining consent by threat to do harm to the person, their family, or property. Element of coercion or force, by physical, emotional, and financially causing this ____.
A
Duress
18
Q
Mistake as to quality, value, or price. mistakes as to terms of contract. Generally, ____ will not render agreement defective.
A
Unilateral mistake
19
Q
Mistake by both parties to a contract is a ____?
A
Mutual mistake
20
Q
An ____ is an offer resulting in a contract. This is done by communication between the offeree and offeror, maybe oral and written, includes mail or telegram.
A
Agreement
21
Q
Mistake as to nature of transaction, mistake as to identity or existence of subject matter. Generally, ____ will rendere agreement defective.
A
Mutual mistake
22
Q
Mutual agreements, competent parties, and consideration are all examples of ____.
A
Contracts
23
Q
Contractual capacity, necessity that parties desiring to enter into cracks meet all requirements are ____.
A
Competent parties
24
Requirements for ____
Parties must have the ability to understand q contract is being made, parties must understand the contracts general nature, must have legal competence to contract
Contractual capacity
25
Protected classes of persons are; afforded special protection in contracts are ____, ____, and ____.
Minors insane persons
Intoxicated persons
Convicts
26
Persons under full legal age, under the age of 18 are known as ____.
Minors
27
Contracts by a minor are ____ at the option of the minor
Voidable
28
In regards to contract by a minor the minor wants to put the contract aside or, ____ is repudiation of, or election to avoid a voidable contract.
Dissafirmance
29
Confirming of an act which was executed without authority or an act which was voidable is known as ____.
Ratification
30
True or false, minor can also agree to terms of a contract after becoming a legal adult
True
31
____ are items, required or proper and useful, for sustaining a human being at an appropriate living standard (food, clothing, and shelter.)
Necessity
32
Minors are liable for reasonable value of contracts involving necessaries; true or false?
True
33
____includes complications from stroke senile dementia, and mental retardation. "mentally incompetent" or "mentally impaired"
Insane persons
34
Contracts by those legally declared insane are ____.
Void
35
Contracts by those not legally declared insane are ____.
Voidable
36
Persons who are under the influence of alcohol to the extent that their judgement may be impaired are ____.
Intoxicated
37
Contracts made by an intoxicated persons are ____.
Voidable
38
Persons found guilty by court of a major criminal offenses (felony or treason) are ____.
Convicts
39
Depends on state or jurisdiction, some impose limits similar to minors and insane persons, are lifted once individual is no longer imprisoned or supervised by parole authorities are ____.
Contracts by a convict
40
That which the offeror/promisor demands and receives as the price for an offer/promise is ____.
Consideration
41
Includes money, personal property, and service. Generally, promises unsupported by consideration are not enforceable. Concept of legal detriment as a basis for, contract cannot call for performance of an illegal act. Fairness and adequacy of this, goods and services typically have recognized market value, but not every promise has a fixed monetary value, the law does not prohibit "bargains." ____.
Consideration
42
Promising to do what one is legally obligated to do is, promising from doing that which has no right to do____.
Example: cannot promise to drive legal speed limit, when you are obligated to drive legal speed limit.
Invalid consideration
43
Refraining from doing something _____.
Example: promising not to rob a bank
Forbearance
44
Charitable pledges and subscriptions, church or other charity organizations, legally required to honor your pledge or subscription, your subscription or pledge "is an offer of a unilateral contract that is accepted by creating liabilities and expenditures." this is ____.
Promises enforceable without consideration
45
Enforceable promise whereby one party justifiably acts in reliance upon the promise of another is known as ____.
Promissory estoppel
46
Offer is made, offeror reasonably expects the promise to induce action by offeree. Offeree acts, offeror fails to honor the offer is there anything you can do? YES! Justice requires enforcement of the promise when the offeree would be substantially harmed if it were not enforced. These are ____.
Elements of Promissory Estoppel
47
Legal purpose and legal execution, as long as elements of a contract are legal, terms of a contract should be executed, illegality renders a contract void is known as ____.
Legal objectives
48
Agreements to commit crimes or torts, agreements prohibited by statute, agreements contrary to public policy are all classes of ____
Illegality agreements
49
Injurious to individuals and society at large are ____.
Agreement to commit crimes
50
Usurious, restraint of trade, fix prices, influence fiduciaries, defraud creditors, obstruct justice, relieve liability for willful negligence is ____.
Agreements prohibited by statute
51
Exceeding maximum rate of interest which maybe charged on loans or consumer credit accounts is known as ____.
Usurious
52
Charging a higher rate of interest than the law allows is known as ____.
Usury
53
Highest legal rate of interest is ____
Maximum contract rate
54
Interest rate applied when no rate is specified in known as ____.
Legal rate
55
Laws which seek to promote competition amount businesses is ____.
Antitrust laws
56
Legislation intended to promote competition among businesses by prohibiting restraint of trade is the definition of ____.
Sherman antitrust act
57
Prevents creation of a monopoly, prohibits contracts not to compete, restraint trade, fix prices of goods and services, and unfair competitive practices are examples of ____.
Antitrust laws
58
Person or persons in a relationship of trust or confidence is a ____.
Fiduciaries
59
Regarding payment of a debt and money owed are ____.
Agreements to defraud creditors
60
Process of law and justice, determined by established laws, and court judgements are all ____
Agreements to obstruct justice
61
Agreements in which someone else "takes the blame" is ____.
Agreements to relieve liability for willful negligence
62
Contracts limiting freedom of marriage, contracts injurious to public service or the "public good" are ____.
Agreements contrary to public policy
63
Originally enacted by the English parliament, present in some form in all states, lists certain types of contracts which can only be enforced if in written form.
Statute of frauds
64
Contracts to transfer an interest in real property (land and objects attached to the land), Executory bilateral contracts which cannot be completed within one year from date of making, ensures parties do not forget contract terms, agreement to become responsible for the debt of another, contracts made by executors or administrators to pay debts of an estate out of his/her personal funds, rather than paying debt from decedents estate, agreement to pay debts of another, promises made in consideration of marriage, prenuptial agreements, contracts involving the sale of goods or merchandise with the price of 500.00 or more
Types of contracts in writing
65
Obligation to pay money or goods.
Debt
66
Non performance of a duty or obligation
Default
67
Moveable tangible personal property is known as ____.
Goods
68
Two contracts that must be in writing are contracts that deal in the selling of goods costing ____ or more as well as prenups.
$500.00
69
Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law is the definition of ____.
Discharge
70
When all terms of the contract have been fulfilled, the contract is discharged by ____.
Performance
71
Contract that has been performed in a manner that would "satisfy" an ordinary reasonable person is ____ or ____.
Satisfactory or complete performance
72
Fulfilling major terms of the contract, contracts can he discharged, less any damages that might occur for minor breaches of contract is ____.
Substantial performance
73
Mutual agreement to cancel the contract, entering into a contract is a mutual agreement, parties can also mutually agree to cancel the contract is a ____.
Discharge by agreement
74
Change of one party (a new person has entered the contract) to a contract at the mutual agreement of the original parties is called ____.
Novation
75
Agreement made and executed in satisfaction of the rights one has from a previous contract is ____.
Accord and satisfaction
76
Impossibility of a performance, destruction of the subject matter, occurs when the subject matter of a contract is destroyed without fault of either party is and intervening illegality is ____.
Discharge by impossibility
77
Situation in which one of the parties to a contract fails or otherwise refuses to perform the obligation established in that contract is ____.
Breach of contract
78
One party announces his/her intention not to perform prior to time to perform is ____.
Anticipatory breach
79
Sum of money awarded to injured party is ____.
Damages
80
Token award to symbolize vindication of wrong done to the plaintiff. Generally award of $1.00 is known as ____ damages.
Nominal
81
Award paid to injured party to cover exact amount of their loss, but no more is known as ____ damages.
Compensatory
82
Award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff is known as ____ damage. Exemplary, occurs most with torts rather than breach of contract.
Punitive
83
Provision in a contract fixing the amount of damages to be paid in the event one party breaches the contract is ____ damages.
Liquidated
84
Canceling, annulling, avoiding or putting aside part of the contract is ____.
Rescission
85
Carrying out terms of the contract is known as ____.
Specific performance
86
Judicial order or decree forbidding performance of a certain act is an ____.
Injunction
87
Time within which right to sue must be exercised or lost is ____. Time limits vary from state to state. (Depends of types suits and types of debt.)
Statute of limitations
88
Of a creditor does not use for payment of a debt within a certain time period, they ____.
Will not be allowed under statutes of limitations.
89
Changing terms of an original written contract makes the contract void, original contract is discharged, new written contract is required is a ____.
Alteration of a written contract
90
Method whereby one party conveys rights to another person, who is not a party to the original contract is ____.
Assignment
91
Party making assignment is an ____.
Assignor
92
Party to whom the assignment is made is the ____.
Assignee
93
Transferring one's rights under a contract to another part is ____.
Rights of assignment
94
Person not a party to a contract, but whom the parties intend to benefit is a ____.
Third party beneficiary
95
Person to whom the promisee owes an obligation, which is discharged of the promisor performs is ____.
Creditor beneficiary
96
Third party beneficiary to whom no legal duty is owed and for whom performance is a gift is known as ____.
Donee beneficiary
97
A ____ is a contract in which ownership of goods transfers immediately from the seller to the buyer for a price. Transfer of title to goods from seller to buyer for consideration called the price is known as ____.
Sale
98
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Movable tangible personal property are ____.
Food
Vehicles
Clothing
Furniture
```
Goods
99
Goods which are in existence and owned by the seller when the contract is made is known as ____.
Existing goods
100
Goods which are not in existence when the contract is made are known as ____.
"Goods to be provided at a later date."
Future goods
101
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Consideration stipulated by the contract, generally expressed in money or money's worth is ____.
Considerations can be:
Money
Goods
Services
```
Price
102
Specifying of goods by the buyer to the seller is ____.
Indentification
103
Person who deals in goods and/or has knowledge or skills related to the sale of goods is ____.
Merchant
104
Seller agrees to transfer title of goods to a buyer for consideration (price) "at a future time" is ____.
Contract to sell
105
A document of conveyance which provides written evidence of one's title to tangible personal property (goods) which provides sellers proof of title- if questioned by the buyer AND buyers proof that goods were obtained legally is a ____.
Bill of sale
106
Recognized as most important statute in business law, includes provisions which regulates certain sale of goods are ____.
Uniform commercial code (UCC)
107
Applies to personal property classified as goods is _____.
Uniform commercial code
108
Uniform commercial code does not apply to:
Real property
Intangible personal property
Service contracts
109
Land and objects permanently attached to land is ____.
Real property "real estate"
110
Any property which is not real property is ____.
Personal property
111
Evidences of ownership of personal property such as stock of corporations, checks, and copyrights is ____.
Intangible personal property
112
Contracting for services rather than goods are ____.
Service contracts
113
Defines offer, acceptance, consideration, incapacity, and illegality. Applies to circumstances not covered under the UCC is ____.
Contract law
114
Required for passage of title amd occurs wjen the buyer signifies that he or she will take or retain the goods. Acceptance of goods by the buyer is ____.
Passage of title
115
Sale is not complete until the buyer approves the goods is the definition of ____.
Sale on approval
116
Is a complete sale with the right of the buyer rot return the goods and thereby set aside the sale os _____.
Sale or return
117
A guarantee made by a seller that an article, good, or service will conform to a certain standard or will operate in a certain manner is ____.
Warranty
118
A sale of goods implies the seller owns the item offered for sale is the definition of ____.
Warranty of title
119
Goods shall be delivered free of the rightful claim of any third party by way of patent of trademark infringement is ____.
Warranty against patent and/or copyright infringement.
120
Warranties imposed by the UCC are ____.
Warranty of title
| Warranty against patent and or copyright infringement
121
Actual and definite statement of a seller, either orally or in writing, guaranteeing a standard or level of performance; seller promises either in writing or orally assures the quality, description, or performance of the goods is ____.
Express warranty
122
Warranty imposed by law; arises automatically because the sale has been made is ____.
Implied warranty
123
The types of implied warranties:
Warranty of merchantability (merchant seller)
Warranty of fitness for a particular purpose
The goods being sold shall be merchantable and fit for the purpose for which the seller implied.
124
Limits warranty coverage to that provided by manufacturer of goods is ___.
Protection for merchant
125
Traditional protection, usury laws, antitrust laws, and regulator is agencies are all ____.
Consumer protection
126
Designed to protect public or consumers' interests are ____.
Regulatory agencies
127
Meeting eligibility requirements prior to licensure in a regulated profession are ____.
Administrative laws
128
____ require goods to meet safety standards.
Product safety laws
129
____ established the consumer product safety commission (which creates and enforces safety standards for many products)
Product safety act of 1972
