1. The United States has a common law system. The common law system began:
A) in the Islamic courts of predominantly Muslim countries.
B) as part of Greek and Roman civil law.
C) as a body of general rules applied in courts throughout England.
D) as a code of legal principles enacted by continental European nations.
2. Elin decides to try to sell her collection of celebrity memorabilia in an auction “with reserve.” If Elin changes her mind, she can withdraw her collection
A) only before the auctioneer announces that the items are sold.
B) only before the auctioneer delivers the items to the buyers.
C) under no circumstances.
D) within thirty days after the auction.
3. Barney offers to sell his Call Marketing Center to Domino for $100,000. Domino replies, “The price is too high. I will offer to buy it for $90,000.” Domino has
A) accepted the offer.
B) made a counteroffer without rejecting the offer.
C) rejected the offer and made a counteroffer.
D) rejected the offer without making a counteroffer.
4. Contractual capacity refers to the legal ability to enter into a contract.
A) True
B) False
5. If a minor disaffirms a contract, he or she must disaffirm the entire contract.
A) True
B) False
6. A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.
A) True
B) False
7. Gina, a minor, enters into a contract to buy a tractor from Herb, an adult. If the deal is set aside, restoring Gina and Herb to their original positions prior to a contract is
A) ratification.
B) emancipation.
C) disaffirmance.
D) restitution.
8. Olivia, a minor, signs a contract to buy a computer from Phil, the owner of Quotient Computer Store. Olivia’s right to disaffirm the contract
A) does not change the fact that Phil is bound by the contract.
B) does not yet exist because Olivia is still a minor.
C) gives Phil, an adult, the right to disaffirm the contract.
D) is not valid because a computer is a “necessary.”
9. Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is
A) voidable if Fay has a lucid interval at the time of contracting.
B) voidable if Fay lacks the capacity to comprehend the consequences.
C) voidable if the other party does not realize that Fay is incompetent.
D) unavoidable.
10. Unconscionable means unethical or unfair.
A) True
B) False
11.Neville represents himself as a contractor in Oregon, but he is not licensed in that state. A contract between Portia and Neville by which Neville agrees to excavate and build an agricultural pond for Portia in Oregon is
A) enforceable only if Portia’s neighbors do not object to the work.
B) enforceable only if Portia knows that Neville is unlicensed.
C) enforceable only if Portia does not know that Neville is unlicensed.
D) not enforceable.