Business Law MCQ Online Test

Business Law MCQ Online Test Assignment for your amity mba bba courses, ignou mba, imt cdl, smu and upes management program. This is important online mcq question answer for various distance learning program.

Online MCQ Assignment Answer

QN1: Determining whether or not the parties entered an agreement freely ___.

a. depends on the motives of each party

b. deals only with an agreement

c. will not enforce an outcome

d. is the underlying objective of contract law

Answer

Answer:: d. is the underlying objective of contract law

QN2: The law presumes that anyone entering a contract has ___.

a. nothing better to do

b. legally surrendered negotiation

c. the legal capacity to do so

d. something to gain or receive

Answer

Answer:: c. the legal capacity to do so

QN3: Maria offers to pay Alsad $100 if he makes and A in his business law class. While the business law class is in progress, Maria’s promise is ___.

a. unilateral and executed

b. unilateral and executory

c. bilateral and executed

d. bilateral and executory

Answer

Answer:: b. unilateral and executory

QN4: Betty is awarded $10,000 damages against Ethyl in a damage suit arising from an auto accident. Betty and Ethyl agree to the payment of this judgment at $100 per month. This payment agreement is confirmed by the court and recorded. Betty and Ethyl now have a ___.

a. contract under seal

b. formal contract

c. contract of record

d. contract to contract

Answer

Answer:: c. contract of record

QN5: Phillip needs money and decides to paint Donna’s house while she is out of town and bill her for the work. Donna refuses to pay Phillip and Phillip sues. A court___.

a. will not apply quasi contract doctrine

b. will apply quasi contract doctrine

c. might apply quasi contract doctrine if the painting were done very well

d. cannot apply quasi contract doctrine since Phillip and Donna did not have a written contract.

Answer

Answer:: a. will not apply quasi contract doctrine

QN6: Avia silently takes one candy bar each day from Jerry’s candy store and pays for them at the end of the week. On this particular day, Avia silently takes two candy bars from Jerry’s candy store. At the end of the week Avia only wants to pay for one candy bar since she believed that she should get one free for being a good customer. A court will ___.

a. apply Avia’s belief in resolving this dispute

b. be unable to resolve the dispute unless the parties agree

c. create a contract since no words were spoken

d. view Avia’s actions as a reasonable person would have

Answer

Answer:: d. view Avia’s actions as a reasonable person would have

QN7: Sarah purchases a car when she is a 15-year-old from OK Motors Inc. Sarah’s contract is ___.

a. valid

b. void

c. voidable

d. unenforceable

Answer

Answer:: c. voidable

QN8: Karaya contracts with Lance to have him mow her yard every two weeks while she spends the summer in India. Lance only mows every four weeks and Karaya’s yard looks very ugly. Karalya’s neighbor, Zaya, sues Lance for his failure to maintain Karaya’s yard properly. A court will ___.

a. allow Zaya to sue since she sees the ugly yard next door

b. dismiss Zaya’s suit since privity is lacking

c. allow Zaya to sue as an intended beneficiary

d. allow Zaya to sue as an incidental beneficiary

Answer

Answer:: b. dismiss Zaya’s suit since privity is lacking

QN9: This theory of contract law focuses on the outward actions and the words of the parties:

a. will

b. equal value

c. good faith

d. formalistic

Answer

Answer:: d. formalistic

QN10: Jared, age 18, agrees not to smoke when his uncle Brandon, age 40, promises to pay him $1,000 for not smoking until age 22. Will a court compel uncle Brandon to pay Jared $1,000 if Jared does not smoke?

a. No, because Jared has better health for having not smoked.

b. No, because uncle Brandon did not benefit from Jared’s action.

c. Yes, because Jared and uncle Brandon are adults.

d. Yes, because Jared gave up a legal right.

Answer

Answer:: d. Yes, because Jared gave up a legal right.

QN11: Charlie tells Bo that he is looking for a new car. Bo says that he will sell Charlie his car for $12,000. Charlie says he wants to think it over. In what stage of contract formation are Charlie and Bo?

a. negotiation

b. intention

c. acceptance

d. contract

Answer

Answer:: a. negotiation

QN12: How certain and definite must an offer be?

a. absolutely

b. somewhat

c. convencienly

d. reasonably

Answer

Answer:: d. reasonably

QN13: Alpha Inc. offers to purchase all the coal it needs from Mountain Mining Inc. Alpha and Mountain have what type of agreement?

a. output

b. requirement

c. illusory

d. cost-plus

Answer

Answer:: b. requirement

QN14: Janet promises to pay Roberto $20 to wash her car. Roberto may accept Janet’s offer by ___.

a. promising to wash the car

b. specifying to wash the car

c. preparing to wash the car

d. washing the car

Answer

Answer:: d. washing the car

QN15: Norm offers to sell his horse to Gary for $1,000. Gary states that he accepts the offer provided Norm includes a month of riding lessons. What is the legal status of Gary’s statement?

a. counteroffer

b. acceptance

c. offer

d. implied acceptance

Answer

Answer:: a. counteroffer

QN16: Cindi receives via FedEx a new DVD player that she did not order. What is Cindi’s legal obligation?

a. none

b. hold the DVD player for a reasonable time

c. promptly return the DVD player

d. pay for the DVD player

Answer

Answer:: b. hold the DVD player for a reasonable time

QN17: Grandma Jones offers by mail to sell her house to Allen for $80,000. She dies unexpectedly. Allen sends his acceptance the next day after her death. Is there an enforceable contract?

a. Yes, if Allen did not know of the death.

b. No, the death terminated the offer.

c. Yes, if Allen responded in a reasonable time.

d. No, since the death was unexpected.

Answer

Answer:: b. No, the death terminated the offer.

QN18: Dexter is considering purchasing from Lisa a vacant lot and opening a fast food restaurant. However, he heeds a month to obtain his financing. How may Dexter secure an enforceable offer to purchase the lot?

a. requirement contract

b. firm offer contract

c. option contract

d. security contract

Answer

Answer:: c. option contract

QN19: Which of the following contains rules regarding cybercontract law:

a. The Uniform Electronic Transactions Act

b. The C-Sign Act

c. The Internet Contract Act

d. The Cyberspace Transactions Act

Answer

Answer:: a. The Uniform Electronic Transactions Act

QN20: A cyberofferor should include the following terms in their offer:

a. payment criteria

b. liability disclaimer

c. return procedures

d. all of the above

Answer

Answer:: d. all of the above

QN21: In the granting of mutual assent, a “meeting of the minds” means that ___.

a. there were lengthy negotiations.

b. there is a complete understanding of all aspects of the agreement

c. both parties know the terms and have willingly agreed to be bound by them

d. both parties know the terms, have willingly agreed to be bound by them, and have had a face-to-face meeting

Answer

Answer:: c. both parties know the terms and have willingly agreed to be bound by them

QN22: Eva intentionally and falsely states that an old ring that she is selling to Julia was made in France. Julia, a collector of French jewelry, pays $3,000 for the ring based upon these statements. Julia later learns that the ring was made in Poland and is worth $6,000. May Julia successfully sue Eva for fraud?

a. No, because Julia has not suffered a loss.

b. Yes, because where the ring was made was a material fact to Julia.

c. No, because Julia was free to inspect the ring before purchasing it.

d. Yes, because Eva intentionally and falsely misstated a material fact.

Answer

Answer:: a. No, because Julia has not suffered a loss.

QN23: Ichi covers the rust damage to a car he is selling to Henry with a new paint job. Henry does not ask about rust damage. Has Ichi committed fraud?

a. No, because Henry didn’t ask about rust.

b. Yes, because Henry cannot be expected to discover the rust.

c. No, because rusting is a natural process that Henry should understand.

d. Yes, because Ichi made the car look nicer than it really was.

Answer

Answer:: b. Yes, because Henry cannot be expected to discover the rust.

QN24: In a case involving innocent misrepresentation, the court will allow ___

a. damages

b. rescission and damages

c. rescission

d. rescission, damages, and an injunction

Answer

Answer:: c. rescission

QN25: Beth contracts to sell Minda merchandise stored in a warehouse. Unknown to either person, the warehouse burned the night before the contract was made, totally destroying the merchandise. In this situation, Minda ___.

a. is bound to the contract

b. may successfully assert fraud

c. may successfully assert fraud and cancel the contract

d. may cancel the contract

Answer

Answer:: d. may cancel the contract

QN26: Duress is characterized by ___ while undue influence is characterized by ___. What word goes in each blank in order?

a. threats, pressure

b. pressure, threats

c. emotional appeals, mistaken beliefs

d. confusion, indecision

Answer

Answer:: a. threats, pressure

QN27: James operates the only gasoline station along a one hundred mile stretch of desert road and charges four times the normal price for gasoline. A motorist purchasing gasoline from James ___.

a. experiences wrongful economic duress

b. experiences wrongful emotional duress

c. experiences wrongful undue influence

d. experiences no duress or undue influence

Answer

Answer:: d. experiences no duress or undue influence

QN28: Bethany is an exceptionally persuasive sales representative. After signing a contract, customers frequently feel that they were swept along without a meanful way to say no. Bethany has engaged in ___.

a. undue influence

b. duress

c. both undue influence and duress

d. neither undue influence or duress

Answer

Answer:: d. neither undue influence or duress

QN29: A fiduciary relationship involves ___.

a. trust

b. dependence

c. trust and dependence

d. trust, dependence, and domination

Answer

Answer:: c. trust and dependence

QN30: Aza and Ersaid both believe that a particular horse descended from a Kentucky Derby winner when in fact the horse descended from a horse that came in last in the Kentucky Derby. This is most clearly an example of ___.

a. mistake as to existence

b. mistake as to value

c. mistake as to description

d. mistake of law

Answer

Answer:: c. mistake as to description

QN31: Jay, age 16, purchases a new sports car with his inheritance from his grandfather. Nine months later he wrecks the car, which is a total loss. What are Jay’s disaffirmance rights in most states?

a. He may disaffirm.

b. He may disaffirm but must pay nine months rental value.

c. He may disaffirm but must pay the salvage value of the car.

d. He may not disaffirm.

Answer

Answer:: a. He may disaffirm.

QN32: LaVall, age 18, lives in a state in which the age of adulthood is nineteen. May she legally vote in a U.S. Presidential election?

a. No, since adulthood in her state is nineteen.

b. Yes, since she is eighteen.

c. No, since it would be an unreasonable burden to separate federal and state elections.

d. Yes, since she pays federal income taxes on her wages.

Answer

Answer:: b. Yes, since she is eighteen.

QN33: A minor may become emancipated by ___.

a. giving up all parental support

b. a legally sanctioned court procedure

c. giving up all parental support or by a legally sanctioned court procedure

d. only becoming married or joining the armed forces

Answer

Answer:: c. giving up all parental support or by a legally sanctioned court procedure

QN34: What constitutes as necessary ___.

a. is the same for all minors

b. varies according to local standards

c. varies according to the age of the minor

d. varies according to the minor’s social status

Answer

Answer:: d. varies according to the minor’s social status

QN35: Leo, age 16, has his wisdom teeth removed by Jane, a local dentist. Jane charges Leo $1,200 while most dentists would have charged $900. Leo must pay ___.

a. 1200

b. 1050

c. 900

d. nothing if he disaffirms the contract

Answer

Answer:: c. 900

QN36: Margarita does not like the dinner her parents have prepared and leaves the house to purchase a $50 steak dinner at a local restaurant. How much must Margarita’s parents pay the restaurant if Margarita refuses to pay anything?

a. 50

b. a reasonable price

c. an amount to be determined in arbitration

d. nothing

Answer

Answer:: d. nothing

QN37: Hector, age 16, decides to get free use of a computer by purchasing it and later disaffirming the contract. Hector is using minority as ___.

a. a sword

b. a shield

c. both a sword and a shield

d. neither a sword or a shield

Answer

Answer:: a. a sword

QN38: A minor may disaffirm a contract ___.

a. only while a minor

b. only after becoming and adult

c. both while a minor and after becoming an adult

d. only with the permission of a court

Answer

Answer:: c. both while a minor and after becoming an adult

QN39: Which of the following circumstances always produces a lack of contractual capacity?

a. mental retardation

b. brain damage

c. drinking

d. appointment of a guardian

Answer

Answer:: d. appointment of a guardian

QN40: Vonnie appeared normal but in fact is mentally incompetent. If she decides to disaffirm a contract, Vonnie ___.

a. has no obligation beyond disaffirming

b. must return all consideration received

c. must pay a reasonable price for any goods or services she received

d. must petition a court for permission to disaffirm

Answer

Answer:: b. must return all consideration received