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Chapter 9Introduction to Contracts TRUE/FALSE 1. General contract law governs all contracts outside the scope of Article 2 of the UCC. ANS: T MSC: AACSB Analytic 2. The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent. ANS: T MSC: AACSB Analytic 3. A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code. ANS: F MSC: AACSB Analytic 4. A quasi contract is another name for an oral contract. ANS: F MSC: AACSB Analytic 5. During the twentieth century it became easier to enter into a contract as well as to get out of one. ANS: T MSC: AACSB Analytic 6. "I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilat- eral contract. ANS: F MSC: AACSB Analytic 7. The Uniform Commercial Code applies only to sales of goods by manufacturing firms who ship goods to buyers interstate. ANS: F MSC: AACSB Analytic 8. Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria. ANS: F MSC: AACSB Analytic 9. Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC. ANS: F MSC: AACSB Analytic 10. An implied in fact contract is not as enforceable as an express contract. ANS: F MSC: AACSB Analytic 11. If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract. ANS: T MSC: AACSB Analytic 12. A contract to sell five acres of land is governed by Article 2 of the UCC. ANS: F MSC: AACSB Analytic 13. Article 2 of the UCC governs sales of goods but it lacks relevance in modern society because it does not provide rules related to electronic commerce. ANS: F MSC: AACSB Analytic 14. In order to be legally binding, a contract must be in writing. ANS: F MSC: AACSB Analytic 15. Under the Code, "goods" are defined as tangible personal property. ANS: T MSC: AACSB Analytic 16. Albert breaches a contract with Bill in a state where the statute of limitations is six years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable. ANS: T MSC: AACSB Analytic 17. If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a unilateral contract. ANS: F MSC: AACSB Analytic 18. Article 2 of the Uniform Commercial Code does not apply to the sale of services. ANS: T MSC: AACSB Analytic 19. Charles says to Wes, "If you will mow my lawn, I will give you ten dollars." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.... View Full Document

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