Business Law test 2a

Business Law test 2a - Test 2 Multiple Choice Identify the...

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Test 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will offer to buy it for $90,000." Dina 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. Fact Pattern 12-1 Central Construction Company (CCC) begins building a restaurant for Diners Cafe Corporation, but after two months demands an extra $100,000. Diners agrees to pay. ____ 2. Refer to Fact Pattern 12-1. If CCC offers, as a reason for the extra $100,000, that extraordinary unforeseen difficulties will add considerable cost to the project, the agreement is a. enforceable as an accord and satisfaction. b. enforceable because of unforeseen difficulties. c. unenforceable as an illusory promise. d. unenforceable due to the preexisting duty rule. ____ 3. Refer to Fact Pattern 12-1. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is a. enforceable as an accord and satisfaction. b. enforceable because of unforeseen difficulties. c. unenforceable as an illusory promise. d. unenforceable due to the preexisting duty rule. ____ 4. Peg's transfer of rights under her contract with Quinn to Rob is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. not a delegation, an assignment, or a third party beneficiary contract. ____ 5. Britney, an employee of Computer Associates, is arrested at work. A grand jury issues a formal charge against Britney for larceny. This charge is a. an arraignment. b. an indictment. c. an information. d. an inquisition. ____ 6. Fred and Gail enter into a contract by which Fred promises to deliver fertilizer to Gail. Fred subsequently del- egates this duty to Holly. Fred is a. the delegatee and the obligee. b. the delegatee but not the obligee. c. the delegator and the obligor. d. the delegator but not the obligor. ____ 7. On Tad's eighteenth birthday, he decides that he no longer wants to keep a car he bought from U-Pick Autos, Inc., when he was seventeen. His right to disaffirm the deal will depend on a. the car's condition when Tad bought it. b. the car's current condition.
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c. whether Tad acts within a reasonable period of time. d.
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This note was uploaded on 03/27/2008 for the course ACCT 215 taught by Professor Curtis during the Spring '08 term at Iowa State.

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Business Law test 2a - Test 2 Multiple Choice Identify the...

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