The Law of Contracts and the Uniform Commercial Code 2nd Edition by Pamela Tepper – Test Bank

Complete Test Bank With Answers

Sample Questions Posted Below

Chapter 5 – Mutual Assent of the Parties

TRUE/FALSE

1. Mutual assent is a meeting of the minds.

a. True

b. False

ANS: T PTS: 1

2. A method of destroying mutual assent is fraud in the contract.

a. True

b. False

ANS: T PTS: 1

3. Fraud and misrepresentation are the only two methods of destroying mutual assent.

a. True

b. False

ANS: F PTS: 1

4. Misrepresentation is a misstatement of fact made deliberately by a party.

a. True

b. False

ANS: F PTS: 1

5. There are two types of mistakes: mutual and unilateral.

a. True

b. False

ANS: T PTS: 1

6. In a duress case, you do not have to prove coercion.

a. True

b. False

ANS: F PTS: 1

7. Undue influence arises out of a confidential relationship.

a. True

b. False

ANS: T PTS: 1

8. Procedural unconscionability lacks meaningful choice by one party to a contract.a. True

b. False

ANS: T PTS: 1

9. Substantive unconscionability lacks meaningful choice by one party to a contract.

a. True

b. False

ANS: F PTS: 1

10. Adhesion contracts are generally considered unconscionable contracts.

a. True

b. False

ANS: T PTS: 1

MULTIPLE CHOICE

1. To determine whether mutual assent exists, the court will apply __________.

a. A privity standard b. A subjective standard ANS: C PTS: 1

c. An objective standard

d. A mutual standard

2. Methods of destroying mutual assent in a contract are __________.

a. Duress c. Fraud

b. Undue influence d. All of the above

ANS: D PTS: 1

3. A public policy argument for rescinding a contract is __________.

a. Fraud c. Misrepresentation

b. Unconscionability d. Mistake

ANS: B PTS: 1

4. Fraud constitutes a method of __________.

a. Destroying mutual assent b. Consummating a contract ANS: A PTS: 1

c. All of the above

d. None of the above

5. Misrepresentation is defined as __________.

a. A deliberate misstatement of fact b. An innocent misstatement of fact ANS: B PTS: 1

c. No misstatement of fact

d. A slight misstatement of fact6. A mistake can occur when __________.

a. Both parties are wrong about a fact c. All of the above

b. One party is wrong about a fact d. None of the above

ANS: C PTS: 1

7. In order to prove economic duress, it must be proven that __________.

a. A wrongful conduct exists b. An injured party acts against their free

will

c. Financial hardship exists

d. All of the above

ANS: D PTS: 1

8. Undue influence cases are common in __________.

a. Misrepresentation c. Fiduciary relationships

b. Unconscionable contracts d. None of the above

ANS: C PTS: 1

9. Oppressive or overly harsh contracts create __________.

a. Procedural unconscionable contracts c. Mirror image contracts

b. Substantive unconscionable contracts d. Adhesion contracts

ANS: B PTS: 1

10. An adhesion contract is considered __________.

a. Unconscionable b. Fair ANS: A PTS: 1

c. Bait and switch

d. All of the above

MATCHING

1. 2. 3. 4. 5. 6. a. mutual mistake

b. unconscionable

c. mutual assent

d. duress

e. misrepresentation

f. fraud

g. unilateral mistake

h. undue influence

i. let the buyer beware

j. fiduciary

An innocent misstatement of fact.

Wrongful existence of a material fact to a contract by both parties.

The meeting of the minds of the parties in a contract.

A person in a position of trust.

The doctrine of caveat emptor.

A deliberate misstatement of fact.7. 8. 9. 10. Wrongful existence of a material fact to a contract by one party.

A contract that shocks public sensibilities and is oppressive.

Wrongful pressure placed upon a person in a confidential relationship.

Wrongful pressure placed upon a party depriving them of their free will.

1. ANS: E PTS: 1

2. ANS: A PTS: 1

3. ANS: C PTS: 1

4. ANS: J PTS: 1

5. ANS: I PTS: 1

6. ANS: F PTS: 1

7. ANS: G PTS: 1

8. ANS: B PTS: 1

9. ANS: H PTS: 1

10. ANS: D PTS: 1