Consideration is the value given in return for a promise or performance in a contractual agreement. True False Online contracts may be formed not only for the sale of goods and services, but also for a. advertising. b. licensing. c. distributing. d. manufacturing. 1 points QUESTION 18 Which is not a basic requirement for an e-contract? a. bargained-for exchange. b. consideration. c. agreement. d. legality. Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes a. specific quality standards. b. a duration and a termination. c. an offer and an acceptance. d. a price and a subject. A third person who receives an unintentional benefit from a contract even though the contract was not made for that person’s benefit is a. an incidental beneficiary. b. an indented beneficiary. c. None of these choices. d. a third party beneficiary. 1 points QUESTION 22 A mistake that occurs when both parties to a contract are mistaken about the same material fact is a. duress. b. unilateral. c. undue influence. d. bilateral. 1 points QUESTION 23 An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called a. reformation. b. rescission. c. specific performance. d. consequential damages. 1 points QUESTION 24 Courts also may reform contracts when the parties have executed a written a. condition precedent. b. anticipatory repudiation. c. oath. d. covenant not to compete. 1 points QUESTION 25 Privity of contract is the relationship that exists between the promisor and the promisee of a contract. True False 1 points QUESTION 26 Steel Mill, Inc., agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is a. specific performance. b. rescission. c. damages. d. reformation. 1 points QUESTION 27 If the delegation of duties are not performed, then the obligee can sue a. the delegatee. b. Both a and b. c. Neither a nor b. d. the delegator. 1 points QUESTION 28 For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated. True False 1 points QUESTION 29 The transfer of contractual duties to a third party is known as a. an assignment. b. a consideration. c. a delegation. d. an agreement. 1 points QUESTION 30 Under the doctrine of mitigation of damages, the duty owned depends on the nature of the damages. True False 1 points QUESTION 31 A merchant who deals in goods of the kind sold (or leased), automatically gives rise to an implied warranty of merchantability. True False 1 points QUESTION 32 According to the UCC, a merchant is a. a person who deals in the goods of the kind. b. a person who employs a merchant as a broker, agent, or other intermediary. c. a person who, by occupation, holds himself or herself out as having knowledge and skill. d. All of these choices. 1 points QUESTION 33 Article 2 sets forth the requirements for a. oral contracts. b. sales contracts. c. electronic contracts. d. lease contracts. 1 points QUESTION 34 Rice Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to a. the terms of the original offer. b. the new terms of the acceptance. c. None of the terms. d. whatever is reasonable. 1 points QUESTION 35 Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC. True False 1 points QUESTION 36 If goods of delivery fail in any respect to conform to the contract, the buyer (or lessee) may accept the goods, reject the entire shipment, or accept part and reject part. This is called the a. statute of frauds. b. reasonable standard rule. c. perfect tender rule. d. predominant-factor test. 1 points QUESTION 19