Business and Personal Law

Chapter 5: Elements of a Contract

Online Practice Tests

1
If a mentally impaired person enters into a contract,
A)the reasonable time clause has no effect.
B)he or she may not be bound to the contract.
C)his or her contracts are usually valid.
D)all his or her assets are frozen.
2
Ratification can only be accomplished
A)when a business advertisement directly targets minors.
B)when both parties of the contract agree.
C)two weeks prior to the 18th birthday.
D)upon a minor reaching the age of majority.
3
By permitting minors to have the privilege of disaffirming contracts, the law
A)provides young people a second change when they use poor judgment.
B)allows minors to keep any goods that were exchanged in the transaction.
C)declares them emancipated.
D)assumes all minors are immature and lack experience.
4
The age of majority is
A)one day after a person's 18th birthday.
B)when most states allow the purchase of alcoholic beverages.
C)age 21 in most states.
D)the age of legal adulthood.
5
A minor who marries and gives up all rights to parent support is considered
A)abandoned.
B)disaffirmed.
C)emancipated.
D)ratified.
6
A restrictive covenant is a(n)
A)example of price fixing.
B)promise not to compete.
C)agreement that is generally not upheld in court.
D)efficient way to determine prices.
7
The power to regulate the health, safety, welfare, and morals of the public belongs to the
A)public corporations.
B)UCC.
C)government
D)individual.
8
The Statute of Frauds requires that
A)the fraud is exposed to both the buyer and seller.
B)the original contract be used as evidence in court.
C)an agreement for price fixing be made public.
D)certain contracts be in writing.
9
Price fixing
A)encourage competition and raises prices.
B)encourages competition and lowers prices.
C)discourages competition and raises prices.
D)discourages competition and lowers prices.
10
A contract is said to be divisible if
A)certain promises and actions in the contract can be performed by themselves.
B)it does not violate any statutory laws.
C)all six elements that make up a valid contract are included.
D)it contains at least isolated promises which can be performed independently.
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