Sample Quiz

True or False. The principle of precedent gives stability to
our system of justice.

Answer: True.


True or False: The decisions of the US Court of Appeals are
binding as precedent on other federal district courts except
for the US Supreme Court.

Answer: False. The decision of a US Court of Appeals act as
precedent only upon other federal courts within the jurisdiction
of the particular US Court of Appeals.


True or False. Zack slips and falls while shopping at Safeway.
His medical bill is in excess of $9,000. Zack can sue in a
California small claims court.

Answer: True. If Zack does win, he will only recover the
amount the small claims court is authorized to give. That
amount may be below $9,000.


True or False. Quasi contract is another name for an oral
contract.

Answer: False. Quasi contracts are fictional contracts imposed
by law out of a sense of fairness and to prevent unjust
enrichment


True or False. Law and morals are the same.

Answer: False.
 True or False. In selling his car to James, Mark said that the
car got 45 miles per gallon even though the car only got 25
miles to the gallon. James did not hear the claim about the
mileage and bought the car. When James found that the car only
got 25 miles to the gallon, he can void the contract on the
grounds of fraudulent misrepresentation.

Answer: False. Even though Mark’s statement was not true, James
did not hear it and did not rely upon the false statement in
making his decision to purchase the car.


True or False. Emily gives emergency care to Fred’s adult
daughter when the daughter became ill. Later, Fred promises to
pay Emily for the money she spent caring for his daughter.
Fred’s sincere promise is binding.

Answer: False. Fred’s promise is compensate Emily for
something Emily has already done. Past performance cannot act
as the legal consideration necessary to make Fred’s promise
enforceable.


True or False. In order to convince a car dealer to sell a car
on credit to her 17 year old son, Mary promises that she will
pay the monthly payment if her son doesn’t. This promise must
be in writing.

Answer: True. The Statute of Frauds require that promises to
be responsible for someone else’ debt must be in writing in
order to be enforceable.


True or False. Al owns a farm that he believes is worth
$100,000. Betty knows that there is oil under the farm and
offers Al $125,000 for it. Al accepts and sells the farm. Al
later realizes that the land was worth more than $250,000. Al
can have the contract avoided based upon fraud.

Answer: False. Betty was under no obligation to disclose the
information she had regarding the true value of the farm to Al.


True or False. A judge deciding a common law case must look at
what happened in similar cases in the past for guidance.

Answer: True. True or False. Peter offered to wax Kathy’s car for $20. Kathy
accepted on the condition that he would clean the upholstery
too. They have a contract.

Answer: False. Kathy, in her acceptance, added terms that were
not a part of the original offer she received. She has made a
counter offer, not a valid acceptance. There is no contract.


True or False. Sally goes away to college at 17, lives on her
own and pays her own rent and electric bills. If she makes a
contract to buy a television set, in most jurisdictions, she may
assert her minority status and set aside the contract.

Answer: True. Sally is still a minor, and has the right to
disaffirm contracts she may have created.


True or False. An incidental beneficiary has no right to enforce
a contract.

Answer: True. An incidental beneficiary is not a party to a
contract.


True or False. Just about any case can be appealed to the U.S.
Supreme Court.

Answer: False. Only cases dealing with federal issues may be
appealed to the US Supreme Court.


True or False. A contract to sell a $500,000 life insurance is
governed by the UCC.

Answer: False. The UCC governs sales of personal property.
Insurance is not, for the purpose of the UCC, considered to be
personal property.


True or False. A contract is not valid if all of the terms are
not clearly stated.

Answer: False. Modern courts will accept contracts with
missing terms so long as the courts are convinced the parties to
the contract entered into a valid contract.

True or False. On June 1, a club made an offer to pay $300 to a
liquor store in order to have ten kegs of beer delivered to the
city park for a July 4th fund raising event. On June 30, the
city passed a law prohibiting consumption of alcohol in the city
park. The club’s offer terminated on June 30.

Answer: True. The contract offer became illegal on June 30 and
was terminated.


True or False. The only purpose of law is to define what
conduct constitutes a crime.

Answer: False. One of the primary purposes of law is to
regulate behavior of the people. This involves more than merely
stating what actions are a crime.


Multiple choice. Henry gives Al $50 in return for Al’s promise
to threaten violence against Sara. Henry hopes that Sara will
come to him for help. Sara never comes for help, and Henry
found that Al went drinking with the $50.

a. Henry can get the $50 back from Al.
b. Henry can get the $50 back and force Al to do what he
promised.
c. Henry can neither get the $50 back nor force Al to act.
d. Henry can force Al to act, but Al may keep the $50.

Answer: C. Henry entered into a contract for an illegal act.
He can neither enforce the agreement nor sue to retrieve the $50
payment.


Multiple choice. Which is not a discovery device.

a. Interrogatories
b. Depositions
c. Request for medical records
d. Counterclaims
e. Admissions

Answer: D.

 Multiple choice. Susan writes a letter to Fred offering to sell
her farm for $200,000. After mailing the letter, Susan learns
that the farm is worth $300,000 and changes her mind about
selling.

a. Susan has made a firm offer which cannot be revoked.
b. Susan can revoke her offer at anytime.
c. Susan must keep the offer open because this is now an
option contract.
d. Susan is promissorily estopped from revoking her offer.

Answer: B. Generally, an offer may be revoked at anytime
before it is accepted. The fact situation does not indicate
that Fred has accepted, and the offer is neither an option
contract nor one where detrimental reliance would apply.


Multiple choice. Which of the following would be considered to
be a misrepresentation of a material fact for purposes of
establishing fraud in the inducement.

a. This is the best car in town for the money.
b. This style of jacket is going to be the most popular
style next year.
c. This car has a new radiator.
d. In my opinion, this is the best buy for the money.

Answer: C. All the other answers are expressions of opinions.
Answer C is the only factual answer in the group. Either the
car has a new radiator or it does not.


True or False. For a misrepresentation to be actionable as
fraud in the inducement, it must be a misrepresentation of
opinion.

Answer: False. In most cases of fraud, a factual error must be
made. An opinion is just that, an opinion. In special cases,
an expression of opinion can be treated as factual. If an art
expert says, this painting is a genuine Picasso, it better be.


True or False. A contract to pay for lawn care services costing
$1,500 must be in writing in order to be enforceable.

Answer: False. This is a contract for service. The Statute of
Frauds does not apply. Multiple choice. Bill bets his friend Al $100 that the Vikings
will win the next Super bowl.

a. This is an unconscionable contract.
b. This is an illegal agreement.
c. This agreement obstructs justice and is illegal.
d. This is an illegal restraint of trade.

Answer: B.


Multiple choice. Carl and Ron are contractors. They know that
several jobs are going to be up for public bid, and agree that
Carl will bid on one and Ron will bid on the other. When the
bids are opened, Ron has bid on both jobs and received both.
Carl now wants to sue Ron for breach of contracts.

a. Carl has detrimentally relied upon Ron’s promise that
he would not bid on both jobs, and will win.
b. Since Carl is less at fault than Ron, he will win.
c. This agreement is against public policy, and will not
be enforced.
d. Both parties agreed to this deal in good faith. Carl
will win.

Answer: C.


True or False. Specific performance is available as a remedy in
most cases of breach of contracts.

Answer: False. Specific performance as a remedy is only
available in situations where ordinary damages are not
sufficient to compensate the injured party.