past considerationa preexisting contractual obligationpromissory estoppela moral obligationquestion 5 B u s i n e s s F i n a n c e

past considerationa preexisting contractual obligationpromissory estoppela moral obligationquestion 5 B u s i n e s s F i n a n c e

Which of the following is NOT generally required to form a contract?

Question 1 options:

Mutual assent




A signed written document

Question 2

Under the common law “mirror image rule” of mutual assent, if an acceptance varies from the terms of the offer, it is viewed as a/an ____.

Question 2 options:



Invitation to make an offer


Question 3

A party to a contract may invalidate mutual assent under the doctrine of ___ if the other party took unfair advantage of a dominant position based on a confidential relationship of trust.

Question 3 options:



Undue influence

Fraudulent inducement

Question 4 (4 points)

An act or forbearance performed before a promise is made cannot serve as valid consideration to support a contract because it is viewed merely as ___.

Question 4 options:

Past consideration

A preexisting contractual obligation

Promissory estoppel

A moral obligation

Question 5

Which of the following contractual provisions is most likely to violate the principle of legality?

Question 5 options:

Exculpatory clause for negligence

Arbitration clause

Non-compete clause

Exculpatory clause for products liability

Question 6

In an action for promissory estoppel, the promisee must demonstrate an injury caused by which of the following?

Question 6 options:

Material breach of contract

Justifiable reliance on the promise


Fraudulent inducment

Question 7

The National Labor Relations Act grants at-will employees the right to engage in which of the following in the workplace?

Question 7 options:

Voluntary termination at any time

Concerted activity and unionization

Family and medical leave

Freedom of religion

Question 8

Which of the following is not a protected class identified under any federal employment discrimination legislation?

Question 8 options:



National origin

Socioeconomic class

Question 9

Under federal employment discrimination legislation, if an at-will employee has a disability or becomes pregnant, the employer is required to provide which of the following?

Question 9 options:

Concerted activity

Undue hardship

Reasonable accommodation

Nothing, because the employee is at-will

Question 10

Which of the following is NOT a possible remedy in an employment discrimination lawsuit based on Title VII of the Civil Rights Act of 1964?

Question 10 options:

Compensatory damages

All of the above are possible remedies

Recovery of attorney’s fees

Punitive damages

Equitable remedies

Question 11

Suppose Perry said to Dudley, “I will sell you my iPod Classic at any reasonable price.” Dudley replied, “I’ll give you 50 bucks.” Perry replied, “I revoke! I can’t sell my Classic!” Under the common law contract rules, has mutual assent been established between the parties?

Question 11 options:

Yes, because Dudley’s offer was reasonable

Yes, because Perry’s power of revocation lapsed at the time of Dudley’s


Yes, because Dudley accepted Perry’s offer

No, because Perry did not accept Dudley’s offer

Question 12

Suppose Donny said to Penelope, “I offer to cut the grass in your front yard each month for $25 per month.” Penelope responded, “I accept your offer, as long as you also pull out all of the weeds in the garden by hand.” Has mutual assent been established between the parties?

Question 12 options:

No, because there is insufficient consideration

Yes, because the change in terms is immaterial

No, because the acceptance is not the mirror image of the offer

Yes, because the counteroffer was reasonable

Question 13

Suppose Donny was a car salesman and he was feeling pressured by his boss to make a sale. Perry, a small and cowardly man, was interested in buying a car. Donny grabbed Perry by the arm, looked at him menacingly, and said, “I have a deal for you that you can’t pass up.” Donny was a large man with ties to the mafia and Perry subjectively felt afraid after Donny spoke to him about the deal. For that reason, Perry agreed to purchase the car for a reasonable price. If Perry later wishes to avoid the contract and force Donny to take back the car, on what grounds can do so?

Question 13 options:

Unilateral mistake

Undue influence


Fraud in the inducement

Question 14

Suppose Dodd promised to give his father a new fishing rod for Father’s Day. His father was an attorney and said, “In order to make the promise an enforceable contract, I’ll give you $1 in exchange for your promise.” Dodd agreed, but the $1 paid by Dodd’s father played no role in inducing Dodd’s previous promise. Dodd later got into an argument with his father and did not give him the fishing rod for Father’s Day as promised. Is there valid consideration to support the promise in contract?

Question 14 options:

No, because Dodd’s promise was not induced by the $1

No, because Dodd’s father did not give up a legal right

No, because Dodd’s father unduly influenced Dodd

Yes, because Dodd had a pre-existing duty to give his father a gift

Question 15

Suppose Pedro worked in the kitchen at a restaurant. Part of his employment responsibilities included cutting onions. Pedro did not like cutting the onions because it irritated his eyes. His boss said, “Pedro, I’ll give you the rest of the week off if you’ll just cut the onions tonight.” Pedro agreed, but his boss later refused to give him the week off. Is there valid consideration to support the promise in contract?

Question 15 options:

No, because the promise was unreasonable

Yes, because Pedro gave up a legal right in exchange for the promise

No, because Pedro had a pre-existing duty to cut the onions

Yes, because Pedro’s boss made the promise in exchange for consideration

Question 16

Suppose Davey, a 16-year old genius, promised to sell a new iPhone app he designed to Pluto Enterprises in exchange for $100,000. Three months after the agreement was made, Davey learned that the iPhone app was actually worth $250,000. Does Davey have grounds to avoid the agreement?

Question 16 options:

Yes, because a contract made by a minor lacks the element of capacity

No, because Davey is bound under freedom of contract principles

No, because there was adequate consideration

Yes, because Pluto Enterprises unduly influenced Davey

Question 17

Suppose Dominique went to a New Year’s Eve party with an open bar, drank eight glasses of Champagne and became very intoxicated. While extremely intoxicated, Dominique contracted to sell a work of art to Polly for $2,000. The work of art was worth $10,000. Immediately after regaining competency the next morning, Dominique called Polly and disaffirmed the contract. Can Polly enforce the agreement against Dominque?

Question 17 options:

No, because contracts can never be enforced against intoxicated persons

No, because Dominique quickly disaffirmed the contract

Yes, because Dominque freely agreed to the terms of the contract

Yes, because intoxication is not a defense to mutual assent

Question 18

Suppose Perry worked in rail yard as an at-will employee. He and the other workers were looking forward to the annual holiday party. However, due to a sudden change in company policy, the workers were required to work late on the day of the party. In response, Perry called a meeting where the workers signed a petition requesting the rail yard to be closed early on the day of the party so that the workers could celebrate. A manager at the rail yard heard about the meeting and told Perry he would be fired if he continued trying to “organize a rebellion in the workplace.” Which of the following is Perry’s most appropriate cause of action?

Question 18 options:

Unfair labor practice based on discouraging concerted activity

Unfair labor practice based on unreasonable working conditions

Employment discrimination based on socioeconomic class

Employment discrimination based on religion

Question 19

Suppose Pappy, an at-will employee, was good at his job as a wine taster because he had a gifted sense of smell, which was absolutely necessary for his job. After Pappy turned 60 years old, he suffered an unfortunate injury to his sense of smell, which prevented him from being able to work as a wine taster. His employer allowed him to continue working in a different role, but Pappy became frustrated with the job and eventually stopped coming to work. If Pappy is fired for not coming to work and wishes to sue, is he likely to succeed in an employment discrimination lawsuit under federal law?

Question 19 options:

Yes, because the employer did not accept undue hardship

No, because his employer provided reasonable accommodation for his disability

Yes, because the employer discriminated based on his physical characteristics

Yes, because the employer discriminated based on his age

Question 20

Suppose Perry was an at-will accountant at a small logistics company. In his personal life, Perry supported left-wing political movements. Perry’s boss, Mr. Donaldson, had conservative political views. One day Mr. Donaldson noticed that Perry had bumper sticker on his truck that read, “Make America Socialist Again.” He asked Perry about the bumper sticker. Perry responded, “My political views are really none of your business, dude.” The next day, Mr. Donaldson fired Perry without explanation. If Perry suspects he was fired based on his political views, is he likely to succeed in an employment discrimination lawsuit under federal law?

Question 20 options:

No, because political affiliation is not a protected class under federal law

Yes, because Mr. Donaldson’s question created a hostile work environment

No, because at-will employees can always be fired even for discriminatory reasons

Yes, because Mr. Donaldson discouraged concerted activity

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