Bundle Business Law Today Standard Edition 9th Edition By Roger LeRoy Miller – Test Bank

TRUE/FALSE QUESTIONS

1. In contract law, “consideration” refers to the courtesy that one party shows another in negotiating a deal.

ANSWER: F PAGE: 262 TYPE: N
NAT: AACSB Analytic AICPA Legal

2. In contract law, “consideration” refers to the time that a party takes to evaluate a deal.

ANSWER: F PAGE: 262 TYPE: N
NAT: AACSB Analytic AICPA Legal

3. A bargained-for exchange is one of the elements of consideration.

ANSWER: T PAGE: 263 TYPE: N
NAT: AACSB Analytic AICPA Legal

4. Inadequate consideration may indicate undue influence.

ANSWER: T PAGE: 263 TYPE: +
NAT: AACSB Analytic AICPA Legal

5. For consideration to have “legally sufficient value,” it must con¬sist of goods or money.

ANSWER: F PAGE: 263 TYPE: N
NAT: AACSB Analytic AICPA Legal

6. To be legally sufficient, consideration must include something of economic value.

ANSWER: F PAGE: 263 TYPE: N
NAT: AACSB Analytic AICPA Legal

7. Normally, a court of law will not question the adequacy of consideration.

ANSWER: T PAGE: 263 TYPE: N
NAT: AACSB Analytic AICPA Legal

8. A promise to do something that one has a prior legal duty to do is not consideration.

ANSWER: T PAGE: 264 TYPE: N
NAT: AACSB Reflective AICPA Legal

9. Unforeseen difficulties that justify a demand for additional compensa¬tion in¬clude risks ordinarily assumed in business.

ANSWER: F PAGE: 265 TYPE: N
NAT: AACSB Analytic AICPA Legal

10. Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties.

ANSWER: F PAGE: 265 TYPE: N
NAT: AACSB Analytic AICPA Legal

11. A promise to pay for an act that has already occurred is enforceable because the event is certain.

ANSWER: F PAGE: 265 TYPE: N