1. When one party in a contract agrees to release the other party from performance and enters
into a new contract with another party, this is known as
(1 point)
rescission.
novation.
discharge.
anticipatory repudiation.
2. If the sales price for an item is _____ or more, the contract should be in writing. (1 point)
$500
$300
$1,000
$800
3. On March 1, a woman sees a car with a "for sale" sign and telephone number to call. She
investigates the car and its value. She telephones and states she will pay $4,000 if she can have
the car by March 31. Her telephone conversation with the seller is
(1 point)
an offer.
an acceptance.
a counteroffer.
a contract.
4. The Uniform Commercial Code controls contracts (1 point)
for the sale of goods.
involving interstate commerce.
involving banks
for the sale of real property.
5. Generally, a state’s statute of frauds will cover _____ types of contracts. (1 point)
seven
four
five
six
6. The Uniform Commercial Code applies to contract issues related to (1 point)
the sale of goods.
the leasing of goods.
the performance of services.
the sale of real estate.
7. _____ is the item that’s bargained for in a case of agreement. (1 point)
Void
Offer
Consideration
Acceptance
8. A(n) _____ contract is formed when the executor or administrator of a person’s estate
promises to pay off owed debt with their personal funds.
(1 point)
agreement of consideration in marriage
agreement where performance is over a year away
agreement to answer for a debt of a decedent
sale of goods above certain amount
9. Under the Uniform Commercial Code, contracts for the sale of goods are subject to an implied
promise, called a(n) _____, that the goods are suitable for the specific purpose for which they are bought.
return policy
implied warranty of merchantability
implied warranty of fitness for particular use
warranty of product quality
10. Each state has a statute of _____ that outlines the requirements for forming each contract. (1 point)
frauds
codes
acceptances
guidelines