Understanding Business and Personal Law
Understanding Business and Personal Law Glencoe Online
Business Administration Home Product Information Site Map Search Contact Us

Chapter 8: Consideration
      
  1.Under the doctrine of promissory estoppel, a promise may be enforceable without consideration.  
  a.   TRUE  
  b.   FALSE  
      
  2.An agreement to meet a friend for dinner is not legally binding because  
  a.   the friend has given nothing in exchange for the promise.  
  b.   social engagements are considered illusory promises.  
  c.   there is no signed firm offer.  
  d.   it is a promise for a future event.  
      
  3.The courts enforce charitable pledges just as if they were contracts.  
  a.   TRUE  
  b.   FALSE  
      
  4.The act of consideration must occur when the contract is made. Past consideration is not regarded as legal by the courts.  
  a.   TRUE  
  b.   FALSE  
      
  5.If the parties to a contract cannot agree to the actual amount owed, the amount is said to be  
  a.   an accord without satisfaction.  
  b.   an unclaimed debt.  
  c.   an accord and satisfaction.  
  d.   in dispute.  
      
  6.The use of a seal in the sale of goods  
  a.   varies from state to state.  
  b.   is required in all states except Louisiana.  
  c.   has been eliminated by the UCC.  
  d.   indicates that the contract is protected from discharge in bankruptcy.  
      
  7.If a person who has had his or her debts discharged in bankruptcy chooses to continue paying the debt, new consideration must be provided.  
  a.   TRUE  
  b.   FALSE  
      
  8.One of the key characteristics of consideration is  
  a.   an illusory promise.  
  b.   that something of value must be involved.  
  c.   an estoppel that will always be enforceable.  
  d.   a promise under a seal.  
      
  9.Barter agreements that involve goods and services instead of money are said to have no consideration.  
  a.   TRUE  
  b.   FALSE  
      
  10.A security guard who catches a criminal while on duty is not entitled to a reward because  
  a.   there was no promise made by the security guard to catch the criminal.  
  b.   the security guard is already required by law to provide this service.  
  c.   there is no contractual capacity between the security guard and the person who offered the reward.  
  d.   the statute of limitations does not apply.  

 
 
Glencoe McGraw-Hill
Understanding Business and Personal Law
Students
Select a Chapter for:
• Chapter Overview
• Legal Web Links
• Real Cases
• Self-Check Quizzes
 
Select A Unit for:
• Landmark Cases
• Interactive Unit
Test
 
Homework Hints
Service Learning
A Global Perspective
Career Information
Home