Unit 6 Quiz

What is the purpose of a merger clause?

To exclude extrinsic evidence that would amend or alter terms of a contract
To include extrinsic evidence that would amend or alter terms of a contract
To define the extrinsic terms of a contract
To define the terms of a contract

What is the purpose of a severability clause?

To ensure that a contract is not enforced if one provision is illegal
To ensure that a contract is enforced provided all provisions are legal
To ensure that a contract’s remaining provisions are enforced if one provision is unenforceable
To ensure that a contract is enforced in its entirety

What is a third-party beneficiary?

A nonbreaching party
A breaching party
A nonparty to a contract who is assigned payment
A nonparty to a contract for whose benefit the contract is entered into

Which of the following sentences uses the word ‘contemplated’ most correctly?

Seller contemplated selling the goods, therefore, it was sued by Buyer
Buyer contemplated the goods were unacceptable and sued the Seller
The parties could not have reasonably contemplated the severe shortage of fuel at the time they entered into the contract
The parties could not have contemplated the contract in time

When should a court decline to enforce a liquidated damages provision?

If the party seeking to enforce the provision proves beyond a reasonable doubt that the amount of damages is reasonable
If the party resisting enforcement can show that the amount is unreasonable in relation to the breach
If the party resisting enforcement can demonstrate that it is willing to cure the breach
If the party seeking enforcement demands punitive damages

Which is the best definition of a nonbreaching party?

A party to a contract that did not break a promise in the contract
A nonparty to a contract
A third party beneficiary
A party to a contract that benefits from the performance of a third party

Which is the best definition of a ‘hold harmless’ clause?

A promise to pay for the defense of another party
A promise to pay a judgment on behalf of another party
A promise to arbitrate
A promise to not sue another party

Which of the following sentences uses the word ‘discharged’ most correctly?

As a result of Buyer’s breach, Buyer’s duty to perform under the contract was discharged
As a result of Seller’s breach, Seller’s duty to perform was discharged
As a result of Seller’s breach, Buyer’s duty to perform under the contract was discharged
As a result of Seller’s breach, the contract was discharged

What is the purpose of a ‘No Waiver’ clause?

To prohibit a party from waiving its obligations under a contract
To provide that a party will not have waived all its rights under the contract if at some point it waives one of its rights
To require mutual non-waiver of duties under a contract
To impose punitive damages on a party that waives its rights under a contract

When will the CISG govern a contract?

If one of the contracting parties is from a signatory country
If both parties are from signatory countries
If the contract is for the international sale of goods
If the contract provides for shipment of goods through international waters

Can parties opt out of the CISG?

Yes, if it is reasonable to assume the parties would prefer the law of a particular jurisdiction
Yes, if the court is more comfortable applying the law of a particular jurisdiction
Yes, if the parties clearly and unequivocally state the CISG does not govern their contract
No, because the CISG is part of federal law and preempts state law

How does the UCC change the mirror image rule?

Parties may form a contract even if the terms of the acceptance are not the same as the terms of the offer
Parties cannot form a contract when the terms of the acceptance differ from the terms of the offer
Contracts do not require consideration
Contracts require consideration to be sufficient and reasonable for the parties’ agreement to be enforced

Does the UCC require contracts to be in writing?

No.
Yes.
Yes, if the contract is for the sale of goods and services
Yes, if the contract is for the sale of goods for more than $500

Is parol evidence admissible under the UCC?

Yes.
No.
Yes, but evidence from negotiations
Yes, but only evidence from other contracts

What is a choice of forum clause?

A contractual agreement as to the law that should govern a dispute
A contractual agreement to arbitrate
A contractual agreement as to where a case should be resolved
A contractual agreement to mediate

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question