MPOETC Contract Law & Commercial Transactions 3

Question 1

A store displays a jacket with a $50 price tag. Under contract law, this display is best characterized as:

Accepted Answer

An invitation to make an offer

Answer

Price tags and advertisements are generally invitations to make an offer, not binding offers, so the store is not legally obligated to sell at that price.

Question 2

When police investigate a complaint about a contractor abandoning a job, the legal doctrine of 'substantial performance' means:

Accepted Answer

Near-complete performance may entitle the contractor to payment minus damages for deviations

Answer

Substantial performance allows a party who has mostly completed contractual duties to recover the contract price minus any damages caused by minor deviations.

Question 3

A contract is entered into under economic duress when one party:

Accepted Answer

Wrongfully threatens to cause economic harm unless the other party agrees

Answer

Economic duress requires a wrongful threat that leaves the victim no reasonable alternative but to agree, making the contract voidable.

Question 4

Under the UCC, which of the following is NOT required for a valid contract for the sale of goods over $500?

Accepted Answer

That the agreement involves a merchant

Answer

UCC §2-201 (Statute of Frauds) requires a writing, a signature, and quantity, but does not require that either party be a merchant.

Question 5

A teenager (age 16) signs a contract to buy a car. Later, they want to cancel it. This is an example of:

Accepted Answer

Voidable contract due to lack of capacity

Answer

Contracts with minors are generally voidable at the minor's option because minors lack the legal capacity to enter binding contracts.

MPOETC - ACT 120 Certified Police Officer Practice Test

MPOETC - ACT 120 Certified Police Officer Practice Test

MPOETC Contract Law & Commercial Transactions 3