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