QUESTION 1 In a non-compete agreement, the term "ancillary" means that

a. the non-compete agreement must be part of a larger agreement.

b. both parties must have a stake in the outcome.

c. the non-compete agreement is unfair to the employee, but not the employer.

d. the agreement is harmless to the general public.

QUESTION 2

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

True

False

QUESTION 3

In contract law, a minor is someone under the age of 21.

True

False

QUESTION 4

Which of the following terms designates the legal ability of a party to enter into a contract?

a. Affirmation

b. Consent

c. Capacity

d. Materiality

QUESTION 5

To formally cancel a contract is to it.

a. disaffirm

b. affirm

c. rescind

d. ratify

QUESTION 6

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise to pay the loan is a collateral promise. His promise must be in writing to be enforceable.

True

False

QUESTION 7

To be valid, an agreement not to compete must be ancillary to a legitimate bargain.

True

False

QUESTION 8

If Jane persuades Linda to buy her horse by telling Linda that the horse runs "like the wind," then Jane's statement is

a. a unilateral mistake. b.fraud. c.puffery. d.reckless misrepresentation.

QUESTION 9

Fraudulent but innocent misrepresentation permits the injured party to rescind a contract.

True

False

QUESTION 10

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

True

False