3) Forbearance is defined as:

A) An invitation to negotiate.

B) An offer.

C) A counteroffer.

D) A bilateral contract.

E) Promising to refrain from doing something you are legally entitled to do.

4) In a bilateral contract, the consideration for each promise is ________.

A) an invitation to negotiate

B) forbearance

C) actually doing the act called for in the contract

D) a return promise

E) refraining from doing something the contracting party is otherwise legally entitled to do

5) For a promise to be enforced by the courts, there must be ________.

A) a written contract

B) forbearance

C) an invitation to negotiate

D) consideration

E) a bilateral contract

6) An example of forbearance is ________.

A) selling assets to avoid payment to creditors

B) one party making a promise, knowing the other party will rely on it

C) refraining from the use of liquor, assuming the promisor is of legal drinking age

D) a promise to do something that you are already obligated to do

E) past consideration

7) Suppose that Dakiyah promises to pay Fernando $300 for his television. Fernando promises to sell Dakiyah his television for $300. The parties have not documented the transaction in writing. Which of the following is an accurate statement regarding this arrangement?

A) There is no contract between the parties because the promises are not in writing.

B) This is a unilateral contract.

C) This is merely an invitation to negotiate.

D) There is an oral contract.

E) Dakiyah's promise constitutes an offer, while Fernando's promise is a counteroffer.

8) In a unilateral contract, the consideration for a promise is ________.

A) an act

B) a return promise

C) forbearance

D) an invitation to negotiate

E) a counteroffer

9) Which of the following is an exception to the rule requiring consideration?

A) Bilateral contracts

B) Promissory estoppel

C) Unilateral contracts

D) Forbearance

E) Specific performance

10) When would a court consider the adequacy of consideration?

A) To verify that property was sold at its fair market value.

B) To verify that a sale of assets was not done to avoid payment to creditors.

C) To verify that one party gave a promise in return for the act of another party.

D) To verify that each party gave a valid promise to the other party.

E) When one party has promised forbearance as consideration.

11) Sam offers Betty his bicycle for $75. Which of the following is an example of an illusory promise on the part of Betty?

A) "I'll take it."

B) "I'll take it if I decide to do so."

C) "I won't pay $75, but I will pay $50."

D) "I'll take it if you will let me try it out first and the brakes work well."

E) "I'll take it if you will put new tires on it first."

12) A person who has legal ________ to contract is one who has the mental ability to understand his or her rights and obligations under a contract.

A) affirmance

B) capacity

C) ratification

D) construction

E) assent

13) A person may have either no capacity, and therefore any attempted contract is ________, or limited capacity, resulting in ________ contracts.

A) void; voidable

B) voidable; void

C) conditional; unconditional

D) unconditional; conditional

E) informal; formal

14) A minor may be given full legal capacity to enter into contracts when he or she becomes ________.

A) emancipated

B) aware

C) sentient

D) employed full-time

E) employed at least part-time

15) In order to disaffirm a contract, a minor must ________.

A) petition the court

B) express in writing the intention to disaffirm

C) express an intention by words or actions

D) have his parents confirm in writing their consent to the disaffirmance

E) select a portion of the contract to disaffirm, because a minor cannot disaffirm an entire contract

16) When must a disaffirmance of a contract based on minority occur?

A) Before or within a reasonable time of the minor's reaching the age of majority

B) Within thirty days of the minor's reaching the age of majority

C) Within sixty days of the minor's reaching the age of majority

D) Within ninety days of the minor's reaching the age of majority

E) Within one year of the minor's reaching the age of majority

17) As a general rule, most states will not allow a minor to disaffirm contracts for which of the following?

A) Life insurance

B) Health insurance

C) Psychological counseling

D) Life insurance, health insurance, and psychological counseling

E) Health insurance and psychological counseling, but a minor does have the right to disaffirm a contract for life insurance, because life insurance premiums have a disparate impact (actuarially) on minors

18) What is the purpose of the minor's right to disaffirm contracts?

A) To reduce the judicial caseload for breach of contract actions

B) To allow minors a windfall in terms of keeping property without paying for it

C) To punish adults who contract with minors

D) To give minors superior bargaining power in negotiating contracts

E) To protect the minor from competent parties that might otherwise take advantage of the minor

19) A contract that supplies the minor with the basic needs such as food, clothing, and shelter is called ________.

A) a unilateral contract

B) an implied contract

C) a contract for a necessary

D) a ratification

E) a contract of adhesion

20) Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contact entered into as a minor?

A) Implied ratification

B) Express ratification

C) Express novation

D) Implied novation

E) Disaffirmance

21) Which of the following is a correct statement regarding the remedy available for an unenforceable agreement?

A) Only compensatory damages are available for an unenforceable agreement.

B) Only consequential damages are available for an unenforceable agreement.

C) No remedy is available for an unenforceable agreement.

D) Compensatory damages and punitive damages are available for an unenforceable agreement, depending on the circumstances of the case.

E) Compensatory damages, consequential damages, and punitive damages are available for an unenforceable agreement, depending on the circumstances of the case.

22) Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within twenty-five miles for a period of two years. This type of agreement is called a(n) ________.

A) covenant not to compete

B) implied-in-law contract

C) quasi-contract

D) termination agreement

E) public policy agreement

23) Major obstacles to genuine assent include all but which of the following?

A) mistake

B) misrepresentation

C) factual capacity

D) undue influence

E) duress

24) A(n) ________ is an erroneous belief about the facts of a contract at the time the contract is concluded.

A) assumption

B) projection

C) abeyance

D) mistake

E) accord

25) Which of the following is necessary in order to establish that a mutual mistake involving a basic assumption about the subject matter of a contract was made?

A) That the mistake involved the existence, quality, or quantity of the items to be exchanged.

B) That the mistake involved whether a party could profit from the contract.

C) That the mistake involved whether a party could profit from the contract or whether a party misunderstood the time constraints involved in the contract.

D) That the mistake involved the identity of parties to the contract or whether a party misunderstood the time constraints involved in the contract.

E) That the mistake involved a misunderstanding regarding the applicability of the Uniform Commercial Code to the contract.

26) For a mutual mistake to interfere with legal consent, it must involve a ________ effect on the agreement.

A) conditional

B) material

C) tertiary

D) criminal

E) statutory

27) An error by one party about a material fact is known as a ________ mistake.

A) primary

B) mutual

C) unilateral

D) secondary

E) conditional

28) Distinguishing between unilateral and mutual mistakes is important because the classification bears on which contracts ________.

A) are void

B) are voidable

C) lack consideration

D) lack legality

E) are entitled to enforcement in a court of equity

29) George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is, probably just a shiny stone. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result?

A) The ring will be returned to George because of mutual mistake.

B) The ring will be returned to George because of unilateral mistake.

C) The ring will be returned to George because of equity.

D) The ring will remain with Penelope unless George can establish that she was negligent in not recognizing the ring's true value.

E) The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.

30) Which of the following must a mutual mistake involve in order for a mutual mistake to interfere with legal consent?

A) A basic assumption about the subject matter of the contract.

B) A material effect on the agreement.

C) A basic assumption about the subject matter of the contract and an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement, but not a material effect on the agreement.

D) A basic assumption about the subject matter of the contract, a material effect on the agreement, and an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.

E) An admission by one of the parties that a misrepresentation occurred.

31) A person who makes a misrepresentation but has no knowledge about the falsity of the statement does not have ________.

A) information

B) premeditation

C) planning

D) plotting

E) scienter

32) When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it, the statement is a(n) ________.

A) innocent misrepresentation

B) fraudulent misrepresentation

C) non-material misrepresentation

D) negligent misrepresentation

E) commercial disparagement

33) Which of the following are elements of fraudulent misrepresentation?

A) A false statement and a mutual mistake

B) A false statement and intent to deceive

C) Intent to deceive and negligent representation of a material fact

D) A commercial relationship between the parties and negligent misrepresentation of a material fact

E) A non-commercial relationship between the parties and duress

1. Mainstream economics teaches us that market competition is the most efficient way to regulate the production and distribution of commodities. And yet, many who are critical of President Trump’s policies have argued for the government to command enterprises to produce what is needed for this public health emergency and then distribute the goods according to need.

In one paragraph, briefly give me at least two reasons why it might make sense for the government to suspend the market and take control of the production and distribution of goods.

In a second paragraph, explain what problems a government’s command and control policies might cause.

In a final paragraph, tell me whether or not you think the critics of President Trump are correct.

Comparing US transportation to that of European, how has European transportation proved to be more efficient than that of the US?

Explain what “strict liability” is in the context of a tort. Why shouldn’t all torts be based upon the concept of strict liability? Explain.

Please show all steps:

What is the economic life of an asset that was purchased for $12,000. O&M costs are $3000 for the first year and increase $1500/yr each year after that. Assume a 7% interest rate.

Natural law is a concept in political theory which suggests that there are universal rights and wrongs and holds that (among other things) every individual possess basic rights which all governments must protect. U.S. law generally supports this concept and courts have consistently held that the Bill of Rights applies to all people, not just citizens. However, since 9/11 several federal laws have been passed which limit the due process rights of suspected terrorists. Such laws, like the PATRIOT Act, were passed in the name of protecting national security.

What should happen when individual due process rights come in conflict with national security protections? Is upholding the due process rights of everyone the best way to protect national security? Or should national security protections take precedence over due process rights?

The demand for fabric is Q = 40 - P/2. The private cost of producing fabric is C(Q) = Q2, with private marginal cost PMC = 2Q. Washing and dyeing fabric causes water pollution with total damages CE(Q) = Q2/2, so external marginal costs of EMC = Q.

Calculate the net benefits under competitive equilibrium and under efficient equilibrium, as well as the DWL. What can you conclude from the value of DWL (which equilibrium is the right level or production)?

A firm is a natural monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). The firm can perfectly price discriminate. Show that a monopoly might shut down if it can only set a single price but will operate if it can perfectly price discriminate.

The Cartel Movement was one attempt to find a means by which to provide producing nations with a higher rate of return from the export of commodities. State and explain three other attempts to fix the “commodity problem” and evaluate the effectiveness of each.

Thoroughly evaluate the GATT/WTO process since its inception in 1947. Make sure you include the major accomplishments of each round (foregoing those in the 1950s). State briefly why each of these provisions was essential to moving the free trade process forward and ensuring fair treatment of products.

Explain how an economy self-adjusts to get rid of an inflationary gap. Describe the process both verbally and graphically using an AD-AS graph.

1) Which of the following statements is true?

• A. A change in the market price can only shift the demand curve.
• B. A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C. If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D. If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
• E. An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.

2)

Two researchers estimated how the price elasticity of demand for coal in China has changed from 1998 to 2012. Without reading their peer-reviewed paper, can you predict their findings?

• A. Yes, price elasticity of demand became more elastic over time.
• B. Yes, price elasticity of demand became less elastic over time.
• C. Yes, price elasticity of demand became less elastic as coal has more substitutes.
• D. No, without knowing the initial elasticity classification we are unable to determine how elasticity changed.

3) Since November 2016, Arabica coffee bean prices have continually fallen. Brazil is the world's leading producer of Arabica beans. What would happen in the labor market for Brazilian coffee bean farmers.

• A. Labor demand shifts rightward due to increased human capital resulting in a higher marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both increase.
• B. Labor supply shifts rightward due to increased population. Equilibrium wage decreases and equilibrium quantity of labor increases.
• C. Labor demand shifts leftward due to decreased inputs resulting in a lower marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both decrease.
• D. Labor supply shifts leftward due to a change in demographics. Equilibrium wage increases and equilibrium quantity of labor decreases.
• E. Labor demand shifts leftward due to decreased prices resulting in a lower marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both decrease.

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Use for 4-5

	Chinese Yen to (one) USD	USD to (one) Chinese Yen
FEb 2018	6.3183	.1583
Nov 2018	6.9367	.1442

4) (TABLE)

According to the table above, from February 2018 to November 2018 the U.S. dollar has ________ in value compared to the Chinese yuan and the Chinese yuan has ________ compared with the U.S. dollar which is ________ with the United States increasing tariffs on imports from China.

• A. appreciated; depreciated; consistent
• B. appreciated; depreciated; inconsistent
• C. depreciated; appreciated; consistent
• D. depreciated; appreciated; inconsistent
• E. appreciated; appreciated; consistent

5) (TABLE)

Ceteris paribus, IF the U.S. dollar appreciates relative to the Chinese yuan, then tourists from China are ________ likely to visit the U.S., Chinese exports will ________, Chinese imports will ________, and Chinese net exports will ________.

• A. less; increase; decrease; decrease
• B. less; decrease; increase; increase
• C. more; decrease; increase; increase
• D. less; increase; decrease; increase
• E. None of the above.

Analyze a real government policy in the context of the macroeconomic concepts we learned in class. Describe the economic problem this policy attempted to tackle and the intended macroeconomic goals.Explain who were the agents pushing this policy forward. Who opposed the policy? What was the incentive framework of the main agents involved before the policy was implemented? And what was the incentive framework implied by the policy? You must be able to identify groups of people with similar background or interests and compare the economic policy from the viewpoint of these groups.

You are free to choose any government policy that is interesting to you: fiscal policy, monetary policy, or regulatory policy.