1. Which of the following is a FALSE statement?
A. The entrepreneur whose business does not commence due to another party's breach of contract can sue and recover for lost profits if the entrepreneur had a suitable business plan.
B. The implied contract theory may protect the employment status of an employee-at-will even in the absence of an express employment contract.
C. Examples of conditions precedent in a contract are the prior approval of a loan application by the bank and the obtaining of flood insurance before a mortgage is obtained.
D. The doctrine of Quasi-Contract is used to recover the value of products or services that were provided in good faith in the absence of any contract in circumstances where the products and services were plainly necessary.
2. When discussing difficult topics with a Chinese business associate, what best helps you tell whether a “yes” answer truly means “yes?”
A) Paying attention to body language and interpret the nonverbal cues.
B) Ask direct questions to clarify the answer.
C) Make the meeting public so you have witnesses.
D) Push for a fast decision and get it in writing.
3. Which of the following is a true statement?
A) The offeree is the person who makes an offer.
B) A void contract is enforceable if it is in writing pursuant to the Statute of Frauds.
C) A contract can be created only when it is accepted by the offeree’s actual performance of an act.
D) A unilateral contract is accepted and formed under the common law when the one receiving the offer fully completes the requested act or performance.