Chapter 4 Multiple choice questions

1. Anglo- American law is also called…………….

a. Common law

b. Civil law

c. Law code

d. Legal code

2. Anglo – American law is ……………….

a. Law code

b. Case law

c. Civil law

d. Legal code

3. Anglo – American law develops through ………………….

a. Law code

b. Arbitrators’s decisions

c. Court decisions

d. Legal system

4. Continental law is based on a …………….

a. Case law

b. Common law

c. Legal code

d. Legal system

5. Parties to contract for the sale of goods are free to choose ………………...

a.Applicable law
 b. International law

c.Corpororate law

d.Business law

6. Continental law prevails in …………………….

a. The USA

b. Europe

c.The Vienna convention system

d.All countries in the world

7. Continental law is also called …………………….

a. Civil law

b. Common law

c.Legal system

d. Lawful case

8. The essence of Continental law is ……………………...

a. Codification

b. Verification

c. Authentication

d. Ratification

9. Continental law has well developed private law, especially contract and
………………………...

a. Commercial law

b. Corporate law

c. Community law
 d.Case law

10.Anglo- American law brings the …………………. in the individual case.

a. Justice

b. Uniformity

c. Consistency

d. Legacy

11.Anglo- American law does not bring…………… the to all cases.

a. Differences

b. Uniformity

c . Variations

d. Different solutions

12.As for Anglo- American law, the decision of the judge is always
…………….

a. Predictable

b. Foreseeable

c. Unpredictable

d. Estimated

13. Continental Law does not require long and …………………..contracts.

a.Loose

b. Lax

c. Brief

d. Detailed

14.Continental Law copes with issues of…………………

 a. Personal problems

b. International trade

c. National issues

d. Individual conflicts

15.Every contract is governed by ……………..

a.Common law

b. Vienne Convention

c. Applicable law

d. Civil law

16.The rules of international common law does not decide the law that applies
for the contract if the contract does not specify the……………..

a.Common law

b. Civil law

c. Case law

d. Applicable law

17. If a country ratifies the Vienne Sales Convention, in the event of conflicts,
the Vienne Sales Convention can …………….. the national law.

a. Prevail over

b. Conform to

c. Follow

d. Adapt

18.The parties to a contract are not always required to ………….. the Vienne
Sales Convention

a. Ignore
 b. Apply

c. Refuse

d. Decline

19.A contract is a written agreement and it follows the “meeting of minds” and
…………….

a. “ Offer and decline”

b. “ Offer and refusal”

c.“Offer and acceptance”.

d. “ Offer and renewal”

20. A mistake about the goods in a contract means there is no …………..

a. Meeting of acceptance

b. Meeting of minds.

c. Meeting of concepts

d. Meeting of agreement

21.A contract comes into force when an offer is made by one side and
………….. by the other.

a. Accepted

b. Declined

c. Written

d. Drawn

22. An offer is not always, in international practice, the first move in forming a
……………………..

a. Contract

b. Refusal
 c. Deline

d. Renovation

23.The main difference between Continental and Anglo- American contract law
is the degree of ……………

a.Codification.

b. Formation

c. Automation

d. Interpretation

24.The applicable law governs questions concerning the validity,……………. ,

performance of contracts.

a. Interpretation

b. Payment

c. Correction

d. Acceptance

25.An offer dies if it has a/ an …………………..

a. Acceptance

b. Agreement

c. Adoption

d. Revocation

26.Under Anglo- American law, exporters have rights to ………………..

a.Withdraw an offer

b. Withdraw common law

c. Withdraw case law

 d. Withdraw legal law

27.Feeble- minded people are legally unable to ……………….. contracts.

a. Sign

b. Decline

c. Refuse

d. Resign

28.Elderly people are ………………….. to deal with a contract.

a. Unable

b. Able

c. Impossible

d. Unaffordable

29.Drunken people have no …………….. to sign a contract.

a. Contractual capacity

b. Contractual concept

c. Contractual government

d. Contractual branch

30.Feeble- minded people lack ………. to enter contracts.

a. money

b. time

c. contractual capacity

d. intelligence

31.In contracts, “partial invalidity provision” means the invalidity of one part of
the contract…………...
 a. may invalidate the rest

b. does not invalidate the rest

c. affects the rest

d. enforces the rest

32. Agreements, under Anglo- American law, are of ……...

a. two types

b. three types

c. four types

d. five types

33.Under the public law, a company can only sign a contract ………….

a. even when they lack powers

b. that is beyond its power

c. both a and b

d. that is within its power

34. A contract that is ultra vires is ……….

a. well enforceable

b. unenforceable

c. valid

d. effective

35.A contract is not enforceable if …………...

a. it is signed within power

b. it has a legal purpose

c. it has an illegal purpose

 d. it has no purpose

36.Partial invalidity clause can help to avoid problems with contracts

that…………….

a. might infringe government regulations.

b. violate the trade laws

c. discourage trade

d. both b and c

37. If a contract is the entire agreement, earlier letters and documents ……..

a. can be used as evidence.

b. become invalid

c. prevail

d. remain important

38. The answers to background questions are written ………..

a. through the whereas -recital.

b. through the annex

c. through provisions

d. through conditions

39.In a contract, the word “ whereas” means ……………..

a. “ only that”

b. “ while”

c. “ when”

d. “because” or “considering that”

40.Whereas-clauses ……………………..

a. are provisions

b. are promises

c. are conditions

d. are not provisions, promises or conditions

41. …………… are the explanations.

a. Definition clauses

b. Whereas-recital clauses

c. Preamble clauses

d. Annex clauses

42.If a dispute arises, the recital allows the court to discover the real meaning of
…………

a. the contract

b. the term

c. the incoterm

d. the appendix

43.It’s always good for the exporter to promote his skills and the excellence of
his products in the recital.

a. in the contract documents

b. in the payment clause

c. in the recital

d. in the delivery clause

44.In a contract under a Continental law, a recital ……..

 a. is essential

b. is important

c. is not useful

d. is useful

45.In a contract under a Continental law, a recital …………

a. is essential

b. is not useful

c. is not essential

d. is important

46.Continental lawyers ………. complicated grammar of the whereas-clause.

a. often avoid

b. often use

c. often take advantage of

d. sometimes use

47.Within most Anglo- American jurisdictions, a contract……………….

a. can be one - sided

b. can be two – sided

c. can be either one-sided or two- sided.

d. must be two sided

48.The entire agreement provision means ……………… must be established

within the contract itself.

a. the background of the contract

b. important letters and memoranda

 c. contract documents

d. all of these

49.In a contract, ……………… can be out into a contract in the contract

document clause.

a. letters

b. general conditions

c. the Incoterms

d. outside materials, such as letters, general conditions and the Incoterms

50.In a contract, a formal definition is the best way of clarifying what exactly
the two sides have ……….

a. excuded

b. negotiated

c. agreed

d. solved

51.It is common to put the definition clause ………… of the contract.

a. at the beginning

b. near the beginning

c. at the end

d. near the end

52.The “order of precedence” among the documents explains ………………...

a. the authority of the documents

b. the meaning of the documents

c. the value of the documents

 d. the assignment of the documents

53.The Anglo- American contract is ……………….

a. not the entire agreement

b. , traditionally, the entire agreement

c. sometimes the entire agreement

d. rarely the entire agreement

54.The entire agreement clause means that all documents that predate the
contract ……………..

a. are still valid

b. become important

c. become invalid

d. can be used as evidence

55.The background of the contract is provided in the form of …………...

a. a clause

b. a definition

c. the annex

d. a whereas-recital

56. Contract documents must be given ……………. in case of contradictions.

a. an order of seniority

b. order of precedence

c. order of rules

d. either a or b
57.The exporter must know the legal identity of the buyer ………… that may
arise.

a. resolve payment problems

b. settle disputes

c. solve problems

d. all of these

58.The names of parties to contract are often on the first page of the contract.

a. the first page

b. the second page

c. the last page

d. all pages

59.The names of ………….. are normally the full, registered name of the
company.

a. the exporter

b. the buyer

c. either the exporter or the importer

d. the parties

60.The names of the parties can go with ………….. of the company.

a. the operation

b. the specialization

c. the location

d. the description

61.Companies ……….. to use the short form of the names in contracts.

 a. are forced

b. are not forced

c. are allowed

d. are not allowed

62. ………… can create no – contract situations

a. Only duress

b. Only fraud

c. Only mistake

d. Duress, fraud, and mistake all

63. In a contract, consideration may consist of ……………...

a. only right

b. only interest

c. only profit, detriment, and loss

d. right, interest, profit, detriment, and loss

64.Under Anglo- American law, a contract must give ……………

a. both sides rights and duties

b. each side rights

c. each side duties

d. not duties but rights

65.Continental law is widely used for …………..

a. international issues

b. national issues
 c. both national and international issues

d. neither international nor national issues

66.The official mailing addresses of the parties are given in:………………

a. The Notices

b. The Appendices

c. The Exhibits

d. The Adoption

67.The hereinafter called wording can prevent legal problem caused by :

…………………….

a. Misspelling names

b. Mistyping names

c. Misreading names

d. Misaccepting names

68.To make sure that the officer signing the contract has authority to sign the
contract, parties should check:

a. The duplicate of the signature

b. The authenticity of the signature.

c. The coverage of the signature

d. The transferability of the signature

69.In international practice, problems of Assignment of rights and delegation of

duties can be reduced by using:

a. Prior written consent of the other party.

b. Prior conversation of the other party.

 c. Prior consultation of the other party.

d. Prior talk to the other party

70.In contracts, ------------------------, is not normally allowed.

a. Delegation of duties.

b. Assignment of rights.

c. Performance of obligations.

d. Fulfillment of duties.

71.In international contracts, parties try to exclude assignment of rights without

-----------------.

a. A memorandum of understanding.

b. Written consent of parties.

c. A letter of reference.

d. A personal letter.

72. If both parties perform their duties correctly, a contract is discharged by :

a. Default

b. Suspension

c. Performance

d. Breach

73.When parties agree to end a contract, -------------------- occurs.

a. Termination

b. Frustration

c. Rescission

d. Suspension
74.------------------- occurs when contract allows one party to end it under given

circumstances.

a. Termination

b. Frustration

c. Rescission

d. Suspension

75.---------------------- happens when one party ends the contract because of

breach by the other.

a. Cancellation

b. Suspension

c. Impossibility

d. Termination

76.Termination may be for -----------------.

a. Disruption

b. Authentication

c. Convenience

d. Adoption

77.------------------------- discharge a contract when one party faces an excessive

burden in complying with the contract.

a. Suspension and non-performance

b. Frustration and impossibility

c. Disruption and prevention

d. Suspension and acceptance

78.Cancellation on ---------------- grounds makes no legal sense.

a. Great

b. Genuine

c. Trivial

d. Acceptable

79.The essence of Continental law is --------------------

a. Verification

b. Authentication

c. Codification

d. Acceptance

80.Anglo- American law is also called ---------------

a. Civil law

b. Legal code

c. Common law

d. Law code

81.Of the three options available for settling disputes, litigation before the court
is internationally least attractive as it is -------------------

a. Expensive and legalistic

b. Business- like and flexible

c. Time-saving and private

d. Fast and acceptable

82.The ------------------ has no power to enforce his solution or to bind the

parties, his task is to suggest a fair solution only.
 a. Judge

b. Conciliator

c. Magistrate

d. Lawyer

83.The advantages of arbitration are ---------------------

a. Private and foreseeable costs

b. Lengthy and open

c. Binding and rigid

d. Time - comsuming

84.Among a number of international bodies offer arbitration services, the

------------ in Paris is the most prestigious.

a. UCP

b. ADR

c. ICC

d. FAO

85.The court of arbitration applies whatever ----------------- the parties stipulate

in the contract.

a. International law

b. Corporate law

c. National law

d. Business law

86.In drafting an arbitration clause, the following questions must be resolved:

a. How many arbitrators sit in the court

 b. What is the language of the court

c. Where is the place of the court

d. All of the above

87.The arbitrators’ awards are ---------------

a. Consultative and examinatorial

b. Final and enforceable

c. Referrable and reverable

d. All of the above

88.If the buyer comes from a country which has a poor reputation for enforcing
awards, the best method of payment under the contract is a/ an --------------

a. Revolving L/C

b. At sight, confirmed L/C

c. Deferred, irrevocable L/C

d. Transferrable L/C

89.The main concern of the parties to contract should be ----------------

a. Dispute management

b. Dispute avoidance

c. Dispute cost

d. Dispute means

90.The decision of arbitratiors is -------------------

a. Law- oriented

b. Business- oriented

c. Action- oriented
 d. Reaction- oriented

91.Termination for convenience occurs when one party simply decides to drop
the contract and -------------------

a. No reason is required

b. Reasons are required

c. Consultation is required

d. Conversation is required

92.Termination for default occurs when the contract names certain ------------
which allow one side to terminate.

a. Time limits

b. Defaults

c. Situations

d. Conditions

93.If both parties perform their duties exactly according to the contract, the
contract is ---------------------------

a. Discharged by performance

b. Discharged for performance

c. Discharged to perform

d. Discharged with perfromance

94.------------------- is two- sided procedures.

a. Termination

b. Cancellation

c. Rescission

d. Suspension
 95.When a contract is cancelled, a payment problem arises; the party in breach
has a ------------------------- case of payment.

a. Strong

b. Weak

c. Solid

d. Big

96. The Vienna Sales Convention is also called:

a. The Uniform Law of International Sale

b. The Uniform Law on the Formation of Contracts for the International

Sale of Goods

c. The United Nations Convention on Contracts for the International Sale of

Goods.

d. The United Nations Convention on Contracts for acceptance

97.Which of the following is not needed for a legally binding contract to be in

force?

a. Written contract

b. Offer and acceptance

c. Consideration

d. Conversation

98. In contract negotiation, “an invitation to provide terms and condition” may
mean:

a. Another name for acceptance

b. Another name for an offer

c. An invitation to the other party to make an offer

 d. An invitation to the other party to accept an offer

99.When an offer is made , it is not applicable when it has ?

a. Suspension

b. Renovation

c. Revocation

d. Adoptation

100. A unilateral offer can be defined as:

a. An offer made of a promise in return for a promise

b. An offer made of a promise in return for an act

c. An offer made of an act in return for an act

d. An offer made of act in return for a promise