Question 1

Which is an irrevocable offer?

Accepted Answer

A)  A bid to construct a bridge for the city 
B)  An offer to buy stock in the ABC Corporation once it is formed 
C)  A unilateral offer to pay John $30 to mow your lawn at the point that he has completed half the job and indicates he wishes to finish 
D)  All of these. 
A)  A bid to construct a bridge for the city 
B)  An offer to buy stock in the ABC Corporation once it is formed 
C)  A unilateral offer to pay John $30 to mow your lawn at the point that he has completed half the job and indicates he wishes to finish 
D)  All of these. D

Question 2

An offer must be in one particular form to have legal effect.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is correct with regard to counteroffers?

Accepted Answer

A)  A counteroffer operates as a rejection of the original offer. 
B)  A conditional acceptance is a common type of counteroffer. 
C)  The receipt of a counteroffer terminates the original offer. 
D)  All of these are correct. 
A)  A counteroffer operates as a rejection of the original offer. 
B)  A conditional acceptance is a common type of counteroffer. 
C)  The receipt of a counteroffer terminates the original offer. 
D)  All of these are correct. D

Question 4

Leonard offers to sell his diamond ring to Emily. If Diane overhears the offer and says, "I accept the offer":

Accepted Answer

A)  Diane cannot accept the offer, because it wasn't made to her. 
B)  this is a valid acceptance. 
C)  the offer has not been communicated to the offeree. 
D)  this is an invitation seeking offers and not an offer. 
A)  Diane cannot accept the offer, because it wasn't made to her. 
B)  this is a valid acceptance. 
C)  the offer has not been communicated to the offeree. 
D)  this is an invitation seeking offers and not an offer.

Question 5

The UCC provides that a merchant is bound to keep a written offer open for a stated period but no longer than:

Accepted Answer

A)  ten days. 
B)  two months. 
C)  three months. 
D)  a reasonable time. 
A)  ten days. 
B)  two months. 
C)  three months. 
D)  a reasonable time.

Question 6

If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means of acceptance.

Accepted Answer

A) True 
 B)False

Question 7

An offer must be communicated to the offeree in order for the offer to be effective.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

Accepted Answer

A)  Amy is an authorized IBM computer dealer. 
B)  Brian employs two salesmen to sell his homemade furniture. 
C)  Clarence has a store in which he sells used lawn mowers. 
D)  All of these would be merchants. 
A)  Amy is an authorized IBM computer dealer. 
B)  Brian employs two salesmen to sell his homemade furniture. 
C)  Clarence has a store in which he sells used lawn mowers. 
D)  All of these would be merchants.

Question 9

Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. The court decision:

Accepted Answer

A)  automatically terminates the offer. 
B)  has no effect on the offer. 
C)  acts as a condition on the offer. 
D)  acts as a rejection of the offer by the offeree. 
A)  automatically terminates the offer. 
B)  has no effect on the offer. 
C)  acts as a condition on the offer. 
D)  acts as a rejection of the offer by the offeree.

Question 10

Both the Code and the Restatement provide that, unless the offer or circumstances indicate otherwise, an authorized means of accepting an offer is any reasonable means of communication.

Accepted Answer

A) True 
 B)False

Question 11

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene. The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

Accepted Answer

A) True 
 B)False

Question 12

An advertisement is usually an offer to sell.

Accepted Answer

A) True 
 B)False

Question 13

Hannah, as a joke, offers to sell her violin to Mike. Her statement would have legal effect if:

Accepted Answer

A)  the intended jest is so successful that Mike as a reasonable person under the circumstances believes the joke is an offer and he accepts. 
B)  Hannah's intent, determined subjectively, is to enter a contract. 
C)  Hannah's intent, determined objectively, is not to enter a contract. 
D)  Mike did not, but should have realized that Hannah was not serious. 
A)  the intended jest is so successful that Mike as a reasonable person under the circumstances believes the joke is an offer and he accepts. 
B)  Hannah's intent, determined subjectively, is to enter a contract. 
C)  Hannah's intent, determined objectively, is not to enter a contract. 
D)  Mike did not, but should have realized that Hannah was not serious.

Question 14

When does acceptance of an offer to enter into a unilateral contract generally occur?

Accepted Answer

A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror with the intention of accepting. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree with the intention of accepting. 
A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror with the intention of accepting. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree with the intention of accepting.

Question 15

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

Accepted Answer

A)  firm offer if made by a merchant. 
B)  offer if made by a merchant, but not a firm offer. 
C)  offer irrespective of who made the offer. 
D)  invitation to buyers to make an offer to buy goods. 
A)  firm offer if made by a merchant. 
B)  offer if made by a merchant, but not a firm offer. 
C)  offer irrespective of who made the offer. 
D)  invitation to buyers to make an offer to buy goods.

Question 16

The law applies a subjective standard of intent in determining whether there was the requisite intent to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 17

Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed?

Accepted Answer

A)  Yes, on June 16 
B)  Yes, on June 18 
C)  Yes, on June 20 
D)  No, the offer was revoked before acceptance 
A)  Yes, on June 16 
B)  Yes, on June 18 
C)  Yes, on June 20 
D)  No, the offer was revoked before acceptance

Question 18

In order for an offer to end by lapse of time, the offeror must specify the time within which the offer is to be accepted.

Accepted Answer

A) True 
 B)False

Question 19

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 20

Discuss silence as acceptance of an offer.

Accepted Answer

Silence or inaction does not ordinarily

Exam 10: Mutual Assent

Which is an irrevocable offer?

An offer must be in one particular form to have legal effect.

Which of the following is correct with regard to counteroffers?

Leonard offers to sell his diamond ring to Emily. If Diane overhears the offer and says, "I accept the offer":

The UCC provides that a merchant is bound to keep a written offer open for a stated period but no longer than:

If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means of acceptance.

An offer must be communicated to the offeree in order for the offer to be effective.

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. The court decision:

Both the Code and the Restatement provide that, unless the offer or circumstances indicate otherwise, an authorized means of accepting an offer is any reasonable means of communication.

On Tuesday morning John sends a letter to Arlene rejecting her offer, but later the same day John changes his mind and sends a letter of acceptance to Arlene. The letter of acceptance will be effective only if it is received by Arlene before she receives the rejection.

An advertisement is usually an offer to sell.

Hannah, as a joke, offers to sell her violin to Mike. Her statement would have legal effect if:

When does acceptance of an offer to enter into a unilateral contract generally occur?

An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):

The law applies a subjective standard of intent in determining whether there was the requisite intent to enter into a contract.

Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed?

In order for an offer to end by lapse of time, the offeror must specify the time within which the offer is to be accepted.

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

Discuss silence as acceptance of an offer.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property