Question 1

Humberto writes to Stan asking if Stan will buy his cultivator for $600.Humberto's question:

Accepted Answer

A) if answered in the affirmative by Stan, creates a contract. 
B) indicates merely a willingness to enter into negotiation rather than a willingness to enter into a contract. 
C) is a definite and certain offer communicated to an offeree. 
D) is subject to the mirror image rule. 
A) if answered in the affirmative by Stan, creates a contract. 
B) indicates merely a willingness to enter into negotiation rather than a willingness to enter into a contract. 
C) is a definite and certain offer communicated to an offeree. 
D) is subject to the mirror image rule. B

Question 2

An advertisement is usually an offer to sell.

Accepted Answer

A) True 
 B)False  False

Question 3

Under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed.

Accepted Answer

A) True 
 B)False  False

Question 4

On June 1, a civic club made an offer of $500 to a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event.On June 30, the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

Accepted Answer

A) True 
 B)False

Question 5

Discuss silence as acceptance of an offer.

Accepted Answer

Silence or inaction does not ordinarily

Question 6

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 7

If no time limit is stated, an offer will not terminate until both parties agree.

Accepted Answer

A) True 
 B)False

Question 8

If an offer asks for acceptance by mail and the offeree faxes his acceptance:

Accepted Answer

A) there is no contract, and the offer is revoked. 
B) there is a contract if the acceptance is actually received within the time the authorized means would have arrived. 
C) the acceptance is merely a counteroffer. 
D) there is a contract, but only if the offeree calls the offeror and gets permission to fax the acceptance. 
A) there is no contract, and the offer is revoked. 
B) there is a contract if the acceptance is actually received within the time the authorized means would have arrived. 
C) the acceptance is merely a counteroffer. 
D) there is a contract, but only if the offeree calls the offeror and gets permission to fax the acceptance.

Question 9

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 10

An offer under Article 2 of the UCC that is irrevocable even though no consideration is given to keep it open is known as a(n):

Accepted Answer

A) option. 
B) firm offer. 
C) requirements contract. 
D) output contract. 
A) option. 
B) firm offer. 
C) requirements contract. 
D) output contract.

Question 11

The way parties usually show mutual assent is by:

Accepted Answer

A) an offer by words or conduct and an acceptance by words or conduct. 
B) a proposal in words and an acceptance in words. 
C) an act exchanged for an act. 
D) an offer and a counteroffer. 
A) an offer by words or conduct and an acceptance by words or conduct. 
B) a proposal in words and an acceptance in words. 
C) an act exchanged for an act. 
D) an offer and a counteroffer.

Question 12

In general, which of the following will not terminate an offer?

Accepted Answer

A) The death of the offeree 
B) The death of the offeror 
C) An inquiry by the offeree as to size or materials 
D) An acceptance that adds a material term 
A) The death of the offeree 
B) The death of the offeror 
C) An inquiry by the offeree as to size or materials 
D) An acceptance that adds a material term

Question 13

If no time is specified for the acceptance of an offer, the offer terminates after:

Accepted Answer

A) 24 hours. 
B) 48 hours. 
C) two weeks. 
D) a reasonable period of time. 
A) 24 hours. 
B) 48 hours. 
C) two weeks. 
D) a reasonable period of time.

Question 14

Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash.In response, Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership." In this case:

Accepted Answer

A) Miles has made a counteroffer; hence there is no contract. 
B) Miles has rejected the terms of the original offer, but there is still a contract. 
C) Chad is a merchant making a firm offer under Article 2 of the UCC.Hence there is a contract. 
D) any indefinite provisions in the contract between Chad and Miles will be supplied by Article 2 of the UCC. 
A) Miles has made a counteroffer; hence there is no contract. 
B) Miles has rejected the terms of the original offer, but there is still a contract. 
C) Chad is a merchant making a firm offer under Article 2 of the UCC.Hence there is a contract. 
D) any indefinite provisions in the contract between Chad and Miles will be supplied by Article 2 of the UCC.

Question 15

A contract exists when an offer has been accepted.

Accepted Answer

A) True 
 B)False

Question 16

If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he cannot sell it to anyone else during that time.

Accepted Answer

A) True 
 B)False

Question 17

An auctioneer is free to withdraw the goods from sale if the sale is advertised or announced in explicit terms to be without reserve.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would NOT be a merchant under Article 2 of the UCC?

Accepted Answer

A) The owner of a hardware store which sells paint 
B) A car mechanic who fixes used cars and sells them in his spare time 
C) A person who inherits three speedboats and wants to sell them to buy a car 
D) None of these are merchants. 
A) The owner of a hardware store which sells paint 
B) A car mechanic who fixes used cars and sells them in his spare time 
C) A person who inherits three speedboats and wants to sell them to buy a car 
D) None of these are merchants.

Question 19

An offer need not take any particular form to have legal validity.To be effective, however, it must:

Accepted Answer

A) be spoken directly to the offeree. 
B) always contain the price of the product or service offered. 
C) always contain the place of delivery. 
D) be communicated to the offeree. 
A) be spoken directly to the offeree. 
B) always contain the price of the product or service offered. 
C) always contain the place of delivery. 
D) be communicated to the offeree.

Question 20

Destruction of the subject matter has what effect on the offer?

Accepted Answer

A) The offer is terminated. 
B) The offer is delayed until additional subject matter can be located. 
C) This creates an impossibility of fact that does not terminate the offer. 
D) The offer is merely delayed under the "Hardship Rule." 
A) The offer is terminated. 
B) The offer is delayed until additional subject matter can be located. 
C) This creates an impossibility of fact that does not terminate the offer. 
D) The offer is merely delayed under the "Hardship Rule."

Exam 10: Mutual Assent

Humberto writes to Stan asking if Stan will buy his cultivator for $600.Humberto's question:

An advertisement is usually an offer to sell.

Under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed.

On June 1, a civic club made an offer of $500 to a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event.On June 30, the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

Discuss silence as acceptance of an offer.

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

If no time limit is stated, an offer will not terminate until both parties agree.

If an offer asks for acceptance by mail and the offeree faxes his acceptance:

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?

An offer under Article 2 of the UCC that is irrevocable even though no consideration is given to keep it open is known as a(n):

The way parties usually show mutual assent is by:

In general, which of the following will not terminate an offer?

If no time is specified for the acceptance of an offer, the offer terminates after:

Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash.In response, Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership." In this case:

A contract exists when an offer has been accepted.

If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he cannot sell it to anyone else during that time.

An auctioneer is free to withdraw the goods from sale if the sale is advertised or announced in explicit terms to be without reserve.

Which of the following would NOT be a merchant under Article 2 of the UCC?

An offer need not take any particular form to have legal validity.To be effective, however, it must:

Destruction of the subject matter has what effect on the 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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.