Exam 11: Contracts and Sales: Introduction and Formation

Fred Twain sends the following e-mail to Ralph Barnes: "Will sell you my 2010 Audi A4 for $23,500,will carry or take cash.This offer to remain open until November 11,2016." Ralph responds,"I know how much you love that car.I'll think about it." On November 12,2016,Ralph e-mails Fred and writes,"Fred,I am ready to buy your car." Fred responds,"Ralph,I sold the car this morning because I didn't hear from you."

A bilateral contract is one in which one side promises to perform in exchange for the other side's actions.

The Truth-in-Lending Act applies to all credit transactions.

Under the UCC,offers need price,subject matter,and quantity to be definite enough.

Which of the following is not required to be disclosed in the solicitation of a credit card customer?

A price list would be an offer.​

Which of the following statements is correct?

​GraceWilliams purchased plates and cups from China Wholesalers for sale to retail customers at her store.Grace and China had little paperwork,just the invoices from the shipments.Otherwise,they operated by phone and shipments in response to the phone call requests.Grace's orders range from $2000-$10,000.China decided to clean up its internal controls and documentation and asked Grace to sign a form agreement.Grace is not sure that she wants to sign a contract.Which of the following is correct,given Grace's circumstances?

Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation. Day 5 - School teacher hand delivers letter withdrawing resignation. Day 6 - Teacher receives superintendent's letter.

List the federal laws regulating credit contracts and give a brief description of each.

The maximum liability for a credit card holder whose card is lost or stolen is:

Which of the following contracts must be in writing to be enforceable?

An ad in a newspaper reads: "AVAILABLE TODAY ONLY.FRIENDLY'S APPLIANCES.CLEARANCE SALE FOR ALL FLOOR ITEMS.75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left.​ -The issues in the situation are governed by:

Trevor Jones accepted a summer internship with Hailey & Thomas,a management consulting firm.The negotiations and offer were all oral.Hailey & Thomas' managing partner did send a letter with the following language:??Welcome to Hailey & Thomas.We are looking forward to working with you.When you arrive in New York,please call me so that we may help you locate lodging for the summer. -Suppose that the fax from Barnes & Noble read: ​Please ship immediately via priority mail - 10 Copies of NOBODY FIXES REAL CARROT STICKS ANYMORE. ​Price: $6.00 per book Shipping: $3.95 total ​Woodchip ships the books at the $6 price but ships them via two-day UPS at a price of $5.95.Is there a contract?

Which of the following question(s)on a credit application would be a violation of the Equal Credit Opportunity Act?

The Fair Credit and Charge Card Disclosure Act prohibits issuing credit cards without the consumer's consent.

E-Sign:

Buyer on fax: "Will take house for $587,500 if front lawn is fixed."?Seller on fax in response: "Price is $589,000 and no front lawn."?Buyer on fax in response: "$588,000 plus the front lawn."?Seller on fax in response: $589,000 plus the front lawn."

H₂O Plumbing has been working on a residential subdivision project for Paradise Builders.H₂O agreed to do all plumbing work on each of the houses for a fee of $5200 per house.H₂O has reviewed the market and decided that most plumbers are getting between $5500 and $6000 for houses of comparable size.H₂O has done the initial work on all of the houses and has told Paradise it will stop work unless the price is increased to $5500 per house.Paradise is on a tight schedule with its construction lender and with home buyers and succumbs to the demand.Later,when the houses are constructed,Paradise refuses to pay any more than $5200 per house.Explain H₂O's rights to them.

Which of the following eliminates the effect of the mailbox rule?