Exam 10: Contracts and Sales: Introduction and Formation

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it."

"I'll take it, but you must deliver," is a valid acceptance.

Discuss why force majuere clauses are beneficial especially in international contracts.

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

Which of the following is not required for a valid UCC offer?

An ad for Spencer's Appliance read as follows: "Come one, come all, to Spencer's semi-annual storewide sale. Doors open at 7 AM the day after Thanksgiving. The first 50 customers receive $200 off any appliance selling for $500 or more." Joan Dreisden arrived at the store at 6 AM and was number 22 in line. Joan wished to purchase an HD TV for $1300. Spencer's refused to give her the $200 off the price. "Just an ad," was the manager's explanation. Is the manager correct?

What is another name for subprime loans?

The new UCC accepts e-mail communications as sufficient for a writing.

The Uniform Electronic Transaction Act (UETA):

Common law does not dictate amounts required for consideration.

Under the CISG, acceptance is effective only upon receipt.

Usury is charging an interest rate higher than the maximum permitted by law.

A record, such as an e-mail or fax, now satisfies the writing requirement under both the UCC and common law.

What is the act drafted in 2000 that requires states to allow contracts formed using the Internet to be signed with electronic signatures?

The CISG follows the mirror image rule in formation.

Which is not a requirement for a merchant's confirmation memorandum?

Janet Kennedy has received a letter in the mail from BISA International, a credit card firm. The letter describes the card as follows: ​ "This card is yours for only a small annual fee that is billed to your account. There is an annual percentage rate finance charge of 16.5%. There may be other charges for some transactions. There are no late fees, but there will be a charge for going over your credit limit." ​ Which of the following statements is true?

Which of the following contracts would not be governed by the UCC?

Force majeure clauses deal with quasi-contracts under the old and new UCC.

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina: