Question 1

Fuel Refining Inc. offers Gina a job as a technician. N o time for acceptance is specified in the offer. The offer will terminate

Accepted Answer

A)  after a reasonable period of time. 
B)  after a work week (five business days). 
C)  after a month (thirty calendar days). 
D)  never. 
A)  after a reasonable period of time. 
B)  after a work week (five business days). 
C)  after a month (thirty calendar days). 
D)  never.

Question 2

In general, advertisements are considered evidence of an intention to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 3

Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

Accepted Answer

A)  a post on the website. 
B)  a notice in the local newspaper. 
C)  a sign in the store. 
D)  apprehension of the criminal. 
A)  a post on the website. 
B)  a notice in the local newspaper. 
C)  a sign in the store. 
D)  apprehension of the criminal.

Question 4

Rafi offers to sell his sailboat, Sea Siren , to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

Accepted Answer

A)  still open. 
B)  terminated. 
C)  rejected and subject to a counteroffer. 
D)  revoked. 
A)  still open. 
B)  terminated. 
C)  rejected and subject to a counteroffer. 
D)  revoked.

Question 5

Coffee Beans Inc. offers to buy Brewing Company's roasting services for $10,000. Brewing responds that the price is too low and states that its roasting services cannot be provided for less than $15,000. In this case, the offer is

Accepted Answer

A)  terminated. 
B)  valid for a reasonable time. 
C)  valid for the period of time prescribed by a state statute. 
D)  valid until Coffee Beans revokes the offer. 
A)  terminated. 
B)  valid for a reasonable time. 
C)  valid for the period of time prescribed by a state statute. 
D)  valid until Coffee Beans revokes the offer.

Question 6

The mailbox rule states that acceptance takes effect at the time the communication is sent via the mode authorized by the offeror.

Accepted Answer

A) True 
 B)False

Question 7

An offer made in anger or undue excitement is still an effective offer.

Accepted Answer

A) True 
 B)False

Question 8

Beth goes to Dr. Carl for surgery. Carl says that Beth should be healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is

Accepted Answer

A)  liable. 
B)  not liable, because surgery is not a serious subject for a contract. 
C)  not liable, because his statement was an opinion. 
D)  not liable, but Beth chose Carl for the surgery. 
A)  liable. 
B)  not liable, because surgery is not a serious subject for a contract. 
C)  not liable, because his statement was an opinion. 
D)  not liable, but Beth chose Carl for the surgery.

Question 9

Simply inquiring about an offer constitutes rejection.

Accepted Answer

A) True 
 B)False

Question 10

Big Celebrations Inc. (BCI) sells fireworks, sparklers, party favors, and other entertainment items. BCI offers to sell a thousand pounds of XYZ fireworks to Andrew for $1,200 and specifies that the offer must be accepted by U.S. mail. Before Andrew can reply, Andrew's state enacts a law banning the sale of fireworks. Meanwhile, Beth learns from Andrew about BCI's offer to Andrew and sends a letter to BCI by U.S. mail stating, "I accept your offer for the sale of XYZ fireworks for $1,200." In Beth's state fireworks are legal. Is BCI's offer to Andrew still valid? Does BCI have a contract with Beth? Why or why not? Explain.

Accepted Answer

BCI made a valid offer to Andrew to sell

Question 11

The offeror's intention to become bound by the offer must be subjectively clear.

Accepted Answer

A) True 
 B)False

Question 12

A n expression of a willingness to discuss the possibility of entering into a contract is not an offer.

Accepted Answer

A) True 
 B)False

Question 13

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

Accepted Answer

A)  effective. 
B)  not effective because comedy is not a serious subject. 
C)  not effective because Anton's tutoring will be subjective. 
D)  not effective because Brooke has no knowledge of the subject. 
A)  effective. 
B)  not effective because comedy is not a serious subject. 
C)  not effective because Anton's tutoring will be subjective. 
D)  not effective because Brooke has no knowledge of the subject.

Question 14

The one element necessary for an offer to be effective is a price based on market value.

Accepted Answer

A) True 
 B)False

Question 15

Courts normally have enforced the terms of click-on agreements in the same way as terms of other contracts.

Accepted Answer

A) True 
 B)False

Question 16

An offer cannot be terminated by action of the parties.

Accepted Answer

A) True 
 B)False

Question 17

Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

Accepted Answer

A)  electronic means. 
B)  paper documents. 
C)  cross-checks to orally verify the terms. 
D)  notarized documents. 
A)  electronic means. 
B)  paper documents. 
C)  cross-checks to orally verify the terms. 
D)  notarized documents.

Question 18

Before the UETA applies, each party to a transaction must agree to conduct it by electronic means.

Accepted Answer

A) True 
 B)False

Question 19

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

Accepted Answer

A)  a forum selection clause . 
B)  a click-on agreement . 
C)  the mirror image rule. 
D)  the mailbox rule . 
A)  a forum selection clause . 
B)  a click-on agreement . 
C)  the mirror image rule. 
D)  the mailbox rule .

Question 20

Owen decides to sell his ranch, Pine Ridge, in a live auction. When the auctioneer puts the property up for bids, it will be

Accepted Answer

A)  an offer. 
B)  an invitation to submit offers, not an offer itself. 
C)  a circular, not an offer. 
D)  a price list, not an offer. 
A)  an offer. 
B)  an invitation to submit offers, not an offer itself. 
C)  a circular, not an offer. 
D)  a price list, not an offer.

Exam 9: Offer and Acceptance

Fuel Refining Inc. offers Gina a job as a technician. N o time for acceptance is specified in the offer. The offer will terminate

In general, advertisements are considered evidence of an intention to enter into a contract.

Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

Rafi offers to sell his sailboat, Sea Siren , to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

Coffee Beans Inc. offers to buy Brewing Company's roasting services for $10,000. Brewing responds that the price is too low and states that its roasting services cannot be provided for less than $15,000. In this case, the offer is

The mailbox rule states that acceptance takes effect at the time the communication is sent via the mode authorized by the offeror.

An offer made in anger or undue excitement is still an effective offer.

Beth goes to Dr. Carl for surgery. Carl says that Beth should be healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is

Simply inquiring about an offer constitutes rejection.

The offeror's intention to become bound by the offer must be subjectively clear.

A n expression of a willingness to discuss the possibility of entering into a contract is not an offer.

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

The one element necessary for an offer to be effective is a price based on market value.

Courts normally have enforced the terms of click-on agreements in the same way as terms of other contracts.

An offer cannot be terminated by action of the parties.

Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

Before the UETA applies, each party to a transaction must agree to conduct it by electronic means.

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

Owen decides to sell his ranch, Pine Ridge, in a live auction. When the auctioneer puts the property up for bids, it will be

Introduction to the Law

Ethics in Business

The Courts and Our Legal System

Constitutional Law

Business Torts

Intellectual Property

Business Crimes

Introduction to Contracts

Consideration

Capacity

The Legality of Agreements

Voluntary Consent

Written Contracts

Third Party Rights

Termination and Remedies

Introduction to Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach

Warranties and Product Liability

Consumer Protection

The Essentials of Negotiability

Negotiable Instruments: Transfer and Liability

Banking in the Digital Age

Agency Relationships

Employment, Immigration, and Labor Law

Employment Discrimination

Types of Business Organizations

Formation and Ownership of a Corporation

Management of a Corporation

Combining and Dissolving a Corporation

Credit and Security

Mortgages

Bankruptcy

Insurance

Personal Property

Bailments

Real Property

Landlord and Tenant Law

Wills and Trusts

Administrative Law

Antitrust Law

International and Space Law

Filters