Question 1

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack.If the place of delivery and time for shipping the goods are not specified,the UCC provides:

Accepted Answer

A)  the place of delivery is Lumber Jack's and the time for delivering the lumber is a reasonable time based on normal trade practice. 
B)  the place of delivery is Regency Construction and the time for shipping is within 30 days. 
C)  the place of delivery is Lumber Jack's and the time for delivering the lumber is within 30 days. 
D)  there is no contract because having more than one open term made the offer too indefinite. 
A)  the place of delivery is Lumber Jack's and the time for delivering the lumber is a reasonable time based on normal trade practice. 
B)  the place of delivery is Regency Construction and the time for shipping is within 30 days. 
C)  the place of delivery is Lumber Jack's and the time for delivering the lumber is within 30 days. 
D)  there is no contract because having more than one open term made the offer too indefinite. A

Question 2

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate.They draft a letter of intent which:

Accepted Answer

A)  protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far. 
B)  may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement. 
C)  has no legal effect, but provides a record for the parties as to where the negotiations stand. 
D)  courts will consider to be a valid offer which the other party must accept if offered in good faith. 
A)  protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far. 
B)  may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement. 
C)  has no legal effect, but provides a record for the parties as to where the negotiations stand. 
D)  courts will consider to be a valid offer which the other party must accept if offered in good faith. B

Question 3

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season.This contract will be:

Accepted Answer

A)  unenforceable due to its vagueness. 
B)  unenforceable due to the difficulty of devising an appropriate remedy for a breach. 
C)  enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated. 
D)  unenforceable unless state real estate law makes an exception. 
A)  unenforceable due to its vagueness. 
B)  unenforceable due to the difficulty of devising an appropriate remedy for a breach. 
C)  enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated. 
D)  unenforceable unless state real estate law makes an exception. C

Question 4

Which of the following are generally considered to be legal offers?

Accepted Answer

A)  Placing an item up for auction. 
B)  Catalog advertisements. 
C)  Price lists. 
D)  A note scribbled on a restaurant napkin that includes the details of the offer. 
A)  Placing an item up for auction. 
B)  Catalog advertisements. 
C)  Price lists. 
D)  A note scribbled on a restaurant napkin that includes the details of the offer.

Question 5

April put an advertisement in the newspaper advertising the sale of her computer for $500.Simultaneously,six people responded to the ad by mail with formal written acceptances.April is bound on all six contracts to sell her computer for $500.

Accepted Answer

A) True 
 B)False

Question 6

Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has.At the proper time she bids on the lamp and is the highest bidder.Even though she is the highest bidder,the auctioneer refuses to accept her bid and withdraws the lamp from the auction.Can the auctioneer do that?

Accepted Answer

A)  Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer. 
B)  Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp. 
C)  Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp. 
D)  Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp. 
A)  Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer. 
B)  Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp. 
C)  Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp. 
D)  Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.

Question 7

According to the UCC,one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the effect of the Uniform Commercial Code on the law of sales contracts in the area of open terms.

Accepted Answer

The UCC makes the law of sales more flex

Question 9

Jerry knows that Lucy has coveted his classic car for quite some time.Finally willing to sell it,he sends a letter to Lucy offering to sell the car for $15,000.Lucy responds by saying she needs time to arrange financing.Lucy offers Jerry $100 to keep the offer open for two weeks.Jerry agrees,taking the $100.Three days later,Roberta contacts Jerry saying she is interested in buying the car and has the cash to buy it outright.Jerry is concerned that if he doesn't sell the car to Roberta now,she may not be interested later.Furthermore,Lucy may never be able to arrange financing.Jerry is afraid he may end up with no buyer at all.He comes to you for advice.What do you advise?

Accepted Answer

Jerry made an option contract with Lucy.

Question 10

Travel Lines offered to sell 10 round-trip tickets to Elaine.Travel Lines stated that the acceptance must be in writing by USPS next-day service.Which of the following acceptances will create a contract between Travel Lines and Elaine?

Accepted Answer

A)  Elaine calls Travel Lines and states that she will buy the tickets. 
B)  Elaine sends a fax to Travel Lines stating she will buy the tickets. 
C)  Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets. 
D)  All of the above responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication. 
A)  Elaine calls Travel Lines and states that she will buy the tickets. 
B)  Elaine sends a fax to Travel Lines stating she will buy the tickets. 
C)  Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets. 
D)  All of the above responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication.

Question 11

Floyd offers to sell his 1967 Ford Mustang convertible to Tim.Before they conclude their negotiations,Floyd dies.Which of the following is true?

Accepted Answer

A)  Floyd's heirs must sell the car to Tim. 
B)  Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. 
C)  The offer terminates automatically upon Floyd's death. 
D)  There is a contract if Tim accepts before learning of Floyd's death. 
A)  Floyd's heirs must sell the car to Tim. 
B)  Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. 
C)  The offer terminates automatically upon Floyd's death. 
D)  There is a contract if Tim accepts before learning of Floyd's death.

Question 12

David and George have a contract wherein George agrees to buy sporting goods and equipment.Since the goods are not to be delivered for several months,they left the price open.Under the UCC,which of the following will be true?

Accepted Answer

A)  The price will be the reasonable price based on fair market value of the goods at the time of delivery. 
B)  David has the freedom to set any price he wants considering George was foolish enough to enter into a contract without a price established. 
C)  George has the right to establish a price because he is the buyer. David should have taken steps to protect his sales interest. 
D)  None of the above. The contract is not valid because the terms are not definite and certain. 
A)  The price will be the reasonable price based on fair market value of the goods at the time of delivery. 
B)  David has the freedom to set any price he wants considering George was foolish enough to enter into a contract without a price established. 
C)  George has the right to establish a price because he is the buyer. David should have taken steps to protect his sales interest. 
D)  None of the above. The contract is not valid because the terms are not definite and certain.

Question 13

Dick offers to sell Jane his 1955 Thunderbird convertible.Before Jane can accept the offer,lightning strikes the car and it is totally destroyed.Which of the following is true?

Accepted Answer

A)  Jane can still accept the offer and John must find a 1955 Thunderbird to sell. 
B)  The offer is terminated by law. 
C)  Dick can still revoke his offer so long as he does so before Jane accepts. 
D)  Jane can still accept the offer. She will be entitled to the insurance proceeds. 
A)  Jane can still accept the offer and John must find a 1955 Thunderbird to sell. 
B)  The offer is terminated by law. 
C)  Dick can still revoke his offer so long as he does so before Jane accepts. 
D)  Jane can still accept the offer. She will be entitled to the insurance proceeds.

Question 14

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Accepted Answer

An offer is an act or statement that pro

Question 15

Jack mails an offer to Joan that states,"I offer to sell you my car for $2000.If I don't hear from you in 10 days,I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal.What is the result?

Accepted Answer

A)  Jack has a deal. His offer was intended and contains definite terms. 
B)  Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer. 
C)  Joan is not bound. Generally an offeree must say or do something to accept an offer. 
D)  Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail. 
A)  Jack has a deal. His offer was intended and contains definite terms. 
B)  Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer. 
C)  Joan is not bound. Generally an offeree must say or do something to accept an offer. 
D)  Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Question 16

Briefly discuss how an offer can be accepted.Include offers for both bilateral and unilateral contracts.

Accepted Answer

An offeree must say or do something to a

Question 17

A seller's form clearly states no warranty is included.The buyer's form states that the seller warrants the goods for one year.In this case:

Accepted Answer

A)  no contract can be created. 
B)  the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out. 
C)  the warranty term is an "additional term" that becomes part of the contract in most states. 
D)  the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects. 
A)  no contract can be created. 
B)  the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out. 
C)  the warranty term is an "additional term" that becomes part of the contract in most states. 
D)  the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects.

Question 18

McCann Construction purchased a poured concrete form from Advance Concrete Forms,Inc.McCann purchased the concrete form by placing a phone call to Advance in Madison,Wisconsin.Advance delivered the concrete form with an invoice stating the terms of the sale required payment within 30 days and a 1 1/2 % interest per month finance charge would be charged on accounts over 30 days.When McCann failed to pay the invoice on time,interest was charged according to this rate.Later,McCann refused to pay the accumulated interest charge,claiming there was not a meeting of the minds regarding the finance charge in any conversation prior to the sale.The trial court concluded that the finance charge was in fact an additional term added by Advance when it accepted McCann's purchase order.Discuss Uniform Commercial Code Section 2-207 in general and with regard to this situation.Does McCann owe the interest accrued?

Accepted Answer

Yes,he does.UCC 2-207 dramatically chang

Question 19

Wally owns 200 acres of land.Wally offers to sell the land to Robert for $1,500 per acre.Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre.Wally agrees to sell but does not identify which 40 acres.Later,Wally refuses to sell any land to Robert.What is the result?

Accepted Answer

A)  Robert wins; this is an enforceable contract with complete and definite terms. 
B)  Robert wins; the UCC will decide which 40 acres are to be sold. 
C)  Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate. 
D)  Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold. 
A)  Robert wins; this is an enforceable contract with complete and definite terms. 
B)  Robert wins; the UCC will decide which 40 acres are to be sold. 
C)  Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate. 
D)  Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Question 20

Nella offers to sell her crop of strawberries,which have just been picked,to Morgan's Market.Since she does not specify a time limit for acceptance,Morgan's can accept the offer the following week,as long as Nella has not revoked it.

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack.If the place of delivery and time for shipping the goods are not specified,the UCC provides:

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate.They draft a letter of intent which:

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season.This contract will be:

Which of the following are generally considered to be legal offers?

April put an advertisement in the newspaper advertising the sale of her computer for $500.Simultaneously,six people responded to the ad by mail with formal written acceptances.April is bound on all six contracts to sell her computer for $500.

According to the UCC,one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

Discuss the effect of the Uniform Commercial Code on the law of sales contracts in the area of open terms.

Travel Lines offered to sell 10 round-trip tickets to Elaine.Travel Lines stated that the acceptance must be in writing by USPS next-day service.Which of the following acceptances will create a contract between Travel Lines and Elaine?

Floyd offers to sell his 1967 Ford Mustang convertible to Tim.Before they conclude their negotiations,Floyd dies.Which of the following is true?

David and George have a contract wherein George agrees to buy sporting goods and equipment.Since the goods are not to be delivered for several months,they left the price open.Under the UCC,which of the following will be true?

Dick offers to sell Jane his 1955 Thunderbird convertible.Before Jane can accept the offer,lightning strikes the car and it is totally destroyed.Which of the following is true?

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Jack mails an offer to Joan that states,"I offer to sell you my car for $2000.If I don't hear from you in 10 days,I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal.What is the result?

Briefly discuss how an offer can be accepted.Include offers for both bilateral and unilateral contracts.

A seller's form clearly states no warranty is included.The buyer's form states that the seller warrants the goods for one year.In this case:

Nella offers to sell her crop of strawberries,which have just been picked,to Morgan's Market.Since she does not specify a time limit for acceptance,Morgan's can accept the offer the following week,as long as Nella has not revoked it.

Introduction To Law

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