Question 1

In most cases,an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.

Accepted Answer

A) True 
 B)False  True

Question 2

The mailbox rule applies to communication by phone and fax as well as the mail.

Accepted Answer

A) True 
 B)False  False

Question 3

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

Accepted Answer

A) True 
 B)False  True

Question 4

Corporate Code,Inc.,sells business software accounting and book keeping programs,blank business forms,inventory control functions,and the like in different combinations,in different packages,at different prices.Each package includes a shrink wrap agreement that limits warranties and remedies.Developmental Research Corporation (DRC)buys a Corporate Code package and uses the product.Later,DRC files a suit against the software seller,claiming that the product was flawed and that the flaws caused DRC to suffer business losses.DRC asks for relief that exceeds the limits in the shrink wrap agreement.What is a shrink wrap agreement? Are such agreements always enforced? Under what circumstances is a court likely to enforce this agreement?

Accepted Answer

A shrink-wrap agreement is an agreement

Question 5

On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on​

Accepted Answer

A)  ​May 1. 
B)  ​May 3. 
C)  ​May 4. 
D)  ​May 5. 
A)  ​May 1. 
B)  ​May 3. 
C)  ​May 4. 
D)  ​May 5.

Question 6

There are no revocable offers.

Accepted Answer

A) True 
 B)False

Question 7

An ad on the News Now Web site asks viewers to "send us your story and we might share it with the world." Onyx submits a manuscript,adding,"I accept your offer." Between NewsNow and Onyx,there is​

Accepted Answer

A)  ​a contract for the publication of Onyx's story. 
B)  ​a contract to consider Onyx's story before any others. 
C)  ​a contract to negotiate for the publication of Onyx's story. 
D)  ​no contract. 
A)  ​a contract for the publication of Onyx's story. 
B)  ​a contract to consider Onyx's story before any others. 
C)  ​a contract to negotiate for the publication of Onyx's story. 
D)  ​no contract.

Question 8

An invitation to negotiate is an agreement.

Accepted Answer

A) True 
 B)False

Question 9

One necessary element for an effective offer is a reasonable price related to market value.

Accepted Answer

A) True 
 B)False

Question 10

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu accepts.Most likely,Wally's death​

Accepted Answer

A)  ​did not affect the offer. 
B)  ​shortened the time of the offer but did not terminate it. 
C)  ​extended the time of the offer. 
D)  ​terminated the offer. 
A)  ​did not affect the offer. 
B)  ​shortened the time of the offer but did not terminate it. 
C)  ​extended the time of the offer. 
D)  ​terminated the offer.

Question 11

An offeror's subjective intent determines the effectiveness of an offer.

Accepted Answer

A) True 
 B)False

Question 12

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection​

Accepted Answer

A)  ​only before the auctioneer announces that the items are sold. 
B)  ​only before the auctioneer delivers the items to the buyers. 
C)  ​under no circumstances. 
D)  ​within thirty days after the auction. 
A)  ​only before the auctioneer announces that the items are sold. 
B)  ​only before the auctioneer delivers the items to the buyers. 
C)  ​under no circumstances. 
D)  ​within thirty days after the auction.

Question 13

Laredo advertises a reward for the return of his lost dog.Mikayla,who does not know of the reward,finds and returns the dog.Mikayla cannot recover the re-ward,because she​

Accepted Answer

A)  ​did not confer a benefit on Laredo by returning the dog. 
B)  ​did not know of the reward when she found and returned the dog. 
C)  ​does not need the money. 
D)  ​returned the dog. 
A)  ​did not confer a benefit on Laredo by returning the dog. 
B)  ​did not know of the reward when she found and returned the dog. 
C)  ​does not need the money. 
D)  ​returned the dog.

Question 14

World 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)  ​updates and cross-checks to orally verify any e-terms. 
D)  ​notarized documents. 
A)  ​electronic means. 
B)  ​paper documents. 
C)  ​updates and cross-checks to orally verify any e-terms. 
D)  ​notarized documents.

Question 15

An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite.

Accepted Answer

A) True 
 B)False

Question 16

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel.The mailbox rule applies if Quincy accepts the offer by​

Accepted Answer

A)  ​e-mail. 
B)  ​phone. 
C)  ​regular mail. 
D)  ​any of the choices. 
A)  ​e-mail. 
B)  ​phone. 
C)  ​regular mail. 
D)  ​any of the choices.

Question 17

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

Accepted Answer

A)  ​liable. 
B)  ​not liable, because surgery is not a proper subject for a contract. 
C)  ​not liable, because the statement was an opinion. 
D)  ​not liable, but Beth is excused from paying Carlton. 
A)  ​liable. 
B)  ​not liable, because surgery is not a proper subject for a contract. 
C)  ​not liable, because the statement was an opinion. 
D)  ​not liable, but Beth is excused from paying Carlton.

Question 18

An offer does NOT need to be communicated to the offeree to become effective.

Accepted Answer

A) True 
 B)False

Question 19

Revocation is effective on dispatch.

Accepted Answer

A) True 
 B)False

Question 20

An invitation to negotiate-"can you afford this?"-is an offer.

Accepted Answer

A) True 
 B)False

Exam 10: Offer and Acceptance

In most cases,an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.

The mailbox rule applies to communication by phone and fax as well as the mail.

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on​

There are no revocable offers.

An ad on the News Now Web site asks viewers to "send us your story and we might share it with the world." Onyx submits a manuscript,adding,"I accept your offer." Between NewsNow and Onyx,there is​

An invitation to negotiate is an agreement.

One necessary element for an effective offer is a reasonable price related to market value.

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu accepts.Most likely,Wally's death​

An offeror's subjective intent determines the effectiveness of an offer.

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection​

Laredo advertises a reward for the return of his lost dog.Mikayla,who does not know of the reward,finds and returns the dog.Mikayla cannot recover the re-ward,because she​

World 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​

An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite.

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel.The mailbox rule applies if Quincy accepts the offer by​

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

An offer does NOT need to be communicated to the offeree to become effective.

Revocation is effective on dispatch.

An invitation to negotiate-"can you afford this?"-is an offer.

Introduction to the Law and Our Legal System

Ethics in Business

The Courts and Alternative Dispute Resolution

Constitutional Law

Tort Law

Intellectual Property

Internet Law, social Media, and Privacy

Criminal Law and Cyber Crime

Introduction to Contracts

Consideration

Capacity

The Legality of Agreements

Voluntary Consent

Written Contracts

Third Party Rights

Contract Discharge 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

Transferability and Liability

Checks and Banking in the Digital Age

Agency

Employment, immigration, and Labor Law

Employment Discrimination

Sole Proprietorships, partnerships, and Limited Liability Companies

Formation and Termination of a Corporation

Management and Ownership of a Corporation

Secured Transactions

Creditors Rights and Remedies

Bankruptcy

Insurance

Personal Property and Bailments

Real Property

Landlord and Tenant Law

Wills and Trusts

Administrative Law

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International Law

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On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on

An ad on the News Now Web site asks viewers to "send us your story and we might share it with the world." Onyx submits a manuscript,adding,"I accept your offer." Between NewsNow and Onyx,there is

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu accepts.Most likely,Wally's death

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection

Laredo advertises a reward for the return of his lost dog.Mikayla,who does not know of the reward,finds and returns the dog.Mikayla cannot recover the re-ward,because she

World 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

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel.The mailbox rule applies if Quincy accepts the offer by

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