Question 1

In order to form a contract, the parties must:

Accepted Answer

A) manifest their agreement subjectively. 
B) manifest their agreement objectively. 
C) indicate solely through the written word their intent. 
D) create a formal document. 
A) manifest their agreement subjectively. 
B) manifest their agreement objectively. 
C) indicate solely through the written word their intent. 
D) create a formal document.

Question 2

In the case of Lefkowitz v.Great Minneapolis Surplus Store, Inc., the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

Accepted Answer

A) True 
 B)False

Question 3

An offer can only be communicated by words; conduct cannot constitute an offer.

Accepted Answer

A) True 
 B)False

Question 4

Bailey attended an auction and bid $150 on an antique dresser.No one else made a higher bid.Discuss the effect of (a) the designation that the auction is without reserve, (b) the advertisement that the auction is with reserve, and (c) the lack of any announcement or advertisement as to whether the auction is with or without reserve.

Accepted Answer

If an auction is advertised or announced

Question 5

If no time is stated, an offer will terminate automatically after a reasonable period of time.

Accepted Answer

A) True 
 B)False

Question 6

An offer is effective as soon as it is dispatched.

Accepted Answer

A) True 
 B)False

Question 7

Pedro receives an unordered three-CD set in the mail accompanied by the statement, "This CD set can be purchased for the special price of $19.95.If the CDs are not returned within two weeks they will be deemed accepted and the payment is due within 30 days of receipt of the CDs." Pedro is under no obligation to either return the CDs or to pay for them; he may use them or give or throw them away.

Accepted Answer

A) True 
 B)False

Question 8

To be effective, an offer must:

Accepted Answer

A) be sufficiently definite and certain. 
B) be communicated to the offeree. 
C) manifest an intent to enter into a contract. 
D) All of the above. 
E) None of the above. 
A) be sufficiently definite and certain. 
B) be communicated to the offeree. 
C) manifest an intent to enter into a contract. 
D) All of the above. 
E) None of the above.

Question 9

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Accepted Answer

A) Bob has made a counteroffer and hence there is no contract. 
B) Bob has rejected the terms of the original offer, but there is still a contract. 
C) Under Article 2 of the UCC, Arnold is a merchant making a firm offer.Hence there is a contract. 
D) Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC. 
A) Bob has made a counteroffer and hence there is no contract. 
B) Bob has rejected the terms of the original offer, but there is still a contract. 
C) Under Article 2 of the UCC, Arnold is a merchant making a firm offer.Hence there is a contract. 
D) Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

Question 10

Discuss silence as acceptance of an offer.

Accepted Answer

Silence or inaction does not ordinarily

Question 11

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal.What is the effect of the court's decision on the offer?

Accepted Answer

A) The court's decision automatically terminates the offer. 
B) The court's decision has no effect on the offer. 
C) The court's decision acts as a condition on the offer. 
D) The court's decision acts as a rejection of the offer by the offeree. 
A) The court's decision automatically terminates the offer. 
B) The court's decision has no effect on the offer. 
C) The court's decision acts as a condition on the offer. 
D) The court's decision acts as a rejection of the offer by the offeree.

Question 12

Discuss how parties show mutual assent and what standard is used to determine agreement.

Accepted Answer

Parties usually show mutual assent by an

Question 13

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

Accepted Answer

A) True 
 B)False

Question 14

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

Accepted Answer

No.The finder's act was not an

Question 15

The Rogers family has always wanted to buy the beautiful house at the top of the hill.The owners of the house, the Thompsons, decided to sell and called Mr.Rogers.Before he could get back in touch with Mr.Thompson, Mr.Rogers suffered a heart attack and died.Mr.Rogers' adult daughter, to whom the Thompsons had not spoken, still wants the house.She may:

Accepted Answer

A) not accept, since the offer is terminated. 
B) not accept, because she does not have the capacity. 
C) accept, since the contract offer is assignable. 
D) accept, since the offer cannot be revoked without notice. 
A) not accept, since the offer is terminated. 
B) not accept, because she does not have the capacity. 
C) accept, since the contract offer is assignable. 
D) accept, since the offer cannot be revoked without notice.

Question 16

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts, the courts will complete the contract in the court's best judgment.

Accepted Answer

A) True 
 B)False

Question 17

Wes, who is an art collector, offered to buy a print from Le Monde Gallery.Le Monde balked at the price, sending Wes a letter of rejection.That day it discovered that the print was not as highly valued as originally thought.Le Monde immediately telephoned Wes to accept his offer.Is there a contract?

Accepted Answer

A) Yes, since the acceptance was received before the rejection. 
B) No, because the rejection was effective upon dispatch. 
C) No, because the rejection terminated the offer. 
D) Yes, because the acceptance is always effective upon dispatch. 
A) Yes, since the acceptance was received before the rejection. 
B) No, because the rejection was effective upon dispatch. 
C) No, because the rejection terminated the offer. 
D) Yes, because the acceptance is always effective upon dispatch.

Question 18

An acceptance that contains terms different from or additional to those in the offer receives the same treatment under the common law and under the UCC.

Accepted Answer

A) True 
 B)False

Question 19

A __________ is the refusal to accept an offer.

Accepted Answer

A) revocation. 
B) counteroffer. 
C) rejection. 
D) statutory irrevocability. 
A) revocation. 
B) counteroffer. 
C) rejection. 
D) statutory irrevocability.

Question 20

A contract is invalid if all of the terms are not clearly stated.

Accepted Answer

A) True 
 B)False

Exam 10: Mutual Assent

In order to form a contract, the parties must:

In the case of Lefkowitz v.Great Minneapolis Surplus Store, Inc., the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

An offer can only be communicated by words; conduct cannot constitute an offer.

If no time is stated, an offer will terminate automatically after a reasonable period of time.

An offer is effective as soon as it is dispatched.

To be effective, an offer must:

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Discuss silence as acceptance of an offer.

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal.What is the effect of the court's decision on the offer?

Discuss how parties show mutual assent and what standard is used to determine agreement.

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

It is a fundamental policy that if the parties do not provide definite enough terms in their contracts, the courts will complete the contract in the court's best judgment.

An acceptance that contains terms different from or additional to those in the offer receives the same treatment under the common law and under the UCC.

A __________ is the refusal to accept an offer.

A contract is invalid if all of the terms are not clearly stated.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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