Question 1

An offer is effective only if it is communicated by the offeror in person.

Accepted Answer

A) True 
 B)False

Question 2

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Accepted Answer

A) True 
 B)False

Question 3

Under the Uniform Commercial Code (UCC), a firm offer applies to:

Accepted Answer

A) ​a written, signed offer by a merchant to buy or sell goods. 
B) an unwritten but definite offer to buy or sell goods. 
C) ​a written, signed offer by anyone to buy or sell goods. 
D) ​an unlimited, stipulated period of time. 
A) ​a written, signed offer by a merchant to buy or sell goods. 
B) an unwritten but definite offer to buy or sell goods. 
C) ​a written, signed offer by anyone to buy or sell goods. 
D) ​an unlimited, stipulated period of time.

Question 4

On April 15, Morgan sent a letter to Clark offering to sell her business to Clark for $200,000.The offer stated that it would expire on May 1.On April 30, Morgan sent another letter to Clark that stated that she was withdrawing the offer.Clark received that letter on May 1.Also on April 30, Clark sent a letter to Morgan accepting the offer.Morgan received that letter of acceptance on May 1.Morgan refused to sell the business to Clark, claiming that no contract had been formed.Clark brought suit to enforce the contract against Morgan.Based on what you have learned in this chapter, decide the probable outcome of the case.

Accepted Answer

​Judgment would be for Clark. Per the ma

Question 5

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

Accepted Answer

A) True 
 B)False

Question 6

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications.Because teak wood is difficult to obtain, the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it.Which of the following is correct?

Accepted Answer

A) ​Although the price is somewhat unclear, the parties have entered into a contract. 
B) This is an agreement to agree, and is not binding. 
C) ​This agreement fails for indefiniteness. 
D) ​The carpenter is bound by the agreement, but not the customer. 
A) ​Although the price is somewhat unclear, the parties have entered into a contract. 
B) This is an agreement to agree, and is not binding. 
C) ​This agreement fails for indefiniteness. 
D) ​The carpenter is bound by the agreement, but not the customer.

Question 7

An option is itself a contract to refrain from revoking an offer.

Accepted Answer

A) True 
 B)False

Question 8

If an offeree dies before the offer has been accepted, the offer:

Accepted Answer

A) ​may be rejected by the surviving spouse of the offeree. 
B) may be accepted by the surviving spouse of the offeree. 
C) ​is automatically revoked by the death of the offeree. 
D) ​may be accepted by the guardian appointed for any minor children of the offeree. 
A) ​may be rejected by the surviving spouse of the offeree. 
B) may be accepted by the surviving spouse of the offeree. 
C) ​is automatically revoked by the death of the offeree. 
D) ​may be accepted by the guardian appointed for any minor children of the offeree.

Question 9

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer, such action is a counteroffer that rejects the original offer.

Accepted Answer

A) True 
 B)False

Question 10

If an offer is indefinite or vague, no contract arises from an attempt to accept it.

Accepted Answer

A) True 
 B)False

Question 11

An offer is terminated upon rejection by the offeree unless:

Accepted Answer

A) ​the period of time for which the offeror agreed to keep the offer open has not yet expired. 
B) the offeror renews the offer. 
C) ​the offeree revokes the rejection. 
D) ​the offeree makes a counteroffer. 
A) ​the period of time for which the offeror agreed to keep the offer open has not yet expired. 
B) the offeror renews the offer. 
C) ​the offeree revokes the rejection. 
D) ​the offeree makes a counteroffer.

Question 12

If no termination date is specified for an offer, the offer will remain open:

Accepted Answer

A) for one year.​ 
B) for six months. 
C) ​for a reasonable period of time. 
D) ​until someone accepts the offer. 
A) for one year.​ 
B) for six months. 
C) ​for a reasonable period of time. 
D) ​until someone accepts the offer.

Question 13

A requirements contract is too vague to be a legally-enforceable agreement.

Accepted Answer

A) True 
 B)False

Exam 12: Formation of Contracts: Offer and Acceptance

An offer is effective only if it is communicated by the offeror in person.

An otherwise vague contract may be clarified by references in the contract to other documents or agreements.

Under the Uniform Commercial Code (UCC), a firm offer applies to:

A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror.

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications.Because teak wood is difficult to obtain, the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it.Which of the following is correct?

An option is itself a contract to refrain from revoking an offer.

If an offeree dies before the offer has been accepted, the offer:

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer, such action is a counteroffer that rejects the original offer.

If an offer is indefinite or vague, no contract arises from an attempt to accept it.

An offer is terminated upon rejection by the offeree unless:

If no termination date is specified for an offer, the offer will remain open:

A requirements contract is too vague to be a legally-enforceable agreement.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

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Nature of the Debtor-Creditor Relationship

Consumer Protection

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