Question 1

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. C

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

Accepted Answer

A) True 
 B)False  True

Question 4

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29.The customer handed the cashier a $50 bill and said,"I accept.We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229.In this case:

Accepted Answer

A)  the customer validly accepted the store's offer. 
B)  the price tag was a firm offer. 
C)  no contract was formed because the customer's offer was refused. 
D)  the customer is the offeree. 
A)  the customer validly accepted the store's offer. 
B)  the price tag was a firm offer. 
C)  no contract was formed because the customer's offer was refused. 
D)  the customer is the offeree.

Question 5

At an auction sale,a statement made by the auctioneer to draw forth bids constitutes an offer.

Accepted Answer

A) True 
 B)False

Question 6

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

Accepted Answer

A)  no contract is formed,since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance. 
B)  a contract is formed,but the contract is voidable at the election of the offeror. 
C)  the acceptance is timely and a contract is formed,even though the offeror actually receives the acceptance well after the specified date has passed. 
D)  the acceptance is timely and a contract is formed,but only if the offeror actually receives the acceptance by the deadline specified for acceptance. 
A)  no contract is formed,since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance. 
B)  a contract is formed,but the contract is voidable at the election of the offeror. 
C)  the acceptance is timely and a contract is formed,even though the offeror actually receives the acceptance well after the specified date has passed. 
D)  the acceptance is timely and a contract is formed,but only if the offeror actually receives the acceptance by the deadline specified for acceptance.

Question 7

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date.

Accepted Answer

A) True 
 B)False

Question 8

Mary offered to sell Mike several pieces of rare Chinese art at a very good price because they were duplicates in her own collection.Mike could not accept the offer at that time,but he did give Mary $500 in return for her promise to keep her offer open for three (3)weeks.Mike returned with the agreed-upon balance two weeks later to find that Mary already had sold the pieces she had offered to sell to him.Mary explained that she had been able to get a better price from another buyer.She offered to return Mike's $500 and insisted that this was all she was obligated to do.Is Mary right?

Accepted Answer

Mary is incorrect.By offering and accept

Question 9

In general,an acceptance occurs when:

Accepted Answer

A)  a particular form of words is stated to the offeror. 
B)  a particular mode of expression is made to the offeror. 
C)  the offeree reserves the right to reject the offer. 
D)  a clear expression of the offeree's agreement to be bound by the terms of the offer occurs. 
A)  a particular form of words is stated to the offeror. 
B)  a particular mode of expression is made to the offeror. 
C)  the offeree reserves the right to reject the offer. 
D)  a clear expression of the offeree's agreement to be bound by the terms of the offer occurs.

Question 10

In an auction __________,the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Accepted Answer

A)  without reserve 
B)  with reserve 
C)  without preserve 
D)  with preserve 
A)  without reserve 
B)  with reserve 
C)  without preserve 
D)  with preserve

Question 11

Social invitations can be offers.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

An acceptance must be absolute and unconditional.

Accepted Answer

A) True 
 B)False

Question 14

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers.

Accepted Answer

A) True 
 B)False

Question 15

A counteroffer is a(n):

Accepted Answer

A)  acceptance of the original offer. 
B)  rejection of the original offer. 
C)  acceptance of the original offer and an invitation to further negotiate. 
D)  a revocation of the original offer. 
A)  acceptance of the original offer. 
B)  rejection of the original offer. 
C)  acceptance of the original offer and an invitation to further negotiate. 
D)  a revocation of the original offer.

Question 16

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 mail

Question 17

If no time is stated for the duration of an offer,it continues indefinitely if the offer relates to durable goods or land.

Accepted Answer

A) True 
 B)False

Question 18

A said to B,"I'll give you $100 for that bracelet." B replied,"$135." A said,"No thanks." B then said that B accepted the $100,but A was no longer interested and said there was no contract.B insists there is a contract.Result?

Accepted Answer

A)  A's offer of $100 was open and accepted by B,thereby forming a contract. 
B)  B's counteroffer of $135 terminated A's offer of $100. 
C)  B's statement,"$135" was a negotiating statement that did not terminate A's original offer of $100. 
D)  A's offer of $100 was irrevocable. 
A)  A's offer of $100 was open and accepted by B,thereby forming a contract. 
B)  B's counteroffer of $135 terminated A's offer of $100. 
C)  B's statement,"$135" was a negotiating statement that did not terminate A's original offer of $100. 
D)  A's offer of $100 was irrevocable.

Question 19

Offers,acceptances of offers,and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 13: Formation of Contracts: Offer and Acceptance

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

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

Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29.The customer handed the cashier a $50 bill and said,"I accept.We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229.In this case:

At an auction sale,a statement made by the auctioneer to draw forth bids constitutes an offer.

If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,

An option contract is a binding promise to keep an offer open for a stated period of time or until a specified date.

In general,an acceptance occurs when:

In an auction __________,the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.

Social invitations can be offers.

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

An acceptance must be absolute and unconditional.

The fact that there has been a series of contracts between the parties and that one party's offer has always been accepted before by the other does not create any legal obligation to continue to accept subsequent offers.

A counteroffer is a(n):

If no time is stated for the duration of an offer,it continues indefinitely if the offer relates to durable goods or land.

A said to B,"I'll give you $100 for that bracelet." B replied,"$135." A said,"No thanks." B then said that B accepted the $100,but A was no longer interested and said there was no contract.B insists there is a contract.Result?

Offers,acceptances of offers,and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.

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.

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

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

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 Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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