Question 1

Which term refers to whether an offeree accepts an offer by promising,by making a down payment,or by performing?

Accepted Answer

A) manner of acceptance 
B) method of acceptance 
C) definiteness 
D) intent 
A) manner of acceptance 
B) method of acceptance 
C) definiteness 
D) intent A

Question 2

Acme Co.offers to buy 1,000 widgets from Widget World Co.The written offer provides for 1,000 at $10 per widget,to be delivered May 1.The offer has no other provisions.Widget World sends a written acceptance.However,the acceptance also states that if any claim arises under this contract,Widget World must be notified within 10 days.Acme does not object to this provision.Both parties are merchants.Which of the following best describes this situation?

Accepted Answer

A) No contract exists.The purported acceptance contains additional terms,so it is a counteroffer,which has not been accepted. 
B) No contract exists.The terms materially alter the original offer. 
C) A contract exists.The additional terms are not material,they are part of the contract. 
D) A contract exists,but the additional terms are not part of the contract no matter what. 
A) No contract exists.The purported acceptance contains additional terms,so it is a counteroffer,which has not been accepted. 
B) No contract exists.The terms materially alter the original offer. 
C) A contract exists.The additional terms are not material,they are part of the contract. 
D) A contract exists,but the additional terms are not part of the contract no matter what. C

Question 3

Briefly discuss how an offer can be accepted.Include in your answer the application of the mirror image rule.

Accepted Answer

When there is a valid offer outstanding,it remains effective until it is terminated or accepted.An offeree accepts by saying or doing something that a reasonable person would understand to mean that he definitely wants to take the offer.It is important to note that the offeree must say or do something to accept.It need not be a formal acceptance: for example,if Grace offers to sell Janie her accounting textbook for $50,Janie does not have to say "I accept your offer." She can accept by simply saying "I'll take it," or "It's a deal." Janie does not even need to speak.If she hands Grace $50,she also accepts the offer.The common-law mirror image rule requires that acceptance be on precisely the same terms as the offer.If the acceptance contains terms that add or contradict the offer,even in minor ways,courts generally consider it a counteroffer.UCC Section 2-207 has modified this rule for the sale of goods by providing that an acceptance that adds different or additional terms will often create a contract.

Question 4

Jaime offered to buy Kevin's bike.Jamie is the

Accepted Answer

A) offeree. 
B) offeror. 
C) mortgagor. 
D) trustee. 
A) offeree. 
B) offeror. 
C) mortgagor. 
D) trustee.

Question 5

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby.Prince Charming came in last,much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that horse to the first person who hands me $100!" John has

Accepted Answer

A) made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. 
B) made a firm offer and will be bound by his offer for a reasonable period of time. 
C) made an acceptance to the first person who can produce $100. 
D) not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer. 
A) made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. 
B) made a firm offer and will be bound by his offer for a reasonable period of time. 
C) made an acceptance to the first person who can produce $100. 
D) not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Question 6

Spangel Fashions sends out its spring and summer catalog to Cindy.Cindy falls in love with the cute dress featured on the front cover of the catalog.When Cindy calls to order the dress,she is informed that the company has sold out of the dress.Cindy is upset and claims that the store is in breach of contract.She argues that the catalog presented an offer,which she accepted when she called to order the dress.Is Cindy correct? Why/why not?

Accepted Answer

No.Advertisements,price lists,and catalo

Question 7

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper;one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit.The salesperson told Seth they were sold out of that bag,but there were two other styles that would meet his needs and were the same price.Seth insisted he wanted the advertised bag and threatened to sue for breach of contract.Which is true?

Accepted Answer

A) Outdoor Times is guilty of "bait and swap." 
B) Seth will prevail in his case,as Outdoor Times is responsible for having sufficient stock of advertised items. 
C) Seth will not prevail,as the advertisement was simply a request for offers. 
D) Outdoor Times must provide Seth with a raincheck,ensuring he can buy the same bag at the sales price at a later date. 
A) Outdoor Times is guilty of "bait and swap." 
B) Seth will prevail in his case,as Outdoor Times is responsible for having sufficient stock of advertised items. 
C) Seth will not prevail,as the advertisement was simply a request for offers. 
D) Outdoor Times must provide Seth with a raincheck,ensuring he can buy the same bag at the sales price at a later date.

Question 8

A letter of intent summarizes progress made during business negotiations,but more importantly,it creates a binding contract.

Accepted Answer

A) True 
 B)False

Question 9

Regarding contracts,in seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

Accepted Answer

A) True 
 B)False

Question 10

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 11

If an offer specifies no time limit in which to accept,

Accepted Answer

A) the offeree has 30 days to respond. 
B) the offeree has 10 days to respond. 
C) the offer is not valid and therefore it does not matter when the offeree responds. 
D) the offeree has a reasonable period during which to accept. 
A) the offeree has 30 days to respond. 
B) the offeree has 10 days to respond. 
C) the offer is not valid and therefore it does not matter when the offeree responds. 
D) the offeree has a reasonable period during which to accept.

Question 12

Which of the following offers are considered to be irrevocable for a given period?

Accepted Answer

A) Firm offers. 
B) Option contracts. 
C) A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. 
D) All of these are correct. 
A) Firm offers. 
B) Option contracts. 
C) A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. 
D) All of these are correct.

Question 13

On Monday,Mick puts an offer in the mail to Sheri to sell his guitar for $50.Monday night when jamming with his buddies,he decides he will really miss his old guitar and has second thoughts about selling it.Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale.The revocation is effective on Tuesday morning.

Accepted Answer

A) True 
 B)False

Question 14

Oxtron,Inc.sent the following price list to its customers.​
​
Which statement is correct?Dispensers:  SBC-500J
$670.00  True TDD-1
$875.00  True TDD-2
$1,465.00  True TDD-3
$1,515.00CO2 Tank and Regulator$150.00

Accepted Answer

A) These price quotes would generally be considered offers. 
B) These price quotes would generally not be considered offers. 
C) These price quotes would generally be considered output contracts. 
D) These price quotes would generally be considered requirements contracts. 
A) These price quotes would generally be considered offers. 
B) These price quotes would generally not be considered offers. 
C) These price quotes would generally be considered output contracts. 
D) These price quotes would generally be considered requirements contracts.

Question 15

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 16

Which of the following is outlawed by consumer protection statutes?

Accepted Answer

A) false advertising 
B) clickwrap agreements 
C) termination by expiration 
D) browsewrap agreements 
A) false advertising 
B) clickwrap agreements 
C) termination by expiration 
D) browsewrap agreements

Question 17

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.

Question 18

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and method.

Accepted Answer

A) True 
 B)False

Question 19

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 20

What does it mean if an auction is with reserve?

Accepted Answer

A) Unless otherwise stated,the auctioneer has the right to withdraw the item before the fall of the hammer. 
B) The auctioneer must sell to the highest bidder. 
C) Even after the fall of the hammer,the auctioneer can accept other bids. 
D) The items for sale have a minimum price. 
A) Unless otherwise stated,the auctioneer has the right to withdraw the item before the fall of the hammer. 
B) The auctioneer must sell to the highest bidder. 
C) Even after the fall of the hammer,the auctioneer can accept other bids. 
D) The items for sale have a minimum price.

Exam 12: Agreement: Offers and Acceptances

Which term refers to whether an offeree accepts an offer by promising,by making a down payment,or by performing?

Briefly discuss how an offer can be accepted.Include in your answer the application of the mirror image rule.

Jaime offered to buy Kevin's bike.Jamie is the

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby.Prince Charming came in last,much to John's frustration and embarrassment.John exclaims in a loud voice,"I'm selling that horse to the first person who hands me $100!" John has

A letter of intent summarizes progress made during business negotiations,but more importantly,it creates a binding contract.

Regarding contracts,in seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

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

If an offer specifies no time limit in which to accept,

Which of the following offers are considered to be irrevocable for a given period?

Oxtron,Inc.sent the following price list to its customers.​ ​ Which statement is correct?Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00CO2 Tank and Regulator$150.00

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

Which of the following is outlawed by consumer protection statutes?

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

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and method.

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 does it mean if an auction is with reserve?

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Consideration

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Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

Filters

Oxtron,Inc.sent the following price list to its customers. Which statement is correct?Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00CO2 Tank and Regulator$150.00