Question 1

Which of the following is true about auctions?

Accepted Answer

A)  Acceptance occurs when an offeror makes the highest bid. 
B)  Bidders are treated as offerors, making offers the seller is free to accept or reject. 
C)  An item cannot be withdrawn from sale prior to acceptance. 
D)  The seller is required to accept the final offer when the auction is advertised as being "with reserve." 
A)  Acceptance occurs when an offeror makes the highest bid. 
B)  Bidders are treated as offerors, making offers the seller is free to accept or reject. 
C)  An item cannot be withdrawn from sale prior to acceptance. 
D)  The seller is required to accept the final offer when the auction is advertised as being "with reserve."

Question 2

An offeree who makes an inquiry about the terms of the offer has made a counteroffer and has terminated the offer by rejecting it.

Accepted Answer

A) True 
 B)False

Question 3

In an option contract,_____.

Accepted Answer

A)  a separate contract for the limited purpose of holding the offer open is created 
B)  the offeree is bound to accept the offer 
C)  a joint contract is created for the limited purpose of keeping the offer open 
D)  the offeree has purchased the right to accept within the stated period 
A)  a separate contract for the limited purpose of holding the offer open is created 
B)  the offeree is bound to accept the offer 
C)  a joint contract is created for the limited purpose of keeping the offer open 
D)  the offeree has purchased the right to accept within the stated period

Question 4

Ads for the sale of goods at a specified price are considered by the courts as:

Accepted Answer

A)  giving everyone who sees the ad the power to bind into a contract. 
B)  acceptance of an offer. 
C)  an unfair offer. 
D)  invitations to negotiate. 
A)  giving everyone who sees the ad the power to bind into a contract. 
B)  acceptance of an offer. 
C)  an unfair offer. 
D)  invitations to negotiate.

Question 5

If an offeree accepts the offer but complains about the terms of the offer,a rejection is implied.

Accepted Answer

A) True 
 B)False

Question 6

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor,Sam,for $100.Beck's mom calls Sam and tells him about her conversation with Beck.Sam then calls Beck and tells him that he accepts his offer.Under these circumstances,_____.

Accepted Answer

A)  this is a contract 
B)  the offer has been conditionally tendered 
C)  the offer has not been communicated 
D)  the offer violates the UCC's rule against third-party interveners in quasi contracts 
A)  this is a contract 
B)  the offer has been conditionally tendered 
C)  the offer has not been communicated 
D)  the offer violates the UCC's rule against third-party interveners in quasi contracts

Question 7

Which of the following statements about shrinkwrap contracts is true?

Accepted Answer

A)  The label on shrinkwrap contracts states that by removing the shrinkwrap, the buyer accepts the terms of the software seller's licensing agreement. 
B)  Shrinkwrap contracts are enforceable even when the terms violate contract rules such as unconscionability. 
C)  The practice of using shrinkwrap contracts never raises ethical problems like those involved in the use of small print, complex, or "hidden" language. 
D)  Critics point out that all the consumers understand the shrinkwrap contracts before accepting the terms and conditions. 
A)  The label on shrinkwrap contracts states that by removing the shrinkwrap, the buyer accepts the terms of the software seller's licensing agreement. 
B)  Shrinkwrap contracts are enforceable even when the terms violate contract rules such as unconscionability. 
C)  The practice of using shrinkwrap contracts never raises ethical problems like those involved in the use of small print, complex, or "hidden" language. 
D)  Critics point out that all the consumers understand the shrinkwrap contracts before accepting the terms and conditions.

Question 8

If the subject matter of a proposed contract is destroyed without the knowledge of either party after the making of an offer but before its acceptance,the offer cannot be terminated.

Accepted Answer

A) True 
 B)False

Question 9

Under the Uniform Commercial Code (UCC),a sales contract can be created:

Accepted Answer

A)  if the contract is reduced to writing. 
B)  in any manner sufficient to show agreement. 
C)  when the offeror forms subjective intent to contract. 
D)  when the contract contains the price terms. 
A)  if the contract is reduced to writing. 
B)  in any manner sufficient to show agreement. 
C)  when the offeror forms subjective intent to contract. 
D)  when the contract contains the price terms.

Question 10

What is an offer? What are the three conditions necessary for the creation of an offer?

Accepted Answer

An offer is the manifestation of a willi

Exam 10: Creating a Contract: Offers

Which of the following is true about auctions?

An offeree who makes an inquiry about the terms of the offer has made a counteroffer and has terminated the offer by rejecting it.

In an option contract,_____.

Ads for the sale of goods at a specified price are considered by the courts as:

If an offeree accepts the offer but complains about the terms of the offer,a rejection is implied.

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor,Sam,for $100.Beck's mom calls Sam and tells him about her conversation with Beck.Sam then calls Beck and tells him that he accepts his offer.Under these circumstances,_____.

Which of the following statements about shrinkwrap contracts is true?

If the subject matter of a proposed contract is destroyed without the knowledge of either party after the making of an offer but before its acceptance,the offer cannot be terminated.

Under the Uniform Commercial Code (UCC),a sales contract can be created:

What is an offer? What are the three conditions necessary for the creation of an offer?

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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