Question 1

Which of the following under the UCC is true about the way to communicate acceptance?

Accepted Answer

A) any means deemed reasonable by the court in light of the circumstances is an authorized way of acceptance. 
B) dispatches that comply with only the stipulated requirements for acceptance is an authorized way of acceptance. 
C) any form of acceptance that is not implied by trade usage is an authorized way of acceptance. 
D) a means slower and safer than the way the offer was communicated is an authorized way of acceptance. 
A) any means deemed reasonable by the court in light of the circumstances is an authorized way of acceptance. 
B) dispatches that comply with only the stipulated requirements for acceptance is an authorized way of acceptance. 
C) any form of acceptance that is not implied by trade usage is an authorized way of acceptance. 
D) a means slower and safer than the way the offer was communicated is an authorized way of acceptance.

Question 2

Under the UCC,if the parties are both merchants,additional terms in the offeree's form may be included in the agreement unless:

Accepted Answer

A) the offer expressly limited acceptance to its own terms. 
B) the new terms materially abide the offer. 
C) the offeror gives notice of objection to the new terms without considering time limit. 
D) the offeree clearly makes a counteroffer by expressly rejecting the offer. 
A) the offer expressly limited acceptance to its own terms. 
B) the new terms materially abide the offer. 
C) the offeror gives notice of objection to the new terms without considering time limit. 
D) the offeree clearly makes a counteroffer by expressly rejecting the offer.

Question 3

Trade usage is a situation where the parties are both members of a trade in which failure to reject promptly customarily indicates acceptance.

Accepted Answer

A) True 
 B)False

Question 4

Ernie Hemingway was fired by his employer,Gerty Stein's Sweat Shop.After he was fired,Ernie received a letter from Sweat Shop offering him double severance pay in exchange for a release of all age discrimination claims against the company.Ernie signed the release and put it in a mailbox outside the post office.Later,Ernie changed his mind and called Sweat Shop to say "I refuse your offer and will be filing suit for age discrimination." Is Ernie's withdrawal of his acceptance of Sweat Shop's offer effective? Why or why not?

Accepted Answer

No,Ernie's withdrawal of his acceptance

Question 5

Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms,when the acceptance form has terms additional to or different from the offer:

Accepted Answer

A) no contract will result because the acceptance form will be considered as a counteroffer and thus an implicit rejection of the offer. 
B) a contract can result,but the differing terms may not be part of the contract. 
C) a contract can result,and the differing terms must be included as part of that contract. 
D) no contract will result because the acceptance form will not be considered as a counteroffer. 
A) no contract will result because the acceptance form will be considered as a counteroffer and thus an implicit rejection of the offer. 
B) a contract can result,but the differing terms may not be part of the contract. 
C) a contract can result,and the differing terms must be included as part of that contract. 
D) no contract will result because the acceptance form will not be considered as a counteroffer.

Question 6

On May 1,2002,Bob received a telegram from Ralph offering to support him in his new construction project.On May 5,2002,at 9:00 AM,Ralph sends Bob a telegram attempting to revoke the offer.At 11:00 AM on the same day,Bob mails Ralph a letter attempting to accept the offer.At 11:30 AM,Bob receives Ralph's revocation.Assume Bob and Ralph are both construction contractors and the custom in the construction business is to offer by telegram and accept by mail.Which of the following statements holds true in this situation?

Accepted Answer

A) Ralph's revocation can make changes to the contract,though it reaches Bob after he sends the acceptance mail. 
B) Bob's acceptance would be effective only when Ralph reads the acceptance,which would then create the contract. 
C) the parties would have a contract because Bob used the means of communication impliedly authorized by trade usage. 
D) the parties would not have a contract as Bob used a nonauthorized means of communicating his acceptance. 
A) Ralph's revocation can make changes to the contract,though it reaches Bob after he sends the acceptance mail. 
B) Bob's acceptance would be effective only when Ralph reads the acceptance,which would then create the contract. 
C) the parties would have a contract because Bob used the means of communication impliedly authorized by trade usage. 
D) the parties would not have a contract as Bob used a nonauthorized means of communicating his acceptance.

Question 7

The UCC and the U.N.Convention of Contracts for the International Sale of Goods both hold that acceptances are effective when they are dispatched.

Accepted Answer

A) True 
 B)False

Question 8

Laura Riding offered to sell Louis Zukofsky a tract of land.The offer was complete and certain as to all material terms.The offer stated that a telegraphed acceptance was required.Within a reasonable time,Louis telephoned Laura to accept.Which is a true statement about this situation?

Accepted Answer

A) Louis can use promissory estoppel to enforce a contract here. 
B) As this case involved a sale of goods,Louis's telephone call would be a good acceptance. 
C) Louis has not accepted and there is no contract. 
D) Louis has accepted because a telephone call is a reasonable means of acceptance. 
A) Louis can use promissory estoppel to enforce a contract here. 
B) As this case involved a sale of goods,Louis's telephone call would be a good acceptance. 
C) Louis has not accepted and there is no contract. 
D) Louis has accepted because a telephone call is a reasonable means of acceptance.

Question 9

If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms:

Accepted Answer

A) the parties have created a bilateral contract. 
B) the parties have created a contingent contract. 
C) the parties have created a unilateral contract. 
D) the parties have created a multilateral contract. 
A) the parties have created a bilateral contract. 
B) the parties have created a contingent contract. 
C) the parties have created a unilateral contract. 
D) the parties have created a multilateral contract.

Question 10

An acceptance sent by stipulated means is effective when dispatched.

Accepted Answer

A) True 
 B)False

Question 11

In general,if the offeree uses a means of acceptance that is slower than that used by the offeror to communicate that offer:

Accepted Answer

A) it is an unauthorized means of communication. 
B) the acceptance is not effective even upon receipt. 
C) it is an authorized means of communication. 
D) the acceptance is effective when dispatched. 
A) it is an unauthorized means of communication. 
B) the acceptance is not effective even upon receipt. 
C) it is an authorized means of communication. 
D) the acceptance is effective when dispatched.

Question 12

An acceptance is effective as soon as it is dispatched:

Accepted Answer

A) if the offeree uses only an authorized means of communication. 
B) if the offeree uses only a stipulated means of communication. 
C) if the offeree uses an authorized or a stipulated means of communication. 
D) if the offeree uses any reasonable means of communication. 
A) if the offeree uses only an authorized means of communication. 
B) if the offeree uses only a stipulated means of communication. 
C) if the offeree uses an authorized or a stipulated means of communication. 
D) if the offeree uses any reasonable means of communication.

Question 13

Yael sent Jen an offer to sell his mountain bike for $150.After thinking about the offer for a few days,Jen sent Yael a letter accepting his offer and asking if he intended to leave the book basket attached to the bike.The next day,before Jen's letter arrived,Yael phoned Jen and told her that he had decided to sell his bike to Jake,who had offered him $200.Which of the following statements hold true of this case?

Accepted Answer

A) Jen used unauthorized means of acceptance. 
B) Jen's acceptance was good and a contract was created when Jens' letter was mailed. 
C) Yael could revoke the contract as the goods had not exchanged hands yet. 
D) The contract was not valid as the UCC held acceptances to be valid only when they were received and acknowledged in writing by the offeror. 
A) Jen used unauthorized means of acceptance. 
B) Jen's acceptance was good and a contract was created when Jens' letter was mailed. 
C) Yael could revoke the contract as the goods had not exchanged hands yet. 
D) The contract was not valid as the UCC held acceptances to be valid only when they were received and acknowledged in writing by the offeror.

Question 14

If an offeree dispatches both an acceptance and a rejection to an offer:

Accepted Answer

A) the acceptance is effective as soon as it is dispatched and a contract is created. 
B) the rejection is effective as soon as it is dispatched and no contract can be created. 
C) neither the acceptance nor the rejection is effective and another response must be issued. 
D) whichever response reaches the offeror first will determine whether a contract is created. 
A) the acceptance is effective as soon as it is dispatched and a contract is created. 
B) the rejection is effective as soon as it is dispatched and no contract can be created. 
C) neither the acceptance nor the rejection is effective and another response must be issued. 
D) whichever response reaches the offeror first will determine whether a contract is created.

Question 15

Parties who are negotiating a contract always prepare a written draft of the agreement for both parties to sign.

Accepted Answer

A) True 
 B)False

Question 16

Mack's Bar sent Olive Outlet an order for 200 cases of olives,to be shipped "as soon as possible." The day Olive Outlet receives Mack's order it does not have 200 cases of olives in stock,so it sends Mack 140 cases of olives and 60 cases of onions.Olive Outlet notifies Mack that they are shipping the onions in lieu of olives.Later that day,Mack phones the Outlet and tries to revoke his offer.Under the UCC,which of the following statements holds true to this situation?

Accepted Answer

A) Mack's bar must accept the shipment as they were notified. 
B) Olive Outlet has accepted and breached the contract. 
C) Olive Outlet's shipment is considered a counteroffer. 
D) Mack's bar must reject the shipment as the goods are nonconforming. 
A) Mack's bar must accept the shipment as they were notified. 
B) Olive Outlet has accepted and breached the contract. 
C) Olive Outlet's shipment is considered a counteroffer. 
D) Mack's bar must reject the shipment as the goods are nonconforming.

Question 17

Under the UCC,an order requesting "prompt" shipment of goods:

Accepted Answer

A) requires acceptance via writing within a "reasonable" time frame. 
B) impliedly invites acceptance only by a prompt promise to ship. 
C) impliedly invites acceptance only by a prompt shipment of goods. 
D) invites acceptance by either a prompt promise to ship or by prompt shipment of the goods. 
A) requires acceptance via writing within a "reasonable" time frame. 
B) impliedly invites acceptance only by a prompt promise to ship. 
C) impliedly invites acceptance only by a prompt shipment of goods. 
D) invites acceptance by either a prompt promise to ship or by prompt shipment of the goods.

Question 18

A contract that is impliedly accepted by doing something that objectively indicates agreement can be considered as a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 19

A unilateral contract trick is,a dishonest seller who has received a "rush" order sending the wrong goods,hoping that the buyer's necessity will force him to accept.

Accepted Answer

A) True 
 B)False

Question 20

Jane tells Mark,she would pay him $50 if Mark finds her lost bag.This is an example of a:

Accepted Answer

A) bilateral contract. 
B) unilateral contract. 
C) contingent contract. 
D) multilateral contract. 
A) bilateral contract. 
B) unilateral contract. 
C) contingent contract. 
D) multilateral contract.

Exam 11: Creating a Contract: Acceptances

Which of the following under the UCC is true about the way to communicate acceptance?

Under the UCC,if the parties are both merchants,additional terms in the offeree's form may be included in the agreement unless:

Trade usage is a situation where the parties are both members of a trade in which failure to reject promptly customarily indicates acceptance.

Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms,when the acceptance form has terms additional to or different from the offer:

The UCC and the U.N.Convention of Contracts for the International Sale of Goods both hold that acceptances are effective when they are dispatched.

Laura Riding offered to sell Louis Zukofsky a tract of land.The offer was complete and certain as to all material terms.The offer stated that a telegraphed acceptance was required.Within a reasonable time,Louis telephoned Laura to accept.Which is a true statement about this situation?

If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms:

An acceptance sent by stipulated means is effective when dispatched.

In general,if the offeree uses a means of acceptance that is slower than that used by the offeror to communicate that offer:

An acceptance is effective as soon as it is dispatched:

If an offeree dispatches both an acceptance and a rejection to an offer:

Parties who are negotiating a contract always prepare a written draft of the agreement for both parties to sign.

Under the UCC,an order requesting "prompt" shipment of goods:

A contract that is impliedly accepted by doing something that objectively indicates agreement can be considered as a bilateral contract.

A unilateral contract trick is,a dishonest seller who has received a "rush" order sending the wrong goods,hoping that the buyer's necessity will force him to accept.

Jane tells Mark,she would pay him $50 if Mark finds her lost bag.This is an example of a:

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 Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

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 Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

Filters