Exam 9: Introduction to Contracts and Agreement

Used Car Sales.Walter sells used cars.He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands.The first thing that Walter does is say that during the first week of December,he will give a $500 rebate on used cars under two years old.To spice things up,he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th.(Hula hooping was a practice popular some years ago in which a person,usually around the waist,would swing around a large hoop.)Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight.Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper.The promotion went over very well.Although he had several on hand,Walter ran out of cars under two years old within one day.During the rest of the week,shoppers were told that no cars of that description were available.A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available.On December 7th,while Walter was watching the hula hoopers,Sally was shopping for a car.She was in college and did not have much money.She saw one,an older car,that she liked but she really did not know if it would run or not.She was going to talk to her parents.Walter eventually approached her and Sally asked him if he would take $3,000 for the car.Walter said,"Yes,sold." Sally tried to explain that she needed to talk to her parents first,but Walter would not hear of it.While Walter was still fuming from his encounter with Sally,Zack walked up and started to criticize the nature of Walter's inventory.Walter told him that he had great cars.Zack pointed at an old jalopy that was banged up,had 200,000 miles on it,and a cracked windshield.Zack said,"Sure,I'll pay $10,000 for that car." Walter said,"Sold." Zack said,"Wait a minute.I was only kidding." Walter said,"No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara.One minute before the ten hours were up,Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000.Walter refused saying that the offer was revoked.Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate.Additionally,Barbara sued Walter,and Walter sued Zack and Sally.What is the likely result in the lawsuit brought by Walter against Zack?

The person who agrees to the terms of an offer by another party is called the ________.

Since it takes at least two parties to enter into an enforceable agreement,a contract cannot be classified as unilateral.

In the absence of a time condition in the offer,the offer will expire after thirty (30)days.

If the subject matter of the offer is destroyed or becomes illegal,the offer is rescindable at the election of the offeror or the offeree.

As a general rule,when is revocation of an offer effective?

The terms in express contracts are clearly set forth in written,not spoken,words.

Lack of genuine assent is a defense to the enforcement of a contract.

Which of the following is true if no means of communicating an acceptance is specified in an offer?

Which of the following is true regarding when an offeree may reject an offer?

Under common law,when does formation of an agreement begin?

Expiration of the statute of limitations period for a breach of contract action may make a contract ________.

Which of the following is the reason the Uniform Commercial Code was drafted?

Sometimes a contract may be valid yet unenforceable.

The two primary sources of contract law are the Uniform Contracts Code and the Uniform Commercial Code.

Which of the following is an incorrect statement regarding how the Japanese tend to view contracts?

If the subject matter of an offer becomes illegal,what is the result?

Jacquelyn accepts Monique's offer to sell her a used car for $2,000.At what point is there a binding contract between the two parties?

In which of the following ways may an offeree accept a unilateral contract?

A(n)________ contract is commonly defined as a promise in exchange for a promise.