Question 1

If a person wishes to ensure that an offer will in fact be held open for a set period of time,the person may do so by entering into a[n] ________ contract with the offeror.

Accepted Answer

A) Irrevocable 
B) Adhesion 
C) Option 
D) Clear 
E) Explicit 
A) Irrevocable 
B) Adhesion 
C) Option 
D) Clear 
E) Explicit C

Question 2

Under which of the following situations does an offer immediately terminate?

Accepted Answer

A) Illegality or lapse of time 
B) Death or incapacity of the offeror or illegality 
C) Revocation and death or incapacity of the offeror 
D) Revocation 
E) Revocation and rejection 
A) Illegality or lapse of time 
B) Death or incapacity of the offeror or illegality 
C) Revocation and death or incapacity of the offeror 
D) Revocation 
E) Revocation and rejection B

Question 3

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

Accepted Answer

A) If no means of communicating the acceptance is specified,any reasonable means is generally acceptable. 
B) If no means of communicating an acceptance is specified in an offer,acceptance must be done through the U.S.mail system. 
C) If no means of communicating an acceptance is specified in an offer,acceptance must be done either in person or through telephone communication. 
D) If no means of communicating an acceptance is specified in an offer,acceptance must be done either through U.S.mail or through e-mail. 
E) If no means of communicating an acceptance is specified in an offer,acceptance must be done either through the U.S.mail or through fax transmittal. 
A) If no means of communicating the acceptance is specified,any reasonable means is generally acceptable. 
B) If no means of communicating an acceptance is specified in an offer,acceptance must be done through the U.S.mail system. 
C) If no means of communicating an acceptance is specified in an offer,acceptance must be done either in person or through telephone communication. 
D) If no means of communicating an acceptance is specified in an offer,acceptance must be done either through U.S.mail or through e-mail. 
E) If no means of communicating an acceptance is specified in an offer,acceptance must be done either through the U.S.mail or through fax transmittal. A

Question 4

What effect does the accidental destruction of the personal watercraft have on the deal between Isaiah and Haley?

Accepted Answer

A) Isaiah is not in breach of contract because of destruction of the subject matter. 
B) Isaiah is in breach of contract and must pay Haley damages because she accepted before he could tell her about the fire. 
C) Isaiah is not in breach of contract because the offer was not sufficiently definite. 
D) Isaiah is in breach of contract and must purchase a similar watercraft to transfer to Haley. 
E) Isaiah is not in breach of contract because an insufficient material term involving who would move the watercraft was omitted. 
A) Isaiah is not in breach of contract because of destruction of the subject matter. 
B) Isaiah is in breach of contract and must pay Haley damages because she accepted before he could tell her about the fire. 
C) Isaiah is not in breach of contract because the offer was not sufficiently definite. 
D) Isaiah is in breach of contract and must purchase a similar watercraft to transfer to Haley. 
E) Isaiah is not in breach of contract because an insufficient material term involving who would move the watercraft was omitted.

Question 5

Mari tells Daniel that she will mow his yard during the summer for $800.Daniel considers it,and drops a note in the mail to Mari telling her that he rejects her offer.However,he thinks about it again and calls her to tell her that he accepts the offer before she receives his rejection.Which of the following is true under the mailbox rule?

Accepted Answer

A) The offer was no longer outstanding because of the rejection. 
B) The acceptance was invalid because the mailbox rule requires that the time of payment be specifically set forth before an acceptance is formalized. 
C) Daniel validly accepted,but his acceptance was revoked when Mari received the rejection. 
D) Daniel could not accept verbally. 
E) The acceptance is valid,and the rejection has no effect. 
A) The offer was no longer outstanding because of the rejection. 
B) The acceptance was invalid because the mailbox rule requires that the time of payment be specifically set forth before an acceptance is formalized. 
C) Daniel validly accepted,but his acceptance was revoked when Mari received the rejection. 
D) Daniel could not accept verbally. 
E) The acceptance is valid,and the rejection has no effect.

Question 6

Which of the following is not a required element of a valid offer?

Accepted Answer

A) Reasonably definite terms. 
B) Communication to the offeree. 
C) A written document setting forth offer terms. 
D) Intent by the offeror to be bound by an agreement. 
E) Serious intent by the offeror. 
A) Reasonably definite terms. 
B) Communication to the offeree. 
C) A written document setting forth offer terms. 
D) Intent by the offeror to be bound by an agreement. 
E) Serious intent by the offeror.

Question 7

In an auction _ ,the seller is treated as making an offer to accept the highest bid.

Accepted Answer

A) Without controls 
B) With controls 
C) Without reserve 
D) Without qualifications 
E) With reserve 
A) Without controls 
B) With controls 
C) Without reserve 
D) Without qualifications 
E) With reserve

Question 8

Explain under which circumstances an offer may not be revoked.

Accepted Answer

An option contract prevents re

Question 9

In the absence of a time condition in either offer,an offer by a retailer to purchase seasonal goods from a wholesaler would lapse later than an offer to purchase goods that could easily be sold all year long.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an offer made by an offeree to an offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer?

Accepted Answer

A) A bilateral offer 
B) An acceptance 
C) A cross offer 
D) A counteroffer 
E) A revocation 
A) A bilateral offer 
B) An acceptance 
C) A cross offer 
D) A counteroffer 
E) A revocation

Question 11

Courts interpret contracts using an objective standard.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of online businesses and disclosures?

Accepted Answer

A) Online businesses generally make links to online disclosures very easy for consumers to find. 
B) Online businesses always give full disclosure of terms about products before payment conconst 
C) Online businesses never make disclosures to consumers about product terms. 
D) Online businesses commonly refrain from giving full disclosure of terms about a product until they receive a customer's payment information. 
E) Online businesses are required to make full disclosures easily accessible to consumers before collecting payment information. 
A) Online businesses generally make links to online disclosures very easy for consumers to find. 
B) Online businesses always give full disclosure of terms about products before payment conconst 
C) Online businesses never make disclosures to consumers about product terms. 
D) Online businesses commonly refrain from giving full disclosure of terms about a product until they receive a customer's payment information. 
E) Online businesses are required to make full disclosures easily accessible to consumers before collecting payment information.

Question 13

List the ways in which an offer can terminate.

Accepted Answer

Termination of an offer can occur in one

Question 14

Camila,wanting to sell a used business law book,calls Jada and tells her that if she does not hear from her within twenty-four hours,she will assume that Jada wishes to purchase the book for $50.Which of the following is correct regarding the status of the proposed book sale?

Accepted Answer

A) Jada can avoid the creation of a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
B) There can be no contract because the offer was not made in person. 
C) There is no contract because in this situation silence cannot be used to form a contract. 
D) Jada can avoid the creation of a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time. 
E) There can be no contract because the offer was not made in writing. 
A) Jada can avoid the creation of a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. 
B) There can be no contract because the offer was not made in person. 
C) There is no contract because in this situation silence cannot be used to form a contract. 
D) Jada can avoid the creation of a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time. 
E) There can be no contract because the offer was not made in writing.

Question 15

Which of the following is false regarding how the Japanese tend to view contracts?

Accepted Answer

A) The Japanese have a preference for flexible contracts. 
B) The Japanese do not desire that any terms be left to be decided later. 
C) The Japanese tend to view contracts as ongoing relationships. 
D) The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. 
E) The Japanese tend to be suspicious of long,detailed contracts. 
A) The Japanese have a preference for flexible contracts. 
B) The Japanese do not desire that any terms be left to be decided later. 
C) The Japanese tend to view contracts as ongoing relationships. 
D) The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. 
E) The Japanese tend to be suspicious of long,detailed contracts.

Question 16

What was the result in the Opening Case in which the plaintiff attempted to buy a jet from Pepsi for Pepsi points and some additional funds?

Accepted Answer

A) The plaintiff did not prevail because the jet was unobtainable as a military aircraft. 
B) The plaintiff prevailed,and Pepsi had to sell the jet as offered because Pepsi failed to specifically reserve details of the offer to a separate writing. 
C) The plaintiff prevailed,and Pepsi had to sell the jet as offered because Pepsi's advertisement was considered an offer which the plaintiff validly accepted. 
D) The plaintiff did not prevail because Pepsi reserved the details of the offer to a separate writing,and Pepsi had the authority to reject the plaintiff's offer to purchase. 
E) The plaintiff prevailed,and Pepsi had to provide the jet as offered because Pepsi did not revoke the offer soon enough. 
A) The plaintiff did not prevail because the jet was unobtainable as a military aircraft. 
B) The plaintiff prevailed,and Pepsi had to sell the jet as offered because Pepsi failed to specifically reserve details of the offer to a separate writing. 
C) The plaintiff prevailed,and Pepsi had to sell the jet as offered because Pepsi's advertisement was considered an offer which the plaintiff validly accepted. 
D) The plaintiff did not prevail because Pepsi reserved the details of the offer to a separate writing,and Pepsi had the authority to reject the plaintiff's offer to purchase. 
E) The plaintiff prevailed,and Pepsi had to provide the jet as offered because Pepsi did not revoke the offer soon enough.

Question 17

What is the likely result in the lawsuit Randy brought against Steve?

Accepted Answer

A) Steve will win because bids made at an auction may be revoked at any time within one day after the auction. 
B) Steve will win because bids made at an auction may be revoked at any time within ten days after the auction. 
C) Randy will win because Steve had no right to revoke the bid. 
D) Steve will win because bids made at an auction may be revoked at any time within five days after the auction. 
E) Steve will win because he properly revoked his bid before it was accepted. 
A) Steve will win because bids made at an auction may be revoked at any time within one day after the auction. 
B) Steve will win because bids made at an auction may be revoked at any time within ten days after the auction. 
C) Randy will win because Steve had no right to revoke the bid. 
D) Steve will win because bids made at an auction may be revoked at any time within five days after the auction. 
E) Steve will win because he properly revoked his bid before it was accepted.

Question 18

Which of the following are ways in which an offer can be terminated:

Accepted Answer

A) Revocation,acceptance,counteroffer,illegality,lapse of time. 
B) Rejection,counteroffer,illegality,acceptance,adhesion,lapse of time,bilateral termination 
C) Revocation,adhesion,unilateral termination,bilateral termination. 
D) Unilateral termination,bilateral termination,illegality,incapacity,and acceptance. 
E) Revocation,rejection,counteroffer,illegality,death,incapacity,and lapse of time. 
A) Revocation,acceptance,counteroffer,illegality,lapse of time. 
B) Rejection,counteroffer,illegality,acceptance,adhesion,lapse of time,bilateral termination 
C) Revocation,adhesion,unilateral termination,bilateral termination. 
D) Unilateral termination,bilateral termination,illegality,incapacity,and acceptance. 
E) Revocation,rejection,counteroffer,illegality,death,incapacity,and lapse of time.

Question 19

Madison signs a contract with Rainbow Readers Book Club without reading it.The contract provides that new books will be sent to her eBook reader every month unless she sends notification rejecting the receipt of new books.Which of the following is true regarding whether the contract is binding?

Accepted Answer

A) The contract is binding. 
B) The contract is not binding because it illegally attempts to enforce acceptance by silence. 
C) The contract is not binding unless Trudy pays for at least one month's supply of books thereby indicating her intent to be bound. 
D) The contract is not binding because transmittal using electronics is involved. 
E) The contract is binding but only if the parties have extensive previous dealings whereby acceptance by silence became an accepted form of business. 
A) The contract is binding. 
B) The contract is not binding because it illegally attempts to enforce acceptance by silence. 
C) The contract is not binding unless Trudy pays for at least one month's supply of books thereby indicating her intent to be bound. 
D) The contract is not binding because transmittal using electronics is involved. 
E) The contract is binding but only if the parties have extensive previous dealings whereby acceptance by silence became an accepted form of business.

Question 20

When considering whether an offer has expired,what is presumed to be a reasonable amount of time?

Accepted Answer

A) Ten days. 
B) Seven days. 
C) Forty-eight hours. 
D) Forty-five days. 
E) There is no set amount of time,and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer. 
A) Ten days. 
B) Seven days. 
C) Forty-eight hours. 
D) Forty-five days. 
E) There is no set amount of time,and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Exam 14: Agreement

If a person wishes to ensure that an offer will in fact be held open for a set period of time,the person may do so by entering into a[n] ________ contract with the offeror.

Under which of the following situations does an offer immediately terminate?

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

What effect does the accidental destruction of the personal watercraft have on the deal between Isaiah and Haley?

Which of the following is not a required element of a valid offer?

In an auction _ ,the seller is treated as making an offer to accept the highest bid.

Explain under which circumstances an offer may not be revoked.

In the absence of a time condition in either offer,an offer by a retailer to purchase seasonal goods from a wholesaler would lapse later than an offer to purchase goods that could easily be sold all year long.

Which of the following is an offer made by an offeree to an offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer?

Courts interpret contracts using an objective standard.

Which of the following is true of online businesses and disclosures?

List the ways in which an offer can terminate.

Camila,wanting to sell a used business law book,calls Jada and tells her that if she does not hear from her within twenty-four hours,she will assume that Jada wishes to purchase the book for $50.Which of the following is correct regarding the status of the proposed book sale?

Which of the following is false regarding how the Japanese tend to view contracts?

What was the result in the Opening Case in which the plaintiff attempted to buy a jet from Pepsi for Pepsi points and some additional funds?

What is the likely result in the lawsuit Randy brought against Steve?

Which of the following are ways in which an offer can be terminated:

Madison signs a contract with Rainbow Readers Book Club without reading it.The contract provides that new books will be sent to her eBook reader every month unless she sends notification rejecting the receipt of new books.Which of the following is true regarding whether the contract is binding?

When considering whether an offer has expired,what is presumed to be a reasonable amount of time?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters