Question 1

An offer is sufficient to evidence an agreement.

Accepted Answer

A) True 
 B)False  False

Question 2

An officer of International Sales Corporation makes overtures to a repre?sentative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever

Accepted Answer

A)  the officer subjectively intended them to mean. 
B)  a reasonable person in the officer's position would think they meant. 
C)  a reasonable person in the representative's position would think they meant. 
D)  the representative subjectively thought they meant. 
A)  the officer subjectively intended them to mean. 
B)  a reasonable person in the officer's position would think they meant. 
C)  a reasonable person in the representative's position would think they meant. 
D)  the representative subjectively thought they meant. C

Question 3

There are no revocable offers.

Accepted Answer

A) True 
 B)False  False

Question 4

An advertisement-"this property for sale"-is an offer.

Accepted Answer

A) True 
 B)False

Question 5

A contract lacking a quantity term may not be enforceable.

Accepted Answer

A) True 
 B)False

Question 6

A price list is considered an offer.

Accepted Answer

A) True 
 B)False

Question 7

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

Accepted Answer

A)  after a reasonable period of time. 
B)  after a typical work week (five business days). 
C)  after a usual month (thirty calendar days). 
D)  never. 
A)  after a reasonable period of time. 
B)  after a typical work week (five business days). 
C)  after a usual month (thirty calendar days). 
D)  never.

Question 8

In most states, revocation is not effective until the offeree receives it.

Accepted Answer

A) True 
 B)False

Question 9

Quality Vehicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck has been sold to State Trucking, Inc. Quality is

Accepted Answer

A)  liable to Regional for breach of contract. 
B)  liable to State for breach of contract. 
C)  not liable, because the sale revoked the offer to Regional. 
D)  not liable, if Quality offers a substitute truck to Regional. 
A)  liable to Regional for breach of contract. 
B)  liable to State for breach of contract. 
C)  not liable, because the sale revoked the offer to Regional. 
D)  not liable, if Quality offers a substitute truck to Regional.

Question 10

In an auction, the auctioneer is an offeree.

Accepted Answer

A) True 
 B)False

Question 11

In most states, revocation is not effective until the offeree receives it.

Accepted Answer

A) True 
 B)False

Question 12

Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by

Accepted Answer

A)  Evan and Gwen. 
B)  Evan only. 
C)  Gwen only. 
D)  neither Evan nor Gwen. 
A)  Evan and Gwen. 
B)  Evan only. 
C)  Gwen only. 
D)  neither Evan nor Gwen.

Question 13

An offeror's subjective intent determines the validity of an offer.

Accepted Answer

A) True 
 B)False

Question 14

In a bilateral contract, communication of acceptance is necessary.

Accepted Answer

A) True 
 B)False

Question 15

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is

Accepted Answer

A)  a contract for the sale of the building. 
B)  a contract to consider the offer before any others. 
C)  a contract to negotiate a sale of the building. 
D)  no contract. 
A)  a contract for the sale of the building. 
B)  a contract to consider the offer before any others. 
C)  a contract to negotiate a sale of the building. 
D)  no contract.

Question 16

Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will be

Accepted Answer

A)  effective because Kit did not build the dock. 
B)  effective because Kit did not know that Liu would build a dock. 
C)  ineffective because Liu justifiably relied on Kit's offer. 
D)  ineffective because Liu showed a serious intent to close the deal. 
A)  effective because Kit did not build the dock. 
B)  effective because Kit did not know that Liu would build a dock. 
C)  ineffective because Liu justifiably relied on Kit's offer. 
D)  ineffective because Liu showed a serious intent to close the deal.

Question 17

Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is

Accepted Answer

A)  terminated. 
B)  valid for a reasonable time to give Java a "second chance." 
C)  valid for the period of time prescribed by a state statute. 
D)  valid until ICBI revokes the offer. 
A)  terminated. 
B)  valid for a reasonable time to give Java a "second chance." 
C)  valid for the period of time prescribed by a state statute. 
D)  valid until ICBI revokes the offer.

Question 18

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has

Accepted Answer

A)  accepted the offer. 
B)  made a counteroffer without rejecting the offer. 
C)  rejected the offer and made a counteroffer. 
D)  rejected the offer without making a counteroffer. 
A)  accepted the offer. 
B)  made a counteroffer without rejecting the offer. 
C)  rejected the offer and made a counteroffer. 
D)  rejected the offer without making a counteroffer.

Question 19

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information lead?ing to the apprehension of a certain criminal. CCS could normally terminate the offer by placing

Accepted Answer

A)  a full-page ad in the paper and a thirty-second commercial on the local station. 
B)  a notice in the "Legal Announcements" section of the paper. 
C)  a notice to the news department of the local stations. 
D)  any of the choices. 
A)  a full-page ad in the paper and a thirty-second commercial on the local station. 
B)  a notice in the "Legal Announcements" section of the paper. 
C)  a notice to the news department of the local stations. 
D)  any of the choices.

Question 20

An expression of opinion-"your customers will like this"-is an of?fer.

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

An offer is sufficient to evidence an agreement.

An officer of International Sales Corporation makes overtures to a repre?sentative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever

There are no revocable offers.

An advertisement-"this property for sale"-is an offer.

A contract lacking a quantity term may not be enforceable.

A price list is considered an offer.

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

In most states, revocation is not effective until the offeree receives it.

Quality Vehicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck has been sold to State Trucking, Inc. Quality is

In an auction, the auctioneer is an offeree.

In most states, revocation is not effective until the offeree receives it.

Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by

An offeror's subjective intent determines the validity of an offer.

In a bilateral contract, communication of acceptance is necessary.

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is

Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will be

Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information lead?ing to the apprehension of a certain criminal. CCS could normally terminate the offer by placing

An expression of opinion-"your customers will like this"-is an of?fer.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

The Statute of Fraudswriting Requirements

Ethics and Business Decision Making

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Terminology

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks, the Banking System, and E-Money

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Liability to Third Parties and Termination

Employment and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporationsformation and Financing

Corporationsdirectors, Officers, Shareholders

Corporationsmerger, Consolidation, Termination

Corporationssecurities Law Corporate Governance

Law for Small Businesses

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Personal Property and Bailments

Real Property and Landlord-Tenant Relationships

Insurance

Wills and Trusts

Professional Liaility and Accountability

International Law in a Global Economy

Legal and Ethical Issues in Business

Legal Issues

Contracts and Business Law

Contracts and Liability

Banking and Payment Systems

Loan Security and Repossession in Credit Transactions

Employment Law and Ethics

Legal Issues in Corporate Governance and Business Operations