Question 1

A seller cannot accept a buyer's offer by simply promising to ship the goods or by shipping the goods.

Accepted Answer

A) True 
 B)False

Question 2

An acceptance is effective as soon as it is dispatched if the offeree uses:

Accepted Answer

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

Question 3

According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.

Accepted Answer

A) True 
 B)False

Question 4

The Uniform Commercial Code (UCC) changes the common law rule by saying that a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer or states additional terms on points the offer did not address. This controversial rule is known as the _____.

Accepted Answer

A)  "Battle of the Forms" 
B)  "Mirror Image" Rule 
C)  Doctrine of Substantial Performance 
D)  Last Clear Chance Doctrine 
A)  "Battle of the Forms" 
B)  "Mirror Image" Rule 
C)  Doctrine of Substantial Performance 
D)  Last Clear Chance Doctrine

Question 5

If an authorized means of acceptance is expressly or impliedly present, any attempt by the offeree to accept by a nonauthorized means is not effective until the acceptance is actually received by the offeror.

Accepted Answer

A) True 
 B)False

Question 6

The manager of 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 ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:

Accepted Answer

A)  Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives. 
B)  Mack's Bar can revoke because the acceptance had not been received. 
C)  Mack's Bar can revoke based on principles of promissory estoppel. 
D)  Mack's Bar cannot revoke, since the olives will spoil if they are shipped back. 
A)  Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives. 
B)  Mack's Bar can revoke because the acceptance had not been received. 
C)  Mack's Bar can revoke based on principles of promissory estoppel. 
D)  Mack's Bar cannot revoke, since the olives will spoil if they are shipped back.

Question 7

Under both the Uniform Commercial Code (UCC) and the common law, the acceptance cannot materially vary from the offer:

Accepted Answer

A)  only in the sale of real estate and services. 
B)  only in sale of goods when the contract is made by the exchange of forms. 
C)  in the sale of real estate, services, and in sale of goods when forms are not exchanged. 
D)  when silence is the mode of acceptance. 
A)  only in the sale of real estate and services. 
B)  only in sale of goods when the contract is made by the exchange of forms. 
C)  in the sale of real estate, services, and in sale of goods when forms are not exchanged. 
D)  when silence is the mode of acceptance.

Question 8

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's Bar 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack's Bar that they are shipping the onions in lieu of olives. Later that day, Mack's Bar phones Olive Outlet and tries to revoke the offer. According to the Uniform Commercial Code (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 9

On May 1, 2002, Marek received a telegram from Sergei offering to support him in his new construction project. On May 5, 2002, at 9:00 a.m., Sergei sends Marek a telegram attempting to revoke the offer. At 11:00 a.m. on the same day, Marek mails Sergei a letter attempting to accept the offer. At 11:30 a.m., Marek receives Sergei's revocation. Assume Marek and Sergei 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)  Sergei's revocation can make changes to the contract, though it reaches Marek after he sends the acceptance mail. 
B)  Marek's acceptance would be effective only when Sergei reads the acceptance, which would then create the contract. 
C)  The parties would have a contract because Marek used the means of communication impliedly authorized by trade usage. 
D)  The parties would not have a contract as Marek used a nonauthorized means of communicating his acceptance. 
A)  Sergei's revocation can make changes to the contract, though it reaches Marek after he sends the acceptance mail. 
B)  Marek's acceptance would be effective only when Sergei reads the acceptance, which would then create the contract. 
C)  The parties would have a contract because Marek used the means of communication impliedly authorized by trade usage. 
D)  The parties would not have a contract as Marek used a nonauthorized means of communicating his acceptance.

Question 10

To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree need not necessarily perform the act requested by the offeror.

Accepted Answer

A) True 
 B)False

Question 11

According to the Uniform Commercial Code's rule, when forms are not exchanged, _____.

Accepted Answer

A)  acceptance cannot materially vary from the offer 
B)  acceptance can have terms additional to the offer 
C)  differing terms must be included as a part of the contract 
D)  though the acceptance varies from the offer, it cannot be considered as a rejection 
A)  acceptance cannot materially vary from the offer 
B)  acceptance can have terms additional to the offer 
C)  differing terms must be included as a part of the contract 
D)  though the acceptance varies from the offer, it cannot be considered as a rejection

Question 12

Which of the following statements is true of browse-wrap agreements?

Accepted Answer

A)  In browse-wrap agreements, the user does not assent to the terms by taking a specified action. 
B)  Browse-wrap contracts often accompany the sale of software. 
C)  Browse-wrap contracts are in paper form like shrinkwrap contracts. 
D)  In browse-wrap agreements, the user expressly assents to the terms of a contract. 
A)  In browse-wrap agreements, the user does not assent to the terms by taking a specified action. 
B)  Browse-wrap contracts often accompany the sale of software. 
C)  Browse-wrap contracts are in paper form like shrinkwrap contracts. 
D)  In browse-wrap agreements, the user expressly assents to the terms of a contract.

Question 13

An offeree's acceptance is not effective upon dispatch if the acceptance is sent by a stipulated means.

Accepted Answer

A) True 
 B)False

Question 14

When an offeree uses a nonauthorized means of acceptance, the acceptance is:

Accepted Answer

A)  effective upon dispatch. 
B)  illegal. 
C)  not effective until it is received by the offeror. 
D)  not effective upon receipt by the offeror. 
A)  effective upon dispatch. 
B)  illegal. 
C)  not effective until it is received by the offeror. 
D)  not effective upon receipt by the offeror.

Question 15

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, the parties have created a:

Accepted Answer

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

Question 16

Explain the "Battle of the Forms" rule of the Uniform Commercial Code (UCC).

Accepted Answer

The "Battle of the Forms" rule holds tha

Question 17

In a browse-wrap contract, _____.

Accepted Answer

A)  the user assents to contractual terms by clicking on a button that reads "yes" or "I agree" 
B)  a written draft of the agreement is prepared and the user accepts the terms by signing on it 
C)  time, place, or method of communication is spelled out in the contract 
D)  the agreements claim that a user assents to the terms by taking a specified action 
A)  the user assents to contractual terms by clicking on a button that reads "yes" or "I agree" 
B)  a written draft of the agreement is prepared and the user accepts the terms by signing on it 
C)  time, place, or method of communication is spelled out in the contract 
D)  the agreements claim that a user assents to the terms by taking a specified action

Question 18

An offeree may accept an offer within a reasonable time and by any reasonable means of communication if the:

Accepted Answer

A)  parties are dealing over the telephone. 
B)  offeror suggests a method or a place of communication in the offer. 
C)  written offer is lost in transit. 
D)  offer merely suggests a method or place of communication. 
A)  parties are dealing over the telephone. 
B)  offeror suggests a method or a place of communication in the offer. 
C)  written offer is lost in transit. 
D)  offer merely suggests a method or place of communication.

Question 19

In a unilateral contract, the offer is accepted when the:

Accepted Answer

A)  offeror verbalizes his assent. 
B)  offeree attempts to perform the act. 
C)  offeror puts across his promise in writing. 
D)  offeree performs the requested act. 
A)  offeror verbalizes his assent. 
B)  offeree attempts to perform the act. 
C)  offeror puts across his promise in writing. 
D)  offeree performs the requested act.

Question 20

Jane tells Mark that 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

A seller cannot accept a buyer's offer by simply promising to ship the goods or by shipping the goods.

An acceptance is effective as soon as it is dispatched if the offeree uses:

According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.

If an authorized means of acceptance is expressly or impliedly present, any attempt by the offeree to accept by a nonauthorized means is not effective until the acceptance is actually received by the offeror.

The manager of 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 ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:

Under both the Uniform Commercial Code (UCC) and the common law, the acceptance cannot materially vary from the offer:

To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree need not necessarily perform the act requested by the offeror.

According to the Uniform Commercial Code's rule, when forms are not exchanged, _____.

Which of the following statements is true of browse-wrap agreements?

An offeree's acceptance is not effective upon dispatch if the acceptance is sent by a stipulated means.

When an offeree uses a nonauthorized means of acceptance, the acceptance is:

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, the parties have created a:

Explain the "Battle of the Forms" rule of the Uniform Commercial Code (UCC).

In a browse-wrap contract, _____.

An offeree may accept an offer within a reasonable time and by any reasonable means of communication if the:

In a unilateral contract, the offer is accepted when the:

Jane tells Mark that 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