Deck 10: Offer and Acceptance

Question 1

An offer does NOT need to be communicated to the offeree to become effective. 

Answer 1

False

Question 2

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree. 

Answer 2

True

Question 3

A price list is a form of invitation to negotiate or trade. 

Answer 3

True

Question 4

In an auction,a bidder is an offeree. 

Question 5

In most cases,an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts. 

Question 6

An expression of opinion-"this is excellent"-is an offer. 

Question 7

An invitation to negotiate is an agreement. 

Question 8

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate. 

Question 9

An invitation to negotiate-"can you afford this?"-is an offer. 

Question 10

An effective offer requires reasonably certain terms. 

Question 11

An offer must be practical to be effective. 

Question 12

One necessary element for an effective offer is a reasonable price related to market value. 

Question 13

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

Question 14

Revocation is effective on dispatch. 

Question 15

An agreement is evidenced by one event: an offer. 

Question 16

An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite. 

Question 17

An offer made in obvious anger is still an effective offer. 

Question 18

Most advertisements-"this property for sale"-are offers. 

Question 19

The first requirement for an effective offer is a serious intent on the part of the offeror. 

Question 20

An offer made to the public needs to be revoked in the same manner in which the offer was originally communicated. 

Question 21

Naomi tells Ogden,who has no knowledge of Shakespearean comedy,that she will tutor him in the subject for $50.As an offer,this is​ 

A) ​effective. 
B) ​not effective because comedy is not a serious subject. 
C) ​not effective because Naomi's tutoring will be subjective. 
D) ​not effective because Ogden has no knowledge of the subject.

Question 22

The mailbox rule applies to communication by phone and fax as well as the mail. 

Question 23

No offer can be accepted by silence. 

Question 24

A statute or court decision that makes an offer illegal automatically terminates the offer. 

Question 25

An offeree's power of acceptance is terminated when the offeror dies unless the offer is irrevocable. 

Question 26

Under the mailbox rule,an acceptance takes effect at the time it is sent. 

Question 27

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction. 

Question 28

The UETA does not apply to a transaction unless the parties agreed to conduct the transaction electronically. 

Question 29

An acceptance must be unequivocal. 

Question 30

May tries to start her new car with no success.She yells that she will sell the car to anyone for $10.Nick,a passerby who owns Nick's Pre-owned Autos,hands May $10.This is​ 

A) ​a valid acceptance because May is seriously frustrated. 
B) ​a valid acceptance because Nick is a car dealer. 
C) ​not a valid acceptance because May does not seriously intend to sell. 
D) ​not a valid acceptance because Nick is a car dealer.

Question 31

In a bilateral contract,communication of acceptance is necessary.

Question 32

An e-contract must meet basic requirements that are different from those required of a paper contract. 

Question 33

Mary admires Julia's collection of scarves.Julia says "I might sell you a few someday,if I get tired of them." Julia's statement is​ 

A) ​an effective offer. 
B) ​not an effective offer because it has not been communicated to Mary. 
C) ​not an effective offer because the Julia does not show a serious intent to be bound. 
D) ​an acceptance.

Question 34

Fresh Fast Service,Inc.,offers to deliver produce to Growers' Market's customers for a certain price.Fresh's intent to extend a serious offer to Growers' Market is determined by reference to Fresh's​ 

A) ​assumptions. 
B) ​beliefs. 
C) ​intentions. 
D) ​words and conduct.

Question 35

An ad on the News Now Web site asks viewers to "send us your story and we might share it with the world." Onyx submits a manuscript,adding,"I accept your offer." Between NewsNow and Onyx,there is​ 

A) ​a contract for the publication of Onyx's story. 
B) ​a contract to consider Onyx's story before any others. 
C) ​a contract to negotiate for the publication of Onyx's story. 
D) ​no contract.

Question 36

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received. 

Question 37

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer. 

Question 38

If no time for acceptance is specified in an offer,the offer terminates after a reasonable length of time. 

Question 39

An acceptance can impose new conditions or change the terms of the original offer without rejecting it. 

Question 40

There are no revocable offers. 

Question 41

Business Properties,Inc.(BPI),offers to sell a warehouse to Corporate Investments.Corporate says that it will pay BPI $100 to hold the offer open for three business days.This​ 

A) ​creates an illegal contract by adding a clause to BPI's offer. 
B) ​makes the offer irrevocable for three days if BPI accepts. 
C) ​negates BPI's offer by changing the price term. 
D) ​voids BPI's offer by extending the time term.

Question 42

Pete and Will have an option contract for the sale of some fresh vegetables.Jane and Ashley have an option contract for the sale of some books.Neither contract has an exact period of time specified in the option.The reasonable period of time implied is​ 

A) ​the same for both contracts. 
B) ​shorter for the vegetable contract than for the book contract. 
C) ​longer for the vegetable contract than for the book contract. 
D) ​determined by state laws.

Question 43

Pastry Dough,Inc.,sends its catalogue to Octavio and includes a "personalized" letter inviting him to buy any item in it at the advertised price.This is​ 

A) ​an offer because of the "personalized" letter. 
B) ​an offer because there is no room for price negotiation. 
C) ​an offer only if Octavio previously bought items from Pastry Dough. 
D) ​not an offer.

Question 44

On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on​ 

A) ​May 1. 
B) ​May 3. 
C) ​May 4. 
D) ​May 5.

Question 45

Barrett files a suit against City Moving Service for breach of contract,based on what Barrett claims was City Moving's offer.For a court to determine if a contract has been breached,under the common law,the offer must include terms that are​ 

A) ​exactly precise. 
B) ​reasonably definite. 
C) ​unequivocally approximate. 
D) ​vague or uncertain.

Question 46

Jake bids on a duplex in an auction with reserve.Jake is the​ 

A) ​offeror. 
B) ​offeree. 
C) ​promisee. 
D) ​auctioneer.

Question 47

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer​ 

A) ​before Thomas accepts the offer. 
B) ​before March 1, whether or not Thomas has accepted the offer. 
C) ​only after Thomas accepts the offer. 
D) ​only after March 1.

Question 48

Younger asks Zippy,"Do you want to buy one of my fishing rods?" This is​ 

A) ​a valid offer. 
B) ​not a valid offer because the terms are not definite. 
C) ​not a valid offer because Younger did not state an intent. 
D) ​not a valid offer because Zippy did not respond.

Question 49

Beth goes to Dr.Carlton for surgery.Carlton says that Beth should be fully healed within a week.Beth is not healed within a week.With respect to breach of contract,Carlton is​ 

A) ​liable. 
B) ​not liable, because surgery is not a proper subject for a contract. 
C) ​not liable, because the statement was an opinion. 
D) ​not liable, but Beth is excused from paying Carlton.

Question 50

Liz offers to sell Jock her iPad for $500 without any accessories.Under the mirror image rule,Jock's response will be considered an acceptance if the terms of the acceptance​ 

A) ​exactly mirror those of the offer. 
B) ​change the items offered, but do not change the price. 
C) ​change the price, but do not change the items offered. 
D) ​change both the price and the items offered.

Question 51

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

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 52

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

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

Question 53

Craig decides to sell his Box-C Ranch in an auction "without reserve." If Craig changes his mind at the auction,he can withdraw his property​ 

A) ​only before the auctioneer announces that the ranch is sold. 
B) ​only before the auctioneer delivers the deed to the buyer. 
C) ​under no circumstances. 
D) ​within thirty days after the auction.

Question 54

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 leading to the apprehension of a certain criminal.CCS could normally terminate the offer by placing​ 

A) ​a full-page ad in the local 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 departments of the local stations. 
D) ​any, or none, of the choices.

Question 55

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection​ 

A) ​only before the auctioneer announces that the items are sold. 
B) ​only before the auctioneer delivers the items to the buyers. 
C) ​under no circumstances. 
D) ​within thirty days after the auction.

Question 56

Renee puts her sailboat in an auction with reserve.Renee is the​ 

A) ​offeror. 
B) offeree.​ 
C) ​promisor. 
D) ​reservist.

Question 57

Jon says to Kristy,"I would like to sell you my sports memorabilia collection." This is not an offer because it​ 

A) ​does not describe the subject matter sufficiently. 
B) ​does not include a price term. 
C) ​only expresses an opinion. 
D) ​only invites Kristy to negotiate.

Question 58

Rafi offers to sell his sailboat,Sea Siren,to Tiara for $50,000.Referring to the prices for similar vessels,Tiara says,"I'll pay no more than $40,000." Rafi's offer is​ 

A) ​still open. 
B) ​terminated. 
C) ​rejected and subject to a counteroffer. 
D) ​revoked.

Question 59

Laredo advertises a reward for the return of his lost dog.Mikayla,who does not know of the reward,finds and returns the dog.Mikayla cannot recover the re-ward,because she​ 

A) ​did not confer a benefit on Laredo by returning the dog. 
B) ​did not know of the reward when she found and returned the dog. 
C) ​does not need the money. 
D) ​returned the dog.

Question 60

Barney offers to sell his Call Marketing Center to Domino for $100,000.Domino replies,"The price is too high.I will offer to buy it for $90,000." Domino has​ 

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 61

Corporate Code,Inc.,sells business software accounting and book keeping programs,blank business forms,inventory control functions,and the like in different combinations,in different packages,at different prices.Each package includes a shrink wrap agreement that limits warranties and remedies.Developmental Research Corporation (DRC)buys a Corporate Code package and uses the product.Later,DRC files a suit against the software seller,claiming that the product was flawed and that the flaws caused DRC to suffer business losses.DRC asks for relief that exceeds the limits in the shrink wrap agreement.What is a shrink wrap agreement? Are such agreements always enforced? Under what circumstances is a court likely to enforce this agreement?

Question 62

Gayla tells Francisco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property.Francisco's acceptance is complete​ 

A) ​as soon as he says he will do the job. 
B) ​once he starts to work. 
C) ​only after he hauls away the debris. 
D) ​when he hears the offer.

Question 63

Ricci,a user of SmartPhoneApps.com's Web site,can download apps for free if she first clicks on "I accept" after viewing certain terms.This is​ 

A) ​a contract that does not include the terms. 
B) ​a contract that includes the terms. 
C) ​not a contract but the terms are enforceable. 
D) ​unenforceable.

Question 64

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel.The mailbox rule applies if Quincy accepts the offer by​ 

A) ​e-mail. 
B) ​phone. 
C) ​regular mail. 
D) ​any of the choices.

Question 65

Bret buys a subscription to the catalog of music provided by Concerto,an online music vendor.Before accessing the catalog,Bret must agree to a provision stating that she will not make and sell copies of the music.This provision is​ 

A) ​a browse-wrap term. 
B) ​a click-on agreement. 
C) ​a shrink-wrap agreement. 
D) ​a wrap-around agreement.

Question 66

Crafted Iron Works,Inc.,offers to design,make,and sell City Transit Agency fourteen streetcars.Crafted authorizes a particular mode of communication,but City Transit sends an acceptance via a substituted means.This acceptance is effective when it is​ 

A) ​in transit. 
B) ​received. 
C) ​sent. 
D) ​written.

Question 67

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu accepts.Most likely,Wally's death​ 

A) ​did not affect the offer. 
B) ​shortened the time of the offer but did not terminate it. 
C) ​extended the time of the offer. 
D) ​terminated the offer.

Question 68

On December 1,Petroleum,Inc.,sent Rachel & Rico (R&R)a letter,via overnight delivery,offering to employ R&R to review Petroleum's tax situation for the current year for $10,000.In the letter,the company stated that R&R had ten days to accept.On December 5,R&R sent an e-mail message that stated,"The price for the tax analysis seems too low.Would you consider paying $15,000?" Petroleum received the message without responding immediately.The next day,Smith & Taylor,an R&R competitor,offered to conduct the appraisal for $8,000.On learning of this offer,R&R immediately e-mailed Petroleum,agreeing to do the work for $10,000.Petroleum received this message on December 7.Explain why R&R and Petroleum do,or do not,have a contract.

Question 69

Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule,Relay's acceptance by e-mail will be considered effective when​ 

A) ​received. 
B) ​sent. 
C) ​followed up by a confirmation letter sent by regular mail. 
D) ​composed on a Relay computer.

Question 70

World Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce.The UETA applies,if at all,only to those transactions in which the parties agree to use​ 

A) ​electronic means. 
B) ​paper documents. 
C) ​updates and cross-checks to orally verify any e-terms. 
D) ​notarized documents.

Question 71

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer​ 

A) ​before Thomas accepts the offer. 
B) ​before March 1, whether or not Thomas has accepted the offer. 
C) ​only after Thomas accepts the offer. 
D) ​only after March 1.

Question 72

Diverse Diversions,Inc.,makes computer,video,and mobile device games.Ember buys a hard copy of Final Infinity.Inside the package is a shrink-wrap agreement.With respect to the contract for the game's purchase,the shrink-wrap agreement may not be enforced if​ 

A) ​Ember does not read it. 
B) ​Ember learns of it after using the game. 
C) ​Ember learns of it before using the game. 
D) ​the play of the game is poor.