Deck 11: Creating a Contract: Acceptances

Question 1

A unilateral contract trick is,a dishonest seller who has received a "rush" order sending the wrong goods,hoping that the buyer's necessity will force him to accept.

Answer 1

True

Question 2

Parties who are negotiating a contract always prepare a written draft of the agreement for both parties to sign.

Answer 2

False

Question 3

Whenever possible,the courts interpret an offer as proposing a bilateral contract.

Answer 3

True

Question 4

If an authorized means of acceptance is expressly present,any attempt by the offeree to accept by a nonauthorized means is effective upon dispatch.

Question 5

The court looks for the same present intent to contract on the part of the offeree to determine whether the offer has been accepted.

Question 6

Trade usage is a situation where the parties are both members of a trade in which failure to reject promptly customarily indicates acceptance.

Question 7

Under the UCC's "battle of the forms":

A)timely expression of acceptances creates a contract even if it includes terms that are different from those stated in the offer.
B)timely expression of acceptances creates a contract only if it includes terms that are identical to those stated in the offer.
C)if one of the parties is a merchant,the additional terms in the offeree's form are included in the agreement.
D)no contract is created when the attempted acceptance is expressly conditional on the offeror's agreement to the terms of the acceptance.

Question 8

According to the UCC,the offeror who remains silent impliedly authorizes the offeree to accept by any reasonable means of communication.

Question 9

Under the UCC,when acceptance is made expressly conditional on agreement to new terms and the parties begin performance:

A)a contract is created.
B)no contract is created.
C)only a written stipulation will make the contract enforceable.
D)mere silence on the part of the offeree when new terms are added is not an acceptance.

Question 10

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

Question 11

A contract that is impliedly accepted by doing something that objectively indicates agreement can be considered as a bilateral contract.

Question 12

The UCC and the U.N.Convention of Contracts for the International Sale of Goods both hold that acceptances are effective when they are dispatched.

Question 13

Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms,when the acceptance form has terms additional to or different from the offer:

A)no contract will result because the acceptance form will be considered as a counteroffer and thus an implicit rejection of the offer.
B)a contract can result,but the differing terms may not be part of the contract.
C)a contract can result,and the differing terms must be included as part of that contract.
D)no contract will result because the acceptance form will not be considered as a counteroffer.

Question 14

An offer that says "If you do not object within 10 days,we have a contract" imposes a legal duty on the offeree to respond.

Question 15

The UCC requires application of the "mirror image" rule in cases where contract for the sale of goods are made by exchanging forms.

Question 16

Under the UCC,if the parties are both merchants,additional terms in the offeree's form may be included in the agreement unless:

A)the offer expressly limited acceptance to its own terms.
B)the new terms materially abide the offer.
C)the offeror gives notice of objection to the new terms without considering time limit.
D)the offeree clearly makes a counteroffer by expressly rejecting the offer.

Question 17

If one or both parties to a form contract are nonmerchants,the additional terms proposed by one of the parties are treated as:

A)void.
B)proposals for addition to the contract.
C)revocation.
D)expressly conditional.

Question 18

If an offeror requires a certain method of acceptance,the offeree must accept by that method or no contract is formed.

Question 19

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

Question 20

An acceptance sent by stipulated means is effective when dispatched.

Question 21

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 phones the Outlet and tries to revoke his offer.Under these circumstances:

A)Mack cannot revoke,since a contract was created when Outlet shipped the olives.
B)Mack can revoke because the acceptance had not been received.
C)Mack can revoke based on principles of promissory estoppel.
D)Mark cannot revoke,since the olives will get spoilt if it is shipped back.

Question 22

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 140 cases of olives and 60 cases of onions.Olive Outlet notifies Mack that they are shipping the onions in lieu of olives.Later that day,Mack phones the Outlet and tries to revoke his offer.Under the UCC,which of the following statements holds true to this situation?

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 23

A stipulation:

A)is a condition made by the offeror about the manner in which the offer must be accepted.
B)is a contingency clause built into a unilateral contract.
C)requires acceptance in writing,else the attempt to accept becomes ineffective.
D)needs a timely expression of acceptance.

Question 24

On June 1,Fred sends Wilma an e-mail offering to build her a new garage for $20,000.In his e-mail,Fred wrote,"acceptance by certified mail is advisable." On June 2 at 8 am,Fred sends Wilma a certified letter attempting to revoke the offer.At 2 pm the same day,Wilma mails Fred a letter via certified mail attempting to accept his offer.Under these circumstances:

A)the parties do not have a contract until Fred receives Wilma's acceptance.
B)Fred's revocation is effective and the parties do not have a contract.
C)Wilma's acceptance is effective upon dispatch.
D)the parties do not have a contract as the trade usage is telegrams and not certified mail.

Question 25

Under the UCC,an order requesting "prompt" shipment of goods:

A)requires acceptance via writing within a "reasonable" time frame.
B)impliedly invites acceptance only by a prompt promise to ship.
C)impliedly invites acceptance only by a prompt shipment of goods.
D)invites acceptance by either a prompt promise to ship or by prompt shipment of the goods.

Question 26

The means used by an offeror to communicate the offer:

A)is the impliedly authorized means for accepting regardless of circumstances.
B)is the impliedly authorized means for accepting unless the circumstances do not indicate otherwise.
C)is the only authorized means of communication for accepting.
D)always follows the offeror's particular trade usage in communication,as it impliedly authorizes a given means of acceptance.

Question 27

The offeree may accept an offer within a reasonable time by any reasonable means of communication:

A)if the parties are dealing by telephone.
B)if the offeror suggests a method or a place of communication in the offer.
C)if the written offer is lost in transit.
D)if the offer merely suggests a method or place of communication or is silent on these points.

Question 28

According to the UCC's rule,when forms are not exchanged:

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 29

An acceptance is effective as soon as it is dispatched:

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

Question 30

On April 1,2008,Joe received a telegram from Adam offering to build Joe a resort cottage for $100,000.On April 5,2008,at 10:00 AM,Adam sends Joe a telegram attempting to revoke the offer.At 11:00 AM on the same day,Joe sends Adam an e-mail attempting to accept the offer.At 11:30 AM,Joe receives Adam's revocation.Assume Adam's offer was silent on the question of what means Joe could use to accept.Which of the following is true when the offeror impliedly authorizes acceptance by any reasonable means?

A)the parties would not have a contract because the impliedly authorized means of communication was a telegram.
B)the parties may have a contract if the court concludes that mail was a reasonable way for Joe to accept Adam's offer.
C)the parties would not have a contract because Joe did not use the means impliedly authorized by trade usage.
D)the parties may have a contract if Adam reads the acceptance e-mail before the revocation reaches Joe.

Question 31

On October 25,1989,Mina Loy sent a letter to Carl Van Vechten which said,"I hereby offer to hire you to paint my house for $4,000 during Thanksgiving break.Your acceptance of this offer must be by first-class mail and must reach me no later than noon on November 1,1989." Vechten was so excited when he received her letter that he telephoned Loy on October 26 and said "I accept." Which of the following is a true statement?

A)There is a valid acceptance and a binding contract because the telephone call was an authorized means of acceptance.
B)There is a valid acceptance and a binding contract because the telephone call was a reasonable means of acceptance.
C)There is a valid acceptance and a binding contract because the telephone call was a faster means of acceptance than the mail.
D)There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.

Question 32

Under both the UCC and the common law,the acceptance cannot materially vary from the offer:

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 33

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:

A)the parties have created a bilateral contract.
B)the parties have created a contingent contract.
C)the parties have created a unilateral contract.
D)the parties have created a multilateral contract.

Question 34

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

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 35

To create acceptance to an offer for a bilateral contract:

A)the offeree must perform the act requested by the offeror.
B)silence will never constitute acceptance of an offer.
C)acceptance must always be properly communicated to the offeror.
D)an offeror is allowed to word his or her offer so that the offeree will be bound to the contract.

Question 36

Yael sent Jen an offer to sell his mountain bike for $150.After thinking about the offer for a few days,Jen sent Yael a letter accepting his offer and asking if he intended to leave the book basket attached to the bike.The next day,before Jen's letter arrived,Yael phoned Jen and told her that he had decided to sell his bike to Jake,who had offered him $200.Which of the following statements hold true of this case?

A)Jen used unauthorized means of acceptance.
B)Jen's acceptance was good and a contract was created when Jens' letter was mailed.
C)Yael could revoke the contract as the goods had not exchanged hands yet.
D)The contract was not valid as the UCC held acceptances to be valid only when they were received and acknowledged in writing by the offeror.

Question 37

Jane tells Mark,she would pay him $50 if Mark finds her lost bag.This is an example of a:

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

Question 38

Which of the following under the UCC is true about the way to communicate acceptance?

A)any means deemed reasonable by the court in light of the circumstances is an authorized way of acceptance.
B)dispatches that comply with only the stipulated requirements for acceptance is an authorized way of acceptance.
C)any form of acceptance that is not implied by trade usage is an authorized way of acceptance.
D)a means slower and safer than the way the offer was communicated is an authorized way of acceptance.

Question 39

In a unilateral contract,the offer is accepted when:

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

Question 40

Laura Riding offered to sell Louis Zukofsky a tract of land.The offer was complete and certain as to all material terms.The offer stated that a telegraphed acceptance was required.Within a reasonable time,Louis telephoned Laura to accept.Which is a true statement about this situation?

A)Louis can use promissory estoppel to enforce a contract here.
B)As this case involved a sale of goods,Louis's telephone call would be a good acceptance.
C)Louis has not accepted and there is no contract.
D)Louis has accepted because a telephone call is a reasonable means of acceptance.

Question 41

Explain the UCC's "battle of the forms" rule.

Question 42

Ernie Hemingway was fired by his employer,Gerty Stein's Sweat Shop.After he was fired,Ernie received a letter from Sweat Shop offering him double severance pay in exchange for a release of all age discrimination claims against the company.Ernie signed the release and put it in a mailbox outside the post office.Later,Ernie changed his mind and called Sweat Shop to say "I refuse your offer and will be filing suit for age discrimination." Is Ernie's withdrawal of his acceptance of Sweat Shop's offer effective? Why or why not?

Question 43

Explain the similarity and difference between click-on and browse-wrap contracts.

Question 44

In general,if the offeree uses a means of acceptance that is slower than that used by the offeror to communicate that offer:

A)it is an unauthorized means of communication.
B)the acceptance is not effective even upon receipt.
C)it is an authorized means of communication.
D)the acceptance is effective when dispatched.

Question 45

On May 1,2002,Bob received a telegram from Ralph offering to support him in his new construction project.On May 5,2002,at 9:00 AM,Ralph sends Bob a telegram attempting to revoke the offer.At 11:00 AM on the same day,Bob mails Ralph a letter attempting to accept the offer.At 11:30 AM,Bob receives Ralph's revocation.Assume Bob and Ralph 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?

A)Ralph's revocation can make changes to the contract,though it reaches Bob after he sends the acceptance mail.
B)Bob's acceptance would be effective only when Ralph reads the acceptance,which would then create the contract.
C)the parties would have a contract because Bob used the means of communication impliedly authorized by trade usage.
D)the parties would not have a contract as Bob used a nonauthorized means of communicating his acceptance.

Question 46

Explain the idea of "stipulation" and the effect it has on a contract.

Question 47

Browse-wrap agreements are:

A)in paper form.
B)viewed by some courts as unenforceable.
C)per se illegal.
D)viewed by all courts as enforceable.

Question 48

Explain the process followed by the court to determine the intent of the parties to enter into a contract,if a dispute arises before the written draft of agreement is created?

Question 49

If an offeree dispatches both an acceptance and a rejection to an offer:

A)the acceptance is effective as soon as it is dispatched and a contract is created.
B)the rejection is effective as soon as it is dispatched and no contract can be created.
C)neither the acceptance nor the rejection is effective and another response must be issued.
D)whichever response reaches the offeror first will determine whether a contract is created.

Question 50

In a browse-wrap contract:

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.