Deck 11: The Agreement: Acceptance

Question 1

Which of the following actions is considered to reflect a counteroffer?

A) A grumbling acceptance
B) An inquiry regarding terms
C) A demand for additional terms
D) A silent acceptance

Answer 1

C

Question 2

The UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.

Answer 2

True

Question 3

To accept an offer for a unilateral contract, the offeree must make the promise requested by the offer.

Answer 3

False

Question 4

In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.

A) present intent to contract
B) inquiry regarding terms
C) subjective standard
D) silent acceptance

Question 5

If the offeree accepts the offeror's terms while complaining about them, it is called a grumbling acceptance.

Question 6

Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective upon dispatch even if it uses means other than those specified in the offer.

Question 7

Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract?

A) Common Law
B) Constitutional Law
C) Natural Law
D) Theocratic Law

Question 8

The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.

Question 9

The only person with the legal power to accept an offer and create a contract is the original offeree.

Question 10

When an offer is unclear about the form of acceptance it requires, ideally it must not be accepted.

Question 11

When Carol Whittaker makes an offer to a contractor Jacob Phelps directing him to inform her of his acceptance through registered letter mail, she is making an ambiguous offer.

Question 12

To accept an offer for a bilateral contract, the offeree must perform the requested act.

Question 13

You wish to download free software from the Internet. The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another web page. The "download now" page has a button that initiates the download process. You click that button without going to the licensing agreement page and find that it contains an arbitration provision. Are you bound by this provision?

A) Yes, because the "please review" statement in the "download now" page informed you of the licensing agreement.
B) Yes, because when you clicked the button to initiate the download process you agreed to the provisions in the licensing agreement.
C) No, because you did not perform an action that indicated your assent to the licensing agreement.
D) No, because laws relating to Internet privacy consider silence to be an acceptance of the offer.

Question 14

In recent times, the mirror-image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

Question 15

Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

Question 16

Transfer of title deeds is a function wherein silence signals acceptance of the offer.

Question 17

When determining the presence of the intent to accept, a subjective standard is used.

Question 18

The intent to accept is objectively demonstrated by words or conduct or a combination of the two.

Question 19

Kevin offered to mow the lawn for his Uncle Jordan's for $100. To his offer, Uncle Jordan replied by saying "I know you're taking advantage of me but I accept." Uncle Jordan has indeed accepted the offer made by Kevin.

Question 20

Which of the following actions constitutes the acceptance of an offer?

A) Offeree made material alterations to the terms of the offer
B) Offeree intended to enter the contract only if requisite changes were made
C) Offeree reflected assent to the terms of the offer in the requisite manner
D) Offeree suggested addition of new terms that were earlier not addressed in the offer

Question 21

In general, the mailbox rule is beneficial to:

A) the offeror.
B) the offeree.
C) the courts.
D) third-party beneficiaries.

Question 22

What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror?

A) It is valid but unenforceable.
B) It is invalid but enforceable.
C) It is effective when received.
D) It leads to an immediate revocation.

Question 23

On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract?

A) No, because Trista's purported acceptance was delayed.
B) Yes, because Trista dispatched the telegram prior to 2:00 p.m.
C) No, because Trista's use of a telegram was not stipulated in the offer.
D) Yes, unless Charlie is not home to receive the telegram.

Question 24

Which of the following would indicate a rejection under the mirror image rule?

A) Inquiry regarding terms
B) Material changes to offer
C) Grumbling acceptance
D) Present intent to accept

Question 25

What can an offeror do to minimize the risk posed by the mailbox rule?

A) Include separate additional terms
B) Include a receipt stipulation in the contract
C) Select only known parties as original offerees
D) Revoke the offer before acceptance

Question 26

Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract? Assume that Bill did not make its acceptance conditional on Debbie's assent to any additional or different terms.

A) Only when Debbie and Bill are merchants.
B) When Bill's form is a definite and seasonable expression of acceptance.
C) When the conduct of one party recognizes the existence of a contract.
D) When the offer expressly limits acceptance to its own terms.

Question 27

Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?

A) A material change to an original offer is disfavored by traditional contract law.
B) It changes the degree of the offeror's interest to contract.
C) Such an action implies a rejection of the offer by the offeree.
D) It puts the offeree in a dominant position which is contrary to traditional contract laws.

Question 28

Which of the following is true regarding the approach taken by the UCC toward the proper means of acceptance and the implications of using it or not using it?

A) If the offer authorizes a certain means of acceptance, the offeree must use that means or else there is no acceptance.
B) If the offer authorizes a certain means of acceptance and the offeree uses another means, a contract is formed, but never before the offeror receives the acceptance.
C) Where the offer stipulates a certain means of acceptance, any reasonable means of acceptance will create a contract.
D) The UCC does not change the traditional rule that, where the offer stipulates a certain means of acceptance, the acceptance must use that means or there is no contract.

Question 29

Ian Sanders offered to sell his car to Beth Jones for $5,000 with Beth's agreement. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) _____.

A) inquiry regarding terms
B) rejection of the offer
C) conditional acceptance of the offer
D) additional term

Question 30

When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as _____.

A) documentation
B) authentication
C) stipulation
D) notification

Question 31

What does the term 'grumbling acceptance' mean?

A) Accepting the offer by maintaining one' silence
B) Making material changes to a contract when accepting it
C) Inquiring about the terms of the offer without rejecting it
D) Accepting an offer while complaining about the terms

Question 32

Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse of each form, there were minor terms that conflicted with each other. What is impact of these minor differences in terms in the forms on the contract?

A) There is no contract here because there is a discrepancy between the standard forms used by the two companies.
B) There is no contract here because there is no "meeting of the minds."
C) A contract does exist and is favorable to the third party beneficiaries who can take advantage of the situation.
D) A contract does exist and it includes the terms agreed upon plus gap-fillers from the UCC.

Question 33

Ian Kendler makes Brian Hyson an offer for a plot of land. In the offer, Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service. Which of the following is true? Assume that the Restatement (Second) of Contracts does not apply.

A) There is no acceptance and no contract.
B) A contract was formed at the time Hyson dispatched the letter.
C) A contract was formed at the time Kendler received the letter.
D) The acceptance is invalid because the contract does not relate to sale of goods.

Question 34

According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _____ and the appropriate gap-filling presumptions of the Code.

A) an inquiry regarding terms
B) notifications to prevent breach of conduct
C) counteroffers from either party
D) terms on which the parties' writings agree

Question 35

Milner Developers proposed an offer to Henry Wright, an independent contractor, to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance, but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?

A) No, because the offer made by Milner Developers was ambiguous.
B) No, because Wright's letter was a counteroffer to the original offer.
C) Yes, because Milner Developers did receive a response from Wright.
D) Yes, because Wright's silent signaled his acceptance of the offer.

Question 36

Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants?

A) There is a grumbling acceptance by both parties.
B) The contract is regarding the sale of goods.
C) The offer expressly limits acceptance to its own terms.
D) There additional terms would not materially alter the contract.

Question 37

In a contract for the sale of land, how close must the terms of the acceptance be to the terms of the offer, in order to form a contract?

A) They must be identical or almost identical.
B) They must agree on the major terms of the transaction.
C) They must indicate a definite intent to form a contract.
D) They must be identical only with regard to the price quoted.

Question 38

Which of the following describes a stipulation?

A) An offeror's right to determine the manner of acceptance
B) An offeree's right to determine who to contract with
C) The court's right to provide gap-fillers in a contract
D) Additional terms in a contract in order to make it binding

Question 39

Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter" and this detail is an example of a _____.

A) contract
B) notification
C) rejection
D) stipulation

Question 40

Under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless:

A) both the offeror and offeree are merchants.
B) the offer proposes a sale of real estate.
C) the acceptance is not in the authorized mode of communication.
D) the acceptance is lost or never reaches the offeror.

Question 41

Why is the mirror image rule not strictly applied to modern commercial transactions?

Question 42

What is the "mailbox rule"? What risk does it create for the offeror?

Question 43

Sue Sandon and Joe Rhine have concluded their agreement in all substantial matters of their contract for goods offer like price, quantity, and mode of delivery but the formal written agreement has not been signed yet. Is there a binding contract at present?

A) Yes, because an oral contract should suffice.
B) Yes, because a contract is formed at the time the agreement is concluded.
C) No, because the minor terms also need to be taken care of.
D) No, because the agreement is not yet signed and thus, legally unenforceable.

Question 44

Arthur offered to sell his house to Mike for $50,000. Even before Mike responded to the offer, Jack learnt of the offer and called up Arthur to accept the offer. Jack's action represents a(n) _____.

A) offer
B) promise
C) notification
D) acceptance

Question 45

Which of the following is true regarding silence as an acceptance?

A) Contract law explicitly recognizes silence as constituting acceptance.
B) An offeree's silence is considered acceptance when he/she indicates so.
C) An offeror can impose on the offeree a duty to respond to the offer.
D) The Code explicitly recognizes silence as constituting acceptance.

Question 46

The original offeree is one who:

A) first makes the offer and determines its terms and conditions.
B) has the legal power to accept an offer and create a contract.
C) hears of the contract indirectly and has an intent to accept.
D) first accepts the additional terms presented by the offeree.

Question 47

A bilateral contract is accepted by when the offeree:

A) performs the requested act.
B) makes the promise requested by the offer.
C) accepts the offer in silence without prior indication.
D) makes additional inquiries regarding the terms.

Question 48

April Roberts ordered hundred 19-inch color television sets from Carl Soans and requested for a prompt shipment of the goods. Carl promptly shipped fifty 21-inch color television sets and fifty 19-inch color television sets without informing April that the shipment of nonconforming television sets was an accommodation. Which of the following is true?

A) There is no acceptance because Carl's shipment materially differed from the terms of the offer.
B) There is an acceptance and April is bound to pay the reasonable value of the fifty 21-inch television sets she did not ask for.
C) There is an acceptance but Carl has breached the contract by shipping nonconforming television sets.
D) There is a new offer that Carl has made by sending the nonconforming goods which April can accept or reject.

Question 49

Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true?

A) The acceptance is effective upon dispatch.
B) The acceptance is effective when it is received.
C) The offer is invalid because it fails to stipulate the means of acceptance.
D) The acceptance would be effective upon dispatch even if the means of acceptance is unreasonable.

Question 50

An offer which is unclear about the form of acceptance that is necessary to create a contract, is called a(n) _____ offer.

A) ambiguous
B) reasonable
C) implied
D) counter

Question 51

The UCC states that a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time is effective on dispatch. What does the UCC mean by "reasonable" here?

Question 52

How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance?

A) By providing additional terms according to the Code's gap-filling provisions
B) By holding that the offeree's acceptance has curtailed the power of revocation
C) By holding that the offeree's performance has made it a bilateral contract
D) By making material changes in the terms of the original contract

Question 53

Why does the Code provide for "accommodation" in cases of acceptance by shipment of nonconforming goods?

Question 54

Which of the following considers a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time to be effective on dispatch?

A) Traditional contract laws
B) UCC
C) CISG
D) Restatement (Second)

Question 55

The shipment of non-conforming goods intended as an accommodation to the buyer is a(n) _____.

A) ambiguous offer
B) prompt shipment
C) counteroffer
D) inquiry regarding terms

Question 56

Under the common law, an offer for a unilateral contract:

A) is accepted by full performance of the act requested by the offer.
B) is accepted either by an appropriate act or an appropriate promise.
C) is accepted by whatever means are reasonable under the circumstances.
D) is accepted by making the promise requested by the offer.

Question 57

An ambiguous the offer may be accepted in any manner that is _____ in light of the circumstances.

A) stipulated
B) authorized
C) recognizable
D) reasonable

Question 58

Why is an offeree's silence regarding a contract not considered to be an acceptance of it?