Question 1

If GA Stereos sends a fax to Wholesale HiFi Equipment ordering ten car stereos at a particular catalogue price,requesting delivery by courier (or some other means),the fax would not constitute an offer to purchase.

Accepted Answer

A) True 
 B)False

Question 2

Rahul met Jones at a street corner and made a verbal offer to buy his canoe for $200.Jones replied that he would "think about it." Rahul nodded affirmatively.The two then went about their separate business.Later in the day,Rahul met Brown,who also had a canoe for sale,and Rahul offered to purchase Brown's canoe for $175.Brown agreed to sell Rahul his canoe.At 4 p.m.the same afternoon,after Rahul and Brown had made their arrangement,Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe.The contract between Rahul and Brown automatically rescinded the offer which Rahul had made to Jones.

Accepted Answer

A) True 
 B)False

Question 3

Rahul met Jones at a street corner and made a verbal offer to buy his canoe for $200.Jones replied that he would "think about it." Rahul nodded affirmatively.The two then went about their separate business.Later in the day,Rahul met Brown,who also had a canoe for sale,and Rahul offered to purchase Brown's canoe for $175.Brown agreed to sell Rahul his canoe.At 4 p.m.the same afternoon,after Rahul and Brown had made their arrangement,Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe.Rahul and Jones established a binding contract when Jones telephoned Rahul and accepted Rahul's offer to buy his canoe for $200.

Accepted Answer

A) True 
 B)False

Question 4

Johnson became a member of the Book-a-Month Club under an agreement by which members agree to pay for any monthly selection that they have not notified the Club they do not want.Johnson forgets to tell them when he decides he does not want "How to Cook Small Rodents" and the book arrives at his house.

Accepted Answer

A) Since silence cannot be acceptance,Johnson does not have to take the book,but must send it back. 
B) Johnson must pay for the book. 
C) Johnson must pay for the book unless he decides to send it back. 
D) Since silence is not acceptance,Johnson can keep the book and he does not have to pay for it. 
E) Johnson cannot refuse to pay for the book since consumer protection legislation says unsolicited goods delivered to a consumer create no obligation to pay and no liability for loss or damage.

Question 5

Microsoft uses a click wrap agreement with a clause requiring all disputes to be heard in the state of Washington,U.S.A.Microsoft has its head office in Redmond,Washington.A consumer resides in Ontario.Is this click wrap agreement binding?

Accepted Answer

A) No,it is a consumer contract so the jurisdiction of the consumer prevails. 
B) No,it is not binding as it is traditional for consumers to not read online agreements prior to clicking "I accept." 
C) No,the consumer does not have a substantial connection to the State of Washington. 
D) Yes,the contract became binding when the consumer clicked "I Accept." 
E) Yes,only for residents of Washington state.

Question 6

Mookie,a professional baseball player,negotiated with the Soxville Eagles for a one-year contract.He was given one week to consider the offer and was to sign it by the opening day of the season,one week away.Mookie,in the meantime,was offered a better contract with the Baxton Bulldogs,which he accepted.On opening day,Mookie walked onto the field in the uniform of Baxton.Soxville can sue Mookie for a breach of contract.

Accepted Answer

A) True 
 B)False

Question 7

There are requirements predetermined by law to make a contract binding and,therefore,legally enforceable.With your knowledge of the process of arriving at a contract,explain how that process relates to the legal solidification of a contract.

Accepted Answer

The answer of There are requirements predetermined by law to...

Question 8

Mary invites some friends to dinner and they accept.They purchase a much more expensive bottle of wine than they would normally drink and a beautiful bouquet of flowers.Mary calls them two hours before the dinner to tell them she has been invited out by the man of her dreams and is postponing the dinner.

Accepted Answer

A) The friends can claim the cost of the flowers and the wine since Mary has breached the contract. 
B) Since Mary is merely postponing the dinner,she has not breached their dinner contract. 
C) Even though they accepted her dinner offer,this is not a situation in which one party can sue another,since no reasonable person would think that there was any intention on Mary's part to create a legally enforceable contract. 
D) Mary may not have intended to be bound to her promise,but her friends have suffered a loss and she cannot now claim she did not mean to enter a contract to provide dinner since she did not say that when she made her offer. 
E) No agreement between friends can be enforced as a contract,including this one.

Question 9

Giardetti,a retailer,placed an advertisement in a local newspaper on May 5th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10th at a sale price of $100 each.Regular price $199.First come,first served!" Don was the 10th customer in the store on May 10th,but Giardetti refused to sell him a TV set for $100.Giardetti's advertisement was only an invitation to do business,and not a valid offer to sell.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following elements does not constitute a legal relationship in contract?

Accepted Answer

A) Familiarity 
B) Consideration 
C) Capacity 
D) Acceptance 
E) Intention

Question 11

Rahul met Jones at a street corner and made a verbal offer to buy his canoe for $200.Jones replied that he would "think about it." Rahul nodded affirmatively.The two then went about their separate business.Later in the day,Rahul met Brown,who also had a canoe for sale,and Rahul offered to purchase Brown's canoe for $175.Brown agreed to sell Rahul his canoe.At 4 p.m.the same afternoon,after Rahul and Brown had made their arrangement,Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe.Rahul's offer to buy the canoe from Jones was a genuine expression of his intention to create a legal relationship.

Accepted Answer

A) True 
 B)False

Question 12

Becky is colouring her hair one day and her friend Kamilah asks if Becky will colour hers as well.Becky agrees and does a good job.Two months later,Becky goes to a professional hairdresser to have her hair coloured and pays her $100.Becky should also be entitled to payment for her colouring job.

Accepted Answer

A) True 
 B)False

Question 13

On July 23^rd,Carson,who lived in Bytown,wrote a letter to Henri,offering to sell his (Carson's)vintage car for $18,000.The letter was delivered to Henri in his home in Mount Royal,an hour's drive away,on July 27. On July 24^th,Carson met his friend Jack on the street.Jack expressed an interest in buying Carson's vintage car.He offered Carson $18,000 for the car,but Carson said only that he would "give the offer some thought," and promised to advise Jack of his decision.Carson did not tell Jack of his offer to sell the car to Henri.On July 25^th,while on vacation in York,Jack sent a fax to Carson,offering to buy the car for $18,250 if Carson would deliver the car,on July 30^th,to his farm,located some 20 km west of Bytown.Carson received the fax the same day and,that evening,wrote and mailed a letter to Henri,revoking his offer to sell the vintage car. On July 28^th,Henri wrote a letter to Carson accepting his offer to sell the vintage car and enclosed a cheque for $18,000 as payment in full.On July 29^th,Henri received Carson's letter revoking the offer.Carson had business west of Bytown on July 29^th,and since his trip would take him past Jack's farm,he decided to deliver the vintage car on his way.Carson left the car on a trailer at Jack's farm,but finding no one at home,left the keys to the car and a note in Jack's mailbox.The note stated that he had left the car behind the garage.On July 30^th,Carson received the letter of acceptance Henri had mailed to him on July 28^th.Carson immediately telephoned Henri to tell him he had sold the car to Jack,but Henri was out of town on a business trip.Carson left a message with Henri's wife and,on July 31^st,returned by mail the cheque that Henri had sent him with the letter of acceptance Later on July 31^st,Carson received a telephone call from Jack who had just returned from Toronto requesting delivery of the car.When Carson explained that the car had been delivered on July 29^th,Jack stated that the car was not behind the garage.Carson then requested Jack to call the police to investigate the theft.Later in August,the police located the car in the possession of a minor and an arrest was made.Unfortunately the car had been badly damaged while in the thief's possession.The estimate of damages was $12,000. Discuss the issues raised in this case.Describe the rights of the parties (if any)and the possible outcome of any litigation if legal action should be taken to enforce the rights of the parties.

Accepted Answer

The answer of On July 23^rd,Carson,who lived in Bytown,wrote a...

Question 14

If an acceptance is not unconditional,but changes the terms of the original offer,then it would have the effect of rejecting the original offer.

Accepted Answer

A) True 
 B)False

Question 15

When an offeree dies before accepting an offer,the offer does not lapse because the deceased's personal representative can accept an offer on behalf of a deceased person.

Accepted Answer

A) True 
 B)False

Question 16

Giardetti,a retailer,placed an advertisement in a local newspaper on May 5th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10th at a sale price of $100 each.Regular price $199.First come,first served!" Don was the 10th customer in the store on May 10th,but Giardetti refused to sell him a TV set for $100.The advertisement is not an offer because Giardetti did not express the intention to be bound by the statements in the advertisement.

Accepted Answer

A) True 
 B)False

Question 17

Mr.Gatlin went into a supermarket where he saw a new kind of toothpaste on a shelf,ticketed at $2.69.He decided to try it,so he took it to the checkout and placed it on the moving counter.The staff member at the checkout ran up the sale,took Mr.Gatlin's money and put the toothpaste in a bag,handing it with the receipt and the change to Mr.Gatlin.A contract was formed when:

Accepted Answer

A) Mr.Gatlin picked up the toothpaste. 
B) Mr.Gatlin put the toothpaste on the checkout counter. 
C) Mr.Gatlin paid for the toothpaste. 
D) The supermarket employee rang in the sale and took his money. 
E) The supermarket employee gave Mr.Gatlin the bag,the receipt and his change.

Question 18

Giardetti,a retailer,placed an advertisement in a local newspaper on May 5th that read: "Special Sale! New 16" portable TV set available for sale to the first 10 customers at my store on May 10th at a sale price of $100 each.Regular price $199.First come,first served!" Don was the 10th customer in the store on May 10th,but Giardetti refused to sell him a TV set for $100.Giardetti's advertisement was a valid offer to sell,which Don accepted by being one of the first 10 customers at the store on May 10th,and verbally accepting the offer.

Accepted Answer

A) True 
 B)False

Question 19

Tom offers to buy Jenny's fishing tackle for $500,but she says she wants $600.Tom then proposes a price of $550,but Jenny says she is not interested.Tom is afraid she will walk away from a deal,so he says "OK.I'll accept your offer to sell for $600." There is now a contract between them.

Accepted Answer

A) True 
 B)False

Question 20

On June 1st the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company.The survey stated that everyone who completed the survey and mailed it back would receive a prize.Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents.On July 14th Sam mailed back his response and eagerly awaited his prize.On July 15th Mega sent out the last prize it had.Sam's response arrived on July 16th.It was the 1001st and Mega wrote back telling Sam that unfortunately all the prizes were gone and he would not be able to have one.

Accepted Answer

A) No contract was formed here as there was no communication of Sam's acceptance before Mega's offer lapsed. 
B) Sam made a counteroffer by returning the completed survey. 
C) Mega had essentially revoked its offer before Sam accepted. 
D) A valid contract was formed between Mega and Sam. 
E) Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time.

Exam 7: An Introduction to the Legal Relationship

If GA Stereos sends a fax to Wholesale HiFi Equipment ordering ten car stereos at a particular catalogue price,requesting delivery by courier (or some other means),the fax would not constitute an offer to purchase.

Microsoft uses a click wrap agreement with a clause requiring all disputes to be heard in the state of Washington,U.S.A.Microsoft has its head office in Redmond,Washington.A consumer resides in Ontario.Is this click wrap agreement binding?

There are requirements predetermined by law to make a contract binding and,therefore,legally enforceable.With your knowledge of the process of arriving at a contract,explain how that process relates to the legal solidification of a contract.

Which of the following elements does not constitute a legal relationship in contract?

Becky is colouring her hair one day and her friend Kamilah asks if Becky will colour hers as well.Becky agrees and does a good job.Two months later,Becky goes to a professional hairdresser to have her hair coloured and pays her $100.Becky should also be entitled to payment for her colouring job.

If an acceptance is not unconditional,but changes the terms of the original offer,then it would have the effect of rejecting the original offer.

When an offeree dies before accepting an offer,the offer does not lapse because the deceased's personal representative can accept an offer on behalf of a deceased person.

Tom offers to buy Jenny's fishing tackle for $500,but she says she wants $600.Tom then proposes a price of $550,but Jenny says she is not interested.Tom is afraid she will walk away from a deal,so he says "OK.I'll accept your offer to sell for $600." There is now a contract between them.