Question 1

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, _____.

Accepted Answer

A)  this is a contract 
B)  the offer has been conditionally tendered 
C)  the offer has not been communicated 
D)  the offer violates the UCC's rule against third-party interveners in quasi contracts

Question 2

Advertisements are regulated outside of contract law by the:

Accepted Answer

A)  Uniform Commercial Code (UC
C) . 
B)  Restatement. 
C)  Federal Trade Commission. 
D)  United Nations Convention on Contracts for the International Sale of Goods (CISG).

Question 3

Bogdan, a painter, offers to sell his painting to Mirka for $90. Mirka responds that she needs more time to think about Bogdan's offer. Then Bogdan dies, and the value of the painting escalates. Mirka calls Bogdan's widow, Gizela, and says "I accept Bogdan's offer." Which of the following statements is true of the case?

Accepted Answer

A)  There is a binding contract entitling Mirka to the painting. 
B)  There is a binding contract entitling Mirka to the painting if she did not know Bogdan was dead when she called Gizela. 
C)  There is no binding contract entitling Mirka to the painting under any circumstances. 
D)  There is no binding contract entitling Mirka to the painting unless she actually pays Gizela the $90.

Question 4

The courts have generally held that advertisements for the sale of goods at a specified price are not offers; instead, they are treated as invitations to negotiate or to make an offer.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about shrinkwrap contracts is true?

Accepted Answer

A)  The label on shrinkwrap contracts states that by removing the shrinkwrap, the buyer accepts the terms of the software seller's licensing agreement. 
B)  Shrinkwrap contracts are enforceable even when the terms violate contract rules such as unconscionability. 
C)  The practice of using shrinkwrap contracts never raises ethical problems like those involved in the use of small print, complex, or "hidden" language. 
D)  Critics point out that all the consumers understand the shrinkwrap contracts before accepting the terms and conditions.

Question 6

Stan read an advertisement in the newspaper that said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000. Stan went that night and correctly picked the winners. However, it turned out that the newspaper had made a mistake. The jackpot was $25,000, not $825,000. Therefore, the track owners refused to pay the latter amount. If this ad is treated like offers of reward, can Stan collect the $825,000?

Accepted Answer

The answer of Stan read an advertisement in the newspaper...

Question 7

Which of the following must be present for an offer to have a legal effect?

Accepted Answer

A)  Invitation to offer 
B)  Communication of the intention 
C)  Invitation to negotiate 
D)  Definiteness

Question 8

Advertisements for rewards, such as for the return of lost property, information, or the capture of criminals, are generally held to be:

Accepted Answer

A)  invitations but not offers. 
B)  offers for unilateral contracts. 
C)  offers for bilateral contracts. 
D)  firm offers.

Question 9

Which of the following statements about an offer is true?

Accepted Answer

A)  Any definite offer made by a merchant is called a "firm offer." 
B)  An offer is effective upon dispatch. 
C)  A grumbling acceptance is a rejection and terminates the offer. 
D)  The death of an offeror will terminate the offer.

Question 10

If the subject matter of a proposed contract is destroyed without the knowledge of either party after the making of an offer but before its acceptance, the offer cannot be terminated.

Accepted Answer

A) True 
 B)False

Question 11

An offeree who makes an inquiry about the terms of the offer has made a counteroffer and has terminated the offer by rejecting it.

Accepted Answer

A) True 
 B)False

Question 12

If an offeree accepts the offer but complains about the terms of the offer, a rejection is implied.

Accepted Answer

A) True 
 B)False

Question 13

Brian offers to sell Jerry his house, but a hurricane destroys the house before Jerry accepts the offer. What would be the possible outcome of this offer?

Accepted Answer

A)  A written statement must be produced to the court of law to terminate the offer. 
B)  If the offer is not revoked within a week after the incident took place, the offer is considered to be open and Jerry can claim the recovery charges. 
C)  Jerry must be paid the recovery charges for losing the house as he had already been offered by Brian. 
D)  The offer is terminated when the house is destroyed as it happened without the knowledge or fault of either of the parties.

Question 14

If the offer does not state a time for acceptance, it is valid for thirty (30) days.

Accepted Answer

A) True 
 B)False

Question 15

In determining contractual intent, courts rely on what the parties say they actually, or subjectively, intended.

Accepted Answer

A) True 
 B)False

Question 16

An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

Accepted Answer

A) True 
 B)False

Question 17

To determine whether the offeror has created a present intent to contract, courts consider:

Accepted Answer

A)  how the offer was made. 
B)  whether the offeror has communicated it to the offeree. 
C)  the intent of the parties subjectively. 
D)  the status of the person who has made the offer.

Question 18

The basic thing the courts require for the creation of an offer is a future intent to contract on the part of the offeror.

Accepted Answer

A) True 
 B)False

Question 19

When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return, his behavior will probably be classed as an:

Accepted Answer

A)  agreement. 
B)  offer. 
C)  invitation to negotiate. 
D)  invitation to bid.

Question 20

An agreement represents a "meeting of the minds" between contracting parties.

Accepted Answer

A) True 
 B)False

Exam 10: Creating a Contract: Offers

Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, _____.

Advertisements are regulated outside of contract law by the:

The courts have generally held that advertisements for the sale of goods at a specified price are not offers; instead, they are treated as invitations to negotiate or to make an offer.

Which of the following statements about shrinkwrap contracts is true?

Which of the following must be present for an offer to have a legal effect?

Advertisements for rewards, such as for the return of lost property, information, or the capture of criminals, are generally held to be:

Which of the following statements about an offer is true?

If the subject matter of a proposed contract is destroyed without the knowledge of either party after the making of an offer but before its acceptance, the offer cannot be terminated.

An offeree who makes an inquiry about the terms of the offer has made a counteroffer and has terminated the offer by rejecting it.

If an offeree accepts the offer but complains about the terms of the offer, a rejection is implied.

Brian offers to sell Jerry his house, but a hurricane destroys the house before Jerry accepts the offer. What would be the possible outcome of this offer?

If the offer does not state a time for acceptance, it is valid for thirty (30) days.

In determining contractual intent, courts rely on what the parties say they actually, or subjectively, intended.

An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

To determine whether the offeror has created a present intent to contract, courts consider:

The basic thing the courts require for the creation of an offer is a future intent to contract on the part of the offeror.

When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return, his behavior will probably be classed as an:

An agreement represents a "meeting of the minds" between contracting parties.