Deck 9: Offer and Acceptance

Question 1

An offer requires a serious intent to be bound by the terms of the offer.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

An agreement exists when one party makes an offer to another party.

Answer 3

False

Question 4

A request to negotiate is not an offer.

Question 5

An expression of opinion can evidence an intent to enter into a binding agreement.

Question 6

Rejection of an offer is usually effective only when it is actually received.

Question 7

The offeror's intention to become bound by the offer must be subjectively clear.

Question 8

Once an invitation to bid is made, contractors who respond to those bids are making offers.

Question 9

The one element necessary for an offer to be effective is a price based on market value.

Question 10

An offer cannot be terminated by action of the parties.

Question 11

An invitation to submit bids is an offer.

Question 12

The offeror can revoke the offer only be expressing repudiating it.

Question 13

The first requirement for an effective offer is a pair of disinterested parties.

Question 14

In general, advertisements are considered evidence of an intention to enter into a contract.

Question 15

An offer must be communicated to the offeree to become effective.

Question 16

A n expression of a willingness to discuss the possibility of entering into a contract is not an offer.

Question 17

An effective offer requires reasonably definite terms.

Question 18

A price list is usually considered an invitation to negotiate or trade.

Question 19

The power of acceptance can be terminated by operation of law.

Question 20

An offer made in anger or undue excitement is still an effective offer.

Question 21

Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks

A) communication.
B) definite terms.
C) serious intent.
D) none of the choices.

Question 22

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

A) a contract for the publication of Ollie's story.
B) a contract to consider Ollie's story before any others.
C) a contract to negotiate for the publication of Ollie's story.
D) none of the choices.

Question 23

In a unilateral contract, communication of acceptance is necessary.

Question 24

An offer terminates automatically when the period of time specified in the offer has passed.

Question 25

Courts normally have enforced the terms of click-on agreements in the same way as terms of other contracts.

Question 26

Acceptance takes effect at the time the communication is sent via the mode authorized by the offeror.

Question 27

The use of a substitute method of acceptance is not effective on dispatch.

Question 28

A counteroffer gives the original offeror (now the offeree) the power of acceptance.

Question 29

Idina admires Jules's collection of guitars. She asks, "Will you sell it?" This statement is

A) an offer.
B) an invitation to negotiate, not an offer.
C) an advertisement, not an offer.
D) a request, not an offer.

Question 30

Fresh 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 31

An offer can be accepted by the offeree or any third party.

Question 32

Acceptance is timely if it is effective before the offer is terminated.

Question 33

Acceptance of an e-contract must show that the offeree voluntarily assented to the offer's terms .

Question 34

The mailbox rule states that acceptance takes effect at the time the communication is sent via the mode authorized by the offeror.

Question 35

Before the UETA applies, each party to a transaction must agree to conduct it by electronic means.

Question 36

Simply inquiring about an offer constitutes rejection.

Question 37

Acceptance may consist of words or conduct.

Question 38

The offeree must accept the offer without adding or changing any terms.

Question 39

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her 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 Anton's tutoring will be subjective.
D) not effective because Brooke has no knowledge of the subject.

Question 40

If the offeror does not expressly specify a certain mode of acceptance, then acceptance can be made by any means, regardless of  reasonableness.

Question 41

Lon says to Misty, "I would like to sell you my sports memorabilia." This statement is

A) an offer.
B) an invitation to negotiate, not an offer.
C) a circular, not an offer.
D) a request, not an offer.

Question 42

Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by

A) a post on the website.
B) a notice in the local newspaper.
C) a sign in the store.
D) apprehension of the criminal.

Question 43

Jan offers to sell a crate of cookbooks to Kurt. No time for acceptance is specified in the offer. A reasonable period of time for termination of the offer is determined by

A) the subject matter of the contract.
B) business conditions.
C) market conditions.
D) all of the choices.

Question 44

Owen decides to sell his ranch, Pine Ridge, in a live auction. When the auctioneer puts the property up for bids, it will be

A) an offer.
B) an invitation to submit offers, not an offer itself.
C) a circular, not an offer.
D) a price list, not an offer.

Question 45

On May 1 Ralph offers to cure and smoke Sam's pork. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer became effective on

A) May 1.
B) May 3.
C) May 5.
D) no date because Sam responded to the offer.

Question 46

Rhonda asks Steve, "Do you want to hire me to repair your fishing net?" This is

A) an offer.
B) not an offer because the terms are not definite.
C) not an offer because Rhonda did not express an intent.
D) not an offer because Steve did not respond.

Question 47

Rich, an auctioneer, puts a sailboat up for auction. Rich is

A) the offeror.
B) the offeree.
C) the bidder.
D) the buyer.

Question 48

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen'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 49

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

A) liable.
B) not liable, because surgery is not a serious subject for a contract.
C) not liable, because his statement was an opinion.
D) not liable, but Beth chose Carl for the surgery.

Question 50

Paolo offers to sell a truckload of fresh vegetables to Quality Market. No time for acceptance is specified in the offer. A reasonable period of time for termination of the offer is determined by

A) the subject matter of the contract.
B) business conditions.
C) market conditions.
D) all of the choices.

Question 51

Simone offers Tom a dozen piano lessons for a certain price per lesson but conditions the deal on Tom accepting the offer by April 1. Simone may revoke the offer

A) before Tom accepts it.
B) before April 1, whether or not Tom has accepted it.
C) only after Tom accepts it.
D) only after April 1.

Question 52

Rafi offers to sell his sailboat, Sea Siren , to Tara for $50,000. Referring to the prices for similar vessels, Tara 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 53

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is

A) an offer.
B) an invitation to submit offers, not an offer itself.
C) a catalogue, not an offer.
D) a circular, not an offer.

Question 54

Coffee Beans Inc. offers to buy Brewing Company's roasting services for $10,000. Brewing responds that the price is too low and states that its roasting services cannot be provided for less than $15,000. In this case, the offer is

A) terminated.
B) valid for a reasonable time.
C) valid for the period of time prescribed by a state statute.
D) valid until Coffee Beans revokes the offer.

Question 55

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

A) the deal is binding except for the promise to hold the offer open.
B) a reasonable period of time is implied.
C) the offer must be held open for an indefinite period.
D) the deal is done.

Question 56

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

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

Question 57

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but nevertheless finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

A) communication.
B) definite terms.
C) serious intent.
D) specific performance.

Question 58

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna 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 59

Luke puts his motorcycle up for sale via a post on an online auction site. This is

A) an offer.
B) an invitation to negotiate, not an offer.
C) a price list, not an offer.
D) a request, not an offer.

Question 60

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is

A) an offer.
B) an invitation to negotiate, not an offer.
C) an advertisement, not an offer.
D) a request, not an offer.

Question 61

Gayle tells Franco that she will pay him $50 to haul lawn debris from her property. Franco'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 62

Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is

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

Question 63

Fuel Refining Inc. offers Gina a job as a technician. N o 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 64

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) cross-checks to orally verify the terms.
D) notarized documents.

Question 65

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

A) a forum selection clause .
B) a click-on agreement .
C) the mirror image rule.
D) the mailbox rule .

Question 66

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

A) e-mail.
B) phone.
C) regular mail.
D) meeting face-to-face.

Question 67

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 68

Ricci, a user of SmartPhoneApps.com's website, 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 69

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

A) does not affect the offer.
B) shortens the time of the offer but does not terminate it.
C) extends the time of the offer.
D) terminates the offer.

Question 70

Shelby offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable'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 Reliable computer.

Question 71

Big Celebrations Inc. (BCI) sells fireworks, sparklers, party favors, and other entertainment items. BCI offers to sell a thousand pounds of XYZ fireworks to Andrew for $1,200 and specifies that the offer must be accepted by U.S. mail. Before Andrew can reply, Andrew's state enacts a law banning the sale of fireworks. Meanwhile, Beth learns from Andrew about BCI's offer to Andrew and sends a letter to BCI by U.S. mail stating, "I accept your offer for the sale of XYZ fireworks for $1,200." In Beth's state fireworks are legal. Is BCI's offer to Andrew still valid? Does BCI have a contract with Beth? Why or why not? Explain.

Question 72

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

A) transact business electronically.
B) submit to the recipient's jurisdiction.
C) respond to e-mail sent to that address.
D) nothing.