Deck 11: Creating a Contract: Acceptances

Question 1

According to the Uniform Commercial Code (UCC), if one or both parties are nonmerchants, additional terms proposed by the offeree automatically become part of the agreement unless the offer expressly limited acceptance to its own terms.

Answer 1

False

Question 2

According to the Uniform Commercial Code and the Restatement Second, an offeror who remains silent impliedly authorizes the offeree to accept by any reasonable means of communication.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

The Uniform Commercial Code (UCC) changes the common law rule by saying that a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer or states additional terms on points the offer did not address. This controversial rule is known as the _____.

A) "Battle of the Forms"
B) "Mirror Image" Rule
C) Doctrine of Substantial Performance
D) Last Clear Chance Doctrine

Question 5

The Uniform Commercial Code and the United Nations Convention of Contracts for the International Sale of Goods both hold that acceptances are effective when they are dispatched.

Question 6

According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, _____ contract is created.

A) no
B) an implied
C) a conditional
D) a unilateral

Question 7

In determining whether the offeree accepted the offer, the court looks for the offeree's present intent to contract.

Question 8

After the court has found that one of the parties to a dispute made an offer, the next thing it looks for to determine is whether the offeree accepted the offer.

Question 9

The Uniform Commercial Code (UCC) specifically states that an order requesting "prompt" or "current" shipment of goods impliedly invites acceptance by either a prompt promise to ship or a prompt shipment of the goods.

Question 10

According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.

Question 11

In determining whether the offeree accepted the offer, the court looks for the offeree's _____ intent to contract.

A) present
B) future
C) subjective
D) revocable

Question 12

According to the common law, a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer.

Question 13

If the offer or circumstances do not indicate otherwise, the means the offeror used to communicate the offer is the impliedly authorized means for accepting.

Question 14

To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree need not necessarily perform the act requested by the offeror.

Question 15

An offeror can minimize problems with the timing of acceptances since he or she has the power to control the conditions under which the offer can be accepted.

Question 16

In 2003 the American Law Institute approved an amendment to Section 2-207of the Uniform Commercial Code (UCC) eliminating the _____ test of the _____.

A) substantial performance; Battle of the Forms
B) materiality; Battle of the Forms
C) substantial performance; Mirror Image Rule
D) materiality; Mirror Image Rule

Question 17

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

Question 18

With regard to the terms of a contract created by the exchange of nonconforming forms, the Uniform Commercial Code (UCC) states that if the parties are both _____, the additional terms in the offeree's form are included in the agreement unless the offer _____ limited acceptance to its own terms, the new terms would materially alter the offer, and the offeror gives notice of objection to the new terms within _____ after receiving the acceptance.

A) merchants; impliedly; thirty (30) days
B) merchants; expressly; a reasonable time
C) nonmerchants; impliedly; a reasonable time
D) nonmerchants; expressly; thirty (30) days

Question 19

If an authorized means of acceptance is expressly or impliedly present, any attempt by the offeree to accept by a nonauthorized means is not effective until the acceptance is actually received by the offeror.

Question 20

If possible, the courts interpret an offer as proposing a unilateral contract.

Question 21

On May 1, 2002, Marek received a telegram from Sergei offering to support him in his new construction project. On May 5, 2002, at 9:00 a.m., Sergei sends Marek a telegram attempting to revoke the offer. At 11:00 a.m. on the same day, Marek mails Sergei a letter attempting to accept the offer. At 11:30 a.m., Marek receives Sergei's revocation. Assume Marek and Sergei 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) Sergei's revocation can make changes to the contract, though it reaches Marek after he sends the acceptance mail.
B) Marek's acceptance would be effective only when Sergei reads the acceptance, which would then create the contract.
C) The parties would have a contract because Marek used the means of communication impliedly authorized by trade usage.
D) The parties would not have a contract as Marek used a nonauthorized means of communicating his acceptance.

Question 22

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, the parties have created a:

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

Question 23

Nina sent a letter to Adrian that stated she wanted to hire him to decorate the interiors of her house. She wrote that he must accept the offer by mail. Adrian received the letter and telephoned Nina to say that he accepted the offer. Which of the following statements is true in this case?

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 24

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

A) the parties do not have a contract until Kareem receives Fatima's acceptance
B) Kareem's revocation is effective and the parties do not have a contract
C) Fatima'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

When communicating acceptance of an offer, 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 26

Which of the following statements is true of the Uniform Commercial Code about acceptance by shipment?

A) It specifically says that an order requesting "current" shipment of goods impliedly refuses acceptance.
B) It says that a seller who ships "nonconforming goods" has accepted the contract if the seller reasonably notifies the buyer that such a shipment is intended as an "accommodation" to the buyer.
C) It says that a seller who ships "nonconforming goods" has failed to breach a contract.
D) It forces the seller to give the buyer timely notice of his inability to fill an order.

Question 27

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 28

According to the Uniform Commercial Code'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

The manager of 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's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:

A) Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives.
B) Mack's Bar can revoke because the acceptance had not been received.
C) Mack's Bar can revoke based on principles of promissory estoppel.
D) Mack's Bar cannot revoke, since the olives will spoil if they are shipped back.

Question 30

Under both the Uniform Commercial Code (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 31

In a unilateral contract, the offer is accepted when the:

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

Question 32

_____ the Uniform Commercial Code (UCC), the UN Convention on Contracts for the International Sale of Goods (CISG) holds acceptances to be effective when they are _____, not when they are _____.

A) Unlike; received; dispatched
B) Like; received; dispatched
C) Unlike; dispatched; received
D) Like; dispatched; received

Question 33

The means used by an offeror to communicate the offer is:

A) the impliedly authorized means for accepting regardless of circumstances.
B) the impliedly authorized means for accepting unless the circumstances indicate otherwise.
C) the only authorized means of communication for accepting.
D) always the offeror's particular trade usage in communication, as it impliedly authorizes a given means of acceptance.

Question 34

An acceptance is effective as soon as it is dispatched if the offeree uses:

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

Question 35

Jane tells Mark that 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 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 holds true of this case?

A) Jen used unauthorized means of acceptance.
B) Jen's acceptance was good and a contract was created when Jen's 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

An offeree may accept an offer within a reasonable time and by any reasonable means of communication if the:

A) parties are dealing over the telephone.
B) offeror suggests a method or a place of communication in the offer.
C) written offer is lost in transit.
D) offer merely suggests a method or place of communication.

Question 38

Laura offered to sell Louis 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 of the following is a true statement about this situation?

A) Louis can use promissory estoppel to enforce a contract here.
B) Louis's telephone call would be a good acceptance as this case involves a sale of goods.
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 39

To create acceptance to an offer for a bilateral contract, _____.

A) an 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 40

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's Bar 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack's Bar that they are shipping the onions in lieu of olives. Later that day, Mack's Bar phones Olive Outlet and tries to revoke the offer. According to the Uniform Commercial Code (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 41

Explain the "Battle of the Forms" rule of the Uniform Commercial Code (UCC).

Question 42

Diya sent an e-mail to Sid stating that she wanted him to organize her wedding. The e-mail mentioned that Sid must accept the offer by replying to the e-mail. He received the e-mail and went to Diya's house and communicated acceptance of the offer. Is Sid's acceptance of offer effective?

Question 43

In general, if an 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 44

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 45

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

Question 46

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) both the acceptance and the rejection are not effective and another response must be issued
D) whichever response reaches the offeror first will determine whether a contract is created

Question 47

Explain the concept of a "stipulation" as it relates to the manner of communicating acceptance, including the effect a stipulation has on the formation of a contract.

Question 48

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

Question 49

Which of the following statements is true of browse-wrap agreements?

A) In browse-wrap agreements, the user does not assent to the terms by taking a specified action.
B) Browse-wrap contracts often accompany the sale of software.
C) Browse-wrap contracts are in paper form like shrinkwrap contracts.
D) In browse-wrap agreements, the user expressly assents to the terms of a contract.