Question 1

Which of the following is correct with regard to counteroffers?

Accepted Answer

A)  A counteroffer operates as a rejection of the original offer. 
B)  A conditional acceptance is a common type of counteroffer. 
C)  The receipt of a counteroffer terminates the original offer. 
D)  All of these are correct. 
A)  A counteroffer operates as a rejection of the original offer. 
B)  A conditional acceptance is a common type of counteroffer. 
C)  The receipt of a counteroffer terminates the original offer. 
D)  All of these are correct.

Question 2

Destruction of the subject matter has what effect on the offer?

Accepted Answer

A)  The offer is terminated. 
B)  The offer is delayed until additional subject matter can be located. 
C)  This creates an impossibility of fact that does not terminate the offer. 
D)  The offer is merely delayed under the "Hardship Rule." 
A)  The offer is terminated. 
B)  The offer is delayed until additional subject matter can be located. 
C)  This creates an impossibility of fact that does not terminate the offer. 
D)  The offer is merely delayed under the "Hardship Rule."

Question 3

If no time is specified for the acceptance of an offer,the offer terminates after:

Accepted Answer

A)  24 hours. 
B)  48 hours. 
C)  two weeks. 
D)  a reasonable period of time. 
A)  24 hours. 
B)  48 hours. 
C)  two weeks. 
D)  a reasonable period of time.

Question 4

Under the UCC,an acceptance must always be identical to an offer for a valid contract to be formed.

Accepted Answer

A) True 
 B)False

Question 5

The person to whom an offer is made is an offeree.

Accepted Answer

A) True 
 B)False

Question 6

Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool.Marilyn called the advertiser and began swimming.She has reached lap number 460;she feels great and is sure she can make it all the way.The advertiser:

Accepted Answer

A)  may revoke the offer since there has not yet been an acceptance. 
B)  may not revoke the offer since Marilyn has already accepted it. 
C)  must permit Marilyn the opportunity to finish her attempt to swim the 500 laps,or pay damages if he interferes with the completion of the laps. 
D)  must pay Marilyn $920,because she has performed 92% of the offer. 
A)  may revoke the offer since there has not yet been an acceptance. 
B)  may not revoke the offer since Marilyn has already accepted it. 
C)  must permit Marilyn the opportunity to finish her attempt to swim the 500 laps,or pay damages if he interferes with the completion of the laps. 
D)  must pay Marilyn $920,because she has performed 92% of the offer.

Question 7

Ron offers to sell Pete his stamp collection.Pete gives Ron $10 to induce him to keep his offer open for a week.If Ron decides on day four of the week that he really does not want to sell to Pete,he can revoke his offer without fear of a breach of contract lawsuit being filed against him.

Accepted Answer

A) True 
 B)False

Question 8

Ricardo posts a sign in his neighborhood offering $50 for the return of his German Shepherd.Alicia,who knows nothing of the reward,finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

Accepted Answer

A) True 
 B)False

Question 9

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

Accepted Answer

A)  an output contract. 
B)  a requirements contract. 
C)  a firm offer. 
D)  promissory estoppel. 
A)  an output contract. 
B)  a requirements contract. 
C)  a firm offer. 
D)  promissory estoppel.

Question 10

Distinguish between a rejection of an offer and a revocation of an offer.

Accepted Answer

a.The common law mirror image rule state

Question 11

Both the Code and the Restatement provide that,unless the offer or circumstances indicate otherwise,an authorized means of accepting an offer is any reasonable means of communication.

Accepted Answer

A) True 
 B)False

Question 12

Hannah,as a joke,offers to sell her violin to Mike.Her statement would have legal effect if:

Accepted Answer

A)  the intended jest is so successful that Mike as a reasonable person under the circumstances believes the joke is an offer and he accepts. 
B)  Hannah's intent,determined subjectively,is to enter a contract. 
C)  Hannah's intent,determined objectively,is not to enter a contract. 
D)  Mike did not,but should have realized that Hannah was not serious. 
A)  the intended jest is so successful that Mike as a reasonable person under the circumstances believes the joke is an offer and he accepts. 
B)  Hannah's intent,determined subjectively,is to enter a contract. 
C)  Hannah's intent,determined objectively,is not to enter a contract. 
D)  Mike did not,but should have realized that Hannah was not serious.

Question 13

On June 1,Edward visited a bicycle sales and service center.Edward spotted a used bike he liked and was told by the dealer that he could have the bike for $100 cash.Since Edward needed a few days to get the money,Edward got a signed,written statement by the dealer that Edward could buy the bike for $100 at anytime on or before June 15.On June 10 Edward came to the dealer with the money,but the bike had been sold to another customer.Was the dealer under any obligation to Edward to keep this offer open until June 15? Give legal reasoning for your answer.

Accepted Answer

Yes.The dealer made a firm offer.A firm

Question 14

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime,on November 4,the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?

Accepted Answer

A)  There was no contract because when an acceptance follows a prior rejection,the first communication to be received by the offeror is the effective one. 
B)  There was a contract since the acceptance was mailed prior to the time the rejection was received. 
C)  There was no contract because the rejection was mailed first. 
D)  There was no contract because the acceptance was mailed more than three days subsequent to the rejection. 
A)  There was no contract because when an acceptance follows a prior rejection,the first communication to be received by the offeror is the effective one. 
B)  There was a contract since the acceptance was mailed prior to the time the rejection was received. 
C)  There was no contract because the rejection was mailed first. 
D)  There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

Question 15

To be effective,notice of revocation of an offer:

Accepted Answer

A)  must be communicated directly to the offeree before the offeree has accepted. 
B)  may be communicated indirectly to the offeree through a third person. 
C)  must be dispatched before the offeree accepts;when notice actually reaches the offeree is not important. 
D)  is not addressed in the Restatement. 
A)  must be communicated directly to the offeree before the offeree has accepted. 
B)  may be communicated indirectly to the offeree through a third person. 
C)  must be dispatched before the offeree accepts;when notice actually reaches the offeree is not important. 
D)  is not addressed in the Restatement.

Question 16

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

Accepted Answer

A) True 
 B)False

Question 17

Under the common law,the ____ must be the mirror image of the ____.

Accepted Answer

A)  contract,consideration 
B)  contract,offer 
C)  offer,acceptance 
D)  acceptance,offer 
A)  contract,consideration 
B)  contract,offer 
C)  offer,acceptance 
D)  acceptance,offer

Question 18

Jack has been in the business of selling carpeting for 20 years.He calls Barb,who is opening another branch of her furniture stores,and offers to sell her 100 yards of carpet at $12 per square yard.Barb agrees and sends back the following letter confirming the deal: Dear Jack:
As we discussed on the phone January 3,we accept your offer of 100 yards of Saxony "heather blue" carpeting at the price of $12 per square yard.We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.
Very truly yours,
Barb
Which of the following is true?

Accepted Answer

A)  There is a contract for only 100 yards of carpeting. 
B)  There is a contract for 100 yards plus the additional yardage. 
C)  There is no contract since Barb made a counteroffer. 
D)  There is no contract because the additional term is too uncertain to become a contract term. 
A)  There is a contract for only 100 yards of carpeting. 
B)  There is a contract for 100 yards plus the additional yardage. 
C)  There is no contract since Barb made a counteroffer. 
D)  There is no contract because the additional term is too uncertain to become a contract term.

Question 19

An advertisement is usually an offer to sell.

Accepted Answer

A) True 
 B)False

Question 20

What are the ways in which an offer may be terminated?

Accepted Answer

The ways in which an offer may be termin

Exam 10: Mutual Assent

Which of the following is correct with regard to counteroffers?

Destruction of the subject matter has what effect on the offer?

If no time is specified for the acceptance of an offer,the offer terminates after:

Under the UCC,an acceptance must always be identical to an offer for a valid contract to be formed.

The person to whom an offer is made is an offeree.

Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool.Marilyn called the advertiser and began swimming.She has reached lap number 460;she feels great and is sure she can make it all the way.The advertiser:

Ron offers to sell Pete his stamp collection.Pete gives Ron $10 to induce him to keep his offer open for a week.If Ron decides on day four of the week that he really does not want to sell to Pete,he can revoke his offer without fear of a breach of contract lawsuit being filed against him.

Ricardo posts a sign in his neighborhood offering $50 for the return of his German Shepherd.Alicia,who knows nothing of the reward,finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:

Distinguish between a rejection of an offer and a revocation of an offer.

Both the Code and the Restatement provide that,unless the offer or circumstances indicate otherwise,an authorized means of accepting an offer is any reasonable means of communication.

Hannah,as a joke,offers to sell her violin to Mike.Her statement would have legal effect if:

To be effective,notice of revocation of an offer:

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

Under the common law,the ____ must be the mirror image of the ____.

An advertisement is usually an offer to sell.

What are the ways in which an offer may be terminated?

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

Filters

Under the common law,the must be the mirror image of the .