Question 1

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

Accepted Answer

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

Question 2

Shep 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

Accepted Answer

A)  received. 
B)  sent. 
C)  followed up by a confirmation letter sent by regular mail. 
D)  composed on a Reliable computer. 
A)  received. 
B)  sent. 
C)  followed up by a confirmation letter sent by regular mail. 
D)  composed on a Reliable computer.

Question 3

Putting up an item for sale on an online auction site is an offer.

Accepted Answer

A) True 
 B)False

Question 4

Ordinarily, one can agree to a bargain without knowing that it exists.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

Accepted Answer

A) True 
 B)False

Question 7

Gaia tells Franco that she will pay him $50 to haul lawn debris from her property. Franco's acceptance is complete

Accepted Answer

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. 
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 8

Obie, a user of phone-apps.com's website, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

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. 
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 9

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

Accepted Answer

A) True 
 B)False

Question 10

An agreement to agree to the material terms of a contract at some future date may be enforceable.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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. 
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 12

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

Accepted Answer

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

Question 13

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.

Accepted Answer

R&R and Petroleum have a contract. R&R e

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

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. 
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 16

Merely inquiring about an offer constitutes rejection.

Accepted Answer

A) True 
 B)False

Question 17

For a contact to be considered valid and enforceable, the parties to a deal must

Accepted Answer

A)  necessarily have it in writing. 
B)  manifest their voluntary consent to the same bargain. 
C)  know with certainty what kinds of promises will be enforced. 
D)  subjectively intend to agree to the terms. 
A)  necessarily have it in writing. 
B)  manifest their voluntary consent to the same bargain. 
C)  know with certainty what kinds of promises will be enforced. 
D)  subjectively intend to agree to the terms.

Question 18

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

Accepted Answer

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. 
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 19

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

Accepted Answer

A)  the offeror. 
B)  the offeree. 
C)  the bidder. 
D)  none of the choices. 
A)  the offeror. 
B)  the offeree. 
C)  the bidder. 
D)  none of the choices.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

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

Shep 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

Putting up an item for sale on an online auction site is an offer.

Ordinarily, one can agree to a bargain without knowing that it exists.

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

In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

Gaia tells Franco that she will pay him $50 to haul lawn debris from her property. Franco's acceptance is complete

Obie, a user of phone-apps.com's website, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

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

An agreement to agree to the material terms of a contract at some future date may be enforceable.

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

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

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

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

Merely inquiring about an offer constitutes rejection.

For a contact to be considered valid and enforceable, the parties to a deal must

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

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

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

Law and Legal Reasoning

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Ethics in Business

Courts and Alternative Dispute Resolution

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Internet Law, Social Media, and Privacy

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The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

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Negotiable Instruments

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