Question 1

An offer is also commonly referred to as an invitation to negotiate.

Accepted Answer

A) True 
 B)False

Question 2

Past consideration is not sufficient consideration for a new promise.

Accepted Answer

A) True 
 B)False

Question 3

Why are advertisements not generally considered to be offers? Does this mean that an advertiser is not required to honor the terms of an advertisement?

Accepted Answer

If an advertisement were an offer,anyone

Question 4

Jonathan's Soccer Mart (JSM)advertises a pair of boots on sale.The normal price is $150.00 and the advertisement says $15.00.Josh walks into the store,picks up a pair of the boots and puts $15.00 on the counter demanding to purchase the boots at the advertised price.Which of the following is correct?

Accepted Answer

A)  JSM must sell the boots at the advertised price. 
B)  Josh has accepted JSM's offer to sell. 
C)  JSM has made an offer. 
D)  Josh has made an offer. 
E)  JSM does not have to sell only if they can prove that the advertisement was a misprint. 
A)  JSM must sell the boots at the advertised price. 
B)  Josh has accepted JSM's offer to sell. 
C)  JSM has made an offer. 
D)  Josh has made an offer. 
E)  JSM does not have to sell only if they can prove that the advertisement was a misprint.

Question 5

According to the mailbox rule,the offeree must accept the terms of the offer with modification.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following best describes the concept of promissory estoppel?

Accepted Answer

A)  It is one of the required aspects of consideration. 
B)  It is a doctrine that stops certain promises from being enforced. 
C)  It is a doctrine that allows a remedy in some cases where a promise is not supported by agreement or consideration. 
D)  It is the concept that prevents persons from making unenforceable gift promises. 
E)  It is the requirement that the consideration exchanged in a contract be approximately equal. 
A)  It is one of the required aspects of consideration. 
B)  It is a doctrine that stops certain promises from being enforced. 
C)  It is a doctrine that allows a remedy in some cases where a promise is not supported by agreement or consideration. 
D)  It is the concept that prevents persons from making unenforceable gift promises. 
E)  It is the requirement that the consideration exchanged in a contract be approximately equal.

Question 7

If no time is stated in the offer,the offer terminates after thirty (30)days.

Accepted Answer

A) True 
 B)False

Question 8

According to the doctrine of promissory estoppel,the person who has detrimentally relied on a promise for performance may sue the promisor for performance or another remedy the court deems fair under the circumstances.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true regarding acceptance of an offer?

Accepted Answer

A)  Generally, an offeree must accept an offer by an authorized means of communication. 
B)  The offer cannot stipulate that acceptance must be by a specified means of communication. 
C)  Most offers expressly specify the means of communication required for acceptance. 
D)  The common law does not recognize implied means of communication. 
E)  An offer must be formally accepted in order for a contract to be formed. 
A)  Generally, an offeree must accept an offer by an authorized means of communication. 
B)  The offer cannot stipulate that acceptance must be by a specified means of communication. 
C)  Most offers expressly specify the means of communication required for acceptance. 
D)  The common law does not recognize implied means of communication. 
E)  An offer must be formally accepted in order for a contract to be formed.

Question 10

The offer can stipulate that acceptance must be by a specified means of communication.Such stipulation is called implied authorization.

Accepted Answer

A) True 
 B)False

Question 11

An offer terminates if the subject matter of the offer is destroyed through no fault of either party prior to the offer's acceptance.

Accepted Answer

A) True 
 B)False

Question 12

The acceptance-upon-dispatch rule is more commonly called the ________ rule.

Accepted Answer

A)  common carrier 
B)  postal 
C)  mailbox 
D)  UPS 
E)  FedEx 
A)  common carrier 
B)  postal 
C)  mailbox 
D)  UPS 
E)  FedEx

Question 13

A statement such as "Are you interested in selling your building for $2 million?" is not an offer.

Accepted Answer

A) True 
 B)False

Question 14

Reba works for a major bank.The revised employee handbook that she received five years ago says that all employees with 25 years of service will receive a gold watch.She is about to hit 25 years of service and has announced her retirement.Her manager tells her that the company,based on her years of service,will throw her a party and present her with a gold watch.Reba retires on her 25th anniversary and her manager announces that the company will not throw the party or give her the watch..

Accepted Answer

A)  Because of past consideration, no party or watch is owed. 
B)  The company is required to throw the party, but no watch is owed. 
C)  The company is required to present her with the watch, but no party is owed. 
D)  The company is required to present her with the watch and throw her the party. 
E)  Because Reba didn't accept the offer, no party or watch is owed. 
A)  Because of past consideration, no party or watch is owed. 
B)  The company is required to throw the party, but no watch is owed. 
C)  The company is required to present her with the watch, but no party is owed. 
D)  The company is required to present her with the watch and throw her the party. 
E)  Because Reba didn't accept the offer, no party or watch is owed.

Question 15

The person to whom the offer is made is called the offeree.

Accepted Answer

A) True 
 B)False

Question 16

An offer can be accepted only by the offeree to whom it was made.

Accepted Answer

A) True 
 B)False

Question 17

Unless otherwise stated,an offer made "face-to-face" or during a telephone call usually expires when the conversation ends.

Accepted Answer

A) True 
 B)False

Question 18

To be enforceable,a contract must arise from a bargained-for exchange.

Accepted Answer

A) True 
 B)False

Question 19

Unless otherwise expressly stated,an auction is considered a(n)________.

Accepted Answer

A)  auction with reserve 
B)  auction without reserve 
C)  unilateral contract 
D)  informal contract 
E)  voidable contract 
A)  auction with reserve 
B)  auction without reserve 
C)  unilateral contract 
D)  informal contract 
E)  voidable contract

Question 20

In general,advertisements are treated as offers.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement and Consideration

An offer is also commonly referred to as an invitation to negotiate.

Past consideration is not sufficient consideration for a new promise.

Why are advertisements not generally considered to be offers? Does this mean that an advertiser is not required to honor the terms of an advertisement?

According to the mailbox rule,the offeree must accept the terms of the offer with modification.

Which of the following best describes the concept of promissory estoppel?

If no time is stated in the offer,the offer terminates after thirty (30)days.

According to the doctrine of promissory estoppel,the person who has detrimentally relied on a promise for performance may sue the promisor for performance or another remedy the court deems fair under the circumstances.

Which of the following is true regarding acceptance of an offer?

The offer can stipulate that acceptance must be by a specified means of communication.Such stipulation is called implied authorization.

An offer terminates if the subject matter of the offer is destroyed through no fault of either party prior to the offer's acceptance.

The acceptance-upon-dispatch rule is more commonly called the ________ rule.

A statement such as "Are you interested in selling your building for $2 million?" is not an offer.

The person to whom the offer is made is called the offeree.

An offer can be accepted only by the offeree to whom it was made.

Unless otherwise stated,an offer made "face-to-face" or during a telephone call usually expires when the conversation ends.

To be enforceable,a contract must arise from a bargained-for exchange.

Unless otherwise expressly stated,an auction is considered a(n)________.

In general,advertisements are treated as offers.

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