Question 1

With mutual assent between the parties,there is no contract.

Accepted Answer

A) True 
 B)False  False

Question 2

The objective theory of contracts is based on the which of the following premises?

Accepted Answer

A)  Even offers made in obvious jest can be the basis of a contract. 
B)  Every contract must have a central object to it. 
C)  Every contract must have consideration given by both parties. 
D)  Whether the intent is present is based on how a reasonable person would view the parties' actions rather than on the actual intentions of the parties. 
E)  The intent to be bound is determined after the parties have had a chance to perform the contract. 
A)  Even offers made in obvious jest can be the basis of a contract. 
B)  Every contract must have a central object to it. 
C)  Every contract must have consideration given by both parties. 
D)  Whether the intent is present is based on how a reasonable person would view the parties' actions rather than on the actual intentions of the parties. 
E)  The intent to be bound is determined after the parties have had a chance to perform the contract. D

Question 3

A rejection is effective upon dispatch.

Accepted Answer

A) True 
 B)False  False

Question 4

If the object of an offer becomes illegal after the offer was made,but before it is accepted,the offer remains valid because it was legal when made.

Accepted Answer

A) True 
 B)False

Question 5

The making of an offer occurs prior to the formation of a contract.

Accepted Answer

A) True 
 B)False

Question 6

Generally,advertisements,catalogs,price lists,etc.are not treated as offers.

Accepted Answer

A) True 
 B)False

Question 7

In order for an offer to be valid,the following must be met EXCEPT for which of the following?

Accepted Answer

A)  There is an objective intent by the offeror to enter into a contract. 
B)  The offer must be in writing and signed by the offeror. 
C)  The offer must be communicated to the offeree. 
D)  The offer must be certain enough that most people can figure out what is being offered. 
A)  There is an objective intent by the offeror to enter into a contract. 
B)  The offer must be in writing and signed by the offeror. 
C)  The offer must be communicated to the offeree. 
D)  The offer must be certain enough that most people can figure out what is being offered.

Question 8

Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror,such as the sale of property of the offeror.

Accepted Answer

A) True 
 B)False

Question 9

The effectiveness of an offer is partially dependent upon whether or not it has been communicated to the offeree.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following will not generally automatically terminate an open offer?

Accepted Answer

A)  death of the offeror 
B)  death of the offeree 
C)  changed economic circumstances 
D)  destruction of the subject matter of the contract 
E)  supervening illegality of the object of the contract 
A)  death of the offeror 
B)  death of the offeree 
C)  changed economic circumstances 
D)  destruction of the subject matter of the contract 
E)  supervening illegality of the object of the contract

Question 11

An offer made in jest,where a reasonable person would conclude that it was made in jest,cannot result in a contract.

Accepted Answer

A) True 
 B)False

Question 12

Generally,an offeror can specify the manner in which he/she wants his/her offer to be accepted.

Accepted Answer

A) True 
 B)False

Question 13

Reward offers are offers to enter into a unilateral contract.

Accepted Answer

A) True 
 B)False

Question 14

Sandy notices a dog tied to a chain behind a fence and recognizes it as belonging to an acquaintance who lives a couple of blocks away.Sandy goes to the acquaintance's house and says,"Your dog is tied up in someone's yard,and for $100 I will tell you where." The dog's owner says,"No way! I can't believe you won't simply tell me where the dog is!" The dog's owner drives around the neighborhood and finds the dog and retrieves it.The next day Sandy notices an advertisement in the paper where the owner offered a reward of $200 for information leading to the return of her dog.Sandy is:

Accepted Answer

A)  entitled to $100 because she made a counteroffer to the $200 reward offer,thereby lowering the amount she can claim 
B)  entitled to $200 solely because she gave the dog's owner information leading to the return of the dog 
C)  entitled to the $200 because she offered to pay money and the reward offer was outstanding 
D)  not entitled to any money because she rejected the original offer and the dog's owner did not accept Sandy's counteroffer 
E)  not entitled to any money because there was no offer that was accepted 
A)  entitled to $100 because she made a counteroffer to the $200 reward offer,thereby lowering the amount she can claim 
B)  entitled to $200 solely because she gave the dog's owner information leading to the return of the dog 
C)  entitled to the $200 because she offered to pay money and the reward offer was outstanding 
D)  not entitled to any money because she rejected the original offer and the dog's owner did not accept Sandy's counteroffer 
E)  not entitled to any money because there was no offer that was accepted

Question 15

If no mode of acceptance is stated in the offer,then any mode which is reasonable in the circumstances may be used.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would terminate an offer?

Accepted Answer

A)  revocation by the offeror 
B)  rejection by the offeree 
C)  counteroffer by the offeree 
D)  A,B,and C 
E)  A and B only 
A)  revocation by the offeror 
B)  rejection by the offeree 
C)  counteroffer by the offeree 
D)  A,B,and C 
E)  A and B only

Question 17

An offer is considered communicated to the offeree so long as it has been communicated to the offeree in some way by someone.

Accepted Answer

A) True 
 B)False

Question 18

Sam places an advertisement in the newspaper for his Dodge Viper which states,"I hate to sell it,but high insurance costs force me to sell my 1999 Dodge Viper.The first $45,000 cash takes it." Betty goes to look at the car and says to Sam,"I'll give you $42,000 for it." Sam then says,"That's not the deal." Betty says nothing and leaves.A couple of weeks later Betty notices that the ad is still in the paper,so she takes $45,000 cash over to Sam's house.He hasn't sold the car,but says to Betty,"You rejected my offer of $45,000,so I don't have to sell it to you for that.You can have it for $47,000." Is Sam obligated to sell the car to Betty for $45,000? Give all possible arguments for each party.

Accepted Answer

The original ad was probably an offer fo

Question 19

If an offeree rejects an offer and then attempts to accept that same offer,the offer is now construed as a new offer that the original offeror is free to accept or reject.

Accepted Answer

A) True 
 B)False

Question 20

Offeror says,"I'll sell you my car for $10,000." Offeree says,"I accept your offer but will pay $9,700." As a result,at this point which of the following are true?

Accepted Answer

A)  There are two open offers. 
B)  This was a conditional acceptance. 
C)  Offeror must sell car to offeree if offeree gives offeror $10,000. 
D)  The only open offer is for $9,700. 
A)  There are two open offers. 
B)  This was a conditional acceptance. 
C)  Offeror must sell car to offeree if offeree gives offeror $10,000. 
D)  The only open offer is for $9,700.

Exam 10: Agreement

With mutual assent between the parties,there is no contract.

The objective theory of contracts is based on the which of the following premises?

A rejection is effective upon dispatch.

If the object of an offer becomes illegal after the offer was made,but before it is accepted,the offer remains valid because it was legal when made.

The making of an offer occurs prior to the formation of a contract.

Generally,advertisements,catalogs,price lists,etc.are not treated as offers.

In order for an offer to be valid,the following must be met EXCEPT for which of the following?

Death of the offeror terminates an offer even if the offer could still be carried out by the estate of the offeror,such as the sale of property of the offeror.

The effectiveness of an offer is partially dependent upon whether or not it has been communicated to the offeree.

Which of the following will not generally automatically terminate an open offer?

An offer made in jest,where a reasonable person would conclude that it was made in jest,cannot result in a contract.

Generally,an offeror can specify the manner in which he/she wants his/her offer to be accepted.

Reward offers are offers to enter into a unilateral contract.

If no mode of acceptance is stated in the offer,then any mode which is reasonable in the circumstances may be used.

Which of the following would terminate an offer?

An offer is considered communicated to the offeree so long as it has been communicated to the offeree in some way by someone.

If an offeree rejects an offer and then attempts to accept that same offer,the offer is now construed as a new offer that the original offeror is free to accept or reject.

Offeror says,"I'll sell you my car for $10,000." Offeree says,"I accept your offer but will pay $9,700." As a result,at this point which of the following are true?

Legal Heritage and the Information Age

Court Systems and Jurisdiction

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Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

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Nature of Traditional and E-Contracts

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Internet Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Sales and Lease Warranties

Creation of Negotiable Instruments

Transferability and Holder In Due Course

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Checks, the Banking System, and E-Money

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Investor Protection and Online Securities Transactions

Ethics and Social Responsibility of Business

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