Question 1

Offeror says,"I will sell you my dog for $100.You have a week to decide." Two days later she tells the offeree,"I've changed my mind.I'm keeping the dog." This last statement is:

Accepted Answer

A)  an effective revocation 
B)  an effective rejection 
C)  ineffective in terminating the offer 
D)  a counteroffer 
A)  an effective revocation 
B)  an effective rejection 
C)  ineffective in terminating the offer 
D)  a counteroffer

Question 2

Silence will operate as acceptance in the following circumstances EXCEPT:

Accepted Answer

A)  when the offeree indicates that silence will operate as acceptance 
B)  when the offeror indicates that silence will operate as acceptance 
C)  when prior dealings between the parties indicate that silence is acceptance 
D)  when the offeree signs an agreement that future shipments would be accepted until further notification 
A)  when the offeree indicates that silence will operate as acceptance 
B)  when the offeror indicates that silence will operate as acceptance 
C)  when prior dealings between the parties indicate that silence is acceptance 
D)  when the offeree signs an agreement that future shipments would be accepted until further notification

Question 3

Mary,the seller,and Jane contract for the sale of 500 sweaters.They agree on color and style,but not on price or time of delivery.Mary refuses to deliver the sweaters,and Jane sues.What results?

Accepted Answer

A)  Mary wins; because all these terms were omitted from the agreement,the contract is not definite enough to be valid. 
B)  Jane wins; the courts will fill in all the above-mentioned missing terms. 
C)  Mary wins; the courts will fill in many missing terms,but never price. 
D)  Mary wins; the courts will fill in many missing terms,but never time of delivery. 
A)  Mary wins; because all these terms were omitted from the agreement,the contract is not definite enough to be valid. 
B)  Jane wins; the courts will fill in all the above-mentioned missing terms. 
C)  Mary wins; the courts will fill in many missing terms,but never price. 
D)  Mary wins; the courts will fill in many missing terms,but never time of delivery.

Question 4

Seasonal Selections,Inc.sends a copy of its catalog to William along with a personalized computer-generated letter inviting him to purchase any two items in the catalog at the advertised price.Has Seasonal Selections made an offer?

Accepted Answer

A)  Yes; the letter is an offer. 
B)  It is an offer only if William is already a customer. 
C)  The catalog and letter are an offer,because there is no room to negotiate a price. 
D)  Seasonal Selections has not made an offer. The catalog is a solicitation of an offer by William. 
E)  None of these are correct. 
A)  Yes; the letter is an offer. 
B)  It is an offer only if William is already a customer. 
C)  The catalog and letter are an offer,because there is no room to negotiate a price. 
D)  Seasonal Selections has not made an offer. The catalog is a solicitation of an offer by William. 
E)  None of these are correct.

Question 5

What problems in connection with offer and acceptance might arise in an online auction situation? Are there any rules that could address these?

Accepted Answer

Where used merchandise is sold,there mig

Question 6

Fred's beautiful photograph of the Washington Monument is hanging in a Washington Gallery.Jed is looking at it and Fred tells Jed he can have it for $1,000.Jed says,"No way,man! I won't pay that!" The next day,Jed reconsiders and goes to the gallery and tells Fred he'll take it for $1,000.Which is true at this point?

Accepted Answer

A)  Fred can tell Jed that the price is now $1,200. 
B)  Jed can't force Fred to take the $1,000 because of the prior day's revocation. 
C)  If they can't agree,a court would set the price at $1,100. 
D)  Jed's acceptance of the $1,000 offer is effective only if Fred has not yet revoked his offer. 
A)  Fred can tell Jed that the price is now $1,200. 
B)  Jed can't force Fred to take the $1,000 because of the prior day's revocation. 
C)  If they can't agree,a court would set the price at $1,100. 
D)  Jed's acceptance of the $1,000 offer is effective only if Fred has not yet revoked his offer.

Question 7

Wildland Amusements has just received an offer to install video games in the cafeterias of local high schools and split the revenues with the school system.This promises to be a very lucrative contract,and Wildland has 30 days within which to accept the offer.Wildland purchases a number of video games to place in the schools.Within the 30 days and on the day before Wildland plans to send its written acceptance to the School Board,the local city council passes an ordinance outlawing all video games in schools.Can Wildland recover damages from the school?

Accepted Answer

The supervening illegality terminated th

Question 8

On Monday,Cindy says to Ruth,"I will sell you my car for $10,000.You have until Friday to decide." As of Wednesday,Ruth has paid nothing to Cindy and has not indicated if she is interested in buying the car.At this point,which is true?

Accepted Answer

A)  Cindy can revoke the offer on Wednesday. 
B)  Ruth must reject Cindy's offer by Friday,or else she has bought the car. 
C)  Cindy cannot revoke the offer on Wednesday. 
D)  Ruth could send $250 to Cindy,which would make the offer irrevocable. 
A)  Cindy can revoke the offer on Wednesday. 
B)  Ruth must reject Cindy's offer by Friday,or else she has bought the car. 
C)  Cindy cannot revoke the offer on Wednesday. 
D)  Ruth could send $250 to Cindy,which would make the offer irrevocable.

Question 9

The communication of an offer can be made by the offeror or the offeror's agent.

Accepted Answer

A) True 
 B)False

Question 10

Under the mailbox rule there is a period of time when the offeror may be in a contract and not be aware of it.If the rule were changed such that acceptances were effective upon receipt,would this eliminate the problem of someone being in a contract without being aware of it? Is there any rule or set of rules that will eliminate the problem of one party or the other having a period of uncertainty,if all correspondence is conducted through the mail? If either the offeree or offeror must go through a period of uncertainty,which should it be? Why? What can the offeror do to avoid this uncertainty? Is the mailbox becoming more important or less important?

Accepted Answer

When the acceptance is effective at the

Question 11

Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true regarding acceptances?

Accepted Answer

A)  If an offer is made to Mary in front of a group of people,any of the group may accept the offer. 
B)  If an auction is "without reserve," the item must be sold to the highest bidder. 
C)  Generally,an acceptance may contain new terms. 
D)  Generally,silence operates as an acceptance. 
A)  If an offer is made to Mary in front of a group of people,any of the group may accept the offer. 
B)  If an auction is "without reserve," the item must be sold to the highest bidder. 
C)  Generally,an acceptance may contain new terms. 
D)  Generally,silence operates as an acceptance.

Question 13

Susan offered to sell her couch to Martin for $200.Martin said that $200 was too much,but that he would give her $125.Susan said no.Then,Martin said that he would pay Susan the entire $200.

Accepted Answer

A)  Martin has accepted Susan's original offer. 
B)  Martin's statement that he would give Susan $125 was a rejection of Susan's original offer. 
C)  Martin's statement that he would give Susan $125 was an offer by Martin. 
D)  A and C only are true. 
E)  B and C only are true. 
A)  Martin has accepted Susan's original offer. 
B)  Martin's statement that he would give Susan $125 was a rejection of Susan's original offer. 
C)  Martin's statement that he would give Susan $125 was an offer by Martin. 
D)  A and C only are true. 
E)  B and C only are true.

Question 14

In an auction without reserve,the seller must accept the highest bid and cannot withdraw the goods from sale.

Accepted Answer

A) True 
 B)False

Question 15

In an auction when the highest bid has been made and no higher bids are forthcoming,the highest bid is treated as an acceptance in:

Accepted Answer

A)  auctions with reserve,but not in auctions without reserve 
B)  auctions without reserve,but not in auctions with reserve 
C)  both of these kinds of auctions 
D)  neither of these kinds of auctions 
A)  auctions with reserve,but not in auctions without reserve 
B)  auctions without reserve,but not in auctions with reserve 
C)  both of these kinds of auctions 
D)  neither of these kinds of auctions

Question 16

Which of the following are necessary to meet the requirements of a definite offer?

Accepted Answer

A)  identification of the parties,subject matter,and quantity 
B)  consideration to be paid 
C)  time of performance 
D)  A,B,and C 
E)  A and B only 
A)  identification of the parties,subject matter,and quantity 
B)  consideration to be paid 
C)  time of performance 
D)  A,B,and C 
E)  A and B only

Question 17

In an auction without reserve,the seller is the offeror.

Accepted Answer

A) True 
 B)False

Question 18

An advertisement reading,"Our last Trailconquerer XL100 mountain bike,stock number T990234,will be sold to the first buyer with $700," would not be treated as an offer.

Accepted Answer

A) True 
 B)False

Question 19

Erin receives an offer in the mail from Susan on July 14 that says,"I will sell you my vacation home for $80,000.You may accept this offer by signing the bottom of this letter and placing it in the mail so that it is postmarked by July 31." Which is true?

Accepted Answer

A)  Susan will be liable for breach of contract if she sells that home to anyone else prior to July 31. 
B)  If Erin accepts the offer on July 20 by meeting the terms of the offer,she (Erin) can change her mind up until July 31 so long as Susan is notified by that date. 
C)  Assuming Erin has not paid Susan for an option contract,Susan may revoke the offer at any time so long as she does so before Erin accepts. 
D)  If Erin counteroffers with a price of $75,000,and Susan rejects,Erin can create a contract by accepting the original offer by July 31. 
A)  Susan will be liable for breach of contract if she sells that home to anyone else prior to July 31. 
B)  If Erin accepts the offer on July 20 by meeting the terms of the offer,she (Erin) can change her mind up until July 31 so long as Susan is notified by that date. 
C)  Assuming Erin has not paid Susan for an option contract,Susan may revoke the offer at any time so long as she does so before Erin accepts. 
D)  If Erin counteroffers with a price of $75,000,and Susan rejects,Erin can create a contract by accepting the original offer by July 31.

Question 20

Cody offered to sell certain land to Daniel for $50,000,by a letter,which was signed by Cody.The letter specified that the deal was to be closed by Nov.1,2001,and that the entire payment was to be in cash.Daniel sent a letter saying that he accepted the offer,but his letter also stated that payment was to be made one-half at closing and one-half 30 days later.As of March 2002,Cody had not responded.Discuss in detail whether there is a valid contract between Cody and Daniel.

Accepted Answer

The change in payment terms was material

Exam 10: Agreement

Offeror says,"I will sell you my dog for $100.You have a week to decide." Two days later she tells the offeree,"I've changed my mind.I'm keeping the dog." This last statement is:

Silence will operate as acceptance in the following circumstances EXCEPT:

Mary,the seller,and Jane contract for the sale of 500 sweaters.They agree on color and style,but not on price or time of delivery.Mary refuses to deliver the sweaters,and Jane sues.What results?

Seasonal Selections,Inc.sends a copy of its catalog to William along with a personalized computer-generated letter inviting him to purchase any two items in the catalog at the advertised price.Has Seasonal Selections made an offer?

What problems in connection with offer and acceptance might arise in an online auction situation? Are there any rules that could address these?

On Monday,Cindy says to Ruth,"I will sell you my car for $10,000.You have until Friday to decide." As of Wednesday,Ruth has paid nothing to Cindy and has not indicated if she is interested in buying the car.At this point,which is true?

The communication of an offer can be made by the offeror or the offeror's agent.

Revocation refers to the offeree communicating to the offeror that the offeree does not want to accept the offer.

Which of the following statements is true regarding acceptances?

Susan offered to sell her couch to Martin for $200.Martin said that $200 was too much,but that he would give her $125.Susan said no.Then,Martin said that he would pay Susan the entire $200.

In an auction without reserve,the seller must accept the highest bid and cannot withdraw the goods from sale.

In an auction when the highest bid has been made and no higher bids are forthcoming,the highest bid is treated as an acceptance in:

Which of the following are necessary to meet the requirements of a definite offer?

In an auction without reserve,the seller is the offeror.

An advertisement reading,"Our last Trailconquerer XL100 mountain bike,stock number T990234,will be sold to the first buyer with $700," would not be treated as an offer.

Erin receives an offer in the mail from Susan on July 14 that says,"I will sell you my vacation home for $80,000.You may accept this offer by signing the bottom of this letter and placing it in the mail so that it is postmarked by July 31." Which is true?

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