Question 1

Oxtron,Inc.sent the following price list to its customers.
 
Which statement is correct?

Accepted Answer

A) These price quotes would generally be considered offers. 
B) These price quotes would generally not be considered offers. 
C) These price quotes would generally be considered output contracts. 
D) These price quotes would generally be considered requirements contracts. 
A) These price quotes would generally be considered offers. 
B) These price quotes would generally not be considered offers. 
C) These price quotes would generally be considered output contracts. 
D) These price quotes would generally be considered requirements contracts.

Question 2

Travel Lines offered to sell 10 round-trip tickets to Elaine.Travel Lines stated that the acceptance must be in writing by USPS next-day service.Which of the following acceptances will create a contract between Travel Lines and Elaine?

Accepted Answer

A) Elaine calls Travel Lines and states that she will buy the tickets. 
B) Elaine sends a fax to Travel Lines stating she will buy the tickets. 
C) Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets. 
D) All of the above responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication. 
A) Elaine calls Travel Lines and states that she will buy the tickets. 
B) Elaine sends a fax to Travel Lines stating she will buy the tickets. 
C) Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets. 
D) All of the above responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication.

Question 3

Briefly discuss how an offer can be accepted.Include offers for both bilateral and unilateral contracts.

Accepted Answer

An offeree must say or do something to a

Question 4

In which case is the offer still valid at the time the acceptance is made?

Accepted Answer

A) Hal offered to sell a book to Sid.Hal died,and Sid sent an acceptance two days later. 
B) By-Waste Co.telephones XXX Co.offering to dispose of XXX Co.'s chemical waste by a particular method.XXX says it has another way to dispose of the waste.Then XXX finds out the method it planned to use violates environmental protection statutes,so it sends a letter of acceptance to By-Waste. 
C) Ray offers to sell his AT&T stock for a particular price by May 1.On May 2,Kathy agrees to buy the stock. 
D) In a face-to-face transaction,Pat offers to sell Mike his stereo and Mike accepts. 
E) All of the above. 
A) Hal offered to sell a book to Sid.Hal died,and Sid sent an acceptance two days later. 
B) By-Waste Co.telephones XXX Co.offering to dispose of XXX Co.'s chemical waste by a particular method.XXX says it has another way to dispose of the waste.Then XXX finds out the method it planned to use violates environmental protection statutes,so it sends a letter of acceptance to By-Waste. 
C) Ray offers to sell his AT&T stock for a particular price by May 1.On May 2,Kathy agrees to buy the stock. 
D) In a face-to-face transaction,Pat offers to sell Mike his stereo and Mike accepts. 
E) All of the above.

Question 5

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:

Accepted Answer

A) the contract may indicate a method for determining the price,without stating a definite price. 
B) Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC. 
C) the contract price must remain the same for the entire three-year contractual period. 
D) their contractual requirements regarding definiteness would be the same under the UCC and the common law. 
A) the contract may indicate a method for determining the price,without stating a definite price. 
B) Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC. 
C) the contract price must remain the same for the entire three-year contractual period. 
D) their contractual requirements regarding definiteness would be the same under the UCC and the common law.

Question 6

If both parties believe they have a binding contract,this belief settles any later questions about the validity and enforceability of the agreement.

Accepted Answer

A) True 
 B)False

Question 7

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and medium.

Accepted Answer

A) True 
 B)False

Question 8

Vick Valve Company makes valves for plumbing fixtures.At the beginning of the year,it sends out a price list addressing each one,"To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list.Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

Accepted Answer

A) True 
 B)False

Question 9

On January 8,Quastrar,Inc.sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies.On January 18,Hylavian mailed a letter to Quastrar accepting the offer.Quastrar received the acceptance letter on January 20.On January 17,Quastrar sent a letter revoking the offer.Hylavian received this letter on January 21.A contract between Quastrar and Hylavian:

Accepted Answer

A) was not formed because the revocation was effective before the acceptance was sent. 
B) was not formed because the revocation was effective before the acceptance was received. 
C) was formed on January 18. 
D) was formed on January 20. 
A) was not formed because the revocation was effective before the acceptance was sent. 
B) was not formed because the revocation was effective before the acceptance was received. 
C) was formed on January 18. 
D) was formed on January 20.

Question 10

Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.

Accepted Answer

A) True 
 B)False

Question 11

When Olga asks Sven if he wishes to sell his Harley motorcycle,he replies that he would not sell it "for less than $2,000." Olga replies,"I accept," and hands him $2,000.A contract exists.

Accepted Answer

A) True 
 B)False

Question 12

Spangel Fashions sends out its spring and summer catalog to Cindy.Cindy falls in love with the cute dress featured on the front cover of the catalog.When Cindy calls to order the dress,she is informed that the company has sold out of the dress.Cindy is upset and claims that the store is in breach of contract.She argues that the catalog presented an offer,which she accepted when she called to order the dress.Is Cindy correct? Why/why not?

Accepted Answer

No.Advertisements,price lists,and catalo

Question 13

The intent of the offeror to extend an offer to the offeree is generally determined by reference to:

Accepted Answer

A) the beliefs of the offeror. 
B) the subjective intention of the offeror. 
C) the assumptions of the offeror. 
D) the words and conduct of the offeror. 
A) the beliefs of the offeror. 
B) the subjective intention of the offeror. 
C) the assumptions of the offeror. 
D) the words and conduct of the offeror.

Question 14

According to the UCC,one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

Accepted Answer

A) True 
 B)False

Question 15

Jack mails an offer to Joan that states,"I offer to sell you my car for $2000.If I don't hear from you in 10 days,I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal.What is the result?

Accepted Answer

A) Jack has a deal.His offer was intended and contains definite terms. 
B) Jack has a deal.Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer. 
C) Joan is not bound.Generally an offeree must say or do something to accept an offer. 
D) Joan is not bound.Ten days is not a reasonable amount of time to consider the offer and accept by mail. 
A) Jack has a deal.His offer was intended and contains definite terms. 
B) Jack has a deal.Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer. 
C) Joan is not bound.Generally an offeree must say or do something to accept an offer. 
D) Joan is not bound.Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Question 16

The Johnsons decided to sell their summer cabin on Beech Lake.They sent flyers out to all who previously had expressed an interest in buying the cabin stating that they were planning on selling their cabin.The flyer described the location of the property,the size of the lot,and the price.If one of the recipients responds by sending a letter accepting,an agreement:

Accepted Answer

A) will not be formed because the flyer was sent out as an invitation to make an offer. 
B) will be formed because the first to respond gets the property. 
C) will be formed because the price is included. 
D) will not be formed because of the parol evidence rule. 
A) will not be formed because the flyer was sent out as an invitation to make an offer. 
B) will be formed because the first to respond gets the property. 
C) will be formed because the price is included. 
D) will not be formed because of the parol evidence rule.

Question 17

Which of the following offers are considered to be irrevocable for a given period?

Accepted Answer

A) Firm offers. 
B) Option contracts. 
C) A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. 
D) All of the above. 
A) Firm offers. 
B) Option contracts. 
C) A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. 
D) All of the above.

Question 18

Jaime offered to buy Kevin's bike.Jamie is the:

Accepted Answer

A) offeree. 
B) offeror. 
C) mortgagor. 
D) trustee. 
A) offeree. 
B) offeror. 
C) mortgagor. 
D) trustee.

Question 19

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate.They draft a letter of intent which:

Accepted Answer

A) protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far. 
B) may or may not be an offer,depending on the exact language and whether the document indicates that the parties have reached an agreement. 
C) has no legal effect,but provides a record for the parties as to where the negotiations stand. 
D) courts will consider to be a valid offer which the other party must accept if offered in good faith. 
A) protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far. 
B) may or may not be an offer,depending on the exact language and whether the document indicates that the parties have reached an agreement. 
C) has no legal effect,but provides a record for the parties as to where the negotiations stand. 
D) courts will consider to be a valid offer which the other party must accept if offered in good faith.

Question 20

Which of the following are generally considered to be legal offers?

Accepted Answer

A) Placing an item up for auction. 
B) Catalog advertisements. 
C) Price lists. 
D) A note scribbled on a restaurant napkin that includes the details of the offer. 
A) Placing an item up for auction. 
B) Catalog advertisements. 
C) Price lists. 
D) A note scribbled on a restaurant napkin that includes the details of the offer.

Exam 10: Agreement

Oxtron,Inc.sent the following price list to its customers. Which statement is correct?

Travel Lines offered to sell 10 round-trip tickets to Elaine.Travel Lines stated that the acceptance must be in writing by USPS next-day service.Which of the following acceptances will create a contract between Travel Lines and Elaine?

Briefly discuss how an offer can be accepted.Include offers for both bilateral and unilateral contracts.

In which case is the offer still valid at the time the acceptance is made?

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:

If both parties believe they have a binding contract,this belief settles any later questions about the validity and enforceability of the agreement.

If the offer does not specify a type of acceptance,the offeree may accept in any reasonable manner and medium.

Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.

When Olga asks Sven if he wishes to sell his Harley motorcycle,he replies that he would not sell it "for less than $2,000." Olga replies,"I accept," and hands him $2,000.A contract exists.

The intent of the offeror to extend an offer to the offeree is generally determined by reference to:

According to the UCC,one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms.

Jack mails an offer to Joan that states,"I offer to sell you my car for $2000.If I don't hear from you in 10 days,I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal.What is the result?

Which of the following offers are considered to be irrevocable for a given period?

Jaime offered to buy Kevin's bike.Jamie is the:

Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate.They draft a letter of intent which:

Which of the following are generally considered to be legal offers?

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