Question 1

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

Accepted Answer

A)  Arthur is an authorized computer dealer. 
B)  Brian employs two salesmen to sell his homemade furniture. 
C)  Clarence has a store in which he sells used lawn mowers. 
D)  All of these would be merchants. 
A)  Arthur is an authorized computer dealer. 
B)  Brian employs two salesmen to sell his homemade furniture. 
C)  Clarence has a store in which he sells used lawn mowers. 
D)  All of these would be merchants.

Question 2

If Todd seemingly offers to sell to Ashton his wood gun cabinet but intended to and believes he is offering his wood china cabinet, and Ashton accepts the offer, reasonably believing it is for the gun cabinet, a contract is formed for the sale of the gun cabinet.

Accepted Answer

A) True 
 B)False

Question 3

To be effective, an offer must:

Accepted Answer

A)  be spoken directly to the offeree. 
B)  always contain the price of the product or service offered. 
C)  always contain the place of delivery. 
D)  be communicated to the offeree. 
A)  be spoken directly to the offeree. 
B)  always contain the price of the product or service offered. 
C)  always contain the place of delivery. 
D)  be communicated to the offeree.

Question 4

It is against FTC regulations and state legislation for a seller to advertise goods at one price and then raise the price after demand has increased.

Accepted Answer

A) True 
 B)False

Question 5

Distinguish between a rejection of an offer and a revocation of an offer.

Accepted Answer

Revocation of an offer is the cancellati

Question 6

Unless an auction is advertised or announced to be without reserve, a bid made at an auction can be withdrawn if the auctioneer has not yet accepted the bid.

Accepted Answer

A) True 
 B)False

Question 7

The person to whom an offer is made is an offeree.

Accepted Answer

A) True 
 B)False

Question 8

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

Accepted Answer

A)  Catamount Slate Products, Inc. v. Sheldon. 
B)  Sherrod v. Kidd. 
C)  Lefkowitz v. Great Minneapolis Surplus Store, Inc . 
D)  Giannetti v. Cornillie. 
A)  Catamount Slate Products, Inc. v. Sheldon. 
B)  Sherrod v. Kidd. 
C)  Lefkowitz v. Great Minneapolis Surplus Store, Inc . 
D)  Giannetti v. Cornillie.

Question 9

A contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act.

Accepted Answer

A) True 
 B)False

Question 10

Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order. Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance. What is the status of the interaction between Action and Brace?

Accepted Answer

A)  There is a valid contract under the UCC, and the additional payment terms become part of the contract unless Action objects within a reasonable period of time. 
B)  There is a valid contract for the goods, but the payment terms will not become part of the contract. 
C)  There is no contract, because Brace has made a counteroffer by adding payment terms. 
D)  There is no contract, because the method of transportation has not been decided. 
A)  There is a valid contract under the UCC, and the additional payment terms become part of the contract unless Action objects within a reasonable period of time. 
B)  There is a valid contract for the goods, but the payment terms will not become part of the contract. 
C)  There is no contract, because Brace has made a counteroffer by adding payment terms. 
D)  There is no contract, because the method of transportation has not been decided.

Question 11

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. The advertiser:

Accepted Answer

A)  may revoke the offer since there has not yet been an acceptance. 
B)  may not revoke the offer since Marilyn has already accepted it. 
C)  must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps. 
D)  must pay Marilyn $920, because she has performed 92% of the offer. 
A)  may revoke the offer since there has not yet been an acceptance. 
B)  may not revoke the offer since Marilyn has already accepted it. 
C)  must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps. 
D)  must pay Marilyn $920, because she has performed 92% of the offer.

Question 12

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:

Accepted Answer

A)  automatically terminates the offer. 
B)  has no effect on the offer. 
C)  acts as a condition on the offer. 
D)  acts as a rejection of the offer by the offeree. 
A)  automatically terminates the offer. 
B)  has no effect on the offer. 
C)  acts as a condition on the offer. 
D)  acts as a rejection of the offer by the offeree.

Question 13

If Harley tells Suzi that he will give her seven days to decide if she wants to buy his motorcycle, he cannot sell it to anyone else until seven days has passed.

Accepted Answer

A) True 
 B)False

Question 14

A contract can be valid even if all of the terms are not clearly stated.

Accepted Answer

A) True 
 B)False

Question 15

An output contract is an agreement of a buyer to purchase a seller's entire output for a stated period.

Accepted Answer

A) True 
 B)False

Question 16

Robinson Wiring Co. submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex. Robinson knows Turner is relying on Robinson's bid. Robinson:

Accepted Answer

A)  can revoke its offer at any time until it is notified that Turner's bid has been accepted. 
B)  cannot, under the doctrine of promissory estoppel, revoke its bid even prior to acceptance. 
C)  cannot revoke its offer since it is a "firm offer." 
D)  can revoke its offer for a reasonable time under the doctrine of "commercial reasonableness." 
A)  can revoke its offer at any time until it is notified that Turner's bid has been accepted. 
B)  cannot, under the doctrine of promissory estoppel, revoke its bid even prior to acceptance. 
C)  cannot revoke its offer since it is a "firm offer." 
D)  can revoke its offer for a reasonable time under the doctrine of "commercial reasonableness."

Question 17

Bailey attended an auction and bid $150 on an antique dresser. No one else made a higher bid. Discuss the effect of
(a) the designation that the auction is without reserve,
(b) the advertisement that the auction is with reserve, and
(c) the lack of any announcement or advertisement as to whether the auction is with or without reserve.

Accepted Answer

If an auction is advertised or announced

Question 18

The law applies a subjective standard in determining whether there was the requisite intent to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 19

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than:

Accepted Answer

A)  ten days. 
B)  two months. 
C)  three months. 
D)  a reasonable time. 
A)  ten days. 
B)  two months. 
C)  three months. 
D)  a reasonable time.

Question 20

Silence can never be an acceptance.

Accepted Answer

A) True 
 B)False

Exam 10: Mutual Assent

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

If Todd seemingly offers to sell to Ashton his wood gun cabinet but intended to and believes he is offering his wood china cabinet, and Ashton accepts the offer, reasonably believing it is for the gun cabinet, a contract is formed for the sale of the gun cabinet.

To be effective, an offer must:

It is against FTC regulations and state legislation for a seller to advertise goods at one price and then raise the price after demand has increased.

Distinguish between a rejection of an offer and a revocation of an offer.

Unless an auction is advertised or announced to be without reserve, a bid made at an auction can be withdrawn if the auctioneer has not yet accepted the bid.

The person to whom an offer is made is an offeree.

The case in which the court held that a newspaper advertisement was an offer because it contained a promise of performance in definite terms in return for a requested act was:

A contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act.

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. The advertiser:

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:

If Harley tells Suzi that he will give her seven days to decide if she wants to buy his motorcycle, he cannot sell it to anyone else until seven days has passed.

A contract can be valid even if all of the terms are not clearly stated.

An output contract is an agreement of a buyer to purchase a seller's entire output for a stated period.

Robinson Wiring Co. submits a written offer for Turner Construction's use as part of its bid as a general contractor for an office complex. Robinson knows Turner is relying on Robinson's bid. Robinson:

The law applies a subjective standard in determining whether there was the requisite intent to enter into a contract.

The UCC provides that a merchant is bound to keep a written offer open for the stated period, but no longer than:

Silence can never be an acceptance.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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