Question 1

In order to form a contract, the parties must:

Accepted Answer

A)  manifest their agreement subjectively. 
B)  manifest their agreement objectively. 
C)  indicate solely through the written word their intent. 
D)  create a formal document. 
A)  manifest their agreement subjectively. 
B)  manifest their agreement objectively. 
C)  indicate solely through the written word their intent. 
D)  create a formal document.

Question 2

Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Speedy Mail-to-You Express, Inc., but due to their error, the letter is not sent out by the company until Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective?

Accepted Answer

A)  At 10 a.m. on Tuesday. 
B)  At 11 a.m. on Tuesday. 
C)  At 8 a.m. on Wednesday. 
D)  At the time Bart receives the letter. 
A)  At 10 a.m. on Tuesday. 
B)  At 11 a.m. on Tuesday. 
C)  At 8 a.m. on Wednesday. 
D)  At the time Bart receives the letter.

Question 3

If no time is stated, an offer will terminate automatically after a reasonable period of time.

Accepted Answer

A) True 
 B)False

Question 4

If there is no time specified for the acceptance of an offer, when does the offer terminate?

Accepted Answer

A)  After 48 hours from receipt of the offer. 
B)  After two weeks from dispatch of the offer. 
C)  After 30 days from receipt of the offer. 
D)  After a reasonable period of time, which depends on the circumstances. 
A)  After 48 hours from receipt of the offer. 
B)  After two weeks from dispatch of the offer. 
C)  After 30 days from receipt of the offer. 
D)  After a reasonable period of time, which depends on the circumstances.

Question 5

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

Accepted Answer

No. The finder's act was not a

Question 6

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo. Alicia is entitled to the reward.

Accepted Answer

A) True 
 B)False

Question 7

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

Accepted Answer

A) True 
 B)False

Question 8

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Accepted Answer

A)  Bob has made a counteroffer and hence there is no contract. 
B)  Bob has rejected the terms of the original offer, but there is still a contract. 
C)  Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract. 
D)  Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC. 
A)  Bob has made a counteroffer and hence there is no contract. 
B)  Bob has rejected the terms of the original offer, but there is still a contract. 
C)  Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract. 
D)  Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

Question 9

Alexio read SmartHome's ad in the local newspaper advertising a home communications system for $489. Alexio rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $849. Alexio gave the salesperson $489 plus sales tax and demanded the system.

Accepted Answer

A)  The ad is a firm offer by the merchant, and the communication system must be sold for $489. 
B)  Alexio can successfully sue SmartHome for the difference if he buys the system for $849. 
C)  The store must accept the price stated in the ad, but only if Alexio has a copy of the ad with him. 
D)  Alexio is merely making an offer to SmartHome  to buy the communication system for $489 plus sales tax. 
A)  The ad is a firm offer by the merchant, and the communication system must be sold for $489. 
B)  Alexio can successfully sue SmartHome for the difference if he buys the system for $849. 
C)  The store must accept the price stated in the ad, but only if Alexio has a copy of the ad with him. 
D)  Alexio is merely making an offer to SmartHome  to buy the communication system for $489 plus sales tax.

Question 10

A conditional acceptance:

Accepted Answer

A)  generally accepts the original offer, but provides a way to later avoid contractual obligations. 
B)  is a common type of counteroffer. 
C)  operates as a rejection and not a new offer. 
D)  cannot exist because an acceptance is, by definition, an act that manifests the offeree's willingness to enter into a contract on the terms of the offer. 
A)  generally accepts the original offer, but provides a way to later avoid contractual obligations. 
B)  is a common type of counteroffer. 
C)  operates as a rejection and not a new offer. 
D)  cannot exist because an acceptance is, by definition, an act that manifests the offeree's willingness to enter into a contract on the terms of the offer.

Question 11

Under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed.

Accepted Answer

A) True 
 B)False

Question 12

Dakota's question to Austin, "Will you buy my computer for $800?" is an offer to Austin.

Accepted Answer

A) True 
 B)False

Question 13

The Rogers family has always wanted to buy the beautiful house at the top of the hill. The owners of the house, the Thompsons, decided to sell and called Mr. Rogers. Before he could get back in touch with Mr. Thompson, Mr. Rogers suffered a heart attack and died. Mr. Rogers' adult daughter, to whom the Thompsons had not spoken, still wants the house. She may:

Accepted Answer

A)  not accept, since the offer is terminated. 
B)  not accept, because she does not have the capacity. 
C)  accept, since the contract offer is assignable. 
D)  accept, since the offer cannot be revoked without notice. 
A)  not accept, since the offer is terminated. 
B)  not accept, because she does not have the capacity. 
C)  accept, since the contract offer is assignable. 
D)  accept, since the offer cannot be revoked without notice.

Exam 10: Mutual Assent

In order to form a contract, the parties must:

If no time is stated, an offer will terminate automatically after a reasonable period of time.

If there is no time specified for the acceptance of an offer, when does the offer terminate?

If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives information that leads to its return, is she entitled to the reward?

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard. Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo. Alicia is entitled to the reward.

Death or insanity of either the offeror or the offeree ordinarily terminates the offer.

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

A conditional acceptance:

Under the UCC, an acceptance must always be identical to an offer for a valid contract to be formed.

Dakota's question to Austin, "Will you buy my computer for $800?" is an offer to Austin.

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

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