Question 1

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

Accepted Answer

A) True 
 B)False

Question 2

Nadira mails an offer to Cade on March 15.Cade receives the offer on March 16.Nadira mails a revocation of the offer on March 17.Cade mails a letter of acceptance on March 18.Cade receives the revocation on March 19.Nadira receives the letter of acceptance on March 20.Was a contract formed?

Accepted Answer

A)  Yes, on March 16. 
B)  Yes, on March 18. 
C)  Yes, on March 20. 
D)  No, the offer was revoked before acceptance. 
A)  Yes, on March 16. 
B)  Yes, on March 18. 
C)  Yes, on March 20. 
D)  No, the offer was revoked before acceptance.

Question 3

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Under the common law, the __________ must be the mirror image of the __________.

Accepted Answer

A)  acceptance, offer. 
B)  offer, acceptance. 
C)  contract, offer. 
D)  contract, consideration. 
A)  acceptance, offer. 
B)  offer, acceptance. 
C)  contract, offer. 
D)  contract, consideration.

Question 6

In the Giannetti v.Cornillie case, the court found:

Accepted Answer

A)  the modification of the mortgage amount, unlike the purchase price, was not a material term of the contract. 
B)  the modification of the mortgage amount was a material term, a counteroffer which rejected the original offer. 
C)  the doctrine of promissory estoppel required the court to grant plaintiff's motion for specific performance. 
D)  in order for an acceptance to create a binding contract, it need not strictly comply with the terms of the offer as long as the parties intended to form a contract. 
A)  the modification of the mortgage amount, unlike the purchase price, was not a material term of the contract. 
B)  the modification of the mortgage amount was a material term, a counteroffer which rejected the original offer. 
C)  the doctrine of promissory estoppel required the court to grant plaintiff's motion for specific performance. 
D)  in order for an acceptance to create a binding contract, it need not strictly comply with the terms of the offer as long as the parties intended to form a contract.

Question 7

Martha puts an ad in her company's newsletter saying she would pay $5,000 for a first-issue Grace Kelly stamp to the first person who accepted her offer.Martha decides she would rather go on a European vacation and changes her mind about investing in the stamp.Martha posts a sign at the executive water fountain saying the offer is no longer valid.A foreman from a branch plant takes a flight to the Chicago main office to see Martha and accept her offer.Martha does not owe him any money to pay for a breach of contract.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would NOT be a merchant under Article 2 of the UCC?

Accepted Answer

A)  The owner of a hardware store which sells paint. 
B)  A car mechanic who fixes used cars and sells them in his spare time. 
C)  A person who inherits three speedboats and wants to sell them to buy a car. 
D)  Two of these are true. 
A)  The owner of a hardware store which sells paint. 
B)  A car mechanic who fixes used cars and sells them in his spare time. 
C)  A person who inherits three speedboats and wants to sell them to buy a car. 
D)  Two of these are true.

Question 9

When does acceptance of an offer to enter into a unilateral contract generally occur?

Accepted Answer

A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree. 
A)  Upon notice of intent to accept by the offeree. 
B)  Upon full performance by the offeror. 
C)  Upon commencement of performance by the offeree. 
D)  Upon full performance by the offeree.

Question 10

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Accepted Answer

A)  revoke his bid at any time. 
B)  not revoke his bid due to the statutory irrevocability of the bid. 
C)  reject the offer of the college to build the student union when the college chooses his bid because it is the lowest. 
D)  refuse, based on the windfall theory, to put in the window casings even if they were part of the bid specifications put out by the college. 
A)  revoke his bid at any time. 
B)  not revoke his bid due to the statutory irrevocability of the bid. 
C)  reject the offer of the college to build the student union when the college chooses his bid because it is the lowest. 
D)  refuse, based on the windfall theory, to put in the window casings even if they were part of the bid specifications put out by the college.

Question 11

Both the Code and the Restatement provide that an authorized means of accepting an offer is any reasonable means of communication.

Accepted Answer

A) True 
 B)False

Question 12

Jack has been in the business of selling carpeting for 20 years.He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 square yards of carpet at $20 per square yard.Bob agrees and sends back the following letter confirming the deal:
Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 square yards of Saxony "heather blue" carpeting at the rate of $20 per square yard.We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.
Very truly yours,
Bob
Which of the following is true?

Accepted Answer

A)  There is a contract for only 100 square yards of carpeting. 
B)  There is a contract for 100 square yards PLUS the additional yardage. 
C)  There is no contract since Bob made a counteroffer. 
D)  There is no contract because the additional term is too uncertain to become a contract term. 
A)  There is a contract for only 100 square yards of carpeting. 
B)  There is a contract for 100 square yards PLUS the additional yardage. 
C)  There is no contract since Bob made a counteroffer. 
D)  There is no contract because the additional term is too uncertain to become a contract term.

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

If Megan intends to offer and believes she is offering for sale to Alexis her RL1500 space heater and Alexis reasonably believes Megan is offering her RL1900 heater and accepts on that belief, a contract has not been formed because there was no agreement as to the subject matter.

Accepted Answer

A) True 
 B)False

Question 16

Lyle offers to sell his house to Dennis for $95,000.Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:

Accepted Answer

A)  an acceptance. 
B)  a counteroffer. 
C)  a rejection. 
D)  an invitation. 
A)  an acceptance. 
B)  a counteroffer. 
C)  a rejection. 
D)  an invitation.

Question 17

To be effective, an offer must:

Accepted Answer

A)  be sufficiently definite and certain. 
B)  be communicated to the offeree. 
C)  manifest an intent to enter into a contract. 
D)  All of these. 
E)  None of these. 
A)  be sufficiently definite and certain. 
B)  be communicated to the offeree. 
C)  manifest an intent to enter into a contract. 
D)  All of these. 
E)  None of these.

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Mutual Assent

The UCC and the Restatement make no provision for supplying terms omitted by the parties' contract.

Nadira mails an offer to Cade on March 15.Cade receives the offer on March 16.Nadira mails a revocation of the offer on March 17.Cade mails a letter of acceptance on March 18.Cade receives the revocation on March 19.Nadira receives the letter of acceptance on March 20.Was a contract formed?

The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.

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

Under the common law, the __________ must be the mirror image of the __________.

In the Giannetti v.Cornillie case, the court found:

Which of the following would NOT be a merchant under Article 2 of the UCC?

When does acceptance of an offer to enter into a unilateral contract generally occur?

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Both the Code and the Restatement provide that an authorized means of accepting an offer is any reasonable means of communication.

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

If Megan intends to offer and believes she is offering for sale to Alexis her RL1500 space heater and Alexis reasonably believes Megan is offering her RL1900 heater and accepts on that belief, a contract has not been formed because there was no agreement as to the subject matter.

Lyle offers to sell his house to Dennis for $95,000.Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:

To be effective, an offer must:

A conditional acceptance:

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

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

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters

Under the common law, the must be the mirror image of the .