Question 1

Which of the following contradicts the mirror image rule?

Accepted Answer

A) silence as acceptance 
B) option contract 
C) counteroffer 
D) acceptance-upon-dispatch 
A) silence as acceptance 
B) option contract 
C) counteroffer 
D) acceptance-upon-dispatch

Question 2

The offer must be communicated to the offeree for the offer to be effective.

Accepted Answer

A) True 
 B)False

Question 3

In an auction with reserve,the bidder is the offeror.

Accepted Answer

A) True 
 B)False

Question 4

From the above question,Carl's response to Ron's offer is considered as a(n)________.

Accepted Answer

A) mirror image rule acceptance 
B) rejection 
C) unequivocal acceptance 
D) counteroffer 
A) mirror image rule acceptance 
B) rejection 
C) unequivocal acceptance 
D) counteroffer

Question 5

A reward is a form of bilateral contract.

Accepted Answer

A) True 
 B)False

Question 6

Mandy decided to sell her iPad and made an offer for $250 to her friend Shelly.Shelly told Mandy she was willing to buy the iPad,but she would be glad if Shelly could lower her asking price.Mandy lowered the price to $210 and Shelly bought it.Which of the following would describe Shelly's response to Mandy for her first offer?

Accepted Answer

A) counteroffer 
B) rejection 
C) equivocal acceptance 
D) grumbling acceptance 
A) counteroffer 
B) rejection 
C) equivocal acceptance 
D) grumbling acceptance

Question 7

George made an offer to Jacob to sell his house for $1 million.The offer was received by Jacob on May 1,2014,and he stipulated that he had 13 days to accept it.But Jacob could not arrange the money,and on May 16,2014 he made a counteroffer to buy the house for $850,000.Which of the following is true of the original offer made by George to Jacob?

Accepted Answer

A) It is terminated by the counteroffer. 
B) It is still valid as the house has not been sold. 
C) It is invalid due to lapse of the stated time. 
D) It is invalid due to incompetency of the offeree. 
A) It is terminated by the counteroffer. 
B) It is still valid as the house has not been sold. 
C) It is invalid due to lapse of the stated time. 
D) It is invalid due to incompetency of the offeree.

Question 8

An unequivocal acceptance must not contain conditions or exceptions.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would be considered an offer to form a unilateral contract?

Accepted Answer

A) an advertisement 
B) an auction without reserve 
C) a reward offer 
D) an auction with reserve 
A) an advertisement 
B) an auction without reserve 
C) a reward offer 
D) an auction with reserve

Question 10

The ________ states that an acceptance is effective when it is dispatched,even if it is lost in transmission.

Accepted Answer

A) rule of silence as acceptance 
B) mirror image rule 
C) mailbox rule 
D) mutual assent rule 
A) rule of silence as acceptance 
B) mirror image rule 
C) mailbox rule 
D) mutual assent rule

Question 11

Which of the following statements is true of a counteroffer?

Accepted Answer

A) An offeree that makes the counteroffer is still considered the offeree. 
B) A counteroffer terminates the existing offer. 
C) A counteroffer can only be made by the offeror. 
D) A counteroffer need not be communicated to the offeror. 
A) An offeree that makes the counteroffer is still considered the offeree. 
B) A counteroffer terminates the existing offer. 
C) A counteroffer can only be made by the offeror. 
D) A counteroffer need not be communicated to the offeror.

Question 12

If an offeree dispatches a rejection before an acceptance,then the rejection will not be applicable.

Accepted Answer

A) True 
 B)False

Question 13

What is the key difference between an agreement and a contract?

Accepted Answer

A) A contract is always enforceable in the court of law, while an acceptance may or may not be. 
B) A contract can only be between two individuals, while an acceptance can have two or more people involved. 
C) A contract requires mutual assent from all parties, while an acceptance needs only to be accepted by a majority of people involved. 
D) A contract need not be legally binding, while an agreement must be legally binding. 
A) A contract is always enforceable in the court of law, while an acceptance may or may not be. 
B) A contract can only be between two individuals, while an acceptance can have two or more people involved. 
C) A contract requires mutual assent from all parties, while an acceptance needs only to be accepted by a majority of people involved. 
D) A contract need not be legally binding, while an agreement must be legally binding.

Question 14

Unless otherwise expressly stated,an auction is considered an auction with reserve.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A contract is created upon an equivocal response to an offer from the offeree.

Accepted Answer

A) True 
 B)False

Question 17

A term in a contract that can reasonably be supplied by the courts is referred to as a(n)________.

Accepted Answer

A) intent term 
B) unconditional term 
C) objective term 
D) implied term 
A) intent term 
B) unconditional term 
C) objective term 
D) implied term

Question 18

From the above question,Ron's response to sell the computer to Carl is considered as a(n)________.

Accepted Answer

A) mirror image rule acceptance 
B) rejection 
C) counteroffer 
D) equivocal response 
A) mirror image rule acceptance 
B) rejection 
C) counteroffer 
D) equivocal response

Question 19

Bilateral contracts are accepted only upon the offeree's performance of the required act.

Accepted Answer

A) True 
 B)False

Question 20

A(n)________ is a voluntary exchange of promises between two or more legally competent persons to do,or refrain from doing,an act.

Accepted Answer

A) offer 
B) advertisement 
C) agreement 
D) proposal 
A) offer 
B) advertisement 
C) agreement 
D) proposal

Exam 10: Agreement

Which of the following contradicts the mirror image rule?

The offer must be communicated to the offeree for the offer to be effective.

In an auction with reserve,the bidder is the offeror.

From the above question,Carl's response to Ron's offer is considered as a(n)________.

A reward is a form of bilateral contract.

An unequivocal acceptance must not contain conditions or exceptions.

Which of the following would be considered an offer to form a unilateral contract?

The ________ states that an acceptance is effective when it is dispatched,even if it is lost in transmission.

Which of the following statements is true of a counteroffer?

If an offeree dispatches a rejection before an acceptance,then the rejection will not be applicable.

What is the key difference between an agreement and a contract?

Unless otherwise expressly stated,an auction is considered an auction with reserve.

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

A contract is created upon an equivocal response to an offer from the offeree.

A term in a contract that can reasonably be supplied by the courts is referred to as a(n)________.

From the above question,Ron's response to sell the computer to Carl is considered as a(n)________.

Bilateral contracts are accepted only upon the offeree's performance of the required act.

A(n)________ is a voluntary exchange of promises between two or more legally competent persons to do,or refrain from doing,an act.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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