Question 1

The case in the text,Domingo v.Mitchell,demonstrates that:

Accepted Answer

A) if certain terms are left out of an offer,any subsequent contract is unenforceable. 
B) important terms of a contract can be implied under certain circumstances. 
C) omitted terms in a contract are construed against the drafter. 
D) price must be included in an offer to form a valid contract. 
A) if certain terms are left out of an offer,any subsequent contract is unenforceable. 
B) important terms of a contract can be implied under certain circumstances. 
C) omitted terms in a contract are construed against the drafter. 
D) price must be included in an offer to form a valid contract.

Question 2

Courts look at the parties' outward manifestations of intent as a requirement to enforce a contract.This is called the subjective standard of intent.

Accepted Answer

A) True 
 B)False

Question 3

Bob offers to sell his bike to Sue for $100 and promises to keep his offer open for five days.Sue thanks him and leaves.At this point,Bob still has the power to revoke his offer.

Accepted Answer

A) True 
 B)False

Question 4

Austen Construction,a general contractor,advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures.The advertisement announced that the contract would be awarded to the lowest responsible bidder.Bronte,a responsible electrical subcontractor,submitted the lowest bid to Austen for the electrical portion of the work.Austen informed Bronte that she should begin work immediately.Bronte then stated that she is "withdrawing" her bid from Austen.Which of the following statements is most accurate?

Accepted Answer

A) Austen should not rely on Bronte's offer to do the electrical work. 
B) Austen accepted Bronte's offer,thereby forming a contract. 
C) Austen is not bound by Bronte's bid until he informs her of his intent to accept. 
D) Bronte has accepted Austen's offer by submitting the lowest bid. 
A) Austen should not rely on Bronte's offer to do the electrical work. 
B) Austen accepted Bronte's offer,thereby forming a contract. 
C) Austen is not bound by Bronte's bid until he informs her of his intent to accept. 
D) Bronte has accepted Austen's offer by submitting the lowest bid.

Question 5

Offers that fail to provide a specific time for acceptance are:

Accepted Answer

A) considered to be illegal. 
B) are valid for a reasonable time. 
C) are valid but unenforceable. 
D) can be used to penalize the offeror. 
A) considered to be illegal. 
B) are valid for a reasonable time. 
C) are valid but unenforceable. 
D) can be used to penalize the offeror.

Question 6

Which of the following is true of a sales contract under the UCC?

Accepted Answer

A) The courts cannot fill any "gaps" in the contracts. 
B) The court needs to determine if the parties intended to make a contract. 
C) An intent to contract exists even if the parties were unable to reach an agreement. 
D) All terms of contract need to be clear for the court to decide the case. 
A) The courts cannot fill any "gaps" in the contracts. 
B) The court needs to determine if the parties intended to make a contract. 
C) An intent to contract exists even if the parties were unable to reach an agreement. 
D) All terms of contract need to be clear for the court to decide the case.

Question 7

Mr.Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel.Mr.Blue submits a bid for his work associated with the project.In this instance,Mr.Green was the offeror.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an exception to the general rule that rejections terminate offers?

Accepted Answer

A) Unilateral contracts 
B) Bilateral contracts 
C) Firm offers 
D) Option contracts 
A) Unilateral contracts 
B) Bilateral contracts 
C) Firm offers 
D) Option contracts

Question 9

The trend of modern contract law is to tolerate ________ degree of specificity in agreements in comparison to classical contract law.

Accepted Answer

A) a reasonable 
B) a lower 
C) a higher 
D) the same 
A) a reasonable 
B) a lower 
C) a higher 
D) the same

Question 10

Which of the following offerors is free to revoke his offer?

Accepted Answer

A) An offeror that agreed to keep an offer open without consideration. 
B) An offeror,who is a merchant,agreed in writing to sell goods and gave assurances that the offer would remain open. 
C) An offeror of a unilateral contract where the offeree already started performance. 
D) An offeror who promised to keep an offer open without consideration,but later changed his mind and the offeree foreseeably and reasonable relied on the offeror's promise. 
A) An offeror that agreed to keep an offer open without consideration. 
B) An offeror,who is a merchant,agreed in writing to sell goods and gave assurances that the offer would remain open. 
C) An offeror of a unilateral contract where the offeree already started performance. 
D) An offeror who promised to keep an offer open without consideration,but later changed his mind and the offeree foreseeably and reasonable relied on the offeror's promise.

Question 11

Which of the following is true regarding bids?

Accepted Answer

A) Advertisements for bids are treated as offers. 
B) Promissory estoppel can be used to prevent withdrawal of bids. 
C) Bids for governmental contracts are covered under contract principles. 
D) Those that submit a bid are called offerees. 
A) Advertisements for bids are treated as offers. 
B) Promissory estoppel can be used to prevent withdrawal of bids. 
C) Bids for governmental contracts are covered under contract principles. 
D) Those that submit a bid are called offerees.

Question 12

A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Accepted Answer

A) True 
 B)False

Question 13

The offeror's death automatically terminates an offer,but the offeree's death does not.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following conditions characterizes a firm offer regarding the sale of goods?

Accepted Answer

A) It must be verbally communicated. 
B) It can be revoked by the offeror prior to acceptance. 
C) It must be made in the presence of a government official. 
D) It must be made by an offeror who is a merchant. 
A) It must be verbally communicated. 
B) It can be revoked by the offeror prior to acceptance. 
C) It must be made in the presence of a government official. 
D) It must be made by an offeror who is a merchant.

Question 15

How can an offeree impliedly reject an offer?

Accepted Answer

A) By indicating that he will not accept it 
B) By asking for more time to consider it 
C) By making a counteroffer 
D) By writing his nonacceptance 
A) By indicating that he will not accept it 
B) By asking for more time to consider it 
C) By making a counteroffer 
D) By writing his nonacceptance

Question 16

What does "present intent to contract" mean?

Accepted Answer

A) Intent to enter the contract upon acceptance 
B) Intent to negotiate in case of rejection of offer 
C) Intent to set contractual conditions 
D) Intent to engage more than one partner in the deal 
A) Intent to enter the contract upon acceptance 
B) Intent to negotiate in case of rejection of offer 
C) Intent to set contractual conditions 
D) Intent to engage more than one partner in the deal

Question 17

In Kolodziej v.Mason,the case in the text,the court held that Mason's Dateline statement:

Accepted Answer

A) was an offer because its terms were definite and specific. 
B) was an offer because there were no terms left to negotiate. 
C) was an offer because Mason created an escrow account for the funds in anticipation of acceptance. 
D) was not an offer because he did not have the intent to create an offer. 
A) was an offer because its terms were definite and specific. 
B) was an offer because there were no terms left to negotiate. 
C) was an offer because Mason created an escrow account for the funds in anticipation of acceptance. 
D) was not an offer because he did not have the intent to create an offer.

Question 18

A(n)________ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration.

Accepted Answer

A) offer 
B) option 
C) bid 
D) advertisement 
A) offer 
B) option 
C) bid 
D) advertisement

Question 19

Which of the following characterizes definiteness standards under classical contract law?

Accepted Answer

A) Courts are contract enforcers. 
B) Contracts need to contain all the terms. 
C) Courts should be able to provide "gap fillers" in contracts. 
D) Courts can take a "hands-on" approach to contracts. 
A) Courts are contract enforcers. 
B) Contracts need to contain all the terms. 
C) Courts should be able to provide "gap fillers" in contracts. 
D) Courts can take a "hands-on" approach to contracts.

Question 20

In the case in the text,D'Agostino v.Federal Insurance Company,the court found in favor of:

Accepted Answer

A) Federal because its response to D'Agostino's offer was timely. 
B) Federal because the additional terms were not substantive. 
C) D'Agostino because Federal's response was untimely. 
D) D'Agostino because Federal's response was a counteroffer. 
A) Federal because its response to D'Agostino's offer was timely. 
B) Federal because the additional terms were not substantive. 
C) D'Agostino because Federal's response was untimely. 
D) D'Agostino because Federal's response was a counteroffer.

Exam 10: The Agreement: Offer

The case in the text,Domingo v.Mitchell,demonstrates that:

Courts look at the parties' outward manifestations of intent as a requirement to enforce a contract.This is called the subjective standard of intent.

Bob offers to sell his bike to Sue for $100 and promises to keep his offer open for five days.Sue thanks him and leaves.At this point,Bob still has the power to revoke his offer.

Offers that fail to provide a specific time for acceptance are:

Which of the following is true of a sales contract under the UCC?

Mr.Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel.Mr.Blue submits a bid for his work associated with the project.In this instance,Mr.Green was the offeror.

Which of the following is an exception to the general rule that rejections terminate offers?

The trend of modern contract law is to tolerate ________ degree of specificity in agreements in comparison to classical contract law.

Which of the following offerors is free to revoke his offer?

Which of the following is true regarding bids?

A firm offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

The offeror's death automatically terminates an offer,but the offeree's death does not.

Which of the following conditions characterizes a firm offer regarding the sale of goods?

How can an offeree impliedly reject an offer?

What does "present intent to contract" mean?

In Kolodziej v.Mason,the case in the text,the court held that Mason's Dateline statement:

A(n)________ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration.

Which of the following characterizes definiteness standards under classical contract law?

In the case in the text,D'Agostino v.Federal Insurance Company,the court found in favor of:

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

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