Question 1

A firm offer differs from an option in that,a firm offer:

Accepted Answer

A) is a separate contract by itself. 
B) is irrevocable for a certain period of time. 
C) does not require consideration in exchange for the offer. 
D) is not covered under the UCC. 
A) is a separate contract by itself. 
B) is irrevocable for a certain period of time. 
C) does not require consideration in exchange for the offer. 
D) is not covered under the UCC.

Question 2

Which of the following characterizes the Code's standards of definiteness?

Accepted Answer

A) It sees courts as contract enforcers. 
B) It requires a high degree of definiteness in contracts. 
C) It can create contractual liabilities. 
D) It cannot fill in gaps in contracts. 
A) It sees courts as contract enforcers. 
B) It requires a high degree of definiteness in contracts. 
C) It can create contractual liabilities. 
D) It cannot fill in gaps in contracts.

Question 3

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

Accepted Answer

A) An offer for the sale of land. 
B) An offer to purchase stock on a stock exchange. 
C) An offer that says that it will stay open for one week. 
D) An offer with a valid five-day option attached to it. 
A) An offer for the sale of land. 
B) An offer to purchase stock on a stock exchange. 
C) An offer that says that it will stay open for one week. 
D) An offer with a valid five-day option attached to it.

Question 4

Under the United Nations Convention on Contracts for the International Sale of Goods (CISG),a proposal will be considered an offer if it meets three requirements.Which of the following is not one of those requirements?

Accepted Answer

A) The proposal clearly explains the obligations of the parties. 
B) The proposal is addressed to one or more specific persons. 
C) The proposal is sufficiently definite,especially as to quantity and price. 
D) The proposal indicates the intent of the offeror to be bound in case of acceptance. 
A) The proposal clearly explains the obligations of the parties. 
B) The proposal is addressed to one or more specific persons. 
C) The proposal is sufficiently definite,especially as to quantity and price. 
D) The proposal indicates the intent of the offeror to be bound in case of acceptance.

Question 5

Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price.Such pens typically sell for $1 each.Carl orally accepts.Immediately thereafter,Abby tries to back out of the deal.At this point in time,which of the following is most likely to be true?

Accepted Answer

A) There is no offer and no contract because the offer is indefinite. 
B) There is no offer and no contract because the offer must be in writing. 
C) There is a contract if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. 
D) There is a contract because the offer contained all material terms. 
A) There is no offer and no contract because the offer is indefinite. 
B) There is no offer and no contract because the offer must be in writing. 
C) There is a contract if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. 
D) There is a contract because the offer contained all material terms.

Question 6

Ads that (1)limit the power of acceptance to one offeree or a small number of offerees,(2)are highly specific about the nature and number of items offered for sale and what is requested in return,and (3)leave nothing further to be negotiated are considered to be ________.

Accepted Answer

A) offers 
B) invitations to negotiate 
C) invitations to offer 
D) obligations 
A) offers 
B) invitations to negotiate 
C) invitations to offer 
D) obligations

Question 7

Which of the following is true of a revocation?

Accepted Answer

A) The power of revocation of an offer lies with the offeree. 
B) Death or insanity cannot be reasons for revocation. 
C) Promissory estoppel is used to prevent revocations. 
D) Offers that fail to state a specified time period are considered invalid. 
A) The power of revocation of an offer lies with the offeree. 
B) Death or insanity cannot be reasons for revocation. 
C) Promissory estoppel is used to prevent revocations. 
D) Offers that fail to state a specified time period are considered invalid.

Question 8

Which of the following is the first step in the contract formation process?

Accepted Answer

A) Signing the agreement 
B) An offer in definite terms 
C) Selection of partners 
D) Drafting the agreement 
A) Signing the agreement 
B) An offer in definite terms 
C) Selection of partners 
D) Drafting the agreement

Question 9

The outer limit on a firm offer's irrevocability is:

Accepted Answer

A) 1 month. 
B) 3 months. 
C) 6 months. 
D) 1 year. 
A) 1 month. 
B) 3 months. 
C) 6 months. 
D) 1 year.

Question 10

Which of the following statements about governmental contracts is true?

Accepted Answer

A) Promissory estoppel can be used to allow a bidder to withdraw a bid but impose a penalty. 
B) Governmental contracts are generally covered by statute. 
C) The rules governing governmental contracts give the entity discretion as to who to award the contract to. 
D) The rules governing governmental contracts allow parties to withdraw bids without penalty. 
A) Promissory estoppel can be used to allow a bidder to withdraw a bid but impose a penalty. 
B) Governmental contracts are generally covered by statute. 
C) The rules governing governmental contracts give the entity discretion as to who to award the contract to. 
D) The rules governing governmental contracts allow parties to withdraw bids without penalty.

Question 11

Gail offers to sell Belinda 1000 boxes of nails,but forgets to state the price.All other material terms are present,however.Belinda accepts,but later wants to back out of the deal,arguing that the offer is indefinite.Is there a contract here? Why or why not? Assume that at the time of the deal the parties intended to make a contract.Assume also that there was an established market price for the nails in question here.

Accepted Answer

We have a sale of goods,so Article 2 of

Question 12

The ________ has the power to bind the person who makes an offer simply by accepting the offer.

Accepted Answer

A) leasor 
B) offeree 
C) leasee 
D) offeror 
A) leasor 
B) offeree 
C) leasee 
D) offeror

Question 13

What legal effect does death or insanity of the offeror have on the offer?

Accepted Answer

A) It terminates the offer automatically. 
B) It terminates only the last contract that has been formed with that offeror. 
C) It has no legal effect unless and until the offeree is notified of the death of the offeror. 
D) It makes the offer voidable. 
A) It terminates the offer automatically. 
B) It terminates only the last contract that has been formed with that offeror. 
C) It has no legal effect unless and until the offeree is notified of the death of the offeror. 
D) It makes the offer voidable.

Question 14

In Cordas v.Uber Technologies,Inc. ,the case in the text,the court held that:

Accepted Answer

A) Uber's terms and conditions constituted an enforceable browsewrap agreement. 
B) Uber's arbitration clause was unenforceable because it did not require an affirmative assent from its users. 
C) Uber's arbitration clause was enforceable because Cordas downloaded the app voluntarily. 
D) Uber's arbitration clause was enforceable because Cordas affirmatively acknowledged it. 
A) Uber's terms and conditions constituted an enforceable browsewrap agreement. 
B) Uber's arbitration clause was unenforceable because it did not require an affirmative assent from its users. 
C) Uber's arbitration clause was enforceable because Cordas downloaded the app voluntarily. 
D) Uber's arbitration clause was enforceable because Cordas affirmatively acknowledged it.

Question 15

Kyle sent Tara a letter offering to sell Tara his car.Tara left the letter on her desk,where her roommate,Maggie,saw it.After reading the letter,Maggie wrote to Kyle and stated that she (Maggie)wanted to accept Kyle's offer.Which of the following is true?

Accepted Answer

A) Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. 
B) There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. 
C) Kyle and Tara have a contract for the purchase of Kyle's car. 
D) Maggie's letter is a valid acceptance of Kyle's offer. 
A) Kyle must sell Maggie his car unless Kyle is a merchant under the UCC. 
B) There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. 
C) Kyle and Tara have a contract for the purchase of Kyle's car. 
D) Maggie's letter is a valid acceptance of Kyle's offer.

Question 16

The term for a person who makes an offer is called?

Accepted Answer

A) Offeree 
B) Offeror 
C) Leasor 
D) Incorporator 
A) Offeree 
B) Offeror 
C) Leasor 
D) Incorporator

Question 17

When is the revocation of an offer effective?

Accepted Answer

A) When received by the offeror 
B) When received by the offeree 
C) When sent by the offeree 
D) When sent by the offeror 
A) When received by the offeror 
B) When received by the offeree 
C) When sent by the offeree 
D) When sent by the offeror

Question 18

Which of the following characterizes an auction "without reserve"?

Accepted Answer

A) Bidders must be merchants 
B) Sellers must be merchants 
C) Goods cannot be withdrawn after a call for bids 
D) Buyers are treated as having made an offer to sell 
A) Bidders must be merchants 
B) Sellers must be merchants 
C) Goods cannot be withdrawn after a call for bids 
D) Buyers are treated as having made an offer to sell

Question 19

According to classical contract law,courts are:

Accepted Answer

A) contract makers. 
B) contract breakers. 
C) contract enforcers. 
D) contract negotiators. 
A) contract makers. 
B) contract breakers. 
C) contract enforcers. 
D) contract negotiators.

Question 20

Yasmin offers to landscape Bert's property for $2,000.Two days after making the offer,Yasmin changes her mind and mails Bert a letter revoking her offer.The next day,Bert,who has not received Yasmin's letter,calls Yasmin and accepts her offer.Does a contract exist?

Accepted Answer

A) No,because Yasmin mailed her revocation before Bert's acceptance. 
B) No,because Yasmin can revoke her offer at any time. 
C) Yes,because Bert was not notified of Yasmin's revocation at the time he accepted. 
D) Yes,because mail is not a proper method of revoking an offer. 
A) No,because Yasmin mailed her revocation before Bert's acceptance. 
B) No,because Yasmin can revoke her offer at any time. 
C) Yes,because Bert was not notified of Yasmin's revocation at the time he accepted. 
D) Yes,because mail is not a proper method of revoking an offer.

Exam 10: The Agreement: Offer

A firm offer differs from an option in that,a firm offer:

Which of the following characterizes the Code's standards of definiteness?

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

Under the United Nations Convention on Contracts for the International Sale of Goods (CISG),a proposal will be considered an offer if it meets three requirements.Which of the following is not one of those requirements?

Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price.Such pens typically sell for $1 each.Carl orally accepts.Immediately thereafter,Abby tries to back out of the deal.At this point in time,which of the following is most likely to be true?

Ads that (1)limit the power of acceptance to one offeree or a small number of offerees,(2)are highly specific about the nature and number of items offered for sale and what is requested in return,and (3)leave nothing further to be negotiated are considered to be ________.

Which of the following is true of a revocation?

Which of the following is the first step in the contract formation process?

The outer limit on a firm offer's irrevocability is:

Which of the following statements about governmental contracts is true?

The ________ has the power to bind the person who makes an offer simply by accepting the offer.

What legal effect does death or insanity of the offeror have on the offer?

In Cordas v.Uber Technologies,Inc. ,the case in the text,the court held that:

Kyle sent Tara a letter offering to sell Tara his car.Tara left the letter on her desk,where her roommate,Maggie,saw it.After reading the letter,Maggie wrote to Kyle and stated that she (Maggie)wanted to accept Kyle's offer.Which of the following is true?

The term for a person who makes an offer is called?

When is the revocation of an offer effective?

Which of the following characterizes an auction "without reserve"?

According to classical contract law,courts are:

Yasmin offers to landscape Bert's property for $2,000.Two days after making the offer,Yasmin changes her mind and mails Bert a letter revoking her offer.The next day,Bert,who has not received Yasmin's letter,calls Yasmin and accepts her offer.Does a contract exist?

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

Environmental Regulation

Filters