Question 1

The intention to accept an offer must be a present intent to contract on the part of the offeree.

Accepted Answer

A) True 
 B)False  True

Question 2

Mr.Blue enters into negotiation with Mr.Green to build a house.Both parties expected a written and signed purchase agreement.After agreeing on the terms,Mr.Green is told by his subcontractors that some of their prices have gone up.Mr.Blue objects and indicates that there was a contract when the parties agreed to the original terms orally.A court will find that no contract existed since the parties expected acceptance to be in written form.

Accepted Answer

A) True 
 B)False  True

Question 3

Under the common law of contracts,what is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror?

Accepted Answer

A) It is valid but unenforceable. 
B) It is invalid but enforceable. 
C) It is effective when received. 
D) It leads to an immediate revocation. 
A) It is valid but unenforceable. 
B) It is invalid but enforceable. 
C) It is effective when received. 
D) It leads to an immediate revocation. C

Question 4

Which of the following considers a properly dispatched acceptance sent by any reasonable means of communication within a reasonable time to be effective on dispatch?

Accepted Answer

A) Traditional contract laws 
B) UCC 
C) CISG 
D) Restatement (Secon
D)  
A) Traditional contract laws 
B) UCC 
C) CISG 
D) Restatement (Secon
D)

Question 5

In determining whether an offeree accepted an offer and created a contract,a court will look for evidence of three factors.  Which of the following is not one of those factors?

Accepted Answer

A) Whether the offeree intended to enter the contract 
B) Whether the offeree understood the terms of the offer 
C) Whether the offeree accepted on the terms proposed by the offeror 
D) Whether the offeree communicated his acceptance to the offeror 
A) Whether the offeree intended to enter the contract 
B) Whether the offeree understood the terms of the offer 
C) Whether the offeree accepted on the terms proposed by the offeror 
D) Whether the offeree communicated his acceptance to the offeror

Question 6

According to the Code,when there is an acceptance that contains terms that are different from the original terms of the contract,the contract will consist of ________ and the appropriate gap-filling presumptions of the Code.

Accepted Answer

A) an inquiry regarding terms 
B) notifications to prevent breach of conduct 
C) counteroffers from either party 
D) terms on which the parties' writings agree 
A) an inquiry regarding terms 
B) notifications to prevent breach of conduct 
C) counteroffers from either party 
D) terms on which the parties' writings agree

Question 7

Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?

Accepted Answer

A) A material change to an original offer is disfavored by traditional contract law. 
B) It changes the degree of the offeror's interest to contract. 
C) Such an action implies a rejection of the offer by the offeree. 
D) It puts the offeree in a dominant position,which is contrary to traditional contract laws. 
A) A material change to an original offer is disfavored by traditional contract law. 
B) It changes the degree of the offeror's interest to contract. 
C) Such an action implies a rejection of the offer by the offeree. 
D) It puts the offeree in a dominant position,which is contrary to traditional contract laws.

Question 8

Which party to contract negotiations is the master of the offer and can specify what behavior is necessary to constitute a valid acceptance?

Accepted Answer

A) The Offeror 
B) The Offeree 
C) The Secretary of State 
D) The court 
A) The Offeror 
B) The Offeree 
C) The Secretary of State 
D) The court

Question 9

If the offeree accepts the offer's terms while complaining about them,it is called a grumbling acceptance.

Accepted Answer

A) True 
 B)False

Question 10

The UCC's modified version of the mirror image rule is called the:

Accepted Answer

A) Knock-Out Rule. 
B) Substantive Form Rule. 
C) Last Shot Rule. 
D) Battle of the Forms. 
A) Knock-Out Rule. 
B) Substantive Form Rule. 
C) Last Shot Rule. 
D) Battle of the Forms.

Question 11

What can an offeror do to minimize the risk posed by the mailbox rule?

Accepted Answer

A) Include separate additional terms 
B) Include a receipt stipulation in the contract 
C) Select only known parties as original offerees 
D) Revoke the offer before acceptance 
A) Include separate additional terms 
B) Include a receipt stipulation in the contract 
C) Select only known parties as original offerees 
D) Revoke the offer before acceptance

Question 12

In Cabot Oil & Gas Corporation v.Daugherty Petroleum,Inc. ,the case in the text,the court determined whether the parties intended for a written document to be their formal written contract.Which of the following was not one of the factors the court considered?

Accepted Answer

A) Whether the contract has few or many details 
B) Whether a reasonable person would believe such a document to be a binding contract 
C) Whether the contract amount is large or small 
D) Whether the negotiations themselves indicate that a written draft is contemplated as a final conclusion of the negotiations 
A) Whether the contract has few or many details 
B) Whether a reasonable person would believe such a document to be a binding contract 
C) Whether the contract amount is large or small 
D) Whether the negotiations themselves indicate that a written draft is contemplated as a final conclusion of the negotiations

Question 13

Under the common law,an offer for a unilateral contract:

Accepted Answer

A) is accepted by full performance of the requested act. 
B) is accepted either by an appropriate act or an appropriate promise. 
C) is accepted by whatever means are reasonable under the circumstances. 
D) is accepted by making the promise requested by the offer. 
A) is accepted by full performance of the requested act. 
B) is accepted either by an appropriate act or an appropriate promise. 
C) is accepted by whatever means are reasonable under the circumstances. 
D) is accepted by making the promise requested by the offer.

Question 14

Mr.Yellow delivers a stack of newspapers to Mr.Green's store to see if he wants them.A note attached indicates the stack of papers is $50.Mr.Green,without communicating an acceptance,sold the entire stack of papers to his customers.What is the status of the agreement between Mr.Yellow and Mr.Green?

Accepted Answer

A) There is no contract because Mr.Green did not expressly accept the offer 
B) There is a contract because Mr.Green implied acceptance by his action 
C) There is no contract because the goods are treated as gifts to Mr.Green 
D) There is no contract because the Secretary of State was not notified 
A) There is no contract because Mr.Green did not expressly accept the offer 
B) There is a contract because Mr.Green implied acceptance by his action 
C) There is no contract because the goods are treated as gifts to Mr.Green 
D) There is no contract because the Secretary of State was not notified

Question 15

In recent times,the mirror image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

Accepted Answer

A) True 
 B)False

Question 16

Mr.White contracts with Mr.Green for 100 black coffee mugs.Mr.White decides he needs the mugs faster than the time allotted in the contract and asks for a rush shipment.Mr.Green notifies Mr.White that he will ship 100 coffee mugs but that the only ones available are red.A court will find that the shipment of red mugs under the UCC is not a breach of the original agreement.

Accepted Answer

A) True 
 B)False

Question 17

Why is the mirror image rule not strictly applied to modern commercial transactions?

Accepted Answer

Modern commercial transactions are carri

Question 18

An acceptance is assent to a proposal by the offeree to the offeror.

Accepted Answer

A) True 
 B)False

Question 19

What does the term "grumbling acceptance" mean?

Accepted Answer

A) Accepting the offer by maintaining one's silence 
B) Making material changes to a contract when accepting it 
C) Inquiring about the terms of the offer without rejecting it 
D) Accepting an offer while complaining about the terms 
A) Accepting the offer by maintaining one's silence 
B) Making material changes to a contract when accepting it 
C) Inquiring about the terms of the offer without rejecting it 
D) Accepting an offer while complaining about the terms

Question 20

Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

Accepted Answer

A) True 
 B)False

Exam 11: The Agreement: Acceptance

The intention to accept an offer must be a present intent to contract on the part of the offeree.

Under the common law of contracts,what is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror?

Which of the following considers a properly dispatched acceptance sent by any reasonable means of communication within a reasonable time to be effective on dispatch?

In determining whether an offeree accepted an offer and created a contract,a court will look for evidence of three factors. Which of the following is not one of those factors?

According to the Code,when there is an acceptance that contains terms that are different from the original terms of the contract,the contract will consist of ________ and the appropriate gap-filling presumptions of the Code.

Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?

Which party to contract negotiations is the master of the offer and can specify what behavior is necessary to constitute a valid acceptance?

If the offeree accepts the offer's terms while complaining about them,it is called a grumbling acceptance.

The UCC's modified version of the mirror image rule is called the:

What can an offeror do to minimize the risk posed by the mailbox rule?

In Cabot Oil & Gas Corporation v.Daugherty Petroleum,Inc. ,the case in the text,the court determined whether the parties intended for a written document to be their formal written contract.Which of the following was not one of the factors the court considered?

Under the common law,an offer for a unilateral contract:

Mr.Yellow delivers a stack of newspapers to Mr.Green's store to see if he wants them.A note attached indicates the stack of papers is $50.Mr.Green,without communicating an acceptance,sold the entire stack of papers to his customers.What is the status of the agreement between Mr.Yellow and Mr.Green?

In recent times,the mirror image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

Why is the mirror image rule not strictly applied to modern commercial transactions?

An acceptance is assent to a proposal by the offeree to the offeror.

What does the term "grumbling acceptance" mean?

Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

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: Offer

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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