Question 1

Distinguish between a rejection of an offer and a revocation of an offer.

Accepted Answer

Revocation of an offer is the cancellati

Question 2

An offer is an indefinite proposal made by one person to another.

Accepted Answer

A) True 
 B)False

Question 3

The law applies a subjective standard in determining whether there was the requisite intent to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom,"I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.In this case:

Accepted Answer

A) Maxine has revoked her offer to Tom. 
B) Maxine's offer is a firm offer and she must sell Tom a video camera for $200. 
C) Maxine must get the camera back from Cindy if Tom accepts within two weeks. 
D) an option contract was created, so Maxine is liable to Tom if she sells the camera to someone else within the two-week period. 
A) Maxine has revoked her offer to Tom. 
B) Maxine's offer is a firm offer and she must sell Tom a video camera for $200. 
C) Maxine must get the camera back from Cindy if Tom accepts within two weeks. 
D) an option contract was created, so Maxine is liable to Tom if she sells the camera to someone else within the two-week period.

Question 6

Hugh recently purchased a motorcycle for $3,000 but has had extensive problems starting the motor.In disgust at not being able to start the motor,Hugh shouts to his friends,"Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Hugh a twenty-dollar bill.

Accepted Answer

A) True 
 B)False

Question 7

In the case of Lefkowitz v.Great Minneapolis Surplus Store,Inc.,the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

Accepted Answer

A) True 
 B)False

Question 8

Pedro receives an unordered three-CD set in the mail accompanied by the statement,"This CD set can be purchased for the special price of $19.95.If the CDs are not returned within two weeks they will be deemed accepted and the payment is due within 30 days of receipt of the CDs." Pedro is under no obligation to either return the CDs or to pay for them; he may use them or give or throw them away.

Accepted Answer

A) True 
 B)False

Question 9

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime,on November 4,the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?

Accepted Answer

A) There was no contract. 
B) There was a contract since the acceptance was mailed prior to the time the rejection was received. 
C) There was no contract because the rejection was mailed first. 
D) There was no contract because the acceptance was mailed more than three days subsequent to the rejection. 
A) There was no contract. 
B) There was a contract since the acceptance was mailed prior to the time the rejection was received. 
C) There was no contract because the rejection was mailed first. 
D) There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

Question 10

An ad in a newspaper or a circular describing goods and stating prices would generally be considered:

Accepted Answer

A) a firm offer if made by a merchant. 
B) an offer if made by a merchant, but not a firm offer. 
C) an offer irrespective of who made the offer. 
D) an invitation to buyers to make an offer to buy goods. 
A) a firm offer if made by a merchant. 
B) an offer if made by a merchant, but not a firm offer. 
C) an offer irrespective of who made the offer. 
D) an invitation to buyers to make an offer to buy goods.

Question 11

The definition of commercial reasonableness as used in contract law includes:

Accepted Answer

A) the business judgment of expert business managers. 
B) that the practices customary in the type of transaction involved be used as a standard. 
C) the requirements to develop creative and innovative solutions never before used in a particular industry. 
D) None of the above. 
A) the business judgment of expert business managers. 
B) that the practices customary in the type of transaction involved be used as a standard. 
C) the requirements to develop creative and innovative solutions never before used in a particular industry. 
D) None of the above.

Question 12

If there is no time specified for the acceptance of an offer,when does the offer terminate?

Accepted Answer

A) After 48 hours from receipt of the offer. 
B) After two weeks from dispatch of the offer. 
C) After 30 days from receipt of the offer. 
D) After a reasonable period of time, which depends on the circumstances. 
A) After 48 hours from receipt of the offer. 
B) After two weeks from dispatch of the offer. 
C) After 30 days from receipt of the offer. 
D) After a reasonable period of time, which depends on the circumstances.

Question 13

Don offers to sell his diamond ring to Emily.If Diane overhears the offer and says,"I accept the offer":

Accepted Answer

A) Diane cannot accept because the offer wasn't made to her. 
B) this is a valid acceptance. 
C) the offer has not been communicated to the offeree. 
D) Diane cannot accept because this is an invitation seeking offers and not an offer. 
A) Diane cannot accept because the offer wasn't made to her. 
B) this is a valid acceptance. 
C) the offer has not been communicated to the offeree. 
D) Diane cannot accept because this is an invitation seeking offers and not an offer.

Question 14

On June 1,a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event.On June 30,the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

Accepted Answer

A) True 
 B)False

Question 15

An auctioneer is the offeror and a contract is formed when a bid is made.

Accepted Answer

A) True 
 B)False

Question 16

A __________ is the refusal to accept an offer.

Accepted Answer

A) revocation. 
B) counteroffer. 
C) rejection. 
D) statutory irrevocability. 
A) revocation. 
B) counteroffer. 
C) rejection. 
D) statutory irrevocability.

Question 17

If Todd seemingly offers to sell to Ashton his wood gun cabinet but intended to and believes he is offering his wood china cabinet,and Ashton accepts the offer,reasonably believing it is for the gun cabinet,a contract is formed for the sale of the gun cabinet.

Accepted Answer

A) True 
 B)False

Question 18

A contract is invalid if all of the terms are not clearly stated.

Accepted Answer

A) True 
 B)False

Question 19

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter,Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.In this case,Elmer:

Accepted Answer

A) has made a firm offer to Fred which cannot be revoked. 
B) can revoke his offer at any time before Fred accepts it, because there is no consideration to keep it open. 
C) must keep the offer open, because this is an option contract. 
D) cannot, because of promissory estoppel, revoke his offer to Fred. 
A) has made a firm offer to Fred which cannot be revoked. 
B) can revoke his offer at any time before Fred accepts it, because there is no consideration to keep it open. 
C) must keep the offer open, because this is an option contract. 
D) cannot, because of promissory estoppel, revoke his offer to Fred.

Question 20

Tim mails an offer to Brian on June 15.Brian receives the offer on June 16.Tim mails a revocation of the offer on June 17.Brian mails a letter of acceptance on June 18.Brian receives the revocation on June 19.Tim receives the letter of acceptance on June 20.Was a contract formed?

Accepted Answer

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

Exam 10: Mutual Assent

Distinguish between a rejection of an offer and a revocation of an offer.

An offer is an indefinite proposal made by one person to another.

The law applies a subjective standard in determining whether there was the requisite intent to enter into a contract.

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom,"I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.In this case:

Hugh recently purchased a motorcycle for $3,000 but has had extensive problems starting the motor.In disgust at not being able to start the motor,Hugh shouts to his friends,"Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Hugh a twenty-dollar bill.

In the case of Lefkowitz v.Great Minneapolis Surplus Store,Inc.,the court decided that the store's advertisement was not a valid offer to enter into a contract but was merely an invitation to make an offer.

An ad in a newspaper or a circular describing goods and stating prices would generally be considered:

The definition of commercial reasonableness as used in contract law includes:

If there is no time specified for the acceptance of an offer,when does the offer terminate?

Don offers to sell his diamond ring to Emily.If Diane overhears the offer and says,"I accept the offer":

On June 1,a civic club made an offer to pay a beer distributor to have ten kegs delivered to the city park for a July 4th fund-raising event.On June 30,the city passed a new law prohibiting consumption of alcohol in the city park.The civic club's offer is terminated on June 30.

An auctioneer is the offeror and a contract is formed when a bid is made.

A __________ is the refusal to accept an offer.

If Todd seemingly offers to sell to Ashton his wood gun cabinet but intended to and believes he is offering his wood china cabinet,and Ashton accepts the offer,reasonably believing it is for the gun cabinet,a contract is formed for the sale of the gun cabinet.

A contract is invalid if all of the terms are not clearly stated.

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000.After mailing the letter,Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.In this case,Elmer:

Tim mails an offer to Brian on June 15.Brian receives the offer on June 16.Tim mails a revocation of the offer on June 17.Brian mails a letter of acceptance on June 18.Brian receives the revocation on June 19.Tim receives the letter of acceptance on June 20.Was a contract formed?

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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