Question 1

Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if

Accepted Answer

A)  Alan does not communicate it to Carol. 
B)  Alan secretly does not intend to be bound by the offer. 
C)  Carol is not capable of accepting the offer. 
D)  the terms of the offer are not reasonably definite. 
A)  Alan does not communicate it to Carol. 
B)  Alan secretly does not intend to be bound by the offer. 
C)  Carol is not capable of accepting the offer. 
D)  the terms of the offer are not reasonably definite.

Question 2

In an auction, the auctioneer is an offeror.

Accepted Answer

A) True 
 B)False

Question 3

Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local's

Accepted Answer

A)  assumptions. 
B)  beliefs. 
C)  intentions. 
D)  words and conduct. 
A)  assumptions. 
B)  beliefs. 
C)  intentions. 
D)  words and conduct.

Question 4

If an acceptance of an offer is received after the offer has been rejected, there is no contract.

Accepted Answer

A) True 
 B)False

Question 5

John says to Kris, "I would like to sell you my sports memorabilia collec?tion." This is not an offer because it

Accepted Answer

A)  does not describe the subject matter specifically. 
B)  does not include a price term. 
C)  only expresses an opinion. 
D)  only invites Kris to negotiate. 
A)  does not describe the subject matter specifically. 
B)  does not include a price term. 
C)  only expresses an opinion. 
D)  only invites Kris to negotiate.

Question 6

A valid offer requires reasonably certain terms.

Accepted Answer

A) True 
 B)False

Question 7

Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is

Accepted Answer

A)  a valid offer. 
B)  not a valid offer because the terms are not definite. 
C)  not a valid offer because Yvon did not state an intent. 
D)  not a valid offer because Zack did not respond. 
A)  a valid offer. 
B)  not a valid offer because the terms are not definite. 
C)  not a valid offer because Yvon did not state an intent. 
D)  not a valid offer because Zack did not respond.

Question 8

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re?ward because he

Accepted Answer

A)  did not confer a benefit on Elmo by returning the dog. 
B)  did not know of the reward when he found and returned the dog. 
C)  does not need the money. 
D)  returned the dog. 
A)  did not confer a benefit on Elmo by returning the dog. 
B)  did not know of the reward when he found and returned the dog. 
C)  does not need the money. 
D)  returned the dog.

Question 9

Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re?quired urgently. It would be most reasonable for Unified to accept via

Accepted Answer

A)  a fax, a letter, or a phone call to TF within two weeks. 
B)  a fax sent to TF as soon as the offer is received. 
C)  a letter mailed to TF within two days. 
D)  a phone call to TF within five business days. 
A)  a fax, a letter, or a phone call to TF within two weeks. 
B)  a fax sent to TF as soon as the offer is received. 
C)  a letter mailed to TF within two days. 
D)  a phone call to TF within five business days.

Question 10

Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to de?termine if a contract has been breached, under the common law, the offer must include terms that are

Accepted Answer

A)  exactly precise. 
B)  reasonably definite. 
C)  unequivocally approximate. 
D)  vague or uncertain. 
A)  exactly precise. 
B)  reasonably definite. 
C)  unequivocally approximate. 
D)  vague or uncertain.

Question 11

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

Accepted Answer

A)  creates an illegal contract by adding a clause to BPI's offer. 
B)  makes the offer irrevocable for three days if BPI accepts. 
C)  negates BPI's offer by changing the price term. 
D)  voids BPI's offer by extending the time term. 
A)  creates an illegal contract by adding a clause to BPI's offer. 
B)  makes the offer irrevocable for three days if BPI accepts. 
C)  negates BPI's offer by changing the price term. 
D)  voids BPI's offer by extending the time term.

Question 12

An invitation to negotiate-"can you afford this?"-is an offer.

Accepted Answer

A) True 
 B)False

Question 13

Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "person?alized" letter inviting him to buy any item in the catalogue at the advertised price. This is

Accepted Answer

A)  an offer because of the "person?alized" letter. 
B)  an offer because there is no room for price negotiation. 
C)  an offer only if Dean previously bought items from CSI. 
D)  not an offer. 
A)  an offer because of the "person?alized" letter. 
B)  an offer because there is no room for price negotiation. 
C)  an offer only if Dean previously bought items from CSI. 
D)  not an offer.

Question 14

Revocation of an offer made to the general public must be com?muni?cated in the same manner in which the offer was communicated.

Accepted Answer

A) True 
 B)False

Question 15

An acceptance terminates an offer.

Accepted Answer

A) True 
 B)False

Question 16

Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete

Accepted Answer

A)  as soon as Frank says he will unload the truck. 
B)  once Frank starts to unload the truck. 
C)  only after Frank unloads the truck. 
D)  when Frank hears Eve's offer. 
A)  as soon as Frank says he will unload the truck. 
B)  once Frank starts to unload the truck. 
C)  only after Frank unloads the truck. 
D)  when Frank hears Eve's offer.

Question 17

An offeror can revoke an option contract at any time.

Accepted Answer

A) True 
 B)False

Question 18

Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property

Accepted Answer

A)  only before the auctioneer announces that the ranch is sold. 
B)  only before the auctioneer delivers the deed to the buyer. 
C)  under no circumstances. 
D)  within thirty days after the auction. 
A)  only before the auctioneer announces that the ranch is sold. 
B)  only before the auctioneer delivers the deed to the buyer. 
C)  under no circumstances. 
D)  within thirty days after the auction.

Question 19

State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is

Accepted Answer

A)  in transit. 
B)  received. 
C)  sent. 
D)  written. 
A)  in transit. 
B)  received. 
C)  sent. 
D)  written.

Question 20

If the subject matter of an offer is destroyed, the offer will continue to ex?ist for a rea?son?able time to permit the seller to acquire replacement goods.

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if

In an auction, the auctioneer is an offeror.

Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local's

If an acceptance of an offer is received after the offer has been rejected, there is no contract.

John says to Kris, "I would like to sell you my sports memorabilia collec?tion." This is not an offer because it

A valid offer requires reasonably certain terms.

Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re?ward because he

Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re?quired urgently. It would be most reasonable for Unified to accept via

Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to de?termine if a contract has been breached, under the common law, the offer must include terms that are

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

An invitation to negotiate-"can you afford this?"-is an offer.

Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "person?alized" letter inviting him to buy any item in the catalogue at the advertised price. This is

Revocation of an offer made to the general public must be com?muni?cated in the same manner in which the offer was communicated.

An acceptance terminates an offer.

Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete

An offeror can revoke an option contract at any time.

Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property

State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is

If the subject matter of an offer is destroyed, the offer will continue to ex?ist for a rea?son?able time to permit the seller to acquire replacement goods.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

The Statute of Fraudswriting Requirements

Ethics and Business Decision Making

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Terminology

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks, the Banking System, and E-Money

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Liability to Third Parties and Termination

Employment and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporationsformation and Financing

Corporationsdirectors, Officers, Shareholders

Corporationsmerger, Consolidation, Termination

Corporationssecurities Law Corporate Governance

Law for Small Businesses

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Personal Property and Bailments

Real Property and Landlord-Tenant Relationships

Insurance

Wills and Trusts

Professional Liaility and Accountability

International Law in a Global Economy

Legal and Ethical Issues in Business

Legal Issues

Contracts and Business Law

Contracts and Liability

Banking and Payment Systems

Loan Security and Repossession in Credit Transactions

Employment Law and Ethics

Legal Issues in Corporate Governance and Business Operations