Question 1

A court decision that makes an offer illegal automatically terminates the offer.

Accepted Answer

A) True 
 B)False  True

Question 2

Under the mailbox rule, an acceptance takes effect at the time it is sent.

Accepted Answer

A) True 
 B)False  True

Question 3

Revocation is effective on dispatch.

Accepted Answer

A) True 
 B)False  False

Question 4

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Accepted Answer

A)   ​received.
B)   ​sent.
C)   ​followed up by a confirmation letter sent by regular mail.
D)   ​composed on a Relay computer.

Question 5

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Accepted Answer

A)   ​reasonably clear.
B)   ​vaguely ambiguous.
C)   ​practical.
D)   ​standardized.

Question 6

Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer

Accepted Answer

A)   ​before Thom accepts the offer.
B)   ​before April 1, whether or not Thom has accepted the offer.
C)   ​only after Thom accepts the offer.
D)   ​only after April 1.

Question 7

Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he

Accepted Answer

A)   ​did not confer a benefit on Laredo by returning the dog.
B)   ​did not know of the reward when he returned the dog.
C)   ​did not ask for the reward when he returned the dog.
D)   ​returned the dog.

Question 8

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

Accepted Answer

A)   ​still open.
B)   ​terminated.
C)   ​rejected and subject to a counteroffer.
D)   ​revoked.

Question 9

An ad on the NewsNow Web site asks viewers to "send us your story and we might share it with the world." Ollie submits a manuscript, adding, "I accept your offer." Between NewsNow and Ollie, there is

Accepted Answer

A)   ​a contract for the publication of Ollie's story.
B)   ​a contract to consider Ollie's story before any others.
C)   ​a contract to negotiate for the publication of Ollie's story.
D)   ​no contract.

Question 10

An e-contract must meet the same basic requirements as those required of a paper contract.

Accepted Answer

A) True 
 B)False

Question 11

Jon says to Kris, "I would like to sell you my sports memorabilia collection." This is not an offer because it

Accepted Answer

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

Question 12

A statement of future intent-"I plan to sell my car"-is an offer.

Accepted Answer

A) True 
 B)False

Question 13

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is

Accepted Answer

A)   ​a browse-wrap term.
B)   ​a click-on agreement.
C)   ​a shrink-wrap agreement.
D)   ​a partnering agreement.

Question 14

In a bilateral contract, communication of acceptance is necessary.

Accepted Answer

A) True 
 B)False

Question 15

Green River Gas Company offers to sell Far East Energy, Ltd., a certain quantity of liquefied natural gas. If Far East sends an acceptance via Green River's authorized mode of communication, it will be effective when it is

Accepted Answer

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

Question 16

Pastries, Inc., sends its catalogue to Rollo and includes a "personalized" letter inviting the purchase of any item at the advertised price. This is

Accepted Answer

A)   ​an offer because of the "personalized" letter.
B)   ​an offer because there is no room for price negotiation.
C)   ​an offer only if Rollo previously bought items from Pastries.
D)   ​not an offer.

Question 17

There are no revocable offers.

Accepted Answer

A) True 
 B)False

Question 18

Dispatch Corporation and Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is

Accepted Answer

A)   ​a partnering agreement.
B)   ​a click-on agreement.
C)   ​a shrink-wrap agreement.
D)   ​a choice-of-law clause.

Question 19

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

Accepted Answer

A) True 
 B)False

Question 20

Business Properties, Inc. (BPI), offers to sell a cold storage 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.

Exam 8: Agreement in Traditional and E-Contracts

A court decision that makes an offer illegal automatically terminates the offer.

Under the mailbox rule, an acceptance takes effect at the time it is sent.

Revocation is effective on dispatch.

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer

Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

An ad on the NewsNow Web site asks viewers to "send us your story and we might share it with the world." Ollie submits a manuscript, adding, "I accept your offer." Between NewsNow and Ollie, there is

An e-contract must meet the same basic requirements as those required of a paper contract.

Jon says to Kris, "I would like to sell you my sports memorabilia collection." This is not an offer because it

A statement of future intent-"I plan to sell my car"-is an offer.

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is

In a bilateral contract, communication of acceptance is necessary.

Green River Gas Company offers to sell Far East Energy, Ltd., a certain quantity of liquefied natural gas. If Far East sends an acceptance via Green River's authorized mode of communication, it will be effective when it is

Pastries, Inc., sends its catalogue to Rollo and includes a "personalized" letter inviting the purchase of any item at the advertised price. This is

There are no revocable offers.

Dispatch Corporation and Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

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