Question 1

Destruction of the subject matter has what effect on the offer?

Accepted Answer

A) The offer is terminated. 
B) The offer is delayed until additional subject matter can be located. 
C) This creates an impossibility of fact that does not terminate the offer. 
D) The offer is merely delayed under the "Hardship Rule."

Question 2

The mirror image rule applies to:

Accepted Answer

A) an offer. 
B) a rejection. 
C) an acceptance. 
D) a revocation.

Question 3

When the method used by an offeree to accept is unauthorized, the traditional rule is that the acceptance is effective when received by the offeror, provided that it is received within the time during which the authorized means would have arrived.

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

The way parties usually show mutual assent is by:

Accepted Answer

A) an offer by words or conduct and an acceptance by words or conduct. 
B) a proposal in words and an acceptance in words. 
C) an act exchanged for an act. 
D) an offer and a counteroffer.

Question 6

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard.Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

Accepted Answer

A) True 
 B)False

Question 7

Material terms in a contract include all but which of the following?

Accepted Answer

A) The parties. 
B) Shipping method. 
C) Quality. 
D) Time of performance.

Question 8

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D) No, the offer was revoked before acceptance.

Question 9

A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is:

Accepted Answer

A) good faith. 
B) a subjective standard. 
C) commercial reasonableness. 
D) None of the above.

Question 10

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

Accepted Answer

A) An implied in fact contract has been formed. 
B) A unilateral contract has been formed. 
C) This created a formal contract. 
D) This created an option contract.

Question 11

An acceptance is generally effective upon dispatch.

Accepted Answer

A) True 
 B)False

Question 12

"B2C" transactions on the Internet:

Accepted Answer

A) are transactions between two businesses. 
B) cannot contain warranty disclaimers. 
C) are more complex for services than for goods. 
D) are enforceable only if the buyer has had an opportunity to review the proposed terms by way of an automatic screen, but are unenforceable if the buyer had to review the proposed terms by way of a link.

Question 13

An offer must be in a particular form to have legal effect.

Accepted Answer

A) True 
 B)False

Question 14

In the Catamount Slate Products, Inc.v.Sheldon case, the court found that:

Accepted Answer

A) the moment of contract formation is to be determined by the intent of the parties, which is a question of law. 
B) the intent of the parties to be bound to a contract is determined by an objective standard of what a reasonable person would have believed based on the words and conduct of the parties. 
C) the intent of the parties to be bound to a contract is determined by a subjective standard of what the parties actually believed. 
D) an oral agreement reached at mediation cannot constitute a binding, enforceable settlement agreement.

Question 15

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool.Marilyn called the advertiser and began swimming.She has reached lap number 460; she feels great and is sure she can make it all the way.The advertiser:

Accepted Answer

A) may revoke the offer since there has not yet been an acceptance. 
B) may not revoke the offer since Marilyn has already accepted it. 
C) must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps. 
D) must pay Marilyn $920, because she has performed 92% of the offer.

Question 16

a. What are the three essentials of an offer?
b. How does one distinguish between an offer and an invitation seeking offers?

Accepted Answer

The answer of a. What are the three essentials of...

Exam 10: Mutual Assent

Destruction of the subject matter has what effect on the offer?

The mirror image rule applies to:

When the method used by an offeree to accept is unauthorized, the traditional rule is that the acceptance is effective when received by the offeror, provided that it is received within the time during which the authorized means would have arrived.

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

The way parties usually show mutual assent is by:

Ricardo posts a sign in the neighborhood offering $50 for the return of his Saint Bernard.Alicia, who knows nothing of the reward, finds the dog and returns it to Ricardo.Alicia is entitled to the reward.

Material terms in a contract include all but which of the following?

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?

A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is:

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

An acceptance is generally effective upon dispatch.

"B2C" transactions on the Internet:

An offer must be in a particular form to have legal effect.

In the Catamount Slate Products, Inc.v.Sheldon case, the court found that:

Marilyn read an ad in the school newspaper offering a $1,000 swimming scholarship to anyone who could swim 500 laps in the school pool.Marilyn called the advertiser and began swimming.She has reached lap number 460; she feels great and is sure she can make it all the way.The advertiser:

a. What are the three essentials of an offer? b. How does one distinguish between an offer and an invitation seeking offers?