Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
49. In general, which of the following will not terminate an offer?
a. The death of the offeree
b. The death of the offeror
c. An inquiry by the offeree as to size or materials
d. An acceptance that adds a material term
50. Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on
June 17. Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20. Brian receives
the revocation on June 19. Was a contract formed?
a. Yes, on June 16
b. Yes, on June 18
c. Yes, on June 20
d. No, the offer was revoked before acceptance
51. Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that
Alice includes her word processing software. What is the status of their discussions?
a. There is a valid contract for the computer, the monitor, the printer, and the software.
b. There is no contract, because Bradley has made a counteroffer.
c. There is no contract, because the time for delivery has not been decided.
d. There is no contract, because the offer has been revoked by the offeror.
52. A is an offeree’s refusal to accept an offer.
a. revocation.
b. counteroffer
c. rejection
d. statutory irrevocability
53. Wes, who is an art collector, offered to buy a print from Le Monde Gallery. Le Monde balked at the price, sending
Wes a letter of rejection. That day it discovered that the print was not as highly valued as originally thought. Le
Monde immediately telephoned Wes to accept his offer. Is there a contract?
a. Yes, since the acceptance was received before the rejection
b. No, because the rejection was effective upon dispatch
c. No, because the rejection terminated the offer
d. Yes, because the acceptance is always effective upon dispatch
54. Gail sent a letter of acceptance to an offer that has expired. Gail has made:
a. a contract.
b. a rejection.
c. a revocation.
d. an offer.
55. An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):
a. firm offer if made by a merchant.
b. offer if made by a merchant, but not a firm offer.
c. offer irrespective of who made the offer.
d. invitation to buyers to make an offer to buy goods.
56. When does acceptance of an offer to enter into a unilateral contract generally occur?
a. Upon notice of intent to accept by the offeree.
b. Upon full performance by the offeror with the intention of accepting.
c. Upon commencement of performance by the offeree.
d. Upon full performance by the offeree with the intention of accepting.
57. Which of the following is correct with regard to counteroffers?
a. A counteroffer operates as a rejection of the original offer.
b. A conditional acceptance is a common type of counteroffer.
c. The receipt of a counteroffer terminates the original offer.
d. All of these are correct.
58. The UCC provides that a merchant is bound to keep a written offer open for a stated period but no longer than:
a. ten days.
b. two months.
c. three months.
d. a reasonable time.
59. Lynn offers to sell his house to Dennis for $95,000. Dennis responds, "I will pay you $95,000 if you will paint the
second floor." This response could best be described as:
a. an acceptance.
b. a counteroffer.
c. a rejection.
d. an invitation.
60. Destruction of the subject matter has what effect on the offer?
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."
61. To be effective, notice of revocation of an offer:
a. must be communicated directly to the offeree before the offeree has accepted.
b. may be communicated indirectly to the offeree through a third person.
c. must be dispatched before the offeree accepts; when notice actually reaches the offeree is not important.
d. is not addressed in the Restatement.
62. 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?
a. There was no contract because when an acceptance follows a prior rejection, the first communication to be
received by the offeror is the effective one.
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.
63. Under the common law, the must be the mirror image of the .
a. contract, consideration
b. contract, offer
c. offer, acceptance
d. acceptance, offer
64. 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?
a. An implied in fact contract has been formed.
b. A unilateral contract has been formed.
c. This is a formal contract.
d. This is an option contract.
65. Shirley hears about a reward being offered by the local television station for information leading to the arrest and
conviction of a local rapist. She supplies the requested information, and the suspect is then arrested and convicted. In
this case:
a. Shirley cannot collect the money unless the offer was specifically made to her by the station.
b. the offer by the television station was an offer made to the general public to enter into a unilateral contract,
which offer Shirley has accepted.
c. because Shirley failed to notify the station of her intention to supply the information before actually doing so,
she has not accepted their offer.
d. Shirley was just doing her duty as a citizen and has no right to the payment of any money.
66. The way parties usually show mutual assent is by:
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.
67. Leonard offers to sell his diamond ring to Emily. If Diane overhears the offer and says, "I accept the offer":
a. Diane cannot accept the offer, because it wasn't made to her.
b. this is a valid acceptance.
c. the offer has not been communicated to the offeree.
d. this is an invitation seeking offers and not an offer.
68. Which is an irrevocable offer?
a. A bid to construct a bridge for the city
b. An offer to buy stock in the ABC Corporation once it is formed
c. A unilateral offer to pay John $30 to mow your lawn at the point that he has completed half the job and
indicates he wishes to finish
d. All of these.
69. If an offer asks for acceptance by mail and the offeree faxes his acceptance:
a. there is no contract, and the offer is revoked.
b. there is a contract if the acceptance is actually received within the time the authorized means would have
arrived.
c. the acceptance is merely a counteroffer.
d. there is a contract, but only if the offeree calls the offeror and gets permission to fax the acceptance.
70. The UCC Battle of the Forms rule:
a. changes the mirror image rule.
b. may yield different results depending on whether the parties are merchants.
c. may result in formation of a contract different from the terms of the offer.
d. All of these.
71. Jack has been in the business of selling carpeting for 20 years. He calls Barb, who is opening another branch of her
furniture stores, and offers to sell her 100 yards of carpet at $12 per square yard. Barb agrees and sends back the
following letter confirming the deal:
Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the
price of $12 per square yard. We also reserve the right to purchase any additional yardage we need to carpet our
other showroom facilities at the same rate for one year from that date.
Very truly yours,
Barb
Which of the following is true?
a. There is a contract for only 100 yards of carpeting.
b. There is a contract for 100 yards plus the additional yardage.
c. There is no contract since Barb made a counteroffer.
d. There is no contract because the additional term is too uncertain to become a contract term.
72. Which of the following would NOT be a merchant under Article 2 of the UCC?
a. The owner of a hardware store which sells paint
b. A car mechanic who fixes used cars and sells them in his spare time
c. A person who inherits three speedboats and wants to sell them to buy a car
d. None of these are merchants.
73. Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00 each.
Irene sees the ad in the paper and goes to the store to stock up on business suits for her new job. Michelle
apologizes for the misprint. Irene has just finished a class in contract law and insists that the store sell her five suits
for $15.00. Irene threatens to sue Michelle for breach of contract. In this case:
a. Irene will win if she sues because this is a valid contract.
b. the ad in the newspaper is an offer to sell.
c. the ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Irene will not be
able to successfully sue for breach of contract.
d. None of these.
74. Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash. In response,
Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things
are working out as a partnership." In this case:
a. Miles has made a counteroffer; hence there is no contract.
b. Miles has rejected the terms of the original offer, but there is still a contract.
c. Chad is a merchant making a firm offer under Article 2 of the UCC. Hence there is a contract.
d. any indefinite provisions in the contract between Chad and Miles will be supplied by Article 2 of the UCC.
75. Which of the following would most probably be considered a valid offer?
a. "Would you like to buy this?"
b. "I'd give $50 for a cold glass of water."
c. "Special sale on DVRs today - $200 each."
d. "$100 reward for return of lost white-gold, men's wedding band inscribed with initials 'TEA' to Tony Adams,
350 Main Street, Peoria."
76. The case in which the court held that a newspaper advertisement was an offer because it contained a promise of
performance in definite terms in return for a requested act was:
a. Catamount Slate Products, Inc. v. Sheldon.
b. Newman v. Schiff.
c. Lefkowitz v. Great Minneapolis Surplus Store, Inc.
d. Osprey L.L.C. v. Kelly-Moore Paint Co., Inc.
77. Which of the following would most likely be a merchant with respect to the goods in question under the UCC
definition?
a. Amy is an authorized IBM computer dealer.
b. Brian employs two salesmen to sell his homemade furniture.
c. Clarence has a store in which he sells used lawn mowers.
d. All of these would be merchants.
78. Marilyn read an ad in the school newspaper offering a thousand dollar 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. 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.
79. Hannah, as a joke, offers to sell her violin to Mike. Her statement would have legal effect if:
a. the intended jest is so successful that Mike as a reasonable person under the circumstances believes the joke
is an offer and he accepts.
b. Hannah’s intent, determined subjectively, is to enter a contract.
c. Hannah’s intent, determined objectively, is not to enter a contract.
d. Mike did not, but should have realized that Hannah was not serious.
80. Bart sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla
delivers an acceptance to Federal Express, but due to an error, the letter is not sent out by the company until
Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective?
a. At 10 a.m. on Tuesday
b. At 11 a.m. on Tuesday
c. At 8 a.m. on Wednesday
d. At the time Bart receives the letter
81. In order to form a contract, the parties must:
a. manifest their agreement subjectively.
b. manifest their agreement objectively.
c. indicate solely through written word their intent.
d. create a formal document called a contract.
82. An offer need not take any particular form to have legal validity. To be effective, however, it must:
a. be spoken directly to the offeree.
b. always contain the price of the product or service offered.
c. always contain the place of delivery.
d. be communicated to the offeree.
83. Humberto writes to Stan asking if Stan will buy his cultivator for $600. Humberto’s question:
a. if answered in the affirmative by Stan, creates a contract.
b. indicates merely a willingness to enter into negotiation rather than a willingness to enter into a contract.
c. is a definite and certain offer communicated to an offeree.
d. is subject to the mirror image rule.
84. On June 1, Edward visited a bicycle sales and service center. Edward spotted a used bike he liked and was told by
the dealer that he could have the bike for $100 cash. Since Edward needed a few days to get the money, Edward
got a signed, written statement by the dealer that Edward could buy the bike for $100 at anytime on or before June
15. On June 10 Edward came to the dealer with the money, but the bike had been sold to another customer. Was the
dealer under any obligation to Edward to keep this offer open until June 15? Give legal reasoning for your answer.
85. Distinguish between a rejection of an offer and a revocation of an offer.
86.
a. How do Article 2 of the UCC and the Restatement deal with definiteness of contract
terms?
b. If an offer leaves open particulars of performance to be specified by one of the parties,
what limitations does Article 2 provide?
87.
a. What are the three essentials of an offer?
b. How does one distinguish between an offer and an invitation seeking offers?
a. For an offer to be effective, it must be communicated to the offeree, manifest an
88.
a. What is the common law mirror image rule?
b. How does the UCC Battle of the Forms provision vary from the common law mirror
image rule?
c. In situations where the UCC Battle of the Forms provision applies and writings exchanged
between the parties differ as to terms, how are the terms of the contract determined?
89. What are the ways in which an offer may be terminated?
90. If a person, without knowing of an advertised reward for information leading to the return of a lost dog, gives
information that leads to its return, is she entitled to the reward?
91. Discuss silence as acceptance of an offer.
