Question 1

Only the offeree (or his or her agent) to whom an offer is directed can accept the offer.

Accepted Answer

A) True 
 B)False

Question 2

[Used Car Sales] Edwin sells used cars. He is looking for a way to increase sales and profits so that he can take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Edwin does is say that during the first week of December, he will give a $500 rebate on used cars that are under two years old. To spice things up, he also offers to sell any car on the lot that is over five years old for $1,000 to the first three customers who can jump rope for ten hours straight on December 7th. Edwin was not very concerned about the jumping rope issue because he thought that no one would be able to jump rope for ten hours straight. Edwin put an advertisement pertaining to the rebate and the jump rope opportunity in the local newspaper. The promotion went over very well. Although Edwin had several cars available, he ran out of cars under two years old within one day. During the rest of the week shoppers were told that cars of that description were no longer available. Josh was very angry at Edwin for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. On December 7th, while Edwin was watching people jump rope, Brandi was shopping for a car. She was in college and did not have much money. She saw one, an older car, a real clunker, that she liked; but wasn't sure if it could be repaired sufficiently to be dependable. Edwin had not even put a price on it because he planned to have it crushed. Brandi was going to talk to her parents about it. Edwin eventually approached her, and Brandi asked him if he would take $450 for the car. Edwin said, "Yes, sold." Brandi tried to explain that she needed to talk to her parents first, but Edwin would not hear of it. While Edwin was still fuming from his encounter with Brandi, Zack walked up and started to criticize the nature of Edwin's inventory. Edwin told him that he had great cars. Zack pointed at a beater that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $100,000 for that car!" Edwin said, "Sold." Zack said, "Wait a minute. I was only kidding." Edwin said, "No way." Meanwhile all the people jumping rope dropped out well prior to ten hours except for Emma. She completed the jumping rope and asked for her car for $1,000. Edwin refused saying that the offer was revoked. Josh and Emma sued Edwin, and Edwin sued Zack and Brandi. Under the applicable law in Edwin's state, common law will be applied, and there are no state statutes impacting the situation.
-What is the most likely result in the lawsuit brought by Emma against Edwin?

Accepted Answer

A)   Edwin will win because he was only engaged in preliminary negotiations.
B)   Edwin will win because the advertisement was simply inviting customers, such as Emma, to make an offer.
C)   Edwin will win because he properly revoked the offer.
D)   Emma will win because the ad would be treated as an offer that she properly accepted.
E)   Emma will win because she properly made an offer that was accepted by Edwin when she did the jump roping.F) B) and E)
G) All of the above

Question 3

The ________ sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer.

Accepted Answer

A)   matching rule
B)   competence rule
C)   mirror image rule
D)   mailbox rule
E)   parallel ruleF) D) and E)
G) C) and D)

Question 4

Which of the following is true of the Uniform Electronic Transactions Act rule for emails?

Accepted Answer

A)   It is an act prohibiting emails from constituting acceptance to an offer.
B)   It provides that an email is considered received when it enters an information processing system designated by the recipient, provided certain criteria are met.
C)   It is a repudiation of the mailbox rule for email.
D)   It is an act establishing the circumstances under which an email can be considered an offer.
E)   It is a rule establishing when an email creates an implied contract.F) B) and D)
G) A) and D)

Question 5

List the elements of an offer under the common law.

Accepted Answer

The elements of an offer are (...

Question 6

When distinguishing an offer from an invitation to negotiate, which of the following is accurate?

Accepted Answer

A)   Whether an offer in fact existed is a question of law.
B)   Whether an offer in fact existed is a question of fact.
C)   Whether an offer in fact existed is a mixed question of law and fact.
D)   Whether an offer in fact existed depends solely on whether the alleged offer included a specific price.
E)   Whether an offer in fact existed depends solely on whether an acceptance of the alleged offer was made immediately so that the offeror knew he or she was bound.F) C) and D)
G) A) and D)

Question 7

Which of the following is true regarding the Uniform Commercial Code?

Accepted Answer

A)   It does not affect the making of an agreement and only applies after an agreement is formed.
B)   It applies only in situations not addressed at all by the common law.
C)   It applies only to clarify common law in situations in which the common law is unclear.
D)   It applies in all situations involving agreements.
E)   Some elements of a contract under the common law have been modified under the UCC for contracts for the sale of goods.F) B) and E)
G) C) and E)

Question 8

An offeror has no legal right to revoke an offer before receiving a reply to their offer.

Accepted Answer

A) True 
 B)False

Question 9

Courts interpret contracts using both objective and subjective standards.

Accepted Answer

A) True 
 B)False

Question 10

Judith, an ill-tempered business law teacher, offers $50 to any student who will mow her lawn. Peter goes right over and begins mowing. Just before he finishes, Judith goes over and tells him that she revokes her offer. Which of the following is true regarding Peter's entitlement to payment?

Accepted Answer

A)   Peter is not entitled to payment because a bilateral contract was involved that could only be accepted by full performance prior to revocation.
B)   Peter is not entitled to payment because a unilateral contract was involved that could only be accepted by full performance prior to revocation.
C)   Peter is entitled to only a proportional recovery based on the amount of work he had done prior to the revocation because Judith always retained the right to validly revoke.
D)   Peter is entitled to recover because a unilateral contract was involved, and he was entitled to a reasonable amount of time to complete the job.
E)   Peter is entitled to recover because a bilateral contract was involved, and he was entitled to a reasonable amount of time to complete the job.F) D) and E)
G) B) and D)

Question 11

[Used Car Sales] Edwin sells used cars. He is looking for a way to increase sales and profits so that he can take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Edwin does is say that during the first week of December, he will give a $500 rebate on used cars that are under two years old. To spice things up, he also offers to sell any car on the lot that is over five years old for $1,000 to the first three customers who can jump rope for ten hours straight on December 7th. Edwin was not very concerned about the jumping rope issue because he thought that no one would be able to jump rope for ten hours straight. Edwin put an advertisement pertaining to the rebate and the jump rope opportunity in the local newspaper. The promotion went over very well. Although Edwin had several cars available, he ran out of cars under two years old within one day. During the rest of the week shoppers were told that cars of that description were no longer available. Josh was very angry at Edwin for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. On December 7th, while Edwin was watching people jump rope, Brandi was shopping for a car. She was in college and did not have much money. She saw one, an older car, a real clunker, that she liked; but wasn't sure if it could be repaired sufficiently to be dependable. Edwin had not even put a price on it because he planned to have it crushed. Brandi was going to talk to her parents about it. Edwin eventually approached her, and Brandi asked him if he would take $450 for the car. Edwin said, "Yes, sold." Brandi tried to explain that she needed to talk to her parents first, but Edwin would not hear of it. While Edwin was still fuming from his encounter with Brandi, Zack walked up and started to criticize the nature of Edwin's inventory. Edwin told him that he had great cars. Zack pointed at a beater that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $100,000 for that car!" Edwin said, "Sold." Zack said, "Wait a minute. I was only kidding." Edwin said, "No way." Meanwhile all the people jumping rope dropped out well prior to ten hours except for Emma. She completed the jumping rope and asked for her car for $1,000. Edwin refused saying that the offer was revoked. Josh and Emma sued Edwin, and Edwin sued Zack and Brandi. Under the applicable law in Edwin's state, common law will be applied, and there are no state statutes impacting the situation.
-Which of the following is the most likely result in the lawsuit brought by Josh complaining that Edwin ran out of cars available for a rebate?

Accepted Answer

A)   Josh will win because Edwin was required to have sufficient cars on hand for anyone who requested one.
B)   Josh will win because a rebate was involved.
C)   Josh will win because Edwin should have run another ad revoking the offer.
D)   Josh will lose because he did not properly accept the offer.
E)   Josh will lose because a court would interpret the intent of Edwin as being to invite readers to make an offer that Edwin was free to reject.F) B) and D)
G) A) and B)

Question 12

If the offeror becomes incapacitated or dies, the offer immediately terminates.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the phrase used to explain why an offeror has the right to revoke an offer before acceptance?

Accepted Answer

A)   The offeror is the "controller of his offer."
B)   The offeror is the "master of his offer."
C)   The offeror is the "proponent of his offer."
D)   The offeror is the "adjudicator of his offer."
E)   The offeror is the "arbiter of his offer."F) D) and E)
G) C) and D)

Question 14

Before Glenn died, he had an option contract with Jerome. The administrator of Glenn's estate ________

Accepted Answer

A)   must hold the offer open until it expires in accordance with the contract.
B)   is not obligated to hold the offer open to Jerome since Glenn died.
C)   can decide if he or she wants to keep the option contract with Jerome.
D)   must seek a court's permission to honor the option contract.
E)   the estate's heirs can decide to hold the option contract open.F) A) and B)
G) B) and D)

Question 15

Anna and Vivian are discussing a piece of property in a downtown mall. Anna wishes to ensure that an offer will in fact be held open for her for two weeks while she secures funding. Anna may enter into a[n] ________ with Vivian to hold the offer open for her for two weeks.

Accepted Answer

A)   option contract
B)   lease agreement
C)   offer agreement
D)   adhesion contract
E)   property offerF) B) and E)
G) D) and E)

Question 16

Which of the following is not a termination of an offer?

Accepted Answer

A)   Revocation
B)   Counteroffer
C)   Illegality
D)   Lapse of time
E)   Delivery of the goodsF) None of the above
G) All of the above

Question 17

[Saturday Auction] Randy, an auctioneer, held an auction on a Saturday morning. At the beginning of the auction, Randy announced that the auction was being held without reserve. Erin, Maria, and Steve were all in attendance. Erin saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale noting that the drawer was stuck but that it could probably be fixed with little effort. Erin bought it for $20. When she got it home, she discovered that it actually contained $5,000 in cash. Unfortunately, Erin had a teenage son who started bragging to his friends about the family's good fortune. Randy heard about what had happened and sued Erin for return of the $5,000. At the same auction, Maria saw a great deal on a used table, and bid $20 on it. No one else bid anything. Randy announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Steve started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Randy was getting ready to say "Sold," Steve looked over at his girlfriend, decided that he was not sure about marriage, and jumped up yelling "I revoke." Randy, however, immediately after, yelled "Sold." Randy sues Steve attempting to obtain the money for the engagement ring. Randy also sues Erin seeking to recover the $5,000 contained in the stuck drawer. Maria sues Randy attempting to obtain possession of the table.
-In the lawsuit in which Randy sues Erin for return of the $5,000, which of the following is the most likely result?

Accepted Answer

A)   Randy will win because when an auction is held without reserve, the auctioneer is entitled to repossess any item at will.
B)   Randy will lose only because he was not the actual seller. He was only selling at auction for someone else. The seller, however, would win in an action against Erin.
C)   Randy would win because Erin made an insufficient offer.
D)   Erin will win only if she can show that Randy had knowledge that cash was in the drawer before he sold it.
E)   Erin will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck.F) D) and E)
G) B) and D)

Question 18

In an auction ________, the seller is treated as making an offer to accept the highest bid.

Accepted Answer

A)   Without controls
B)   With controls
C)   Without reserve
D)   With reserve
E)   Without qualificationsF) None of the above
G) All of the above

Question 19

Which of the following is true regarding the termination of an offer based on a rejection?

Accepted Answer

A)   Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.
B)   Even on rejection, an offer is not terminated until the expiration of the time period for which it was originally to remain open.
C)   An offer must remain open for at least two days before it is terminated following a rejection by an offeree.
D)   An offer must remain open for at least three days before it is terminated following a rejection by an offeree.
E)   An offer must remain open for at least one day before it is terminated following a rejection by an offeree.F) B) and C)
G) B) and D)

Question 20

Mari tells Daniel that she will mow his yard during the summer for $800. Daniel considers it and then drops a note in the mail to Mari telling her that he rejects her offer. However, he thinks about it again and calls her to tell her that he accepts the offer before she receives his rejection. Which of the following is true under the mailbox rule?

Accepted Answer

A)   The offer was no longer outstanding because of the rejection.
B)   Daniel could not accept verbally.
C)   Daniel validly accepted, but his acceptance was revoked when Mari received the rejection.
D)   The acceptance was invalid because the mailbox rule requires that the time of payment be specifically set forth before an acceptance is formalized.
E)   The acceptance is valid, and the rejection has no effect.F) A) and E)
G) A) and D)

Exam 14: Agreement

List the elements of an offer under the common law.

Correct Answer
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The elements of an offer are (...
View Answer

Which of the following is not a termination of an offer?

Correct Answer
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Courts interpret contracts using both objective and subjective standards.

Correct Answer
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Correct Answer
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In an auction ________, the seller is treated as making an offer to accept the highest bid.

Correct Answer
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Which of the following is true regarding the termination of an offer based on a rejection?

Correct Answer
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When distinguishing an offer from an invitation to negotiate, which of the following is accurate?

Correct Answer
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Which of the following is true of the Uniform Electronic Transactions Act rule for emails?

Correct Answer
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Correct Answer
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Which of the following is the phrase used to explain why an offeror has the right to revoke an offer before acceptance?

Correct Answer
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Judith, an ill-tempered business law teacher, offers $50 to any student who will mow her lawn. Peter goes right over and begins mowing. Just before he finishes, Judith goes over and tells him that she revokes her offer. Which of the following is true regarding Peter's entitlement to payment?

Correct Answer
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Before Glenn died, he had an option contract with Jerome. The administrator of Glenn's estate ________

Correct Answer
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Correct Answer
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If the offeror becomes incapacitated or dies, the offer immediately terminates.

Correct Answer
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Correct Answer
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Anna and Vivian are discussing a piece of property in a downtown mall. Anna wishes to ensure that an offer will in fact be held open for her for two weeks while she secures funding. Anna may enter into a[n] ________ with Vivian to hold the offer open for her for two weeks.

Correct Answer
verified

Which of the following is true regarding the Uniform Commercial Code?

Correct Answer
verified

The ________ sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer.

Correct Answer
verified

Only the offeree (or his or her agent) to whom an offer is directed can accept the offer.

Correct Answer
verified

An offeror has no legal right to revoke an offer before receiving a reply to their offer.

Correct Answer
verified

Exam 14: Agreement

List the elements of an offer under the common law.

Correct AnswerverifiedThe elements of an offer are (...View AnswerShow Answer

Which of the following is not a termination of an offer?

Correct AnswerverifiedShow Answer

Courts interpret contracts using both objective and subjective standards.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In an auction ________, the seller is treated as making an offer to accept the highest bid.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the termination of an offer based on a rejection?

Correct AnswerverifiedShow Answer

When distinguishing an offer from an invitation to negotiate, which of the following is accurate?

Correct AnswerverifiedShow Answer

Which of the following is true of the Uniform Electronic Transactions Act rule for emails?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the phrase used to explain why an offeror has the right to revoke an offer before acceptance?

Correct AnswerverifiedShow Answer

Judith, an ill-tempered business law teacher, offers $50 to any student who will mow her lawn. Peter goes right over and begins mowing. Just before he finishes, Judith goes over and tells him that she revokes her offer. Which of the following is true regarding Peter's entitlement to payment?

Correct AnswerverifiedShow Answer

Before Glenn died, he had an option contract with Jerome. The administrator of Glenn's estate ________

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the offeror becomes incapacitated or dies, the offer immediately terminates.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Anna and Vivian are discussing a piece of property in a downtown mall. Anna wishes to ensure that an offer will in fact be held open for her for two weeks while she secures funding. Anna may enter into a[n] ________ with Vivian to hold the offer open for her for two weeks.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the Uniform Commercial Code?

Correct AnswerverifiedShow Answer

The ________ sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer.

Correct AnswerverifiedShow Answer

Only the offeree (or his or her agent) to whom an offer is directed can accept the offer.

Correct AnswerverifiedShow Answer

An offeror has no legal right to revoke an offer before receiving a reply to their offer.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The elements of an offer are (...
View Answer

Correct Answer
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Correct Answer
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