Deck 9: Offer and Acceptance

Question 1

A seller's price list is NOT an offer.

Answer 1

True

Question 2

For an offer to be effective,the offeror must have a serious intention to become bound by the offer.

Answer 2

True

Question 3

One necessary element for an effective offer is a reasonable price related to market value.

Answer 3

False

Question 4

An offer made to the public needs to be revoked in the same manner in which the offer was originally communicated.

Question 5

In most cases,listing an item in an auction constitutes an effective offer.

Question 6

An effective offer requires reasonably certain terms.

Question 7

A person who does not know about a reward CANNOT claim it.

Question 8

An agreement is evidenced by a single event: an acceptance.

Question 9

An offeror's subjective intent determines the effectiveness of an offer.

Question 10

An offer does NOT need to be communicated to the offeree to become effective.

Question 11

A circular letter is NOT evidence of an intent to enter into a contract.

Question 12

In most cases,an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.

Question 13

Revocation is effective on dispatch.

Question 14

An offer made in obvious anger is still an effective offer.

Question 15

An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.

Question 16

An offer must be practical to be effective.

Question 17

An expression of opinion is an effective offer as long as it is not made in jest.

Question 18

Most advertisements-"this property for sale"-are offers.

Question 19

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

Question 20

An invitation to negotiate is an agreement.

Question 21

When an offeree makes a counteroffer,he or she becomes the offeror.

Question 22

Some unilateral contracts do NOT require that an offeror be notified of acceptance.

Question 23

Jacqi tells Kenneth,who does not know how to perform comedy,that she will tutor him in the subject for $500.As an offer,this is

A)effective.
B)not effective,because comedy is not a serious subject.
C)not effective,because Jacqi's tutoring will be subjective.
D)not effective,because Kenneth has no knowledge of the subject.

Question 24

An offer that a statute makes illegal terminates only af?ter a rea?sonable time.

Question 25

Under the mailbox rule,no acceptance is valid until it is received.

Question 26

There are no revocable offers.

Question 27

Peter and Ray are riding their horses together.Peter jokingly tells Ray that Ray's horse is too slow.Ray laughs and jokingly responds "Yes,he is too slow! I would sell him for $5!" Peter hands Ray $5.This is

A)a valid acceptance because Peter gave Ray the money in a reasonable time.
B)a valid acceptance because there is consideration on both sides.
C)not a valid acceptance because Ray's offer was made in jest.
D)not a valid acceptance because Ray's horse is worth more than $5.

Question 28

An acceptance must be unequivocal.

Question 29

The death of an offeree does NOT terminate an offer.

Question 30

In a bilateral contract,communication of acceptance is necessary.

Question 31

If an offeror does not expressly specify a certain mode of acceptance,then acceptance can be made by any reasonable means.

Question 32

An acceptance that materially changes a term in the offer will still be considered an acceptance.

Question 33

If no time for acceptance is specified in an offer,the offer terminates after a reasonable length of time.

Question 34

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

Question 35

The mailbox rule applies to communication by phone and fax as well as the mail.

Question 36

Mary admires Julia's collection of scarves.Julia says "I might sell you a few someday,if I get tired of them." Julia's statement is

A)an effective offer.
B)not an effective offer because it has not been communicated to Mary.
C)not an effective offer because the Julia does not show a serious intent to be bound.
D)an acceptance.

Question 37

Fresh Fast Service,Inc.,offers to deliver produce to Growers' Market's customers for a certain price.Fresh's intent to extend a serious offer to Growers' Market is determined by reference to Fresh's

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

Question 38

May tries to start her new car with no success.She yells that she will sell the car to anyone for $10.Nick,a passerby who owns Nick's Pre-owned Autos,hands May $10.This is

A)a valid acceptance because May is seriously frustrated.
B)a valid acceptance because Nick is a car dealer.
C)not a valid acceptance because May does not seriously intend to sell.
D)not a valid acceptance because Nick is a car dealer.

Question 39

In most states,revocation becomes effective on receipt.

Question 40

The mirror image rule requires an acceptance to adhere exactly to an of?fer to create a contract.

Question 41

Pete and Will have an option contract for the sale of some fresh vegetables.Jane and Ashley have an option contract for the sale of some books.Neither contract has an exact period of time specified in the option.The reasonable period of time implied is

A)the same for both contracts.
B)shorter for the vegetable contract than for the book contract.
C)longer for the vegetable contract than for the book contract.
D)determined by state laws.

Question 42

Beth goes to Dr.Carlton for surgery.Carlton says that Beth should be fully healed within a week.Beth is not healed within a week.With respect to breach of contract,Carlton is

A)liable.
B)not liable,because surgery is not a proper sub?ject for a contract.
C)not liable,because the statement was an opinion.
D)not liable,but Beth is excused from paying Carlton.

Question 43

Barney offers to sell his Call Marketing Center to Domino for $100,000.Domino replies,"The price is too high.I will offer to buy it for $90,000." Domino has

A)accepted the offer.
B)made a counteroffer without rejecting the offer.
C)rejected the offer and made a counteroffer.
D)rejected the offer without making a counteroffer.

Question 44

Liz offers to sell Jock her iPad for $500 without any accessories.Under the mirror image rule,Jock's response will be considered an acceptance if the terms of the acceptance

A)exactly mirror those of the offer.
B)change the items offered,but do not change the price.
C)change the price,but do not change the items offered.
D)change both the price and the items offered.

Question 45

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

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 46

Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac?cepting the offer by March 1.Signe may revoke the offer

A)before Thomas accepts the offer.
B)before March 1,whether or not Thomas has accepted the offer.
C)only after Thomas accepts the offer.
D)only after March 1.

Question 47

On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on

A)May 1.
B)May 3.
C)May 4.
D)May 5.

Question 48

Jake bids on an item in an auction with reserve.Jake is the

A)offeror.
B)offeree.
C)promisee.
D)auctioneer.

Question 49

Pastry Dough,Inc.,sends its catalogue to Octavio and includes a "per?son?alized" letter inviting him to buy any item in it at the ad?vertised price.This is

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 Octavio previously bought items from Pastry Dough.
D)not an offer.

Question 50

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

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

Question 51

Grant offers to sell his Honda Civic for $10,000 to Ivy.Referring to the prices for similar Hondas,Ivy says,"I'll pay no more than $5,000." Grant says,"Forget it." Grant's offer was terminated by

A)Grant.
B)Honda.
C)Ivy.
D)no one-Grant's offer is still open.

Question 52

Fix-It-Quik,Inc.,offers Denise a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate

A)after a reasonable period of time.
B)after a work week (five business days).
C)after a month (thirty calendar days).
D)never.

Question 53

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station,offering a reward for information lead?ing to the apprehension of a certain criminal.CCS could normally terminate the offer by placing

A)a full-page ad in the local paper and a thirty-second commercial on the local station.
B)a notice in the "Legal Announcements" section of the paper.
C)a notice to the news departments of the local stations.
D)any,or none,of the choices.

Question 54

Sterling Bank runs thirty-second TV commercials,offering a reward to any?one giving information lead?ing to the apprehension of a certain criminal.The bank could normally terminate the offer by

A)posting a notice of termination on its front door.
B)placing a quarter-page notice of termination in a local newspaper.
C)informing bank employees that the offer is terminated.
D)running thirty-second TV commercials withdrawing the offer.

Question 55

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

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 56

Jack offers to sell Ben a new car for $10,000.Ben accepts the offer and sells his old car so that he will have money for the new one.Jack's offer is probably

A)revocable because the terms of the offer were not definite.
B)irrevocable because Ben sold his old car because of justifiable reliance on Jack's offer to sell him a new car.
C)revocable because any offer is revocable.
D)irrevocable because Jack's offer represents an opinion contract.

Question 57

Kayla puts an item in an auction with reserve.Kayla is the

A)offeror.
B)offeree.
C)promisor.
D)auctioneer.

Question 58

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection

A)only before the auctioneer announces that the items are sold.
B)only before the auctioneer delivers the items to the buyers.
C)under no circumstances.
D)within thirty days after the auction.

Question 59

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

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

Question 60

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

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

Question 61

On May 1,Brand Name Industries,Inc.(BNI),sent Carol a letter,via overnight delivery,offering to employ her to audit BNI's financial state?ments for the current year for $10,000.In the letter,BNI stated that Carol had ten days to accept.On May 5,Carol sent BNI a fax that stated,"The price for the audit seems too low.Would you consider paying $12,000?" BNI received the fax.The next day,Dan offered to conduct the audit for $8,000.On learning of Dan's offer,Carol immediately e-mailed BNI,agree?ing to do the work for $10,000.BNI received this e-mail on May 7.Explain why BNI and Carol do,or do not,have a contract.

Question 62

Myra owns a house,which she advertises for sale for $200,000.On May 1,Nicole offers Myra $180,000 for the house.On May 5,Myra delivers to Nicole a form that includes additional terms but does not state a price.At 9
a.m.on May 6,Nicole signs the form and gives it to Odell,her administrative assistant,with instructions to mail it.At 10
a.m.,Myra calls to tell Nicole that the deal is off.The next day,Odell mails the signed form to Myra.When Myra refuses to sell the house,Nicole files a suit against her,alleging breach of contract.Myra claims that there was no contract.What are arguments supporting each party's position? What is the court likely to rule? Explain.

Question 63

Shasta offers to sell a used hay baler to Roberto,but receives a letter of accep?tance from Quito.A valid contract exists between

A)Shasta and Roberto.
B)Shasta and Quito.
C)Roberto and Quito.
D)none of the choices.

Question 64

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

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 65

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

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

Question 66

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

A)have a contract for a loan at 15 percent interest.
B)have a contract for a loan at 12 percent interest.
C)have a contract for a loan at 0 percent interest.
D)no contract for a loan.

Question 67

Gayla tells Francisco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property.Francisco's acceptance is complete

A)as soon as he says he will do the job.
B)once he starts to work.
C)only after he hauls away the debris.
D)when he hears the offer.

Question 68

Crafted Iron Works,Inc.,offers to design,make,and sell City Transit Agency fourteen streetcars.Crafted authorizes a particular mode of communication,but City Transit sends an acceptance via a substituted means.This acceptance is effective when it is

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

Question 69

Andy offers to sell Carol 10 acres of land with a barn.Carol says she will pay Andy's price,but she wants his tractor included.Carol is now the

A)offeror.
B)offeree.
C)promisee.
D)auctioneer.

Question 70

Interstate Coffee Brokers,Inc.(ICBI),offers to sell Java Roasters,Inc.,fifty bags of coffee beans.Java rejects the offer.The offer is

A)terminated.
B)valid for a reasonable time to give Java a "second chance."
C)valid for the period of time prescribed by a state statute.
D)valid until ICBI revokes the offer.

Question 71

Richard wants to hire Sam to mow Richard's lawn every week for the summer.Richard writes up the offer on June 1.In his offer,Richard specifies that Sam must accept the offer within five days.Richard signs the offer on June 2 and mails it to Sam on June 3.Sam receives the offer on June 4.Sam's five day acceptance period began on

A)June 1.
B)June 2.
C)June 3.
D)June 4.

Question 72

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu ac?cepts.Most likely,Wally's death

A)did not affect the offer.
B)shortened the time of the offer but did not terminate it.
C)extended the time of the offer.
D)termi?nated the offer.