Deck 8: Offer and Acceptance

Question 1

The omission of one or more essential terms does not necessarily make the offer:

A) voidable.
B) valid.
C) invalid.
D) void.

Answer 1

C

Question 2

A proposal that is both offered by the offeror and accepted by the offeree is a _____contract.

A) void
B) invalid
C) valid
D) voidable

Answer 2

C

Question 3

When communicating an offer, the communication may be implied by:

A) custom and tradition.
B) the actions of the parties.
C) the actions of third parties in similar situations.
D) the Uniform Commercial Code.

Answer 3

B

Question 4

A valid offer must be all of the following EXCEPT:

A) definite and certain.
B) communicated to the offeree.
C) made with serious intent.
D) stated in writing.

Question 5

An offer is terminated as a result of the death or legal incapacity of either the offeror or the offeree under an option contract.

Question 6

If goods are advertised in a newspaper at an incorrect price, and the fault is that of the newspaper, the merchant may be able recoup his or her losses from the publication.

Question 7

Under the mailbox rule, an acceptance sent via the postal system or by courier is effective when sent.

Question 8

A counteroffer, that is, a conditional, or qualified, acceptance of an offer, is generally interpreted as an acceptance and is not binding on the parties.

Question 9

The Uniform Commercial Code (UCC) provides that additional (or different) terms are to be construed as proposals for addition to the contract, and between merchants, become part of the contract.

Question 10

Even after an offer is rejected by the offeree, it can be revived or made into a counteroffer once the communication of the rejection has been received by the offeror.

Question 11

The general rule of contract law provides that the acceptance of an offer must be the same as the offer.

Question 12

Silence does not indicate assent to an offer, even if both parties agree beforehand that this is to be the means of acceptance.

Question 13

Offer and acceptance are essential elements of a contract.

Question 14

Acceptance of a public offer by anyone, as indicated by the performance of the act, does not result in an enforceable contract.

Question 15

When an offer specifies all the terms and conditions of a contract, it is not considered as definite and certain.

Question 16

An offer may be terminated by a lapse of time.

Question 17

All of the following are considered to be forms of oral communications in making an offer EXCEPT:

A) telephone.
B) television.
C) e-mail.
D) in person.

Question 18

An offer can be terminated by an offeror's revocation before acceptance.

Question 19

As a general rule, if an offer is to be definite and certain, it should cover the same points as a good newspaper story: who, what, when, where, and how much.

Question 20

An offer made in anger or jest is not made with the intent of entering into a valid enforceable agreement.

Question 21

The words, "first come, first served" in advertisements create a language of:

A) promise.
B) offer.
C) acceptance.
D) request.

Question 22

If the offeror acknowledges the rejection but restates the offer, the offeree:

A) loses the opportunity to accept but retains the authority to make a counteroffer.
B) does not have any opportunity to accept, reject, or make a counteroffer.
C) still has the opportunity to accept, reject, or make a counteroffer.
D) cannot revive the offer or make a counteroffer.

Question 23

Offers are terminated for all of the following reasons EXCEPT:

A) lapse of time.
B) revocation.
C) rejection.
D) silence.

Question 24

All of the following communications are offers that are obviously not made with the intent of entering into a valid enforceable agreement EXCEPT those made:

A) under severe emotional strain.
B) in anger.
C) through electronic means.
D) in jest.

Question 25

The offer, once rejected by the offeree, cannot be revived or made into a counteroffer once the communication of the rejection has been received by the:

A) offeror.
B) offeree.
C) courier authority.
D) offeree's agent.

Question 26

A purchase order issued by one firm to another is generally considered a(n):

A) offer.
B) acceptance.
C) first step in negotiations.
D) request for a proposal.

Question 27

When an offer of sale does not specify a price, it is assumed that the parties intended:

A) an implied contract.
B) not to enter a contract
C) a reasonable price.
D) a minimal price.

Question 28

A call for a bid or estimate for materials to be furnished or work to be done is not considered a(n):

A) offer.
B) acceptance.
C) request for proposal.
D) invitation to acceptance.

Question 29

When no ?definite time for acceptance is stated in an offer, the offer terminates after the passing of:

A) a reasonable time.
B) 18 months.
C) two months.
D) two years.

Question 30

The offer and acceptance issue gets complicated when there is little or no direct contact between the parties, as in the case of all of the following EXCEPT:

A) bidding.
B) advertising.
C) public offers.
D) agreement.

Question 31

A person cannot be compelled to speak or to write in order to avoid a(n):

A) void agreement.
B) voidable agreement.
C) binding agreement.
D) illegal agreement.

Question 32

The determination of what is considered a reasonable time in the case of termination of a contract by lapse of time can vary according to the:

A) assessment of a court-appointed judge.
B) circumstances.
C) opinion of the parties.
D) opinion of the witnesses.

Question 33

If an advertisement contains a positive promise and a positive statement of what the advertiser expects in return, the court will usually hold that the advertisement is a(n):

A) proposal.
B) offer.
C) request.
D) informal invitation.

Question 34

The ____________ states that an acceptance sent via the postal system or by courier is effective when sent.

A) mirror image rule
B) mailbox rule
C) acceptance rule
D) good faith rule

Question 35

Under the UCC, any written offer by a merchant to buy or sell goods that states that the offer will be held open for a specified time period:

A) can be revoked during that time period, but only in writing.
B) cannot be revoked during that time period.
C) cannot be revoked by spoken word.
D) can always be revoked.

Question 36

The general rule regarding the effective date and time an acceptance becomes binding is:

A) when the parties intend.
B) three days after receipt of the acceptance.
C) three days after acceptance is sent.
D) upon receipt by the offeree.

Question 37

What are the criteria for a valid offer?

Question 38

Advertising is generally regarded as a(n):

A) invitation to trade.
B) firm offer.
C) commitment to sell.
D) executory contract.

Question 39

If an advertisement offers a reward for information that might lead to the arrest of a criminal or to the return of a lost article, it is regarded as a:

A) request for an offer.
B) reward offer.
C) public offer.
D) call for a bid.

Question 40

In the case of purchase orders:

A) the seller of the goods is the offeror and there is no offeree.
B) the buyer of the goods is the offeror and there is no offeree.
C) the seller of the goods is the offeror and the buyer is the offeree.
D) the buyer of the goods is the offeror and the seller is the offeree.

Question 41

What are the two conditions that must be met for an acceptance to be valid?

Question 42

Is an acceptance valid if it states terms additional to or different from those offered or agreed upon? Please explain.

Question 43

What is an invitation to trade?

Question 44

What are the usual means of communication of an offer?