Question 1

What does the term "grumbling acceptance" mean?

Accepted Answer

When an offeree accepts an offer's terms while complaining about them,it indicates a grumbling acceptance.

Question 2

Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms.Under UCC section 2-207,when will there be a contract? Assume that Bill did not make his acceptance conditional on Debbie's assent to any additional or different terms.

Accepted Answer

A contract will only result in such cases if the parties engage in conduct that "recognizes the existence of a contract," such as an exchange of performance.

Question 3

Which of the following actions constitutes acceptance of an offer?

Accepted Answer

An acceptance is "a manifestation of assent to the terms of the offer made by the offeree in the manner invited or required by the offer."

Question 4

Ian Kendler makes Brian Hyson an offer for a plot of land.In the offer,Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service.Which of the following is true? Assume that the Restatement (Second)of Contracts does not apply.

Accepted Answer

If the offeror stipulates a particular manner of acceptance,the offeree must respond in that stipulated mode to form a valid acceptance.

Question 5

Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?

Accepted Answer

The traditional contract law rule is that an acceptance must be the mirror image of the offer.Attempts by offerees to change the terms of the offer or to add new terms to it are treated as counteroffers because they impliedly indicate an intent by the offeree to reject the offer instead of being bound by its terms.

Question 6

According to the Code,when there is an acceptance that contains terms that are different from the original terms of the contract,the contract will consist of ________ and the appropriate gap-filling presumptions of the Code.

Accepted Answer

Under the Code,the offeror who accepts performance in the face of an express rejection or expressly conditional acceptance is not thereby bound to all of the terms contained in the offeree's response.Instead,it provides that the terms of a contract created by such performance are those on which the parties' writings agree,supplemented by appropriate gap-filling provisions from the Code.

Question 7

Which of the following would indicate a rejection under the mirror image rule?

Accepted Answer

Under the mirror image rule,only significant material changes between an offer and an acceptance would indicate an implied rejection of the offer.

Question 8

You wish to download free software from the Internet.The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another webpage.The "download now" page has a button that initiates the download process.You click that button without going to the licensing agreement page.You later learn that the licensing agreement contains an arbitration provision.Are you bound by this provision?

Accepted Answer

The present intent to contract is missing here.Therefore,there is no acceptance of the arbitration clause present in the licensing agreement.This scenario was analyzed in the case in the text,Long v.Provide Commerce,Inc.

Question 9

When the offeror,as the master of the offer,specifies the precise time,place,and manner in which acceptance must be communicated,it is termed as a(n)________.

Accepted Answer

When the offeror,as the master of the offer,specifies the precise time,place,and manner in which acceptance must be communicated,it is termed as stipulation.

Question 10

What is the term for "a manifestation of assent to the terms made by the offeree"?

Accepted Answer

An acceptance is a manifestation of assent to the terms made by the offeree in the manner invited.

Question 11

Ian Sanders offered to sell his car to Beth Jones for $5,000.Subsequently,Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car.Beth's response represents a(n)________.

Accepted Answer

Since Beth's demand seeks to make an addition that the offer did not address earlier,this would be considered an additional term.

Question 12

Milner Developers proposed an offer to Henry Wright,an independent contractor,offering to hire him for their next project.They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response.Wright responded to the offer with a quote for a higher amount than that mentioned by Milner Developers.Do the two parties have a binding contract?

Accepted Answer

Attempts by offerees to change the terms of the offer or to add new terms to it are treated as counteroffers,and not acceptance,because they imply an intent by the offeree to reject the offer instead of being bound by its terms.

Question 13

In determining whether an offeree accepted an offer,the court is looking for the same ________ on the part of the offeree that it found on the part of the offeror.

Accepted Answer

In determining whether an offeree accepted an offer,the court is looking for the same present intent to contract on the part of the offeree that it found on the part of the offeror.

Question 14

Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract?

Accepted Answer

The traditional contract law rule is that an acceptance must be the mirror image of the offer.

Question 15

Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter.The offer says that Harry "may accept by registered letter." This detail is an example of a ________.

Accepted Answer

When the offeror,as the master of the offer,specifies the precise time,place,and manner in which acceptance must be communicated,it is termed as stipulation.

Question 16

Which of the following actions is considered to reflect a counteroffer?

Accepted Answer

Attempts by offerees to change the terms of the offer or to add new terms to it are treated as counteroffers because they impliedly indicate an intent by the offeree to reject the offer instead of being bound by its terms.

Question 17

Which of the following describes a stipulation?

Accepted Answer

The offeror,as the master of the offer,has the power to specify the precise time,place,and manner in which acceptance must be communicated.This is called a stipulation.

Question 18

Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants?

Accepted Answer

If the parties to a contract are both merchants,the additional terms become part of the contract unless (1)the offer expressly limits acceptance to its own terms, (2)the new terms would materially alter the offer,or (3)the offeror gives notice of objection to the new terms within a reasonable time after receiving the acceptance.

Question 19

In determining whether an offeree accepted an offer and created a contract,a court will look for evidence of three factors.  Which of the following is not one of those factors?

Accepted Answer

In determining if an offeree accepted an offer and created a contract,a court will look for evidence of three factors: (1)the offeree intended to enter the contract, (2)the offeree accepted on the terms proposed by the offeror,and (3)the offeree communicated his acceptance to the offeror.

Question 20

Able Co.entered into a contract with Baker Co.for the sale of goods.Both parties are merchants under the UCC and each party used its own form as an offer and acceptance.On the reverse side of each form,there were minor terms that conflicted with each other.What is impact of these minor differences in terms in the forms on the contract?

Accepted Answer

Since the conflicting terms are indicated to be minor,they would not affect the contract in entirety and would be subject to the "gap-filling" provisions of the UCC.

Quiz 11: The Agreement: Acceptance