Question 1

Which of the following statements about the UCC's Battle of the Forms is false?

Accepted Answer

UCC section 2-207 (Battle of the Forms)allows the formation of a contract even when there is some variance between the terms of the offer and the terms of the acceptance.It also makes it possible,under some circumstances,for a term contained in the acceptance form to become part of the contract.The Code provides that a definite and timely expression of acceptance creates a contract,even if it includes terms that are different from those stated in the offer or even if it states additional terms that the offer did not address [2-207(1)].An attempted acceptance that was expressly conditioned on the offeror's agreement to the offeree's terms would not be a valid acceptance,however [2-207(1)].

Question 2

In Bauer v.Qwest Communications Company,LLC,the case in the text,the court held that Susman's silence:

Accepted Answer

The court held that Susman's silence was an assent to be bound given the parties' lengthy relationship and course of dealings.

Question 3

Which of the following stands for the notion that a properly addressed and dispatched acceptance can become effective when it is dispatched,even if it is lost and never received by the offeror?

Accepted Answer

Under the so-called mailbox rule,properly addressed and dispatched acceptances can become effective when they are dispatched,even if they are lost and never received by the offeror.

Question 4

The UCC's modified version of the mirror image rule is called the:

Accepted Answer

The Code,in a very controversial provision often called the "Battle of the Forms" section [2-207],has changed the mirror image rule for contracts involving the sale of goods.

Question 5

Which section of the UCC states that an order to a manufacturer requesting shipment of goods may be accepted by a prompt shipment of the goods?

Accepted Answer

Section 2-206(1) (b)of the UCC states that an order requesting prompt shipment of goods may be accepted by shipment of the goods promptly.

Question 6

In the case in the text,Pena v.Fox,the court held that the release delivered constituted a(n):

Accepted Answer

The release added parties beyond those that Pena proposed and it materially deviated from the limitation Pena's offer clearly expressed.Therefore,the release constituted a counteroffer because it did not mirror Pena's offer.

Question 7

Kevin offers to sell Howard his vintage piano for $1,000.Howard tells Kevin,"If you don't hear from me in seven days,I accept." Kevin did not hear from Howard in those seven days.Does Howard's silence amount to acceptance?

Accepted Answer

An offeree's silence can also operate as an acceptance if the offeree has indicated that it will.

Question 8

Which of the following statements about the mirror image rule is false?

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.However,recent years have witnessed a judicial tendency to apply the mirror image rule in a more liberal fashion by holding that only material (important)variances between an offer and a purported acceptance result in an implied rejection of the offer.Even under the mirror image rule,no rejection is implied if an offeree merely asks about the terms of the offer without indicating its rejection (an inquiry regarding terms),or accepts the offer's terms while complaining about them (a grumbling acceptance).

Question 9

Which of the following would not be used to determine whether an acceptance was communicated by reasonable means?

Accepted Answer

What is reasonable depends on the circumstances in which the offer was made.These include the speed and reliability of the means used by the offeree,the nature of the transaction (e.g. ,does the agreement involve goods subject to rapid price fluctuations?),the existence of any trade usage governing the transaction,and the existence of prior dealings between the parties (e.g. ,has the offeree previously used the mail to accept telegraphed offers from the offeror?).

Question 10

Patrick,a farmer,leaves 10 bushels of corn with Jackie,the owner of a grocery store,saying "Look this corn over.If you want it,it's $5 a bushel." Jackie sells the corn.Which of the following statements is true?

Accepted Answer

Acceptance can be implied as well as expressed.Offerees who take action that objectively indicates agreement risk the formation of a contract.As such,Jackie's actions show an implied acceptance of Patrick's offer.

Question 11

Which of the following describes the effect of the knock-out rule?

Accepted Answer

The knock-out rule is also used by the majority of courts when there is an acceptance that contains terms that are different from (not merely additional to)the terms of the offer.That is,the contract will consist of those terms on which the parties' writings agree plus any appropriate gap-filling presumptions of the Code.

Question 12

In The United States Life Insurance Company in the City of New York v.Wilson,the case in the text,the court held that the check was dispatched within the meaning of the mailbox rule when:

Accepted Answer

The court held that the date of payment was the day the bank sent the check to the insurance company.The check was effectively dispatched at that time because it was beyond Griffith's power to stop it.

Question 13

If both parties are merchants,additional terms contained in the offeree's standardized forms become part of the contract unless an exception applies.Which of the following is not one of those exceptions?

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 14

Arthur offered to sell his house to Mike for $50,000.Even before Mike responded to the offer,Jack learned of the offer and called Arthur to accept the offer.Jack's action represents a(n)________.

Accepted Answer

An attempt to accept an offer by anyone other than the original offeree is treated as an offer because the party attempting to accept is indicating a present intent to contract on the terms of the original offer.

Question 15

Under the UCC,an acceptance sent by unreasonable means:

Accepted Answer

UCC rejects the traditional rule that such acceptances cannot be effective until received.It provides that an acceptance sent by an unreasonable means would be effective on dispatch if it is received within the time that an acceptance by a reasonable means would normally have arrived.

Question 16

In the case in the text,Duro Textiles,LLC v.Sunbelt Corporation,the court held that a forum selection clause:

Accepted Answer

The court held that the forum selection clause was a material alteration to the contract within the meaning of section 2-207(2) (b)of the Code.Therefore,the provision was not part of the contract between the parties.

Question 17

If both parties are not merchants,additional terms contained in the offeree's standardized form are treated as:

Accepted Answer

If both parties are not merchants,the additional terms contained in the offeree's standardized form are treated as "proposals for addition to the contract."

Question 18

Which of the following is used by the majority of courts when there is an acceptance that contains terms that are different from (not merely additional to)the terms of the offer?

Accepted Answer

The knock-out rule is also used by the majority of courts when there is an acceptance that contains terms that are different from (not merely additional to)the terms of the offer.

Question 19

The original offeree is one who:

Accepted Answer

The only person with the legal power to accept an offer and create a contract is the original offeree.Any attempt to accept an offer by anyone other than the offeree is treated as an offer,because the party attempting to accept is indicating a present intent to contract on the terms of the original offer.

Question 20

Grace offers to sell Misti her car for $5,000.Grace tells Misti,"If I don't hear from you in three days,I'll assume you're buying the car." Four days go by and Grace has not heard from Misti.Does Misti's silence amount to acceptance?

Accepted Answer

Because contract law generally requires some objective indication that an offeree intends to contract,the general rule is that an offeree's silence,without more,is not an acceptance.In general,an offeror cannot impose on the offeree a duty to respond to the offer.

Quiz 11: The Agreement: Acceptance