Question 1

[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)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
B)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
C)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
D)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
E)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.

Question 2

Which of the following was the result in the case in the text Adone v.Paletto involving the rejection of a purported acceptance of an offer of compromise because it was not made within the time limit of 10 days specified in the offer?

Accepted Answer

A)The plaintiffs' motion for a judgment to enforce the offer to compromise was denied because the acceptance was not within the 10-day time frame.
B)The plaintiffs' motion for a judgment to enforce the offer to compromise was denied because the acceptance was not within the 10-day time frame.
C)The plaintiffs' motion for a judgment to enforce the offer to compromise was denied because the acceptance was not within the 10-day time frame.
D)The plaintiffs' motion for a judgment to enforce the offer to compromise was denied because the acceptance was not within the 10-day time frame.
E)The plaintiffs' motion for a judgment to enforce the offer to compromise was denied because the acceptance was not within the 10-day time frame.

Question 3

[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)Advertisements are an illustration of an offer to make an offer.A store who runs
an ad offering to sell a product for a certain price is merely inviting customers to come to the store and offer that price for the product.
B)Advertisements are an illustration of an offer to make an offer.A store who runs an ad offering to sell a product for a certain price is merely inviting customers to come to the store and offer that price for the product.
C)Advertisements are an illustration of an offer to make an offer.A store who runs an ad offering to sell a product for a certain price is merely inviting customers to come to the store and offer that price for the product.
D)Advertisements are an illustration of an offer to make an offer.A store who runs an ad offering to sell a product for a certain price is merely inviting customers to come to the store and offer that price for the product.
E)Advertisements are an illustration of an offer to make an offer.A store who runs an ad offering to sell a product for a certain price is merely inviting customers to come to the store and offer that price for the product.

Question 4

What is the most likely result in Edwin's lawsuit against Brandi in which he claims that she must pay $3,000 for the car at issue?

Accepted Answer

A)An invitation to negotiate or an expression of possible interest in an exchange is
not an offer because it does not express any willingness to be bound by an acceptance.
B)An invitation to negotiate or an expression of possible interest in an exchange is not an offer because it does not express any willingness to be bound by an acceptance.
C)An invitation to negotiate or an expression of possible interest in an exchange is not an offer because it does not express any willingness to be bound by an acceptance.
D)An invitation to negotiate or an expression of possible interest in an exchange is not an offer because it does not express any willingness to be bound by an acceptance.
E)An invitation to negotiate or an expression of possible interest in an exchange is not an offer because it does not express any willingness to be bound by an acceptance.

Question 5

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

Accepted Answer

A)Some elements of a contract have been modified under the UCC for contracts for
the sale of goods.
B)Some elements of a contract have been modified under the UCC for contracts for the sale of goods.
C)Some elements of a contract have been modified under the UCC for contracts for the sale of goods.
D)Some elements of a contract have been modified under the UCC for contracts for the sale of goods.
E)Some elements of a contract have been modified under the UCC for contracts for the sale of goods.

Question 6

Which of the following is true of instantaneous communications?

Accepted Answer

A)The mailbox rule does not apply to instantaneous communications.There is
disagreement among jurisdictions as to whether fax or email should be effective upon receipt.
B)The mailbox rule does not apply to instantaneous communications.There is disagreement among jurisdictions as to whether fax or email should be effective upon receipt.
C)The mailbox rule does not apply to instantaneous communications.There is disagreement among jurisdictions as to whether fax or email should be effective upon receipt.
D)The mailbox rule does not apply to instantaneous communications.There is disagreement among jurisdictions as to whether fax or email should be effective upon receipt.
E)The mailbox rule does not apply to instantaneous communications.There is disagreement among jurisdictions as to whether fax or email should be effective upon receipt.

Question 7

Mary accepts Joe's offer to buy 100 comic books.She sends her acceptance via fax.Mary and Joe live in a jurisdiction that applies the majority rule.When does her fax become effective?

Accepted Answer

A)The mailbox rule does not apply to instantaneous communications.There is
disagreement among jurisdictions as to whether fax or email should be effective upon receipt,but the majority rule is that faxes are instantaneous transmissions and therefore effective upon receipt.

Question 8

Mari tells Daniel that she will mow his yard during the summer for $800.Daniel considers it,and 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)Sometimes a rejection is dispatched,but before it is received,the acceptance is
communicated to the offeror.In that case,a valid contract has been formed because the rejection is not effective until it is received.
B)Sometimes a rejection is dispatched,but before it is received,the acceptance is communicated to the offeror.In that case,a valid contract has been formed because the rejection is not effective until it is received.
C)Sometimes a rejection is dispatched,but before it is received,the acceptance is communicated to the offeror.In that case,a valid contract has been formed because the rejection is not effective until it is received.
D)Sometimes a rejection is dispatched,but before it is received,the acceptance is communicated to the offeror.In that case,a valid contract has been formed because the rejection is not effective until it is received.
E)Sometimes a rejection is dispatched,but before it is received,the acceptance is communicated to the offeror.In that case,a valid contract has been formed because the rejection is not effective until it is received.

Question 9

What is the most likely result in the lawsuit brought by Edwin against Zack?

Accepted Answer

A)If a person is clearly joking or speaking in anger,a reasonable person would not
think the person seriously intended to make an offer,and the courts will not treat the words as an offer.
B)If a person is clearly joking or speaking in anger,a reasonable person would not think the person seriously intended to make an offer,and the courts will not treat the words as an offer.
C)If a person is clearly joking or speaking in anger,a reasonable person would not think the person seriously intended to make an offer,and the courts will not treat the words as an offer.
D)If a person is clearly joking or speaking in anger,a reasonable person would not think the person seriously intended to make an offer,and the courts will not treat the words as an offer.
E)If a person is clearly joking or speaking in anger,a reasonable person would not think the person seriously intended to make an offer,and the courts will not treat the words as an offer.

Question 10

Which of the following provides that a revocation is effective only when received by the offeree?

Accepted Answer

A)The mailbox rule provides that a revocation is effective only when the offeree
receives it.
B)The mailbox rule provides that a revocation is effective only when the offeree receives it.
C)The mailbox rule provides that a revocation is effective only when the offeree receives it.
D)The mailbox rule provides that a revocation is effective only when the offeree receives it.
E)The mailbox rule provides that a revocation is effective only when the offeree receives it.

Question 11

Which of the following is true of online businesses and disclosures?

Accepted Answer

A)Online businesses commonly refrain from giving full disclosure about terms until they receive a customer's payment information.If e-businesses do happen to provide these certain terms before a customer agrees to buy a product,the link to the terms themselves may be hard to find.
B)Online businesses commonly refrain from giving full disclosure about terms until they receive a customer's payment information.If e-businesses do happen to provide these certain terms before a customer agrees to buy a product,the link to the terms themselves may be hard to find.
C)Online businesses commonly refrain from giving full disclosure about terms until they receive a customer's payment information.If e-businesses do happen to provide these certain terms before a customer agrees to buy a product,the link to the terms themselves may be hard to find.
D)Online businesses commonly refrain from giving full disclosure about terms until they receive a customer's payment information.If e-businesses do happen to provide these certain terms before a customer agrees to buy a product,the link to the terms themselves may be hard to find.
E)Online businesses commonly refrain from giving full disclosure about terms until they receive a customer's payment information.If e-businesses do happen to provide these certain terms before a customer agrees to buy a product,the link to the terms themselves may be hard to find.

Question 12

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)The offeror has the right to revoke the offer at any time before it has been accepted.This rule is slightly modified with respect to unilateral offers so that if one party has begun performance,the offeror must give the offeree a reasonable time to complete it.
B)The offeror has the right to revoke the offer at any time before it has been accepted.This rule is slightly modified with respect to unilateral offers so that if one party has begun performance,the offeror must give the offeree a reasonable time to complete it.
C)The offeror has the right to revoke the offer at any time before it has been accepted.This rule is slightly modified with respect to unilateral offers so that if one party has begun performance,the offeror must give the offeree a reasonable time to complete it.
D)The offeror has the right to revoke the offer at any time before it has been accepted.This rule is slightly modified with respect to unilateral offers so that if one party has begun performance,the offeror must give the offeree a reasonable time to complete it.
E)The offeror has the right to revoke the offer at any time before it has been accepted.This rule is slightly modified with respect to unilateral offers so that if one party has begun performance,the offeror must give the offeree a reasonable time to complete it.

Question 13

Mary accepts Joe's offer to buy 100 comic books.She sends her acceptance via fax.Mary and Joe live in a jurisdiction that applies the mailbox rule to faxes.When does her fax become effective?

Accepted Answer

A)The mailbox rule provides an acceptance is valid when the offeree places it in
the mailbox.In jurisdictions that apply the mailbox rule to faxes,they would become effective upon the fax being dispatched.
B)The mailbox rule provides an acceptance is valid when the offeree places it in the mailbox.In jurisdictions that apply the mailbox rule to faxes,they would become effective upon the fax being dispatched.
C)The mailbox rule provides an acceptance is valid when the offeree places it in the mailbox.In jurisdictions that apply the mailbox rule to faxes,they would become effective upon the fax being dispatched.
D)The mailbox rule provides an acceptance is valid when the offeree places it in the mailbox.In jurisdictions that apply the mailbox rule to faxes,they would become effective upon the fax being dispatched.
E)The mailbox rule provides an acceptance is valid when the offeree places it in the mailbox.In jurisdictions that apply the mailbox rule to faxes,they would become effective upon the fax being dispatched.

Question 14

What is the most likely result in the lawsuit brought by Emma against Edwin?

Accepted Answer

A)If the offer is for a unilateral contract,the offeree can accept only by providing the requested performance.
B)If the offer is for a unilateral contract,the offeree can accept only by providing the requested performance.
C)If the offer is for a unilateral contract,the offeree can accept only by providing the requested performance.
D)If the offer is for a unilateral contract,the offeree can accept only by providing the requested performance.
E)If the offer is for a unilateral contract,the offeree can accept only by providing the requested performance.

Question 15

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

Accepted Answer

A)While it may seem easy to distinguish an offer from an invitation to negotiate,whether an offer in fact existed is a question of fact and sometimes ends up being litigated.
B)While it may seem easy to distinguish an offer from an invitation to negotiate,whether an offer in fact existed is a question of fact and sometimes ends up being litigated.
C)While it may seem easy to distinguish an offer from an invitation to negotiate,whether an offer in fact existed is a question of fact and sometimes ends up being litigated.
D)While it may seem easy to distinguish an offer from an invitation to negotiate,whether an offer in fact existed is a question of fact and sometimes ends up being litigated.
E)While it may seem easy to distinguish an offer from an invitation to negotiate,whether an offer in fact existed is a question of fact and sometimes ends up being litigated.

Question 16

What is the likely result in the lawsuit brought by Maria against Randy for the table?

Accepted Answer

A)In an auction without reserve,the seller is treated as making an offer to accept
the highest bid and therefore must accept it.
B)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
C)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
D)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.
E)In an auction without reserve,the seller is treated as making an offer to accept the highest bid and therefore must accept it.

Question 17

Which doctrine may courts use to estop,or prevent,an offeror from revoking an offer based on a party's taking steps in reasonable reliance on an offer?

Accepted Answer

A)If the offeree had reasonably relied on the offeror's promise to hold the offer
open and had taken action in reliance on the offer,the courts may use the doctrine of promissory estoppel to estop,or prevent,the offeror from revoking his offer.
B)If the offeree had reasonably relied on the offeror's promise to hold the offer open and had taken action in reliance on the offer,the courts may use the doctrine of promissory estoppel to estop,or prevent,the offeror from revoking his offer.

Question 18

Which of the below rules allows that an acceptance is valid when it is placed in the mailbox?

Accepted Answer

A)The mailbox rule allows that an acceptance is valid when the offeree places it in
the mailbox.
B)The mailbox rule allows that an acceptance is valid when the offeree places it in the mailbox.
C)The mailbox rule allows that an acceptance is valid when the offeree places it in the mailbox.
D)The mailbox rule allows that an acceptance is valid when the offeree places it in the mailbox.
E)The mailbox rule allows that an acceptance is valid when the offeree places it in the mailbox.

Question 19

The Uniform Electronic Transactions Act allows for which of the following?

Accepted Answer

A)The Uniform Electronic Transactions Act seems to create an electronic version
of the mailbox rule.
B)The Uniform Electronic Transactions Act seems to create an electronic version of the mailbox rule.
C)The Uniform Electronic Transactions Act seems to create an electronic version of the mailbox rule.
D)The Uniform Electronic Transactions Act seems to create an electronic version of the mailbox rule.
E)The Uniform Electronic Transactions Act seems to create an electronic version of the mailbox rule.

Question 20

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

Accepted Answer

A)The Uniform Electronic Transmissions Act seems to create an electronic version of the mailbox rule.Provided certain criteria are met,including the email being properly addressed,the email is considered received when it enters the information processing system designated by the recipient.
B)The Uniform Electronic Transmissions Act seems to create an electronic version of the mailbox rule.Provided certain criteria are met,including the email being properly addressed,the email is considered received when it enters the information processing system designated by the recipient.
C)The Uniform Electronic Transmissions Act seems to create an electronic version of the mailbox rule.Provided certain criteria are met,including the email being properly addressed,the email is considered received when it enters the information processing system designated by the recipient.
D)The Uniform Electronic Transmissions Act seems to create an electronic version of the mailbox rule.Provided certain criteria are met,including the email being properly addressed,the email is considered received when it enters the information processing system designated by the recipient.
E)The Uniform Electronic Transmissions Act seems to create an electronic version of the mailbox rule.Provided certain criteria are met,including the email being properly addressed,the email is considered received when it enters the information processing system designated by the recipient.

Quiz 14: Agreement