Question 1

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

Accepted Answer

The offer is terminated by law as the subject matter of the offer was destroyed before acceptance. The destruction of the car makes it impossible for the contract to be fulfilled, thus the offer becomes void. Therefore, Dick is no longer bound by the offer, and Jane cannot accept it.

Question 2

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and threatened to sue for breach of contract. Which is true?

Accepted Answer

The advertisement was simply a request for offers and did not create a contract between Seth and Outdoor Times. Therefore, Outdoor Times is not obligated to provide the specific sleeping bag advertised, and Seth cannot sue for breach of contract. There is no evidence of "bait and switch" or any other deceptive advertising practice. Outdoor Times may provide a raincheck as a goodwill gesture, but it is not legally required to do so.

Question 3

Oxtron, Inc. sent the following price list to its customers.​ Dispensers:
SBC-500J
$670.00
True TDD-1
$875.00
True TDD-2
$1,465.00
True TDD-3
$1,515.00
CO2 Tank and Regulator
$150.00
Which statement is correct?

Accepted Answer

Price lists are generally not considered offers, as they are not specific enough to indicate a definite intent to enter into a contract. Rather, they are an invitation to the customer to make an offer or negotiate terms.

Question 4

Acme Co. offers to buy 1,000 widgets from Widget World Co. The written offer provides for 1,000 at $10 per widget, to be delivered May 1. The offer has no other provisions. Widget World sends a written acceptance. However, the acceptance also states that if any claim arises under this contract, Widget World must be notified within 10 days. Acme does not object to this provision. Both parties are merchants. Which of the following best describes this situation?

Accepted Answer

The additional term regarding notification of any claim within 10 days is not a material change, as it does not alter the quantity or price of the widgets. Both parties are merchants, so the additional term becomes part of the contract under the UCC's rule of acceptance of additional terms in written contracts between merchants. Therefore, a contract exists with all of the terms put forth by Widget World being binding.

Question 5

What is the best definition of the mailbox rule?

Accepted Answer

The mailbox rule states that acceptance of an offer is generally effective upon dispatch, meaning that the moment the offeree sends the acceptance (via mail, email, etc.), the acceptance is considered valid and binding. This is in contrast to terminations, which are only effective when received by the other party.

Question 6

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

Accepted Answer

The offer terminates automatically upon Floyd's death. Since there was no contract and the negotiations were not concluded at the time of Floyd's death, his heirs are not obligated to sell the car to Tim.

Question 7

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

Accepted Answer

The contract is enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated. The contract is not vague since it clearly states that Bob will purchase all the hay that Joe grows during the coming season. The remedy for a breach would be the usual monetary damages for breach of contract. The contract is not related to real estate, so state real estate law is not relevant here.

Question 8

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

Accepted Answer

Joan is not bound because acceptance of an offer in contract law typically requires that the offeree affirmatively accepts the offer through either words or actions, not through silence or inaction.

Question 9

Noah tells Ivy he is willing to sell his comic book collection to her for $100. Ivy says no, she would rather save her money to buy a new cell phone. What just happened?

Accepted Answer

Termination by rejection occurred because Ivy declined Noah's offer to sell his comic book collection to her.

Question 10

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Accepted Answer

Under the UCC, a contract for the sale of goods may indicate a method for determining the price, such as referencing market prices or pricing formulas, without stating a definite price. This is known as an open price term, and the UCC provides gap-filler provisions to determine a reasonable price if the parties have not agreed on a specific price or method of determining the price. Therefore, Morales and Rolfes may negotiate and agree to a method for determining the price without stating a definite price in the contract.

Question 11

Which of the following is outlawed by consumer protection statutes?

Accepted Answer

False advertising is outlawed by consumer protection statutes such as the Federal Trade Commission Act and the Lanham Act. Clickwrap agreements and browsewrap agreements are not necessarily outlawed, but must meet certain requirements to be enforceable. Termination by expiration simply refers to the end of a contract's term and is not inherently illegal.

Question 12

If an offer specifies no time limit in which to accept,

Accepted Answer

When an offer specifies no time limit in which to accept, the offeree has a reasonable period during which to accept. This is because the law implies that the offer will remain open for a reasonable amount of time, even if no specific deadline is provided. The definition of a "reasonable period" may vary depending on the circumstances of the offer and the context of the transaction.

Question 13

What does it mean if an auction is with reserve?

Accepted Answer

If an auction is with reserve, it means that the items for sale have a minimum price that the auctioneer or seller is willing to accept. If the bidding does not reach this minimum price, the item may not be sold at the auction.

Question 14

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?

Accepted Answer

The agreement is too indefinite since it does not identify which 40 acres are to be sold. As a result, there is no clear way to determine which specific acres are being sold, and therefore the contract cannot be enforced.

Question 15

Jaime offered to buy Kevin's bike. Jamie is the

Accepted Answer

Jaime is the offeror as they are the one making the offer to buy Kevin's bike.

Question 16

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

Accepted Answer

Mary's counteroffer terminates Carl's initial offer of $1,500. This is because a counteroffer is a rejection of the original offer and a new offer made by the offeree. If Carl rejects Mary's counteroffer, he cannot later accept his original offer of $1,500, as that offer is now terminated.

Question 17

A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case

Accepted Answer

The warranty term is considered a "different term" because it directly contradicts the seller's statement of no warranty. In the majority of states, when there are contradictory terms like this in forms exchanged by the parties, a contract can still be formed, but the conflicting terms cancel each other out, leading to a default position under the Uniform Commercial Code (UCC) which typically does not include the warranty.

Question 18

Which of the following offers are considered to be irrevocable for a given period?

Accepted Answer

All of these offers are considered to be irrevocable for a given period. A firm offer is an offer made by a merchant in writing, signed, and offering assurance that the offer will be held open for a certain period of time. An option contract is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a certain price within a certain period of time. A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period is also considered to be an irrevocable offer.

Question 19

Spangel Fashions sends out its spring and summer catalog to Cindy. Cindy falls in love with the cute dress featured on the front cover of the catalog. When Cindy calls to order the dress, she is informed that the company has sold out of the dress. Cindy is upset and claims that the store is in breach of contract. She argues that the catalog presented an offer, which she accepted when she called to order the dress. Is Cindy correct? Why/why not?

Accepted Answer

The answer of Spangel Fashions sends out its spring and...

Question 20

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

Accepted Answer

Travel Lines required acceptance in writing by USPS next-day service, therefore only option C meets the required method of communication. Option A is not in writing and option B does not specify the method of delivery. Option D is incorrect because not all options constitute a reasonable means of communication according to the terms set by Travel Lines.

Quiz 12: Agreement: Offers and Acceptances

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

Oxtron, Inc. sent the following price list to its customers. Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 Which statement is correct?

What is the best definition of the mailbox rule?

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

Noah tells Ivy he is willing to sell his comic book collection to her for $100. Ivy says no, she would rather save her money to buy a new cell phone. What just happened?

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Which of the following is outlawed by consumer protection statutes?

If an offer specifies no time limit in which to accept,

What does it mean if an auction is with reserve?

Jaime offered to buy Kevin's bike. Jamie is the

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case

Which of the following offers are considered to be irrevocable for a given period?

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

Quiz 12: Agreement: Offers and Acceptances

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

Oxtron, Inc. sent the following price list to its customers.​ Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 Which statement is correct?

What is the best definition of the mailbox rule?

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

Noah tells Ivy he is willing to sell his comic book collection to her for $100. Ivy says no, she would rather save her money to buy a new cell phone. What just happened?

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Which of the following is outlawed by consumer protection statutes?

If an offer specifies no time limit in which to accept,

What does it mean if an auction is with reserve?

Jaime offered to buy Kevin's bike. Jamie is the

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case

Which of the following offers are considered to be irrevocable for a given period?

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

Oxtron, Inc. sent the following price list to its customers. Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 Which statement is correct?