Question 1

Under the common law, the __________ must be the mirror image of the __________.
A)acceptance, offer.
B)offer, acceptance.
C)contract, offer.
D)contract, consideration.

Accepted Answer

The "mirror image rule" in common law contract formation requires that the acceptance must exactly match the offer for a valid contract to be formed.

Question 2

If Anna Laura, in return for the payment of $200 to her by Catherine, gives Catherine an option to buy Jesse, a prime Arabian mare, at any time within the next 14 days at a price of $50,000, Anna Laura's offer to Catherine is:
A)a revocable option contract.
B)an irrevocable output contract.
C)irrevocable for the 14 days covered by the option.
D)a requirements contract.

Accepted Answer

The answer of If Anna Laura, in return for the...

Question 3

Which of the following would NOT be a merchant under Article 2 of the UCC?
A)The owner of a hardware store which sells paint.
B)A car mechanic who fixes used cars and sells them in his spare time.
C)A person who inherits three speedboats and wants to sell them to buy a car.
D)Two of the above, (b) and (c).

Accepted Answer

The answer of Which of the following would NOT be...

Question 4

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:
A)revoke his bid at any time.
B)not revoke his bid due to the statutory irrevocability of the bid.
C)reject the offer of the college to build the student union when the college chooses his bid because it is the lowest.
D)refuse, based on the windfall theory, to put in the window casings even if they were part of the bid specifications put out by the college.

Accepted Answer

When Jeb submitted his bid, he entered into a contract with the community college. In most cases, bids are considered irrevocable once they are submitted, meaning that Jeb cannot revoke his bid after he realizes his mistake. Additionally, if the bid specifications included the cost of window casings, Jeb is contractually obligated to include them in his final construction, even if he forgot to include them in his initial bid. Therefore, his best choice is B, to not revoke his bid and to include the cost of the window casings in his final construction.

Question 5

Don offers to sell his diamond ring to Emily.Diane overhears the offer and says, "I accept the offer."
A)Diane cannot accept the offer, because it wasn't made to her.
B)This is a valid acceptance.
C)The offer has not been communicated to the offeree.
D)This is an invitation seeking offers and not an offer.

Accepted Answer

Diane cannot accept the offer because it was not made to her. Only the intended offeree (Emily) can accept the offer.

Question 6

Destruction of the subject matter has what effect on the offer?
A)The offer is terminated.
B)The offer is delayed until additional subject matter can be located.
C)This creates an impossibility of fact that does not terminate the offer.
D)The offer is merely delayed under the "Hardship Rule."

Accepted Answer

Destruction of the subject matter terminates the offer because the subject matter is essential to the contract. Without the subject matter, it is impossible to fulfill the terms of the offer.

Question 7

The UCC battle of the forms rule:
A)changes the mirror image rule.
B)may yield different results depending on whether the parties are merchants.
C)may result in formation of a contract quite different from the terms of the offer.
D)All of the above.

Accepted Answer

The UCC battle of the forms rule does change the mirror image rule, which states that the acceptance of an offer must exactly mirror the terms of the offer. The UCC battle of the forms rule allows for the formation of a contract with different terms than those in the original offer. The application of the rule may also vary depending on whether the parties involved are considered merchants, as opposed to non-merchants. Therefore, all of these statements are true and the best choice is D.

Question 8

Which is not a revocable offer?
A)A bid to construct a bridge for the city.
B)An offer to buy stock in the ABC Corporation once it is formed.
C)A unilateral offer to pay John $30 to mow your lawn after he has completed half the job and indicates he wishes to finish.
D)None of the above are revocable offers.

Accepted Answer

The answer of Which is not a revocable offer?
A)A bid...

Question 9

The mirror image rule applies to:
A)an offer.
B)a rejection.
C)an acceptance.
D)a revocation.

Accepted Answer

The mirror image rule applies to acceptance in contract law. It states that acceptance must be a mirror image of the offer. If the acceptance changes the terms of the offer, it is considered a rejection and a counteroffer. Therefore, the best choice is C - acceptance.

Question 10

Lyle offers to sell his house to Dennis for $75,000.Dennis responds, "I will pay you $75,000 for the house if you first paint the second floor." This response could best be described as:
A)an acceptance.
B)a counteroffer.
C)a rejection.
D)an invitation.

Accepted Answer

Dennis's response modifies the original offer by adding a condition (painting the second floor) to the acceptance of the $75,000 price. This creates a new offer that Lyle can either accept, reject, or make another counteroffer. Therefore, Dennis's response is a counteroffer, not a simple acceptance or rejection of the original offer.

Question 11

Jack has been in the business of selling carpeting for 20 years.He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard.Bob agrees and sends back the following letter confirming the deal: Dear Jack:
As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the rate of $20 per yard.We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date.Very truly yours,
Bob
Which of the following is true?
A)There is a contract for only 100 yards of carpeting.
B)There is a contract for 100 yards PLUS the additional yardage.
C)There is no contract since Bob made a counteroffer.
D)There is no contract because the additional term is too uncertain to become a contract term.

Accepted Answer

There is a contract for only 100 yards of carpeting because Bob's letter confirms the original offer and acceptance for 100 yards. The additional term about purchasing more yardage is not part of the original agreement and does not affect the contract for the initial 100 yards.

Question 12

Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00.Alice sees the ad in the paper and goes to the store to stock up on business suits for her new job.Michelle apologizes for the misprint.Alice has just finished a class in contract law and insists that the store sell her five suits for $15.00.Alice threatens to sue Michelle for breach of contract.
A)This is a valid contract, and Alice will win if she sues.
B)The ad in the newspaper is an offer to sell, Alice accepted the offer, and there is an enforceable contract.
C)The ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Alice will not be able to successfully sue for breach of contract.
D)None of the above.

Accepted Answer

The ad in the newspaper is considered to be a solicitation for offers, not an offer to sell. Alice's response to the advertisement, therefore, is an offer, not an acceptance. Michelle has the right to reject Alice’s offer, phrased as five suits for $15. Thus, there is no existing contract between the two parties, and Alice cannot sue Michelle for breach of contract.

Question 13

Charlene hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist.She supplies the requested information and the suspect is then arrested and convicted.
A)Charlene cannot collect the money unless the offer was specifically made to her by the station.
B)The offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Charlene has accepted.
C)Because Charlene failed to notify the station of her intention to supply the information before actually doing so, she has not accepted their offer.
D)Charlene was just doing her duty as a citizen and has no right to the payment of any money.

Accepted Answer

The offer made by the television station was a unilateral contract where anyone who provided information leading to the arrest and conviction of the rapist would receive the reward. Charlene accepted this offer by providing the requested information, and therefore she is entitled to the reward. The fact that she did not notify the station of her intention to supply the information beforehand does not affect her right to receive the reward.

Question 14

A __________ is the refusal to accept an offer.
A)revocation.
B)counteroffer.
C)rejection.
D)statutory irrevocability.

Accepted Answer

A rejection is the explicit refusal to accept an offer. A revocation is when the offeror takes back their offer before it has been accepted. A counteroffer is a new offer made in response to the original offer. Statutory irrevocability refers to specific legal situations where an offer cannot be revoked.

Question 15

Assume an offeree mails a rejection to the offeror on November 1.This rejection arrives at the offeror's place of business on November 5.In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6.Which of the following statements correctly describes the situation?
A)There was no contract.
B)There was a contract since the acceptance was mailed prior to the time the rejection was received.
C)There was no contract because the rejection was mailed first.
D)There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

Accepted Answer

The answer of Assume an offeree mails a rejection to...

Question 16

Material terms in a contract include all but which of the following?
A)The parties.
B)Shipping method.
C)Quality.
D)Time of performance.

Accepted Answer

Material terms in a contract include the parties involved, the quality of the goods or services being provided, and the time of performance. Shipping method is an important aspect of a contract, but it may not necessarily be considered a material term in all situations.

Question 17

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."
A)Bob has made a counteroffer and hence there is no contract.
B)Bob has rejected the terms of the original offer, but there is still a contract.
C)Under Article 2 of the UCC, Arnold is a merchant making a firm offer.Hence there is a contract.
D)Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

Accepted Answer

Bob's response is a counteroffer because he proposes different terms (payment amount and timing) than those originally offered by Arnold. This means the original offer is rejected, and no contract exists unless Arnold accepts Bob's counteroffer.

Question 18

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?
A)Arthur is an authorized IBM computer dealer.
B)Brian employs two salesmen to sell his homemade furniture.
C)Clarence has a store in which he sells used lawn mowers.
D)All of the above would be merchants.
E)None of the above would be merchants.

Accepted Answer

Under the UCC, a merchant is defined as a person who deals in goods of the kind or holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction. All of the options in this question involve individuals or entities that regularly deal in the sale of goods, making them all merchants under the UCC definition.

Question 19

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?
A)An implied in fact contract has been formed.
B)A unilateral contract has been formed.
C)This created a formal contract.
D)This created an option contract.

Accepted Answer

The payment of $100 creates an option contract, where James is obligated to keep the offer open for one month in exchange for the payment. This gives Jennifer the option to purchase the land for $8,000 within the one-month period.

Question 20

The way parties usually show mutual assent is by:
A)an offer by words or conduct and an acceptance by words or conduct.
B)a proposal in words and an acceptance in words.
C)an act exchanged for an act.
D)an offer and a counteroffer.

Accepted Answer

Option A is the most accurate choice as it correctly represents the way parties usually show mutual assent, i.e., through an offer by words or conduct and an acceptance by words or conduct. The other options such as B (a proposal in words and an acceptance in words), C (an act exchanged for an act), and D (an offer and a counteroffer) may also represent mutual assent to some extent, but they are not as comprehensive as option A.

Quiz 10: Mutual Assent

Under the common law, the must be the mirror image of the .

If Anna Laura, in return for the payment of $200 to her by Catherine, gives Catherine an option to buy Jesse, a prime Arabian mare, at any time within the next 14 days at a price of $50,000, Anna Laura's offer to Catherine is:

Which of the following would NOT be a merchant under Article 2 of the UCC?

Jeb submits a bid to construct a student union building for the local community college.He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building.He may:

Don offers to sell his diamond ring to Emily.Diane overhears the offer and says, "I accept the offer."

Destruction of the subject matter has what effect on the offer?

The UCC battle of the forms rule:

Which is not a revocable offer?

The mirror image rule applies to:

Lyle offers to sell his house to Dennis for $75,000.Dennis responds, "I will pay you $75,000 for the house if you first paint the second floor." This response could best be described as:

Charlene hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist.She supplies the requested information and the suspect is then arrested and convicted.

A __________ is the refusal to accept an offer.

Material terms in a contract include all but which of the following?

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash.In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

Which of the following would most likely be a merchant with respect to the goods in question under the UCC definition?

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege.Jennifer pays James $100.Which statement describes the payment of $100?

The way parties usually show mutual assent is by: