Q&A Hero

Q: An agreement consists of an offer by one party and acceptance of the terms by the other party.

Q: An offeree is the party making an offer and the offeror is the party receiving the offer.

Q: Lack of genuine assent is an element of a valid contract.

Q: Explain the effect of auctions held with reserve and without reserve, and discuss what happens if nothing is said regarding whether an auction is being held with reserve or without reserve.

Q: Set forth the ways in which an offer can terminate.

Q: Wally wants to sell his used computer to Susan for $400. Susan says that she will think about it. Wally tells Susan on Monday that if she wants the computer, she must call him on his cell phone by 6 p.m., the next day. That next morning Susan decides she does want the computer, but she has misplaced Wally's cell phone number. She finds his address in an old campus directory. Therefore, she drops a note to him through U.S. mail telling him that she wants the computer. Meanwhile, on Wednesday, before he gets Susan's acceptance, Wally sells the computer to Alice. When Wally calls Susan to tell her the bad news, Susan tells Wally that she accepted the contract and that under the Mailbox Rule, he is liable to her for damages computed by the difference between $400 and the amount it costs her to obtain a similar computer. Who will win in the dispute between Wally and Susan and why?

Q: A contract is a set of legally enforceable promises.

Q: Define and give an example of an express contract and an implied contract.

Q: Millie mows her own yard to save money. Her neighbor Paul, however, hires a lawn service to mow his yard. One day Millie is looking out the window and sees Paul's lawn service drive up. Surprisingly, they begin to mow her yard, not Paul's yard. Millie thinks that is great and keeps her mouth shut while they mow the yard. Later, she gets a bill. She calls the owner of the lawn service and says that she does not have to pay because there was no contract by she agreed to have her yard mowed. Discuss whether the lawn service is entitled to any recovery and why or why not.

Q: Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is voidable after one party has fully or partially performed.

Q: Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen 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 and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry 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. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit Barry brought against Chris? A. Chris will win because he properly revoked his bid before it was accepted. B. Chris will win because bids made at an auction may be revoked at any time within ten days after the auction. C. Chris will win because bids made at an auction may be revoked at any time within five days after the auction. D. Chris will win because bids made at an auction may be revoked at any time within one day after the auction. E. Barry will win because Chris had no right to revoke the bid.

Q: Identify and describe the four elements that are necessary for a contract to exist.

Q: (p. 156) Define a bilateral contract and a unilateral contract, and give an example of each.

Q: Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen 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 and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry 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. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. In the lawsuit in which Barry sues Helen for return of the $5,000, which of the following is the most likely result? A. Barry will win because when an auction is held without reserve, the auctioneer is entitled to repossess any item at will. B. Barry will lose only because he was not the actual seller. He was only selling at auction for someone else. The seller, however, would win in an action against Helen. C. Barry would win because Helen made an insufficient offer. D. Helen will win only if she can show that Barry had knowledge that cash was in the drawer before he sold it. E. Helen will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck.

Q: Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen 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 and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry 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. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold", Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit brought by Mary against Barry for the table? A. Barry will win because Mary was simply making an offer that he was free to decline. B. Barry will win because the price was clearly insufficient for the table. C. Barry will win because no acceptance occurred. D. Mary will win because the auction was without reserve, and Barry had agreed to accept the highest bid. E. Barry will win because he did not inform attendees in writing that the auction was without reserve.

Q: Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the most likely result in the lawsuit brought by Barbara against Walter? A. Walter will win because he was only engaged in preliminary negotiations. B. Walter will win because the advertisement was simply inviting customers, such as Barbara, to make an offer. C. Walter will win because he properly revoked the offer. D. Barbara will win because the ad would be treated as an offer that she properly accepted. E. Barbara will win because she properly made an offer that was accepted by Walter when he allowed her to continue hula hooping.

Q: Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. Which of the following is true regarding Jackson's assertion that Penny must pay him? A. He is correct because an express contract existed. B. He is correct because an implied contract existed. C. He is correct because an implied-in-law contract existed. D. He is correct because a valid contract existed. E. He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint.

Q: Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person, usually around the waist.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. Which of the following is the likely result in the lawsuit brought by Sam complaining that Walter ran out of cars available for a rebate? A. Sam will win because Walter was required to have sufficient cars on hand for anyone who requested one. B. Sam will win because a rebate was involved. C. Sam will win because Walter should have run another ad revoking the offer. D. Sam will lose because he did not properly accept the offer. E. Sam will lose because court would interpret the intent of Walter as being to invite readers to make an offer that Walter was free to reject.

Q: Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in Walter's lawsuit against Sally in which he claims that she must pay $3,000 for the car at issue? A. Walter will win because Sally made an offer that he properly accepted, regardless of whether the offer was a reasonable one. B. Walter will win only because Sally agreed to pay a reasonable amount for the vehicle and he properly accepted the offer. C. Walter will lose because he did not properly accept Sally's offer. D. Sally will win because she merely expressed interest and did not make an offer. E. Sally will win because no contract was in writing.

Q: Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in the lawsuit brought by Walter against Zack? A. Walter will win because Zack properly made an offer that Walter accepted. B. Zack will win because he was merely expressing possible interest. C. Zack will win because Walter did not properly accept. D. Zack will win because under a subjective standard he was joking. E. Zack will win because under an objective standard, it appears he was joking.

Q: Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges? A. He is correct. B. He is incorrect because there was a bilateral, express contract. C. He is incorrect because there was a unilateral, express contract. D. He is incorrect because there was an express, trilateral contract. E. He is incorrect because there was a binding implied contract.

Q: Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job? A. The contract was executory. B. The contract was executed. C. The contract was notated. D. The contract was formal. E. The contract was a recognizance contract.

Q: Wrong Deck. Penny hires Jackson to paint her back deck on her house. She agrees to pay him $200 for the job, and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny. Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson? A. She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract. B. She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract. C. She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract. D. She is correct. The neighbor will be required to pay Jackson based upon an express contract. E. She is incorrect. The neighbor will not be required to pay Jackson.

Q: What was the result in Janky v. Batistatos, Lake County Conventions & Visitations Bureau, the case in the text in which it was claimed that an e-mail constituted acceptance of a settlement offer? A. That the e-mail was insufficient to constitute an acceptance because of its electronic nature. B. That the e-mail was insufficient to constitute an acceptance because no settlement funds were forwarded in conjunction with the e-mail. C. That the e-mail was insufficient to constitute an acceptance because the parties had not specifically agreed that acceptance could be made in that manner. D. That the e-mail was insufficient to constitute an acceptance because it was insufficiently specific. E. That the e-mail was sufficient to constitute an acceptance.

Q: Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is correct regarding Brenda's statement that she was not bound on any contract? A. Brenda is correct. There was no contract because she had not started working. B. Brenda is incorrect because there was a bilateral, express agreement. C. Brenda is incorrect because there was a bilateral, implied agreement. D. Brenda is incorrect because there was a unilateral, express agreement. E. Brenda is incorrect because there was a unilateral, implied agreement.

Q: Refusal to Pay. Business law teacher, Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. Which of the following is an appropriate characterization of the agreement between Debby and Max? A. They had a bilateral, express contract. B. They had a bilateral, implied contract. C. They had a bilateral and unilateral contract. D. They had a unilateral contract. E. They did not have any type of enforceable agreement.

Q: Which of the following modifies the mirror-image rule? A. The Absolute Business Code. B. The Uniform Commercial Code. C. The Governing Business Agreement. D. The International Business Code. E. None of these because the common law has not been modified.

Q: Which of the following is true if no means of communicating an acceptance is specified in an offer? A. The acceptance must be in writing. B. The acceptance must be made verbally either by telephone or in person. C. No valid contract may be entered into because the offer must specify a means by which to accept. D. Acceptance may be made by any reasonable means. E. Acceptance must be made orally or in writing within twenty-four hours.

Q: Which of the following provides that an acceptance is valid when it is placed in the mailbox? A. The acceptance rule. B. The contract rule. C. The reasonable rule. D. The mailbox rule. E. The contract legality rule.

Q: Which of the following provides that a revocation is effective only when received by the offeree? A. The acceptance rule. B. The contract rule. C. The reasonable rule. D. The mailbox rule. E. The contract legality rule.

Q: Which of the following references a problem occurring when a buyer and a seller purport to make an agreement, but pre-printed forms do not match? A. The parallel issue. B. The matching issue. C. The battle of the forms. D. The lack of completeness issue. E. The minor deviance issue.

Q: Inez, wishing to sell a used business law book, calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale? A. There is no contract because silence, as a general rule, cannot be used to form a contract. B. There is no contract because the offer was not made in person. C. There is no contract because the offer was not made in writing. D. Janice can avoid there being a contract only if she can prove by preponderance of the evidence that she did not hear about the offer before the stated expiration time. E. Janice can avoid this being a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.

Q: Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of the offer? A. The matching rule. B. The complete rule. C. The mirror image rule. D. The exact rule. E. The parallel rule.

Q: Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement? A. Gretchen is incorrect because there is a binding bilateral contract. B. Gretchen is incorrect because there is a binding unilateral contract that Haley accepted by performing. C. Gretchen is correct because there is no binding bilateral contract. D. Gretchen is correct because there is no binding unilateral contract. E. Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.

Q: When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare with those for a valid offer? A. The basic requirements for a valid acceptance are materially different from those for a valid offer. B. The basic requirements for a valid acceptance parallel those for a valid offer. C. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be in writing. D. The basic requirements for a valid acceptance are different from those for a valid offer only because an acceptance must be in writing. E. The basic requirements for a valid acceptance are different from those for a valid offer only because an offer must be revoked immediately but acceptance can be withheld for a reasonable period of time.

Q: Which of the following is false regarding how the Japanese tend to view contracts? A. The Japanese tend to view contracts as ongoing relationships. B. The Japanese tend to view contracts as relationships in which parties work with each other to smooth out any problems that arise in performance. C. The Japanese tend to be suspicious of long, detailed contracts. D. The Japanese have a preference for flexible contracts. E. The Japanese do not desire that any terms be left to be decided later.

Q: Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired? A. Forty-eight hours. B. Seven days. C. Thirty days. D. Forty-five days. E. There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.

Q: In the European Union, which of the following is the source to turn to, in order to understand how the various member states regulate contracts? A. The Principles of European Contract Law B. The European Union Contract Manual for Member States C. The Elements of Contractual Relation in the European Union D. European Contract Law E. None of these because all the member states have their own individual regulations

Q: In which of the following ways may an offeree accept a unilateral contract? A. By making a counteroffer. B. By a signed writing only. C. By either verbal acceptance or a signed writing. D. By performance. E. By performance, by a verbal acceptance, or by a signed writing.

Q: If the subject matter of an offer is destroyed, the offer _____. A. immediately terminates B. is extended for seven days C. is extended for fourteen days D. is extended for twenty-one days E. is extended for thirty days

Q: If the subject matter of an offer becomes illegal, what is the result? A. The offer immediately terminates. B. There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal. C. There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal. D. There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal. E. There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.

Q: In the absence of a time condition in an offer, the offer will expire _____. A. in forty-eight hours B. in seven days C. in thirty days D. in forty-five days E. after a reasonable amount of time

Q: If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into a(n) _____ contract with the offeror. A. clear B. explicit C. unrevokable D. option E. none of these, because legally an offeree cannot guarantee that an offer will be held open for a specific time.

Q: As a general rule, when is revocation effective? A. When it is mailed by the offeror. B. When it is received by the offeree. C. One day after it is made. D. Two days after it is made. E. Three days after it is made.

Q: Which of the following is true regarding when an offeree may reject an offer? A. Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated. B. If the offeror states that an offer will be held open for a certain amount of time, then it is open for that length of time even if a rejection is received prior to the expiration of that time. C. An offer must remain open for at least two days before an offeree may reject it. D. An offer must remain open for at least three days before an offeree may reject it. E. An offer must remain open for at least four days before an offeree may reject it.

Q: If a(n) _____ contract exists, the administrator of an offeror's estate must hold an offer open until it expires in accordance with the contract. A. bilateral B. unilateral C. complete D. option E. bilateral or option

Q: Which of the following refers to the right of an offeror to revoke an offer? A. The offeror is the "originator of his offer." B. The offeror is the "master of his offer." C. The offeror is the "proponent of his offer." D. The offeror is the "adjudicator of his offer." E. The offeror is the "arbiter of his offer."

Q: The _____ terms of a contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract. A. important B. significant C. material D. adequate E. identifiable

Q: In which of the following ways can an offer terminate? A. Only by revocation by the offeror. B. Only by revocation by the offeror, or rejection or counteroffer by the offeree. C. Revocation by the offeror, rejection by the offeree, or destruction of the subject matter. D. By revocation by the offeror, but not before the offer is held open for five days. E. Only by revocation by the offeror, but not before the offer is held open for ten days.

Q: What was the result in the case nugget, Lefkowitz v. Great Minneapolis Surplus Store Inc., involving an advertisement for the sale of fur coats? A. The court ruled that the advertisement was not an offer because it involved a luxury good. B. The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it. C. The court ruled that the advertisement was not an offer because it was a ridiculously low offer that the plaintiff should have known was not to be taken seriously. D. The court ruled that the ad was not an offer because ads are never offers, only invitations for customers to make an offer. E. The court ruled that the ad was an offer and that the plaintiff properly accepted it.

Q: If nothing is stated to the contrary in terms of an auction, an auction is presumed to be _____. A. without controls B. with controls C. without reserve D. with reserve E. without qualifications

Q: In an auction _____, the seller is treated as making an offer to accept the highest bid. A. without controls B. with controls C. without reserve D. with reserve E. without qualifications

Q: Under common law, when does formation of an agreement begin? A. When the offeree makes an offer to the offeror. B. When consideration is provided. C. When funds are transferred. D. When a writing is entered into. E. When the offeror makes an offer to the offeree.

Q: If Maria says to Peter, "I bet you a million dollars that it is going to rain tomorrow," and Peter knows that Maria is joking, it would not be a valid offer based upon: A. lack of definite and certain terms B. lack of inadequate communication to the offeree C. lack of intent D. lack of consideration E. it is a valid offer

Q: What was the result in the case in the text Lucy v. Zehmer involving whether allegations of joking involving the sale of land prevented the formation of a contract? A. The court ruled that the contract would not be enforced because one of the parties was subjectively joking. B. The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that. C. The court ruled that the contract would not be enforced because the parties had been drinking although they were not intoxicated. D. The court ruled that the agreement would be enforced because of the outward manifestations of agreement. E. The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved.

Q: Constance asks Kathy if Kathy will sell her used business book for $50. What is the status of the negotiations? A. No offer has been made. B. An offer has been made, but it may be revoked. C. An offer has been made that may not be revoked. D. A contract has been entered into. E. A contract has been entered into, but it may be set-aside at the option of either party.

Q: A _____ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents. A. letter of agreement B. letter of credit C. letter of acknowledgement D. negotiated credit instrument E. simple contract

Q: Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument? A. Negotiable instrument. B. Informal contracts. C. Simple contracts. D. Letters of credit. E. Formal contracts.

Q: Which of the following is the first element of a contract? A. An agreement. B. Intent. C. An offer. D. An acceptance. E. A writing.

Q: The term _____ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made. A. implied-in-fact contracts B. implied-in-law contracts C. contracts under wax D. contracts under seal E. contracts under pressure

Q: How many states still allow a contract without consideration to be enforced, if it is under seal? A. Five. B. Eight. C. Ten. D. Twenty. E. Thirty.

Q: A(n) _____ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so. A. contract under seal B. voidable contract C. recognizance D. implied-in-fact E. informal contract

Q: Which of the following is an example of a formal contract? A. Contracts under seal. B. Executed contracts. C. Letters of credit. D. Contracts under seal and letters of credit, but not executed contracts. E. Contracts under seal, letters of credit, and also executed contracts.

Q: Which of the following contracts are usually voidable? A. Contracts entered into as a result of fraud. B. Contracts entered into as a result of duress. C. Contracts entered into as a result of undue influence. D. Contracts entered into as a result of fraud or duress, but not undue influence. E. Contracts entered into as a result of fraud, duress, or undue influence.

Q: Once all of the terms of the contract have been fully performed, the contract is said to be _____. A. executory B. executed C. anticipatory D. ended E. stopped

Q: As long as some of the duties under a contract have not yet been performed, the contract is considered _____. A. executory B. executed C. anticipatory D. ended E. stopped

Q: A valid contract may be _____ when there is some law that prohibits the courts from enforcing it. A. executed B. executory C. unenforceable D. notated E. condoned

Q: Which of the following is, in effect, not a contract at all? A. A voidable contract. B. An executory contract. C. An implied contract. D. An executed contract. E. A void contract.

Q: A contract is _____ if one or both of the parties have the ability to either withdraw from the contract or enforce it. A. voidable B. executory C. implied D. executed E. void

Q: Which of the following is sometimes referred to as an implied-in-law contract? A. Quasi-contracts B. Express contracts C. Implied-in-fact contracts D. Express contracts and implied-in-fact contracts E. Express contracts and quasi-contracts

Q: Which of the following is a measure of recovery when a quasi-contract is involved? A. The amount set forth in the contract. B. The fair market value of the matter involved. C. The wholesale price of any good involved. D. The amount sought by the plaintiff in the complaint. E. Damages will be computed the same as they are computed for any other contract.

Q: A _____ contract is one that contains all the legal elements of a contract. A. voidable B. executed C. formal D. valid E. approved

Q: Which of the following have all their terms clearly set forth in either written or spoken words? A. Implied contracts B. Express contracts C. Liquidated contracts D. Bilateral contracts E. Unilateral contracts

Q: In which of the following does a contract arise not from words but from the conduct of the parties? A. Implied contracts B. Express contracts C. Liquidated contracts D. Bilateral contracts E. Unilateral contracts