Q&A Hero

Q: Mayfair Company offers to sell a certain mall to Galleria Stores, Inc., for a certain price if it accepts before 10 a.m. Monday. A contract is formed if Galleria's acceptance is received A.before 10 a.m. Monday. B.before midnight Monday. C.before twenty-four hours of 10 a.m. Monday. D.within a reasonable time of 10 a.m. Monday.

Q: Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when A.received. B.sent. C.followed up by a confirmation letter sent by regular mail. D.composed on a Relay computer.

Q: Kim sends an offer to Leo to cut down and remove a tree for $200. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to A.accept the offer. B.make a counteroffer. C.reject the offer. D.none of the choices.

Q: Lovett County Bank offers to lend money to Kino, the owner of Java Stop, at 15 percent interest. Before Kino accepts, a state statute is enacted prohibiting loans at rates greater than 12 percent. Kino and the bank have A.have a contract for a loan at 15 percent interest. B.have a contract for a loan at 12 percent interest. C.have a contract for a loan at 0 percent interest. D.no contract for a loan.

Q: Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet, but it is stolen before Value accepts. Most likely, Wally's must obtain A.a forklift for Value if Wally's insurance covers the loss. B.a forklift for Value if it still wants one. C.nothing for Value because that would extend the time of the offer. D.nothing for Value because the theft terminated the offer.

Q: Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by A.Grant. B.Honda. C.Ivy. D.no one-Grant's offer is still open.

Q: Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate A.after a reasonable period of time. B.after a typical work week (five business days). C.after a usual month (thirty calendar days). D.never.

Q: Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejection first, then changes his mind and sends an acceptance. Whether they have a contract is determined by A.Kyle's rejection. B.Kyle's subjective intent. C.whatever Jane decides. D.whether Kyle's rejection or acceptance is received first.

Q: Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by A.Elmore. B.Ford. C.Grace. D.no one-Elmore's offer is still open.

Q: Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This A.creates an illegal contract by adding a clause to BPI's offer. B.makes the offer irrevocable for three days if BPI accepts. C.negates BPI's offer by changing the price term. D.voids BPI's offer by extending the time term.

Q: Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information leading to the apprehension of a certain criminal. CCS could normally terminate the offer by placing A.a full-page ad in the local paper and a thirty-second commercial on the local station. B.a notice in the "Legal Announcements" section of the paper. C.a notice to the news departments of the local stations. D.any, or none, of the choices.

Q: Yvon asks Zac, "Do you want to buy one of my fishing rods?" This is A.a valid offer. B.not a valid offer because the terms are not definite. C.not a valid offer because Yvon did not state an intent. D.not a valid offer because Zack did not respond.

Q: Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property A.only before the auctioneer announces that the ranch is sold. B.only before the auctioneer delivers the deed to the buyer. C.under no circumstances. D.within thirty days after the auction.

Q: Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind, she can withdraw her collection A.only before the auctioneer announces that the items are sold. B.only before the auctioneer delivers the items to the buyers. C.under no circumstances. D.within thirty days after the auction.

Q: Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the details. Wanda responds with a letter of "acceptance." Wanda and Vito have A.a contract. B.no contract, because Vito sent the letter to more than one party. C.no contract, because Vito was only inviting bids. D.no contract, because the letter was an invitation to negotiate.

Q: Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is A.an acceptance of an offer. B.an invitation to accept an offer. C.an offer. D.a statement of future intent.

Q: A record does not require a signature to have legal effect under the UETA.

Q: State law other than the UETA always determines the effect of an error on an agreement between contracting parties.

Q: The UETA applies to an e-transaction unless the parties "opt out."

Q: The UETA does not require that an agreement to conduct a transaction electronically be made electronically.

Q: The E-Sign Act preempts the uniform version of the Uniform Electronic Transactions Act (UETA).

Q: The UETA covers only e-records and e-signatures relating to a transaction.

Q: The UETA does not create rules for e-transactions.

Q: A partnering agreement reduces the likelihood that a dispute will arise under a contract.

Q: A partnering agreement can indicate the parties' intent with respect to subsequent contracts.

Q: An electronic symbol, adopted by a person with the intent to sign an e-record, is an e-signature.

Q: The terms of a shrink-wrap agreement may be enforced in the same way as the terms of other contracts.

Q: The terms in a click-on agreement may be enforced if the parties expressly agreed to them.

Q: A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

Q: An online offer should include provisions relating to dispute settlement.

Q: A "sale" of software generally involves a right to use the software and a passage of ownership rights in the software to the buyer.

Q: An e-contract must meet the same basic requirements as a paper contract.

Q: Under the mailbox rule, no acceptance is valid until it is received.

Q: No offer can be accepted by silence.

Q: An acceptance must be unequivocal.

Q: An acceptance that materially changes a term in the offer will still be considered an acceptance.

Q: There are no revocable offers.

Q: An effective offer requires a reasonable price related to market value.

Q: A person who does not know about a reward can still claim it.

Q: An offer must be communicated to the offeree to be effective.

Q: An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.

Q: In an auction, the auctioneer is an offeree.

Q: An auction-"we ask you to bid on this item"-is an offer.

Q: Most advertisements-"this property for sale"-are offers.

Q: Ed, a businessperson, is a friend of Fran, the owner of a candy store. Every day, Ed spends five minutes in Fran's candy store, looking at the candy and usually buying one or two candy bars. One afternoon, Ed goes into the store, looks at the candy, and picks up a $1 candy bar. Ed waves the candy at Fran without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Q: Cody signs and returns a letter from Dora, referring to Dora's Double-D Ranch and its price. When Cody attempts to complete the deal, Dora refuses, claiming that they have no contract. Cody claims they do. What standard determines whether these parties have a contract?

Q: Holiday Sales Company and Global Distributors, Inc., enter into an express contract for the delivery of imported specialty goods. Express contract terms are given A.less priority than the parties' prior dealing. B.less priority than the trade usage in the parties' industry. C.less priority than the parties' course of performance. D.more priority than the prior dealing, course of performance, and trade usage.

Q: Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. Terms in the contract that are the subject of separate negotiation will be considered subordinate to A.standardized terms. B.terms that can be understood only by lawyers and judges. C.terms that are not negotiated separately. D.none of the choices.

Q: Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. If the language in the contract has more than one meaning, it will be construed againstA.the party who drafted the contract.B.the party with the greater bargaining power.C.the promisor.D.the promisee.

Q: Cory enters into a contract with Dian to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to A.the parties' intent as expressed in their contract. B.what the defendant claims was the parties' intent. C.what the plaintiff claims was the parties' intent. D.what the parties now agree they intended.

Q: Phil enters into a contract with Vacation Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be determined by reference to A.any available evidence. B.any relevant extrinsic evidence. C.the face of the instrument. D.the later testimony of the parties.

Q: Claudia enters into a contract with Bayside Inn to provide Bayside's guests with complimentary breakfast foods. When a dispute arises over the terms of their contract, Bayside files a suit against Claudia. If the contract's writing is clear and unequivocal, a court will A.enforce it according to its obvious terms. B.give greater consideration to standardized terms. C.give greater consideration to general language. D.interpret it against the party who did not draft the contract.

Q: Hubert mistakenly pays property taxes that should have been assessed against Jesse. Hubert can recover the amount from Jesse in quasi contract A.even if Jesse was not aware of the error. B.only if Jesse tried to conceal the error. C.only if Jesse was aware of the error. D.under no circumstances.

Q: Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. These promises are most likely A.enforceable. B.valid. C.void. D.voidable.

Q: Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Elbert refuses to pay 12 percent. Dot is most likely to recover A.nothing. B.on a theory of an express contract. C.on a theory of an implied contract. D.on a theory of quasi contract.

Q: Demi promises to buy a house from Caleb, who promises to vacate the property on June 1. If these promises are in writing, they are most likely A.enforceable. B.unenforceable. C.void. D.voidable.

Q: Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely A.enforceable. B.unenforceable. C.void. D.voidable.

Q: Vernon claims that his contract with Ulani is voidable. If their contract is avoided A.both parties are released from it. B.both parties must fully perform their obligations under it. C.a wholly different contract is agreed to. D.a wholly different contract is imposed "as if" the parties had agreed.

Q: Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's hybrid vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is A.executed. B.executory. C.quasi. D.unenforceable.

Q: Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay. Avatar delivers. The contract is A.voidable. B.executed. C.executive. D.executory.

Q: Livewire Company and Kitchen Products, Inc., sign a document that states Livewire agrees to design a Web site for Kitchen Products, which agrees to pay for the service. Livewire and Kitchen Products have made A.an express contract. B.an implied contract. C.a quasi contract. D.no contract.

Q: Scot and Tiffany enter into an implied-in-fact contract. The parties' conduct A.defines the contract's terms. B.finds the contract's facts. C.terminates any unintended consequences. D.undercuts any terms based on the facts.

Q: Lou claims that he and Myra entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that A.a court imposed a promise in the interest of fairness. B.Lou expected to be paid for providing services or property. C.Lou provided Myra with services or property. D.Myra failed to reject services or property provided by Lou.

Q: GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have A.an executed contract. B.an express contract. C.an implied contract. D.a quasi contract.

Q: Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have A.an executed contract. B.an express contract. C.an implied contract. D.a quasi contract.

Q: Bay City Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is expressed about payment. Cool provides the services, but Bay City refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had A.a formal contract. B.an actual contract. C.an implied contract. D.a voidable contract.

Q: When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is A.an express contract. B.an implied contract. C.a quasi contract. D.no contract.

Q: On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex, acting for Seaside Productions, sends a written copy of the agreement to Thalia to be signed. Typically, businesspersons put their contracts in writing to A.ensure proof of the contracts' existence. B.create substance from form. C.obtain a check or other negotiable instrument. D.practice their "letters of credit."

Q: Opie offers to sell his guitar to Pinky for $100. Pinky agrees and writes a check payable to the order of Opie for the price. This check is A.a formal contract. B.an informal contract. C.a social contract. D.no contract.

Q: Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is A.a bilateral contract that Lana accepted by applying for the job. B.a quasi contract on which Lana can rely for employment. C.a unilateral contract that Lana can accept by passing the exam. D.no contract.

Q: Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rico within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have A.a bilateral contract. B.a trilateral contract. C.a unilateral contract. D.no contract.

Q: Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have A.a bilateral contract. B.a trilateral contract. C.a unilateral contract. D.no contract.

Q: On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had A.an expired contract when Neil said that he had changed his mind. B.a quasi contract when Neil said that he would pay for certain work. C.a unilateral contract as soon as Outdoor began to perform. D.no contract.

Q: Mona asserts that a contract she entered into with Nate is unenforceable. Defenses to the enforcement of a contract include A.a desire not to perform. B.adverse economic consequences. C.results that do not match expectations. D.the lack of a party's genuine assent.

Q: Tania promises to buy Saki's handheld game-player for $75. Saki is A.an executee. B.an offeror. C.a promisee. D.a promisor.

Q: Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include A.consideration. B.capacity. C.legality. D.practicality.

Q: Jack promises to buy Kris's computer for $400. Jack is A.an executor. B.an offeree. C.a promisee. D.a promisor.

Q: Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. The requirements of this, and any other, contract include A.something of value received or promised to convince a person to make deal. B.persons whose characteristics qualify them as implied parties. C.negotiation and compromise. D.a paragraph that describes the contracting parties' intent.

Q: Bobbie claims that Carl breached their contract. Carl responds that he never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to A.the conscious theory of contracts. B.the objective theory of contracts. C.the personal theory of contracts. D.the subjective theory of contracts.

Q: InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, the firm may be required to A.do nothing. B.make another promise. C.pay damages. D.perform a different service.