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Q:
Shasta offers to sell a used hay baler to Roberto, but receives a letter of acceptance from Quito, who has no relation to Roberto. A valid contract exists between
a. Shasta and Roberto.
b. Shasta and Quito.
c. Roberto and Quito.
d. none of the choices.
Q:
Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance
a. exactly mirror those of the offer.
b. change the items offered, but do not change the price.
c. change the price, but do not change the items offered.
d. change both the price and the items offered.
Q:
Jack offers to sell Ben a new car for $10,000. Ben accepts the offer and sells his old car so that he will have money for the new one. Jack's offer is probably
a. revocable because the terms of the offer were not definite.
b. irrevocable because Ben sold his old car because of justifiable reliance on Jack's offer to sell him a new car.
c. revocable because any offer is revocable.
d. irrevocable because Jack's offer represents an opinion contract.
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 offers to sell a certain used forklift to Valu Lumber Outlet, but Wally dies before Valu accepts. Most likely, Wally's death
a. did not affect the offer.
b. shortened the time of the offer but did not terminate it.
c. extended the time of the offer.
d. terminated the offer.
Q:
Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1. Signe may revoke the offer
a. before Thomas accepts the offer.
b. before March 1, whether or not Thomas has accepted the offer.
c. only after Thomas accepts the offer.
d. only after March 1.
Q:
On May 1 Jill offers to sell Andrea a herd of sheep. On May 3 Jill mails Andrea a letter revoking the offer. Andrea receives the letter on May 5. Jill's revocation of the offer to sell the sheep became effective on
a. May 1.
b. May 3.
c. May 4.
d. May 5.
Q:
Laredo advertises a reward for the return of his lost dog. Mikayla, who does not know of the reward, finds and returns the dog. Mikayla cannot recover the reward, because she
a. did not confer a benefit on Laredo by returning the dog.
b. did not know of the reward when she found and returned the dog.
c. does not need the money.
d. returned the dog.
Q:
Pastry Dough, Inc., sends its catalogue to Octavio and includes a "personalized" letter inviting him to buy any item in it at the advertised price. This is
a. an offer because of the "personalized" letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Octavio previously bought items from Pastry Dough.
d. not an offer.
Q:
Jon says to Kristy, "I would like to sell you my sports memorabilia collection." This is not an offer because it
a. does not describe the subject matter sufficiently.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kristy to negotiate.
Q:
Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carlton is
a. liable.
b. not liable, because surgery is not a proper subject for a contract.
c. not liable, because the statement was an opinion.
d. not liable, but Beth is excused from paying Carlton.
Q:
Mary admires Julia's collection of scarves. Julia says "I might sell you a few someday, if I get tired of them." Julia's statement is
a. an effective offer.
b. not an effective offer because it has not been communicated to Mary.
c. not an effective offer because the Julia does not show a serious intent to be bound.
d. an acceptance.
Q:
Jacqi tells Kenneth, who does not know how to perform comedy, that she will tutor him in the subject for $500. As an offer, this is
a. effective.
b. not effective, because comedy is not a serious subject.
c. not effective, because Jacqi's tutoring will be subjective.
d. not effective, because Kenneth has no knowledge of the subject.
Q:
Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray's horse is too slow. Ray laughs and jokingly responds "Yes, he is too slow! I would sell him for $5!" Peter hands Ray $5. This is
a. a valid acceptance because Peter gave Ray the money in a reasonable time.
b. a valid acceptance because there is consideration on both sides.
c. not a valid acceptance because Ray's offer was made in jest.
d. not a valid acceptance because Ray's horse is worth more than $5.
Q:
May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is
a. a valid acceptance because May is seriously frustrated.
b. a valid acceptance because Nick is a car dealer.
c. not a valid acceptance because May does not seriously intend to sell.
d. not a valid acceptance because Nick is a car dealer.
Q:
Fresh Fast Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to
a. Fresh's assumptions.
b. Fresh's beliefs.
c. Fresh's intentions.
d. what a reasonable person in Growers' position would conclude Fresh's words and actions meant.
Q:
The UETA does not require the use of security procedures to verify changes to electronic documents and to correct errors.
Q:
Under the UETA, an e-signature of a notary public is not sufficient to notarize a document.
Q:
The E-Sign Act does not preempt the uniform version of the UETA.
Q:
Under the UETA, a contract is unenforceable if it is solely in electronic form.
Q:
The primary purpose of the Uniform Electronic Transactions Act (UETA) is to remove barriers to e-commerce.
Q:
A record is an interaction between two or more people relating to business, commercial, or governmental activities.
Q:
Under the UETA, a typed name at the end of an email message is not considered an e-signature.
Q:
Under federal law, an e-signature is enforceable only if the contracting parties have agreed to use e-signatures.
Q:
Under federal law, an electronic signature can be as valid as a signature on paper.
Q:
Under the Electronic Signatures in Global and National Commerce Act, a signature may not be denied legal effect solely because it is in electronic form.
Q:
Browse-wrap terms require a user to affirmatively indicate his or her consent.
Q:
Browse-wrap terms are arguably not enforceable.
Q:
Not all of the terms presented in shrink-wrap agreements have been enforced.
Q:
A shrink-wrap agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.
Q:
A click-on agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.
Q:
The agreement resulting from a buyer clicking on a box containing the words "I agree" is known as a click-on agreement.
Q:
A forum-selection clause indicates the forum, or location, for the delivery of goods purchased online.
Q:
If an offeror does not expressly specify a certain mode of acceptance, then acceptance can be made by any reasonable means.
Q:
The mailbox rule applies to communication by phone and fax as well as the mail.
Q:
In a bilateral contract, communication of acceptance is necessary.
Q:
Some unilateral contracts do not require that an offeror be notified of acceptance.
Q:
The mirror image rule requires an acceptance to adhere exactly to an offer to create a contract.
Q:
An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.
Q:
An offer that a statute makes illegal terminates only after a reasonable time.
Q:
The death of an offeree does not terminate an offer.
Q:
If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time.
Q:
In most states, revocation becomes effective on receipt.
Q:
Revocation is effective on dispatch.
Q:
In most cases, an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.
Q:
A circular letter"Dear Mr. or Ms. Jones, This is our biggest sale ever!"is not evidence of an intent to enter into a contract.
Q:
A seller's price list is not an offer.
Q:
An expression of opinion"this is perfect!"is an effective offer as long as it is not made in jest.
Q:
An offer made in obvious anger is still an effective offer.
Q:
An offer does not need to be communicated to the offeree to become effective.
Q:
For an offer to be effective, the offeror must have a serious intention to become bound by the offer.
Q:
The element of intent is not very important in determining whether a contract has been formed.
Q:
Contract law assures the parties to private agreements that the promises they make will be enforceable.
Q:
A contract is an agreement that can be enforced in court.
Q:
The person who makes a promise is the promisee.
Q:
If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.
Q:
A promise is a declaration that something will or will not happen in the future.
Q:
Some promises create moral, but not legal, obligations.
Q:
Ed, a businessperson, is a friend of Fran, the owner of a Percolated Coffee & Baked Goods store. Every day, Ed spends five minutes in Fran's store, looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon, Ed goes into the store, looks at the items, and picks up a $1 chocolate brownie. Ed waves the brownie 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 her sale of the Bar-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:
Cory believes that he and Dian agreed that he would act as her personal sports trainer for seven workout sessions. In a later dispute, the existence of any contract can be judged by
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 agree they intended.
Q:
In negotiations with Coastal Distribution Company, Briggs Trucking, Inc., insists that their contract be drafted according to certain plain language laws. These laws concern the phrasing of
a. contracts.
b. ads.
c. product instruction manuals.
d. documents of delivery.
Q:
Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because
a. both of the parties involved are businesses.
b. at least one of the parties had greater bargaining power.
c. the subject of the contract was a service.
d. there is an actual contract covering the subject in dispute.
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. both parties agree to a wholly different contract.
d. a wholly different contract is imposed "as if" the parties had agreed.
Q:
Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have
a. an executory contract.
b. no contract.
c. a quasi contract.
d. an informal 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:
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 McCoy's Candy, Inc., sign a document that states Livewire agrees to design a Web page for McCoy's, which agrees to pay for the service. This is
a. an actual contract.
b. a fictional contract.
c. an implied contract.
d. a quasi contract.
Q:
Scot and Tiffany enter into an implied 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:
GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the service. GR8 and Brainfreeze have
a. an executed contract.
b. an express contract.
c. an implied contract.
d. a quasi contract.
Q:
Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have
a. no 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 said 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 express contract.
c. an implied contract.
d. a voidable contract.
Q:
When Jeff's car breaks down, he asks Insta-Tow, Inc., to tow it to Huey's Repair Shop. There is no discussion of a price, and Jeff and Insta-Tow do not sign any documents. Later, Insta-Tow 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. an implied-in-law contract.
d. no contract.
Q:
Kathryn signs a lease agreement for an apartment. Kathryn has entered into a(n)
a. express contract.
b. implied contract.
c. quasi contract.
d. unenforceable contract.
Q:
Opie offers to sell his guitar to Pinky for $200. Pinky agrees. They complete and sign a printed form and Pinky gives Opie a check for the price. The check is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract.
Q:
On behalf of the rock group Uno, their manager Thalia agrees to a performance in Seaside Amphitheater on July 4. Rex, acting for Seaside, sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy, the parties will have
a. an express contract.
b. an implied contract.
c. an implied-in-law 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:
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.