Business Law Final Exam Questions With Complete
Solutions
John owns a thoroughbred horse named Prince Charming that
just ran in the Kentucky Derby. Prince Charming came in last,
much to John's frustration and embarrassment. John exclaims in
a loud voice, "I'm selling that horse to the first person who
hands me $100!" John has
not made an offer because under the circumstances a reasonable
person would not conclude that John had intent to make an offer.
Which of the following are generally considered to be legal
offers?
a note scribbled on a restaurant napkin that includes the details
of the offer
The intent of the offeror to extend an offer to the offeree is
generally determined by reference to
the words and conduct of the offeror
Which of the following scenarios describes an offer?
Luther says to Consuela, "My son needs tutoring in Spanish. I'd
like you to come to my home on Monday and Wednesday nights
beginning next week for two-hour sessions, and I'll pay you $40
per hour. I'd like you to tutor him for the next three months."
,Which term refers to whether an offeree accepts an offer by
promising, by making a down payment, or by performing
manner of acceptance
Floyd offers to sell his 1967 Ford Mustang convertible to Tim.
Before they conclude their negotiations, Floyd dies. Which of
the following is true?
The offer terminates automatically upon Floyd's death.
What is the best definition of the mailbox rule
Acceptance of an offer is generally effective upon dispatch;
terminations are effective when received
Which of the following offers are considered to be irrevocable
for a given period?
All of these are correct
Collector Carl displays his beer can collection at the local swap
meet. Mary sees the collection and is interested in buying it.
Carl says he will sell the collection for $1,500. Mary says she
really likes the collection but is only willing to pay $1,000.
Which of the following is correct
Mary's counteroffer terminates Carl's offer of $1,500
If an offer specifies no time limit in which to accep
the offeree has a reasonable period during which to accept
, Dick offers to sell Jane his 1955 Thunderbird convertible.
Before Jane can accept the offer, lightning strikes the car and it
is totally destroyed. Which of the following is true
The offer is terminated by law.
Noah tells Ivy he is willing to sell his comic book collection to
her for $100. Ivy says no, she would rather save her money to
buy a new cell phone. What just happened
termination by rejection
If Morales and Rolfes Supply negotiate for the purchase and sale
of a supply of fuel for a three-year period for Morales' business
the contract may indicate a method for determining the price,
without stating a definite price
Jaime offered to buy Kevin's bike. Jamie is the
offeror
Acme Co. offers to buy 1,000 widgets from Widget World Co.
The written offer provides for 1,000 at $10 per widget, to be
delivered May 1. The offer has no other provisions. Widget
World sends a written acceptance. However, the acceptance also
states that if any claim arises under this contract, Widget World
must be notified within 10 days. Acme does not object to this
provision. Both parties are merchants. Which of the following
best describes this situation?
Solutions
John owns a thoroughbred horse named Prince Charming that
just ran in the Kentucky Derby. Prince Charming came in last,
much to John's frustration and embarrassment. John exclaims in
a loud voice, "I'm selling that horse to the first person who
hands me $100!" John has
not made an offer because under the circumstances a reasonable
person would not conclude that John had intent to make an offer.
Which of the following are generally considered to be legal
offers?
a note scribbled on a restaurant napkin that includes the details
of the offer
The intent of the offeror to extend an offer to the offeree is
generally determined by reference to
the words and conduct of the offeror
Which of the following scenarios describes an offer?
Luther says to Consuela, "My son needs tutoring in Spanish. I'd
like you to come to my home on Monday and Wednesday nights
beginning next week for two-hour sessions, and I'll pay you $40
per hour. I'd like you to tutor him for the next three months."
,Which term refers to whether an offeree accepts an offer by
promising, by making a down payment, or by performing
manner of acceptance
Floyd offers to sell his 1967 Ford Mustang convertible to Tim.
Before they conclude their negotiations, Floyd dies. Which of
the following is true?
The offer terminates automatically upon Floyd's death.
What is the best definition of the mailbox rule
Acceptance of an offer is generally effective upon dispatch;
terminations are effective when received
Which of the following offers are considered to be irrevocable
for a given period?
All of these are correct
Collector Carl displays his beer can collection at the local swap
meet. Mary sees the collection and is interested in buying it.
Carl says he will sell the collection for $1,500. Mary says she
really likes the collection but is only willing to pay $1,000.
Which of the following is correct
Mary's counteroffer terminates Carl's offer of $1,500
If an offer specifies no time limit in which to accep
the offeree has a reasonable period during which to accept
, Dick offers to sell Jane his 1955 Thunderbird convertible.
Before Jane can accept the offer, lightning strikes the car and it
is totally destroyed. Which of the following is true
The offer is terminated by law.
Noah tells Ivy he is willing to sell his comic book collection to
her for $100. Ivy says no, she would rather save her money to
buy a new cell phone. What just happened
termination by rejection
If Morales and Rolfes Supply negotiate for the purchase and sale
of a supply of fuel for a three-year period for Morales' business
the contract may indicate a method for determining the price,
without stating a definite price
Jaime offered to buy Kevin's bike. Jamie is the
offeror
Acme Co. offers to buy 1,000 widgets from Widget World Co.
The written offer provides for 1,000 at $10 per widget, to be
delivered May 1. The offer has no other provisions. Widget
World sends a written acceptance. However, the acceptance also
states that if any claim arises under this contract, Widget World
must be notified within 10 days. Acme does not object to this
provision. Both parties are merchants. Which of the following
best describes this situation?
