BUL Chapter 10 Exam Questions and Complete Solutions Graded A+

BUL Chapter 10 Exam Questions and Complete Solutions Graded A+ For purposes of general contract law (common law), an offer must: - Answer: be sufficiently definite and certain To be effective, an offer must: - Answer: be communicated to the offeree Retail stores typically put advertisements in newspapers describing goods and stating prices. These ads are generally considered to be: - Answer: invitations to buyers to make an offer to buy the goods described If an offer has no stated time by which it must be accepted, when does the offer terminate? - Answer: After a reasonable period of time Which of the following will terminate an offer? - Answer: Destruction of the subject matter of the offer. The mirror image rule relates to which required element of a contract? - Answer: The acceptance. Which is NOT a correct about the UCC's "Battle of the Forms" rule? - Answer: The UCC battle of the forms rule is what common law calls the mirror image rule. According to general (common) contract law, the __________ must be the __________ of the offer. - Answer: acceptance; mirror image An offer for the sale of goods under the UCC: - Answer: must include the quantity. Who would likely be considered a merchant under the UCC with respect to the goods in question? - Answer: An authorized Apple computer dealer selling accessories for Apple computers and Apple-related products. Which of the following offers cannot be revoked? - Answer: All of these are incorrect. When is there an effective acceptance of an offer to enter into a unilateral contract? - Answer: When the offeree has fully performed what was asked of him in the offer. How do parties usually show mutual assent? - Answer: By one party making an offer in words or by conduct and the other party accepting in words or by conduct. The Jones' have always admired a house that sits on the top of a hill owned by the Smiths. Martin is a mutual friend of both the Jones and the Smiths. One day, Martin mentions to the Smiths how much the Jones would love to buy the Smith home. The Smiths say that if they sell the house, they would be happy to sell it to the Jones. Martin relays this conversation to the Jones and the Jones immediately call the Smiths to accept the Smith's offer to sell. Have Smiths made an offer to sell their home to the Jones? - Answer: All of these are correct. Betty is looking at the grocery ads in the newspaper and sees that canned tuna is on sale for 6 cents. Because this is an amazingly low price, she rushes off to the grocery store. She loads 10 cans into her cart, goes to the checkout counter and hands the cashier 60 cents. The cashier asks for $6.90 and tells her that the tuna is 69 cents per can and that the ad was a misprint. Betty demands that the tuna be sold to her for 6 cents a can. Which of the following statements about the ad is correct? - Answer: The ad is an invitation for others to make offers. Betty has made an offer to buy the tuna for 6 cents a can and the grocer has rejected Betty's offer, but countered with an offer to sell it to Betty for 69 cents per can. Sam emailed Bob offering to sell him his 1970 Corvette for $7,000. Later, Sam finds out 1970 Corvettes which are in excellent condition and have all the original parts sell for closer to $57,000. He changes his mind about selling his Corvette to Sam for $7,000. Which of the following statements about the offer is correct? - Answer: Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke. Sam emailed Bob offering to sell him his 1970 Corvette for $7,000 and also said that he would give Bob two weeks to accept Sam's offer before he started advertising the Corvette for sale. One week later, Bob learns that Sam has sold his 1970 Corvette to Terry. Which of the following statements about the offer is correct? - Answer: Sam's action of selling the car to Terry is a revocation of his offer to Bob. Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Bill says he is not interested in fixing the roof. Harry then tells Bill he will still buy the house. Bill tells Harry the house is no longer for sale to Harry. Which statement is true? - Answer: Harry's counteroffer terminated Bill's offer, and Bill's rejection of both Harry's counteroffer ($90,000 plus fix the roof) and offer ($90,000) leave Bill free to make a new offer to sell the house to anyone he chooses, including Harry, and under any terms he chooses as long as the terms are not illegal. Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Which statement is true? - Answer: Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract. Bill faxes Harry an offer at 9 a.m. on Monday and the fax arrives at Harry's office at 9:02 a.m. Monday. Because Harry is taking a vacation day on Monday, he does not read the fax until Tuesday at noon. Harry decides to accept Bill's offer and tells his assistant at 3 p.m. Tuesday to prepare an acceptance for his signature. The acceptance is placed on Harry's desk at 4:45 p.m. Tuesday. Harry signs the acceptance and gives it to his assistant to fax back to Bill at 9 a.m. Wednesday. The assistant does so immediately; however, due to malfunctioning of Bill's fax machine, Bill does not receive Harry's acceptance until Friday morning. The offer is effective at __________ and the acceptance is effective at __________. - Answer: 9:02 Monday; approximately 9 a.m. Wednesday Which of the following offers cannot be revoked? - Answer: An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before your return from vacation but after he has collected your mail for all the days that you have been on vacation up until the revocation. Jose offers to sell George his iPad 3 for $150 and explains that George has five days to accept. After three days, Jose accidentally drops his iPad 3 from his third-floor apartment balcony, shattering it into tiny pieces. On the fourth day, George, who does not know that the iPad was shattered, notifies Jose that he accepts the offer. Do Jose and George have a valid contract? - Answer: No, the destruction of the iPad terminated Jose's offer. Chase and Tyler are best friends and fellow police officers. One day, Chase came home with a brand new, top-of-the-line Ford F-150 4x4 pickup valued at $38,000 and showed it to Tyler. Tyler told Chase that he wanted a truck just like his. Jokingly, Chase says, "Sure thing, buddy. I'll sell you my new pickup for $100 and a six-pack of beer!" If Tyler seeks to accept Chase's offer, what is Chase's best defense? - Answer: Chase intended the offer as a joke and a reasonable person would understand it to be a joke.