BUL 5810 CORRECT TEST PAPER ANSWERS AND
QUESTIONS SET A+
✔✔If an offer has no stated time by which it must be accepted, when does the offer
terminate?
a. Never.
b. After one week.
c. After one month.
d. After a reasonable period of time. - ✔✔d. After a reasonable period of time.
✔✔Which of the following will terminate an offer?
a. Rejection by the offeror.
b. Subsequent illegality of the purpose but not of the subject matter of the offer.
c. Destruction of the subject matter of the offer.
d. Death of the offeree but not of the offeror. - ✔✔c. Destruction of the subject matter of
the offer.
✔✔The mirror image rule relates to which required element of a contract?
a. The offer.
b. The acceptance.
c. Both the offer and the acceptance.
d. Only to acceptances in contracts subject to UCC. - ✔✔b. The acceptance.
✔✔Which is NOT a correct about the UCC's "Battle of the Forms" rule?
a. The UCC battle of the forms rule is what common law calls the mirror image rule.
b. The UCC battle of the forms rule changes the common law's mirror image rule.
c. The UCC battle of the forms rule may result in a contract with terms that are not
identical to the terms included in the offer.
,d. What gets included in the final contract terms may depend upon whether the parties
are merchants. - ✔✔a. 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.
a. counteroffer; acceptance
b. acceptance; mirror image
c. acceptance; consideration
d. contract; revocation - ✔✔b. acceptance; mirror image
✔✔An offer for the sale of goods under the UCC:
a. must include a price.
b. must include the quantity.
c. must be made by a merchant.
d. must include the time and place of delivery. - ✔✔b. must include the quantity.
✔✔Who would likely be considered a merchant under the UCC with respect to the
goods in question?
a. An authorized Apple computer dealer selling accessories for Apple computers and
Apple-related products.
b. An authorized Apple computer dealer selling the old shelving in the Apple store that
was used to display the Apple products before the store was redecorated.
c. An authorized Apple computer dealer selling household goods at a yard sale at his
home.
d. All of these are correct. - ✔✔a. An authorized Apple computer dealer selling
accessories for Apple computers and Apple-related products.
✔✔Which of the following offers cannot be revoked?
a. Any offer by a merchant under the UCC.
b. Any offer that is in writing that promises to leave the offer open for three months or
less.
c. Any offer that is in writing, signed, and promises to leave the offer open whether it is
made by a merchant or not.
d. All of these are incorrect. - ✔✔d. All of these are incorrect.
✔✔When is there an effective acceptance of an offer to enter into a unilateral contract?
a. When the offeree says he probably will do what was asked of him in the offer.
b. When the offeree begins to do what was asked of him in the offer.
,c. When the offeree has substantially but not fully performed what was asked of him in
the offer.
d. When the offeree has fully performed what was asked of him in the offer. - ✔✔d.
When the offeree has fully performed what was asked of him in the offer.
✔✔How do parties usually show mutual assent?
a. By one party making an offer and the other party making a counteroffer.
b. By one party making an offer in writing and the other party accepting in writing.
c. By one party making an oral offer and the other party accepting by performing.
d. By one party making an offer in words or by conduct and the other party accepting in
words or by conduct. - ✔✔d. 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?
a. No. The Smiths did not objectively intend to make an offer because they did not
clearly state they were willing to sell the house.
b. No. The Smiths did not include a selling price in their conversation with Martin so the
offer would fail for lack of specificity and definiteness.
c. None of these are correct.
d. All of these are correct. - ✔✔a. No. The Smiths did not objectively intend to make an
offer because they did not clearly state they were willing to sell the house.
✔✔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?
a. 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.
b. The ad is an offer and Betty has accepted the grocer's offer; therefore, there now is a
contract between the grocer and Betty for the sale of tuna in exchange for 6 cents per
can.
, c. The ad is a cont - ✔✔a. 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?
a. Sam cannot revoke his offer to Bob because he made it via email and email is
considered a writing.
b. Sam can reject his offer to Bob at any time so long as there is still an offer to reject.
c. Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke.
d. Sam cannot revoke his offer to Bob if Sam sells cars because then his offer is a firm
offer. - ✔✔c. 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?
a. Sam's offer to Bob is a firm offer; and he must get his car back from Terry and sell it
to Bob for $7,000 if Bob accepts his offer within the two weeks.
b. Sam's action of selling the car to Terry is a revocation of his offer to Bob.
c. Sam's offer to Bob is not a firm offer, but he cannot sell the car to Terry until the two
weeks are up.
d. Terry will not have to sell the car to Bob for $7,000 if Bob wants the car if Terry paid
$9,000 for the car. - ✔✔b. 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?
a. 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.
b. If Bill will not sell the house to Harry for $90,000, he cannot sell the house to anyone
for $90.000.
c. Bill must sell the house to Harry because Harry accepted his offer to sell the house
for $90,000.
QUESTIONS SET A+
✔✔If an offer has no stated time by which it must be accepted, when does the offer
terminate?
a. Never.
b. After one week.
c. After one month.
d. After a reasonable period of time. - ✔✔d. After a reasonable period of time.
✔✔Which of the following will terminate an offer?
a. Rejection by the offeror.
b. Subsequent illegality of the purpose but not of the subject matter of the offer.
c. Destruction of the subject matter of the offer.
d. Death of the offeree but not of the offeror. - ✔✔c. Destruction of the subject matter of
the offer.
✔✔The mirror image rule relates to which required element of a contract?
a. The offer.
b. The acceptance.
c. Both the offer and the acceptance.
d. Only to acceptances in contracts subject to UCC. - ✔✔b. The acceptance.
✔✔Which is NOT a correct about the UCC's "Battle of the Forms" rule?
a. The UCC battle of the forms rule is what common law calls the mirror image rule.
b. The UCC battle of the forms rule changes the common law's mirror image rule.
c. The UCC battle of the forms rule may result in a contract with terms that are not
identical to the terms included in the offer.
,d. What gets included in the final contract terms may depend upon whether the parties
are merchants. - ✔✔a. 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.
a. counteroffer; acceptance
b. acceptance; mirror image
c. acceptance; consideration
d. contract; revocation - ✔✔b. acceptance; mirror image
✔✔An offer for the sale of goods under the UCC:
a. must include a price.
b. must include the quantity.
c. must be made by a merchant.
d. must include the time and place of delivery. - ✔✔b. must include the quantity.
✔✔Who would likely be considered a merchant under the UCC with respect to the
goods in question?
a. An authorized Apple computer dealer selling accessories for Apple computers and
Apple-related products.
b. An authorized Apple computer dealer selling the old shelving in the Apple store that
was used to display the Apple products before the store was redecorated.
c. An authorized Apple computer dealer selling household goods at a yard sale at his
home.
d. All of these are correct. - ✔✔a. An authorized Apple computer dealer selling
accessories for Apple computers and Apple-related products.
✔✔Which of the following offers cannot be revoked?
a. Any offer by a merchant under the UCC.
b. Any offer that is in writing that promises to leave the offer open for three months or
less.
c. Any offer that is in writing, signed, and promises to leave the offer open whether it is
made by a merchant or not.
d. All of these are incorrect. - ✔✔d. All of these are incorrect.
✔✔When is there an effective acceptance of an offer to enter into a unilateral contract?
a. When the offeree says he probably will do what was asked of him in the offer.
b. When the offeree begins to do what was asked of him in the offer.
,c. When the offeree has substantially but not fully performed what was asked of him in
the offer.
d. When the offeree has fully performed what was asked of him in the offer. - ✔✔d.
When the offeree has fully performed what was asked of him in the offer.
✔✔How do parties usually show mutual assent?
a. By one party making an offer and the other party making a counteroffer.
b. By one party making an offer in writing and the other party accepting in writing.
c. By one party making an oral offer and the other party accepting by performing.
d. By one party making an offer in words or by conduct and the other party accepting in
words or by conduct. - ✔✔d. 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?
a. No. The Smiths did not objectively intend to make an offer because they did not
clearly state they were willing to sell the house.
b. No. The Smiths did not include a selling price in their conversation with Martin so the
offer would fail for lack of specificity and definiteness.
c. None of these are correct.
d. All of these are correct. - ✔✔a. No. The Smiths did not objectively intend to make an
offer because they did not clearly state they were willing to sell the house.
✔✔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?
a. 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.
b. The ad is an offer and Betty has accepted the grocer's offer; therefore, there now is a
contract between the grocer and Betty for the sale of tuna in exchange for 6 cents per
can.
, c. The ad is a cont - ✔✔a. 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?
a. Sam cannot revoke his offer to Bob because he made it via email and email is
considered a writing.
b. Sam can reject his offer to Bob at any time so long as there is still an offer to reject.
c. Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke.
d. Sam cannot revoke his offer to Bob if Sam sells cars because then his offer is a firm
offer. - ✔✔c. 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?
a. Sam's offer to Bob is a firm offer; and he must get his car back from Terry and sell it
to Bob for $7,000 if Bob accepts his offer within the two weeks.
b. Sam's action of selling the car to Terry is a revocation of his offer to Bob.
c. Sam's offer to Bob is not a firm offer, but he cannot sell the car to Terry until the two
weeks are up.
d. Terry will not have to sell the car to Bob for $7,000 if Bob wants the car if Terry paid
$9,000 for the car. - ✔✔b. 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?
a. 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.
b. If Bill will not sell the house to Harry for $90,000, he cannot sell the house to anyone
for $90.000.
c. Bill must sell the house to Harry because Harry accepted his offer to sell the house
for $90,000.
