BUL 3320 Exam 2 Part 1 Questions
with Verified Answers
a. before Thomas accepts the offer. - ANSWER-Signe offers to sell Thomas her
textbook but conditions the sale on Thomas
accepting the offer by March 1. Signe may revoke the offer
c. rejected the offer and made a counteroffer. - ANSWER-Liz offers to sell Max her
iPad for $200. Max says, "Okay, but only if you
include the case and other accessories." Max has
d. no contract for a loan. - ANSWER-Farmland County Bank offers to lend money to
Gino, the owner of Home
Hardware Store, at 15 percent interest. Before Gino accepts, a state statute is
enacted prohibiting loans at rates greater than 12 percent. Gino and the bank
have
d. none of the choices. - ANSWER-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
c. only after Rafe unloads the truck. - ANSWER-Quay Trucking Service tells Rafe
that it will pay him $50 if he unloads a certain
truck at the Shipping Warehouse. Rafe's acceptance is complete
b. received. - ANSWER-Crafted Metal Works, Inc., offers to design, make, and sell
Downtown Transit
Agency fourteen streetcars. Crafted Metal authorizes a particular mode of
communication, but Downtown Transit sends an acceptance via a substituted
means. This acceptance is effective when it is
a. provisions specifying the remedies if the contract is breached. - ANSWER-Mark is
creating Nu2U.com, a Web site through which he will enter into
contracts over the Internet. Important terms to include in his offers include
b. Ember learns of it after contracting. - ANSWER-Diverse Diversions, Inc., makes
computer, video, and mobile device games.
Ember buys a hard copy of Final Infinity. Inside the package is a shrink-wrap
agreement. With respect to the contract for the game's purchase, the shrink-
wrap agreement may not be enforced if
b. a click-on agreement. - ANSWER-Deb buys a song through eSongs, an online
music vendor. Before completing
the purchase and downloading the song, Deb must review a provision stating
that she will not make and sell copies of the song and is required to click "I
agree." This provision is
,a. in advance to terms that apply to their future e-transactions. - ANSWER-Standard
Purchasing Corporation and Topmost Sales, Inc., enter into a
partnering agreement. Under a partnering agreement, parties agree
b. an e-signature. - ANSWER-Kay and Leo enter into a contract that falls within the
provisions of the UETA.
Under the UETA, "an electronic sound, symbol, or process attached to or
logically associated with a record and executed or adopted by a person with
the intent to sign the record" is
a. electronic means. - ANSWER-World Shipping Corporation enters into contracts
with distributors and other
buyers in e-commerce and in traditional commerce. The UETA applies, if at all,
only to those transactions in which the parties agree to use
a. a "signature." - ANSWER-On behalf of Bobble Head Manufacturing Company,
Carmela types her name
at the bottom of an e-mail purchase order and submits the order to Designer
Parts Company. Under the UETA, Carmela's typed name qualifies as
b. sent. - ANSWER-Lewis offers to make digital copies of Motivational Sales
Company's business
conference videotapes, CDs, DVDs, and other media for $500. Under the
mailbox rule and the UETA, Motivational Sales' acceptance by e-mail will be
considered effective when
d. it leaves the sender's control. - ANSWER-Medical Billing Collection Corporation
and Naturopath Clinic make a deal for
Medical Billing's services via e-records. Under the UETA, an e-record is
considered received when
A contract entered into by a minor is voidable at the option of either of the
contracting parties. - ANSWER-False
In the historic case of Hamer v. Sidway, the nephew: - ANSWER-won, as the Court
found there was consideration.
Collector Carl displays his beer can collection at the Wagon Wheel Fleamarket.
Valerie sees the collection and is interested in buying it. Carl says he will sell the
collection for $1,500. Valerie says she really likes the collection but is only willing to
pay $1,000. Which of the following is correct? - ANSWER-Valerie's counteroffer
terminates Carl's offer of $1,500.
On Monday evening, Stephen's neighbor tells him that he is going to have a new
white fence installed on Wednesday. On Wednesday morning, Stephen sees
WestCoast Fence Company installing the new fence on his own property. Pleased at
the mistake, he says nothing, and then refuses to pay when the company hands him
the bill. Will he be liable for payment? - ANSWER-Yes, the court will make him pay
under an implied-in-law contract.
,Industrial Engineering, Inc., promises to give stock options to Jasmine for processes
she has already designed for the firm. This promise is enforceable: - ANSWER-
under no circumstances.
Liz offers to sell Max her iPad for $200. Max says, "Okay, but only if you include the
case and other accessories." Max has: - ANSWER-rejected the offer and made a
counteroffer.
A minor's right to disaffirm a contract terminates sixty days after the contract's date. -
ANSWER-False
A bilateral contract comes into existence at the moment promises are exchanged. -
ANSWER-True
Minors are liable for the contract price of any necessaries of life for which they
contract. - ANSWER-False
Joneen says to Jill, "If you'll promise to feed my dog each day while I am out of town
next week, I'll pay you $100." Jill replies, "I'll absolutely do that, I hope you have a
nice trip." Jill then feeds the dog, after which Joneen paid her. At what point did a
contract come into existence? - ANSWER-When Jill said that she would feed
Joneen's dog.
An advertisement reading, "Our last 2019 Boston Whaler 27-foot boat, serial number
T990234, will be sold to the first buyer with $40,000 cash at 9:00 a.m. on Saturday,"
would be treated as an offer. - ANSWER-True
Rudy files a suit against Shingles Roofing Contractor, Inc., under the doctrine of
promissory estoppel. Rudy must show that: - ANSWER-he justifiably relied on
Shingles' promise to his detriment.
A contract to provide care to a person for the remainder of that person's life is
typically not required to be in writing under the Statute of Frauds. - ANSWER-True
Barrett files a suit against City Moving Service for breach of contract, based on what
Barrett claims was City Moving's offer. For a court to determine if a contract has
been breached, under the common law, the offer must include terms that are: -
ANSWER-reasonably definite.
Liz offers to sell Max her iPad for $200. Max says, "Okay, but only if you include the
case and other accessories." Max has - ANSWER-rejected the offer and made a
counteroffer.
Produce Packaging Company promises its employees a 10 percent raise at the end
of the year if productivity has increased and management feels the raise is
warranted. Produce Packaging must: - ANSWER-do nothing.
Police Officer Jack apprehends a wanted criminal and then demands the $10,000
reward offered by Crime Stoppers. Which of the following statements is true? -
, ANSWER-Police Officer Jack is not entitled to the reward because he was under a
pre-existing duty to make the arrest.
Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to
work as a salesperson for a certain base salary plus commission for ninety days
subject to a one-year renewal based on her performance. Delores accepts the offer.
A valid contract requires: - ANSWER-an offer and an acceptance.
In a growing number of states, where a minor wants to disaffirm a contract and the
minor has caused damage to the consideration received by the minor, the minor: -
ANSWER-can disaffirm, and owes a duty of restitution to the competent party.
Griffin promises to buy Hadley's iPod for $75. Hadley is: - ANSWER-a promisee.
A lease that stated that rent was to be paid on the first of each month, starting on
May 1st, but did not state when the lease ended would be a: - ANSWER-periodic
tenancy.
An airline ticket for travel to Honolulu and back is what kind of property? - ANSWER-
Personal intangible.
Stock certificates are tangible personal property. - ANSWER-False
Brick & Mortar Stores, Inc., signs a lease for a storefront owned by Commercial
Properties, Inc. Unlike a purchaser of real property, Brick & Mortar: - ANSWER-
acquires only temporary possession of the premises.
The time period for adverse possession in Florida is twenty-one (21) years. -
ANSWER-False
In the tenancy by the entirety, a creditor of one spouse cannot lay claim to property
owned as tenants by the entireties. - ANSWER-True
Frank owns GuestHouse Hotel. His ownership rights include the right to sell or give
away the property without restriction, as well as the right to commit waste, if he
chooses. Frank's ownership interest is: - ANSWER-a fee simple absolute.
Mallory's sister Alexis gives Mallory a bracelet kit for Christmas. Mallory uses the kit
to make a bracelet. Mallory's acquisition of the bracelet is by: - ANSWER-production.
Accidentally, Sally leaves her sunglasses at Oregano Café when she has lunch. The
sunglasses are: - ANSWER-mislaid property.
In a _________________, the tenancy ends automatically on the dated agreed upon
and no additional notice is necessary. - ANSWER-Tenancy for years.
A fixture is normally included in a sale of land unless the sales contract specifies
otherwise. - ANSWER-True
with Verified Answers
a. before Thomas accepts the offer. - ANSWER-Signe offers to sell Thomas her
textbook but conditions the sale on Thomas
accepting the offer by March 1. Signe may revoke the offer
c. rejected the offer and made a counteroffer. - ANSWER-Liz offers to sell Max her
iPad for $200. Max says, "Okay, but only if you
include the case and other accessories." Max has
d. no contract for a loan. - ANSWER-Farmland County Bank offers to lend money to
Gino, the owner of Home
Hardware Store, at 15 percent interest. Before Gino accepts, a state statute is
enacted prohibiting loans at rates greater than 12 percent. Gino and the bank
have
d. none of the choices. - ANSWER-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
c. only after Rafe unloads the truck. - ANSWER-Quay Trucking Service tells Rafe
that it will pay him $50 if he unloads a certain
truck at the Shipping Warehouse. Rafe's acceptance is complete
b. received. - ANSWER-Crafted Metal Works, Inc., offers to design, make, and sell
Downtown Transit
Agency fourteen streetcars. Crafted Metal authorizes a particular mode of
communication, but Downtown Transit sends an acceptance via a substituted
means. This acceptance is effective when it is
a. provisions specifying the remedies if the contract is breached. - ANSWER-Mark is
creating Nu2U.com, a Web site through which he will enter into
contracts over the Internet. Important terms to include in his offers include
b. Ember learns of it after contracting. - ANSWER-Diverse Diversions, Inc., makes
computer, video, and mobile device games.
Ember buys a hard copy of Final Infinity. Inside the package is a shrink-wrap
agreement. With respect to the contract for the game's purchase, the shrink-
wrap agreement may not be enforced if
b. a click-on agreement. - ANSWER-Deb buys a song through eSongs, an online
music vendor. Before completing
the purchase and downloading the song, Deb must review a provision stating
that she will not make and sell copies of the song and is required to click "I
agree." This provision is
,a. in advance to terms that apply to their future e-transactions. - ANSWER-Standard
Purchasing Corporation and Topmost Sales, Inc., enter into a
partnering agreement. Under a partnering agreement, parties agree
b. an e-signature. - ANSWER-Kay and Leo enter into a contract that falls within the
provisions of the UETA.
Under the UETA, "an electronic sound, symbol, or process attached to or
logically associated with a record and executed or adopted by a person with
the intent to sign the record" is
a. electronic means. - ANSWER-World Shipping Corporation enters into contracts
with distributors and other
buyers in e-commerce and in traditional commerce. The UETA applies, if at all,
only to those transactions in which the parties agree to use
a. a "signature." - ANSWER-On behalf of Bobble Head Manufacturing Company,
Carmela types her name
at the bottom of an e-mail purchase order and submits the order to Designer
Parts Company. Under the UETA, Carmela's typed name qualifies as
b. sent. - ANSWER-Lewis offers to make digital copies of Motivational Sales
Company's business
conference videotapes, CDs, DVDs, and other media for $500. Under the
mailbox rule and the UETA, Motivational Sales' acceptance by e-mail will be
considered effective when
d. it leaves the sender's control. - ANSWER-Medical Billing Collection Corporation
and Naturopath Clinic make a deal for
Medical Billing's services via e-records. Under the UETA, an e-record is
considered received when
A contract entered into by a minor is voidable at the option of either of the
contracting parties. - ANSWER-False
In the historic case of Hamer v. Sidway, the nephew: - ANSWER-won, as the Court
found there was consideration.
Collector Carl displays his beer can collection at the Wagon Wheel Fleamarket.
Valerie sees the collection and is interested in buying it. Carl says he will sell the
collection for $1,500. Valerie says she really likes the collection but is only willing to
pay $1,000. Which of the following is correct? - ANSWER-Valerie's counteroffer
terminates Carl's offer of $1,500.
On Monday evening, Stephen's neighbor tells him that he is going to have a new
white fence installed on Wednesday. On Wednesday morning, Stephen sees
WestCoast Fence Company installing the new fence on his own property. Pleased at
the mistake, he says nothing, and then refuses to pay when the company hands him
the bill. Will he be liable for payment? - ANSWER-Yes, the court will make him pay
under an implied-in-law contract.
,Industrial Engineering, Inc., promises to give stock options to Jasmine for processes
she has already designed for the firm. This promise is enforceable: - ANSWER-
under no circumstances.
Liz offers to sell Max her iPad for $200. Max says, "Okay, but only if you include the
case and other accessories." Max has: - ANSWER-rejected the offer and made a
counteroffer.
A minor's right to disaffirm a contract terminates sixty days after the contract's date. -
ANSWER-False
A bilateral contract comes into existence at the moment promises are exchanged. -
ANSWER-True
Minors are liable for the contract price of any necessaries of life for which they
contract. - ANSWER-False
Joneen says to Jill, "If you'll promise to feed my dog each day while I am out of town
next week, I'll pay you $100." Jill replies, "I'll absolutely do that, I hope you have a
nice trip." Jill then feeds the dog, after which Joneen paid her. At what point did a
contract come into existence? - ANSWER-When Jill said that she would feed
Joneen's dog.
An advertisement reading, "Our last 2019 Boston Whaler 27-foot boat, serial number
T990234, will be sold to the first buyer with $40,000 cash at 9:00 a.m. on Saturday,"
would be treated as an offer. - ANSWER-True
Rudy files a suit against Shingles Roofing Contractor, Inc., under the doctrine of
promissory estoppel. Rudy must show that: - ANSWER-he justifiably relied on
Shingles' promise to his detriment.
A contract to provide care to a person for the remainder of that person's life is
typically not required to be in writing under the Statute of Frauds. - ANSWER-True
Barrett files a suit against City Moving Service for breach of contract, based on what
Barrett claims was City Moving's offer. For a court to determine if a contract has
been breached, under the common law, the offer must include terms that are: -
ANSWER-reasonably definite.
Liz offers to sell Max her iPad for $200. Max says, "Okay, but only if you include the
case and other accessories." Max has - ANSWER-rejected the offer and made a
counteroffer.
Produce Packaging Company promises its employees a 10 percent raise at the end
of the year if productivity has increased and management feels the raise is
warranted. Produce Packaging must: - ANSWER-do nothing.
Police Officer Jack apprehends a wanted criminal and then demands the $10,000
reward offered by Crime Stoppers. Which of the following statements is true? -
, ANSWER-Police Officer Jack is not entitled to the reward because he was under a
pre-existing duty to make the arrest.
Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to
work as a salesperson for a certain base salary plus commission for ninety days
subject to a one-year renewal based on her performance. Delores accepts the offer.
A valid contract requires: - ANSWER-an offer and an acceptance.
In a growing number of states, where a minor wants to disaffirm a contract and the
minor has caused damage to the consideration received by the minor, the minor: -
ANSWER-can disaffirm, and owes a duty of restitution to the competent party.
Griffin promises to buy Hadley's iPod for $75. Hadley is: - ANSWER-a promisee.
A lease that stated that rent was to be paid on the first of each month, starting on
May 1st, but did not state when the lease ended would be a: - ANSWER-periodic
tenancy.
An airline ticket for travel to Honolulu and back is what kind of property? - ANSWER-
Personal intangible.
Stock certificates are tangible personal property. - ANSWER-False
Brick & Mortar Stores, Inc., signs a lease for a storefront owned by Commercial
Properties, Inc. Unlike a purchaser of real property, Brick & Mortar: - ANSWER-
acquires only temporary possession of the premises.
The time period for adverse possession in Florida is twenty-one (21) years. -
ANSWER-False
In the tenancy by the entirety, a creditor of one spouse cannot lay claim to property
owned as tenants by the entireties. - ANSWER-True
Frank owns GuestHouse Hotel. His ownership rights include the right to sell or give
away the property without restriction, as well as the right to commit waste, if he
chooses. Frank's ownership interest is: - ANSWER-a fee simple absolute.
Mallory's sister Alexis gives Mallory a bracelet kit for Christmas. Mallory uses the kit
to make a bracelet. Mallory's acquisition of the bracelet is by: - ANSWER-production.
Accidentally, Sally leaves her sunglasses at Oregano Café when she has lunch. The
sunglasses are: - ANSWER-mislaid property.
In a _________________, the tenancy ends automatically on the dated agreed upon
and no additional notice is necessary. - ANSWER-Tenancy for years.
A fixture is normally included in a sale of land unless the sales contract specifies
otherwise. - ANSWER-True
