BLAW Ch 10 Warm Up/Quiz
Which of the following is a correct statement regarding an advertisement for the sale of goods?
An advertisement for the sale of goods constitutes an invitation to make an offer.
_____ is the manifestation of two or more persons of the substance of a contract.
An agreement
Which of the following is an INCORRECT statement regarding rejection of an offer?
An offer is not terminated if the offeree rejects it.
Suppose that on June 1, Susan offers to sell her house to Damon for $1 million, provided that Damon decides on or before June 15 that he will buy it. If Susan dies on June 7, before Damon has made up his mind, _______.
E. the offer automatically terminates
Akari offers to sell her car to Frankie for $10,000 if Frankie can pay cash the same day. Frankie brings $10,000 to Akari's home the next day. Which of the following is true?
Frankie's acceptance was not properly dispatched.
Calista Cars places a flyer in the local newspaper advertising the cars it has for sale including stock photos of each brand of car it usually has on its lot. Carlita circles one of the photos and brings it into the dealership. Is Calista Cars obligated to sell Carlita the make and model of car she circled on the flyer?
No, an advertisement is an invitation to make an offer.
_____ is the offeror's withdrawal of an offer that results in termination of the offer.
Revocation
Which of the following is an accurate statement regarding silence as acceptance?
Silence is not usually considered acceptance.
Which of the following is a required element for an offer to be effective?
The terms of the offer must be definite or reasonably certain.
A meat wholesaler delivers 50 pounds of meat to a restaurant each Friday for several years and is paid for the meat on the following Monday. Which of the following statements is true?
The wholesaler can continue the deliveries with expectation of payment until notified otherwise by the restaurant. Prior dealings between the parties indicate that silence means acceptance.
Ally says to Lexi, "I will sell you my iPad tablet for $300." If Lexi says, "That is a lot of money for an iPad, but yes, I will buy your tablet at that price," then _______.
a contract has been formed
Which type of communication is effective when dispatched by the offeree?
acceptance of an offer for a bilateral contract
If no time is stated, an offer terminates _____.
after a reasonable time
A contract requires which of the following?
an offer and an acceptance
Akari offers to sell her car to Frankie for $10,000 if Frankie can pay cash the same day. Frankie brings $9,000 to Akari's home. The $9,000 would constitute a(n) _____.
counteroffer
Suppose Fei says to Harold, "I will sell you my house for $700,000." Harold says, "I think $700,000 is too high; I will pay you $600,000." Harold has made a(n) _____.
counteroffer
A(n) _____ by the offeree simultaneously terminates the offeror's offer and creates a new offer.
counteroffer
A(n) _____ is a response by an offeree that contains terms and conditions different from or in addition to those of the offer.
counteroffer
According to the mailbox rule, acceptance is effective when it is _____.
dispatched
A(n) _____ authorization is a stipulation in an offer that says the acceptance must be by a specified means of communication.
express
A(n) _____ authorization is a mode of acceptance that is implied from what is customary in similar transactions, usage of trade, or prior dealings between the parties.
implied
A(n) _____ term in a contract is one that can reasonably be supplied by the courts.
implied
Amy Jones, the CEO of Amy Corporation, wants to sell an industrial plant to Baker Corporation. She puts the offer in writing, but she does not send it to the Baker Corporation. Anastasia Anderson, the CFO of Anderson Corporation, visits Ms. Jones on another matter and sees the written offer lying on Jones' desk. Anastasia then sends an acceptance letter to Ms. Jones. This acceptance is ________.
invalid because the offer was never communication to Anderson Corporation
For an acceptance to exist in a common law contract, the offeree must accept the terms as stated in the offer. This is called the _____ rule.
mirror image
Ally says to Lexi, "I will sell you my iPad tablet for $300." If Lexi says, "I would like to buy it, but I'm not sure," then _______.
no contract has been formed because the acceptance was equivocal
In order for an offer to be valid, the offeror must _____ intend to be bound by the offer.
objectively
The _____ is the party to whom an offer has been made.
offeree
The _____ is the party who makes an offer.
offeror
If Company A offers to sell 300 pairs of socks to Company B, but then sells them to Company C, this would be a(n) _____.
revocation of the offer
After Angie offers to purchase Raul's automobile, she changes her mind. If she no longer wishes to purchase the car, she must _____ the offer prior to the time the Raul accepts it.
revoke
Which of the following is NOT a way that an offer is terminated by the operation of law?
silence
The enactment of a statute, regulation, or court decision that makes the object of an offer illegal is known as a _____.
supervening illegality
An offer _____ if the subject matter of the offer is destroyed through no fault of either party prior to the offer's acceptance.
terminates
On May 1, Jolene offers to purchase Aimee's home for $300,000. Prior to signing the contract, Aimee passes away unexpectedly. Aimee's death _____ Jolene's offer.
terminates
A counteroffer by the offeree simultaneously _____ the offeror's offer and _____ a new offer.
terminates; creates
Bob offers to buy a building owned by Richard. If a fire destroys the building before Richard has accepted the offer, _______.
the offer automatically terminates
An offer to pay a reward (for example, for the return of lost property or the capture of a criminal) is an offer to form a(n) _____ contract.
unilateral
To be considered definite, an offer (and contract) generally must contain which of the following terms?
(1) identification of the parties, (2) identification of the subject matter and quantity, (3) consideration to be paid, and (4) time of performance
_____ is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the _____ theory of contracts.
Acceptance; objective
Jenni Harrington's dog, Sammy, runs away and Jenni is heartbroken. She places posters around the neighborhood stating "$100 reward for return of Sammy to my home. Call 212-555-6789." Rob Borden, who is unaware of the offer, finds the dog. He reads the tag containing Harrington's name, address, and telephone number, and brings Sammy to Jenni's home. Must Jenni pay the reward to Rob?
No, Rob was unaware of the reward
Joyce, a salesperson at Oranges Computer, Inc., offers to sell 4,000 Cutie computers to Tessa, the purchasing manager of General Motors Corporation, for $4,000,000. The offer is made on August 1. Tessa telephones Joyce on August 2 to say that she is not interested. Can Tessa call Joyce on August 3 to accept the offer?
No, Tessa has rejected the offer
Jenni Harrington's dog, Sammy, runs away and Jenni is heartbroken. She places posters around the neighborhood stating "$100 reward for return of Sammy to my home. Call 212-555-6789." Rob Borden immediately calls the phone number and tells Jenni that he promises to find the dog. Must Jenni pay the reward to Rob at that moment?
No, unilateral offer can only be accepted with the requested act.
Esmerelda offers to buy Antonio's farm for $1,000,000. Antonio sends his written acceptance on September 1 via an overnight service. On September 2, before receiving Antonio's written acceptance, Esmerelda lets him know that she found a better deal on a farm down the road and that she is withdrawing her offer. According to the mailbox rule, acceptance is effective when it is _____ and Esmerelda's withdrawal is _____.
dispatched; invalid
