chapter 14 quiz

If nothing is stated to the contrary in the terms of an auction, the auction is presumed to be _______, which means that the seller is merely expressing intent to receive offers.

reserve

A valid offer includes

offers communicated by the offeror to the offeree's agent.

Which of the following conditions must be present for an offer to have a legal effect? Invitation to negotiate. Expression of interest in an exchange. Definite and certain terms. Correct Neutral third parties.

Definite and Certain Terms

All but which of the following is true regarding silence as a means of acceptance of an offer?

Silence can be acceptance if the offeror demonstrates the benefits of the offered services with reasonable expectation to be compensated.

Freddie offers to sell Lucy five video poker machines. Before Lucy can accept or reject Freddie's offer, the state legislature passes a statute that the purchase, sale, and possession of video poker machines is illegal. In this scenario, Freddie's offer terminates due to which of the following rules?

Subsequent illegality of the subject matter

How is an offeror's intent to be bound by an agreement demonstrated?

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

An offer made by an offeree to the offeror regarding the same matter as the original offer is called a(n)

a counteroffer

_______ is when the means by which acceptance can occur is expressly stated in the offer.

express authorization

The terms of an acceptance that reflect the terms of an offer are known as the _______ rule.

mirror-image

In an auction _______, the seller is treated as making an offer to accept the highest bid and therefore must accept it

without reserve