BA 200 Ch. 12

Which of the following contracts must be in writing to be enforceable? a. A contract for the sale of an easement for $250. b. A contract for the sale of a bike for $175. c. A six-month marketing consulting contract. d. All of the above must be in writing to be en-forceable.

A contract for the sale of an easement for $250.

Which of these can be a valid contract agreement under ESIGN? a. A fax b. A PDF file c. An online click or check on an "I accept" button d. All of the above

All of the above

Which of the following is/are governed by the UCC? a. a contract for the sale of water b. a contract for the sale of extracted oil c. a contract for the sale of barges d. All of the above are governed by the UCC.

All of the above are governed by the UCC.

Which of the following eliminates the effect of the mailbox rule? a. The UCC eliminates the mailbox rule. b. Common law eliminates the mailbox rule. c. An offer that includes, "Acceptance is effec-tive upon receipt only." d. Any attempt to eliminate the mailbox rule is void. e. none of the above

An offer that includes, "Acceptance is effec-tive upon receipt only."

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99." Andy: "Too late, we already reached agreement by phone." Barb: "Too bad, it wasn't in writing." Which of the following statements is true? a. Barb is incorrect. The phone conversation was a contract. b. Barb is correct. The agreement must be in writing to be enforceable. c. Andy can enforce the agreement with the pa-rol evidence rule. d. none of the above

Barb is correct. The agreement must be in writing to be enforceable.

John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle. The following conversation has taken place: John: "I will buy your mountain bike for $325.00." Bill: "I couldn't sell it for less than $375.00." John: "I'll take it for $375.00." Which of the following statements is true? a. Bill and John have a contract for the sale of the bike at $375.00. b. Bill and John have a contract for the sale of the bike at $325.00. c. Bill and John do not have a contract. d. none of the above

Bill and John do not have a contract

Jane Linden is negotiating with James Paul to buy his 1987 Toyota MR5. The following excerpts from letters have occurred so far: Jane: "I would be interested in purchasing your MR5." James: "I am thinking of selling my MR5." Jane: "I am considering selling my diamond tennis bracelet to buy your MR5." Which of the following statements is true? a. James and Jane have a contract to sell the MR5. b. James and Jane do not have a contract to sell the MR5.

James and Jane do not have a contract to sell the MR5.

Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike. The following conversation has taken place: Jerry: "I will buy your mountain bike for $375.00." Pamela: "I will sell it to you." Jerry: "Good. The tire pump is included." Which of the following statements is true? a. Jerry and Pamela have a contract for the bike at $375.00. b. Jerry and Pamela do not have a contract for the bike at $375.00. c. Jerry and Pamela have a contract for the bike at $375.00 with the tire pump. d. none of the above

Jerry and Pamela have a contract for the bike at $375.00

Julia Pitt runs a boutique that specializes in luggage and travel items. Julia contacts Tumi luggage about carrying its line of messenger satchels. The Tumi representative tells Julia that Tumi would be happy to sell her 100 Tumi Black Messenger bags for $318 each. Julia is happy with the price and asks Tumi to send the bags. The Tumi representative then faxes a confirmation of the shipment of the 100 bags at $318 each. Julia receives the fax. When the bags arrive, Julia contacts Tumi and says there is a business downturn and that she does not want the bags and that there was no contract anyway. a. Julia is correct; the contract requires some type of authentication from Julia to be en-forceable. b. Julia is correct; the contract required more than a fax to have a sufficient record. c. Julia is incorrect; she and Tumi have a valid and enforceable contract. d. both a and b

Julia is incorrect; she and Tumi have a valid and enforceable contract.

Which of these is an example of a bank's commitment to pay? a. Bill of lading b. Fee arbitration agreement c. Letter of credit d. A warrant

Letter of credit

Which celebrity endorser had contractual problems because of photographs of apparent drug use? a. Michael Phelps b. Michael Vick c. Tiger Woods d. Paula Abdul

Michael Phelps

The following exchange took place in a series of e-mails between Mitchell Raines and Leslie Carroll: Mitchell: I am looking at the Trek bike advertised on your website for $650.00. Would you take $600.00? Leslie: I would take $600 if there were no delivery required. Mitchell: Well, I have to have it delivered because you are two states away. Leslie: Well, then if there has to be delivery, I could do it for $630.00. Mitchell: Is that cash? Leslie: Yes. a. Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 with delivery. b. Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 without delivery. c. Mitchell and Leslie have an offer on the table of $600 with no delivery. d. Mitchell and Leslie do not have a contract.

Mitchell and Leslie do not have a contract.

Which of the following is not a risk associated with international contracting? a. Currency exchange rates b. Transportation costs c. Fee collection d. None of the above

None of the above

Alpha Enterprises sent an offer to Omega Enterprises. The offer read as follows: AVAILABLE FOR IMMEDIATE SHIPMENT: 600 WIRELESS NOKIA PHONES - MODEL HCG5321 (THE PHONE FROM "CHARLIE'S ANGELS"). PRICE IS $10 EACH. 30 DAYS, SAME AS CASH. ALL WAR-RANTIES IN EFFECT. THIS OFFER EXPIRES ON TUESDAY, MARCH 15, 2004. Omega sent the following letter in response on March 14, 2002, via overnight delivery: HAPPY TO ACCEPT YOUR OFFER ON THE NOKIA PHONES. SHIP IMMEDIATELY. There was a major snowstorm that hit the east coast on March 14, 2004, and Omega's letter did not arrive at Alpha's headquarters until March 18, 2004. Alpha had sold the phones to another company. Omega demanded the 600 phones for $10 each claiming that it had accepted the offer in time. a. Omega is correct; it had valid and timely acceptance and had a contract. b. Omega is incorrect; the acceptance must ar-rive for it to be effective. c. Omega is incorrect; the offeree assumes the risk of the delivery means chosen. d. Omega is correct, but any damages must be recovered from the overnight shipping com-pany. e. none of the above

Omega is correct; it had valid and timely acceptance and had a contract

Fred Twain sends the following e-mail to Ralph Barnes: "Will sell you my 2006 Audi A4 for $23,500, will carry or take cash. This offer to remain open until November 11, 2007." Ralph responds, "I know how much you love that car. I'll think about it." On November 12, 2007, Ralph e-mails Fred and writes, "Fred, I am ready to buy your car." Fred responds, "Ralph, I sold the car this morning because I didn't hear from you." a. Fred has breached a contract because Ralph accepted. b. Fred was required to notify Ralph before he sold the car to someone else. c. Ralph no longer had the power of ac-ceptance. d. both a and b

Ralph no longer had the power of ac-ceptance.

An ad in a newspaper reads: "AVAILABLE TODAY ONLY. FRIENDLY'S APPLIANCES. CLEAR-ANCE SALE FOR ALL FLOOR ITEMS. 75% OFF RETAIL PRICES." Joan Ludwig arrived at Friend-ly's about one hour after it opened and there were no appliances left. The issues in the situation are gov-erned by: a. The Uniform Commercial Code b. UETA c. common law d. restatement of contracts e. none of the above

The Uniform Commercial Code

Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation. Day 5 - School teacher hand delivers letter withdrawing resignation. Day 6 - Teacher receives superintendent's letter. a. The above negotiations are governed by the UCC. b. The resignation was accepted and the with-drawal is too late. c. both a and b d. The resignation offer was revoked.

The resignation was accepted and the with-drawal is too late.

With respect to the fact pattern in #31: a. Friendly's has breached a contract and owes damages to Joan. b. There is no breach of contract. c. Joan has no rights of recovery because the contract was required to be in writing. d. There was no contract, but Joan can recover on the basis of quasi contract. e. none of the above

There is no breach of contract.

John: "I will sell you my laptop computer for $330." Mary: "Will you include the carrying case"? John: "Sold." a. There is a contract for the sale of the com-puter with the carrying case. b. There is a contract for the sale of the com-puter but the carrying case is not included. c. There is no contract for the sale of the lap-top computer. d. There is a contract but it is unenforceable because it must be in writing. e. none of the above

There is no contract for the sale of the lap-top computer.

Buyer on fax: "Will take house for $587,500 if front lawn is fixed." Seller on fax in response: "Price is $589,000 and no front lawn." Buyer on fax in response: "$588,000 plus the front lawn." Seller on fax in response: $589,000 plus the front lawn." a. There is a contract for the sale of the house at $588,000 plus the lawn. b. There is a contract for the sale of the house at $589,000 plus the lawn. c. There is no contract. d. none of the above

There is no contract.

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75." Jane: "$65 and it's a deal." Al: "No way." Jane: "Too late. We have a contract." Which of the following statements is true? a. Jane is correct, there is a contract. b. There is no contract. c. There is a contract to clean the windows for $65. d. There is a contract to clean the windows for $75.

There is no contract.

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it." a. There is an option contract. b. There is no contract. c. There is a reliance case. d. There is a quasi contract.

There is no contract.

Which of the following contracts would not have to be in writing under the old UCC? a. a contract for the sale of an easement for $450 b. a contract for consulting services for $10,000 over the next 90 days c. a three-year advertising contract d. a contract for the sale of furniture for $700 e. All of the above must be in writing.

a contract for consulting services for $10,000 over the next 90 days

Which of the following contracts would not be governed by the UCC? a. a contract for dentures b. a contract for the purchase of an Arabian horse c. a contract for the purchase of an oil painting for $550 d. a contract for the purchase of an ATR jet e. All of the above are governed by the UCC.

a contract for dentures

Which of the following contract subject matters would not be covered under the UCC? a. a contract for the sale of a mobile home from the manufacturer b. a contract for the sale of a mobile home from a previous owner c. a contract for the sale of a mobile home plus its lot d. All of the above are under the UCC.

a contract for the sale of a mobile home plus its lot

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds? a. a contract for the sale of an easement for $75 b. a contract for the sale of a computer monitor for $220 c. a contract for consulting for 6 months @ $10,000 per month plus expenses d. All of the above must be in writing.

a contract for the sale of an easement for $75

The language "I offer to sell you my 1974 White Ford Torino" is: a. a valid offer. b. not a valid offer because it lacks a definite price. c. not a valid offer because there are no terms for payment. d. not a valid offer because it is oral.

a valid offer.

The mailbox rule applies to: a. all acceptances. b. acceptances communicated through the of-fer's stipulated means. c. acceptances under UCC only. d. revocations and acceptances. e. none of the above

acceptances communicated through the of-fer's stipulated means.

E-Sign: a. applies only to interstate transactions. b. must still be adopted by the states to be ef-fective. c. does not apply to contracts for the sale of goods. d. applies in all 50 states. e. none of the above

applies in all 50 states.

Under the old UCC and between merchants, additional terms in acceptance: a. are part of the contract unless they are mate-rial. b. are part of the contract unless the offer was limited. c. result in rejection of the original offer. d. none of the above

are part of the contract unless they are material.

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok. Will deliver tomorrow AM." Pat and Walt: a. do not have a contract because the faxes will not satisfy the statute of frauds. b. do not have a contract because of the mirror image rule. c. had a contract when Pat's fax was sent. d. had a contract when Pat's fax was received.

had a contract when Pat's fax was sent

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina: a. do not have a contract since Tina used the wrong means of acceptance. b. do not have a contract because Mike revoked his offer before Tina accepted properly. c. have a contract as of the receipt of the fax. d. have a contract as of when the fax was sent.

have a contract as of when the fax was sent.

The following series of events occurred between Bull's Meat Market and The Butcher: May 1 - The Butcher faxes Bull's and offers to buy 200 lbs. of T-bone steak at $3.29 per lb. May 2 - Bull's faxes back: "Price is okay. Payment prior to delivery." Bull's and The Butcher: a. have a contract on May 2 with the payment term. b. have a contract on May 2 without the pay-ment term. c. do not have a contract. d. none of the above

have a contract on May 2 with the payment term.

Under both UCC and common law, a counteroffer: a. must be accepted by the original offeror. b. is effective upon mailing or dispatch. c. is also a rejection. d. none of the above

is also a rejection.

With respect to the facts in number 31, the newspaper ad: a. is an offer. b. is not an offer. c. is a merchant's firm offer. d. cannot be revoked. e. none of the above

is not an offer.

To be valid, a UCC merchant's firm offer: a. must be supported by consideration. b. must be evidenced by a record. c. must be signed by both parties. d. all of the above

must be evidenced by a record.

Day 1: A wires an offer to B Day 2: B receives the offer Day 3: B phones an acceptance A states, "Too late. I changed my mind." Which of the following statements is true? a. A and B do not have a contract b. A and B have a contract under common law only c. A and B have a contract d. none of the above

none of the above

The Uniform Electronic Transaction Act (UETA): a. has been adopted in all 50 states. b. has been declared unconstitutional. c. is the same as E-sign. d. none of the above

none of the above

Under the old UCC and between nonmerchants, additional terms in acceptance: a. constitute a counteroffer. b. are part of the contract. c. result in rejection or the original offer. d. none of the above

none of the above

Which of the following is effective upon mailing or dispatch? a. offers b. rejections c. counteroffers d. revocation e. none of the above

none of the above

Which of the following is not required for a valid UCC offer? a. quantity b. payment terms c. subject matter d. both b and c e. a, b, and c

payment terms

Which is not a requirement for a merchant's confirmation memorandum? a. evidenced by a record b. signed by both parties c. underlying oral agreement d. none of the above

signed by both parties

"Point and click" refers to: a. the right of the FBI to search web sites. b. the formation of contracts via the Internet. c. the registration of domain names under ICANN. d. pornographic web sites. e. none of the above

the formation of contracts via the Internet.

Ann Frazer has just purchased a new Maserati. Ann will be borrowing the money from her bank. Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the fol-lowing day. Ann: a. has a contract regardless of whether her bank approves her loan. b. has made a conditional acceptance and has no contract. c. will be excused from her contract if the bank does not approve her loan. d. none of the above

will be excused from her contract if the bank does not approve her loan.

Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office com-plex. The contract provides the fee will be $75 per month. At the time Gabriel signs the agreement, the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month. Abe adds as Gabriel is signing, "I just forgot to put that sliding scale in this contract. Don't worry - I'll take care of it because we understand each other." Gabriel: a. will be permitted to introduce evidence about the winter fee reduction. b. will only need to pay $50 during the winter months. c. will pay $75 per month every month be-cause of parol evidence. d. none of the above

will pay $75 per month every month be-cause of parol evidence.