Business Law, Unit 3, Chapter 12: The Agreement, Offers and Acceptances

When may a revocable offer effectively be revoked? A: Before the offeree accepts. B: At any time. C: After a counter offer has been made. D: Anytime after it has been converted into an options contract.

A: Before the offeree accepts.

Which act or statement is a valid offer? A: A completed auction with a reserve B: A detailed advertisement C: A price quote D: A typical advertisement

B: A detailed advertisement

Must all terms of a deal be included in an offer? A: Yes, an offer is not complete unless all terms are included. B: No, unless the offeror purposely leaves terms of the offer ambiguous. C: Yes, unless it is an offer for services in which case some terms can be filled in later. D: No, but the terms required will depend on the type of contract.

D: No, but the terms required will depend on the type of contract.

consumer protection statutes do what?

protect consumers from fraud

What is an Offer?

An act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms

What contract obligates a buyer to obtain all of his needed goods from a seller?

requirements contract

In an auction, the bidder is: A: the offeree. B: the offeror. C: counter-offeror. D: seller.

B: the offeror.

The rules that the UCC uses to supply missing terms are called?

gap-filler provisions UCC rules for supplying missing terms

What obligates the seller to sell and the buyer to buy?

output contract Obligates the seller to sell all of his output to the buyer, who agrees to accept it

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices. A: Courts can complete a contract to supply some missing items. B: If the contract is in writing, not all terms are required to be included. C: Sales contracts under the UCC D: Courts can rewrite contracts even if the intent is vague.

A: Courts can complete a contract to supply some missing items. C: Sales contracts under the UCC.

What conditions must be met for an offer to be legally accepted? Choose 2 answers. A: It may only be accepted by the intended offeree or the offeree's agent. B: Acceptance must be unequivocal with no requests for changes in the offer. C: Acceptance must be communicated in words, either written or oral. D: The offer must be accepted within 24 hours of communication.

A: It may only be accepted by the intended offeree or the offeree's agent. B: Acceptance must be unequivocal with no requests for changes in the offer.

Which of the following statements is an offer? A: There is no way I could sell my house for less than $400,000. B: I will sell you my house for $400,000. C: I am thinking about selling my house for $400,000. D: House for sale! Asking $400,000.

A: There is no way I could sell my house for less than $400,000.

The mirror image rule requires: A: acceptance to be on exactly the same terms as the offer. B: acceptance to be on substantially similar terms as the offer. C: acceptance to be on any terms of the offeree. D: acceptance to be given within one week of the offer.

A: acceptance to be on exactly the same terms as the offer.

The main requirements for a valid Contract are: 1: Offer - made by the offeror 2: Acceptance - made by the offeree 3: Consideration - what each party gives up under the contract

An offer is a statement or act by the offeror to the offeree promising to perform or refrain from performing some act. The three required elements for a valid offer include: Intention - The offeror must have a serious intention to enter into the agreement. Definiteness of Terms Communication - The offeror must communicate the terms of the agreement to the offeree.

The person that makes an Offer is called?

Offeror

The person to whom an offer is made is called?

offeree

In general, which of these contract terms is NOT required to meet the requirement of definiteness? A: The time of payment B: Acceptance C: The subject matter of the contract D: The parties involved

B: Acceptance

What elements are required for an offer to be effective under the common law? Choose 3 answers. A: The offer must be irrevocable for a set period of time to allow acceptance. B: The terms of the offer must be reasonably definite so that all parties understand them. C: The offeror must intend to be bound by the offer. D: The offer must be communicated to the offeree.

B: The terms of the offer must be reasonably definite so that all parties understand them. C: The offeror must intend to be bound by the offer. D: The offer must be communicated to the offeree.

A letter of intent does what?

A letter that summarizes negotiating progress

If two parties have an on-going oral agreement that one will ship and the other will accept 50 pounds of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce: A: qualifies as acceptance of that week's delivery offer. B: does not qualify as a valid acceptance of the offer. C: fails as an acceptance for lack of timeliness. D: cannot be held against them as acceptance of an offer.

A: qualifies as acceptance of that week's delivery offer.

Which of the following is a valid offer? A: Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded. B: Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. C: Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. D: Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price.

A: Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

Which of the following words, if added to an offer, will cause the offer to fail for definiteness? (Select 2 answers) A: In the future, as in "I will sell you my boat sometime in the future for $1000" B: Might, as in "I might want to sell you my boat for $1000" C: Tomorrow, as in "I will sell you my boat tomorrow for $1000" D: Friday, as in "I will sell you my boat this Friday for $1000"

A: In the future, as in "I will sell you my boat sometime in the future for $1000" B: Might, as in "I might want to sell you my boat for $1000"

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices. A: Lilly's silence is acceptance because of the parties' past dealings. B: Lilly's silence is not acceptance in this case because the offeree must affirmatively accept the terms of the offer in full and communicate that acceptance to the offeror. C: Lilly's silence is acceptance because the offeree accepted the benefit offered. D: Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her.

A: Lilly's silence is acceptance because of the parties' past dealings. C: Lilly's silence is acceptance because the offeree accepted the benefit offered.

How may an offer be terminated? Choose 3 answers. A: The offeree may make a counteroffer. B: A competitor to the offeror can issue a better offer for the same product or service. C: A reasonable amount of time has passed. D: An offeror may terminate an offer by revocation.

A: The offeree may make a counteroffer. C: A reasonable amount of time has passed. D: An offeror may terminate an offer by revocation.

What type of acceptance requires an affirmative action for the offeree to accept that offer? A: Unilateral contracts B: Offeree's silence in response to an offer C: The typical type of acceptance to an offer D: Browsewrap Agreements

A: Unilateral contracts