business of law hw questions test 3

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

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

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. -Lilly's silence is acceptance because of the parties' past dealings. -Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her. -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. -Lilly's silence is acceptance because the offeree accepted the benefit offered.

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

What happens when a party with the right to avoid a contract chooses to not avoid it? -The contract is ratified. -The contract becomes void. -The contract becomes a quasi-contract. -The contract is rejected.

-The contract is ratified.

Which act or statement is a valid offer? -A typical advertisement -A price quote -A completed auction with a reserve -A detailed advertisement

A detailed advertisement

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

A) I will sell you my house for $400,000

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

Acceptance

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

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

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

B) in the future, as in "I will sell you my boat sometime in the future for $1000" D) might, as in "I might want to sell you my boat for $1000"

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

B) no, but the terms required will depend on the type of contract

Quon decides to sell his antique roadster, so he places an ad on Craigslist. He lists the roadster as a 1957 Mercedes Benz 300SL Roadster, describes it as in good working condition, and states that no reasonable price will be refused. Fern responds to the ad and offers to pay $25,000 to Quon for the car, which Quon agrees to. In this scenario, who is the offeror? -Fern is the offeror. -Neither party is the offeror because there is no agreement to specific terms. -Quon was the original offeror, but Fern becomes the offeror when she offers $25,000. -Quon is the offeror.

Fern is the offeror.

What must a plaintiff show to be awarded a quasi-contract in a lawsuit? -The plaintiff received some benefit. -The defendant was unjustly enriched. -The defendant agreed to compensate the plaintiff for the benefit received. -The defendant expected to be paid.

The defendant was unjustly enriched.

What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers. -The enriching party is negligent. -The courts determine that an enforceable contract exists. -The enriched party knows about the benefit and keeps it. -One party is being enriched at the expense of the other.

The enriched party knows about the benefit and keeps it. One party is being enriched at the expense of the other.

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

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

How may a revocable offer effectively be revoked? Choose 2 answers. -The offeree may reject the offer with a clear expression. -The offeror may convert the offer to an option contract. -The offeror may withdraw the offer with a clear expression. -The offeror may take an action that contradicts the offer and make that known to the offeree.

The offeror may take an action that contradicts the offer and make that known to the offeree. The offeror may withdraw the offer with a clear expression.

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

Unilateral contracts

In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices. -When the unjust enrichment is a relatively insignificant amount of money -When the party provided the services for unwilling recipients -If the defendant was unjustly enriched and played a part in deceiving the plaintiff -If the defendant did not know the plaintiff would expect to be paid for the services

When the unjust enrichment is a relatively insignificant amount of money If the defendant was unjustly enriched and played a part in deceiving the plaintiff

If an individual shopping for groceries opens a bottle of water from their cart and drinks it before they have paid for their items: -a voidable contract has been created. -a quasi-contract has been created. -a bilateral contract has been created. -a unilateral contract has been created.

a quasi-contract has been created.

Which of the following creates a bilateral contract? -lottery tickets -a sale of goods with payment at delivery -a competition with prizes -reward posters

a sale of goods with payment at delivery

Maryanne offers to sell her 2015 Mustang convertible to April for $15,000, and April agrees to those terms. April brings the $15,000 to Maryanne, and Maryanne promises to deliver the Mustang to April the next day after she has it detailed. At this point, Maryanne and April have: -a unilateral contract. -no contract. -an executed contract. -an executory contract.

an executory contract.

Carol and Al enter into a contract for the sale of a painting. Carol pays Al the asking price and Al delivers to Carol the painting. This contract is an: -implied contract. -executory contract. -illusory contract. -executed contract.

executed contract.

When party A and B form a contract and both parties fully perform, the contract is considered: -valid. -invalid. -executory. -executed.

executed.

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have? -executed -void -unilateral -executory

executory

Don and Kim have entered into a contract for the purchase of a car. Don has paid money for the car, but Kim has not yet delivered it. This is an: -executed contract. -implied contract. -executory contract. -illusory contract.

executory contract.

Zayn boards the Big Rock Metro to ride downtown to his job. Zayn gives his money to the driver and takes his seat. Neither the driver nor Zayn says anything. Zayn and the bus driver: -have an express contract. -have a formal contract. -have an implied contract. -have no contract.

have an implied contract.

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have? -implied-in-law -quasi -implied-in-fact -express

implied-in-fact

When ambiguity in a contract's language exists, a court will: (Select all that apply) -apply the most common meaning of the term regardless of the parties' intent -consider extrinsic evidence of the language -only use the language of the contract to figure out its meaning -interpret the terms against the drafting party

interpret the terms against the drafting party

If two parties have an on-going oral agreement that 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: -qualifies as acceptance of that week's delivery offer. -cannot be held against them as acceptance of an offer. -fails as an acceptance for lack of timeliness. -does not qualify as a valid acceptance of the offer.

qualifies as acceptance of that week's delivery offer.

In a unilateral contract: -the parties exchange a promise for a promise. -the offeror may revoke the offer at any time before performance has been completed. -substantially undertaking performance prevents the offeror from revoking the offer. -acceptance may occur through a promise or an act.

substantially undertaking performance prevents the offeror from revoking the offer.

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words? -executed contract -open contract -bilateral contract -unilateral contract

unilateral contract

Brindley has an old shed on her property that needs to be removed. She posts the following ad on Facebook: "Shed needs to be gone. You take down and haul away. (Much of the wood is reusable.) $100 to the first person to show up and haul this away." This is an example of a(n): -bilateral contract. -unilateral contract. -unconscionable contract. -illegal contract.

unilateral contract.

Contests, lotteries, and competitions with prizes are common examples of: -implied in law contracts. -bilateral contracts. -unilateral contracts -void contracts.

unilateral contracts

What type of contract exists when at least one party has the option of canceling it? -void -unenforceable -bilateral -voidable

voidable

Sarah is shopping at Sylvia's thrift store, and notices that the inside of the store needs repainting. Sarah offers to paint the store for $400. Sylvia does not respond to Sarah's offer. Later that day, Sarah returns to the store with painting supplies in hand and begins painting the store. When Sarah is finished, she demands payment of $400 from Sylvia. Will Sylvia have to pay Sarah for painting the store? -No, Sylvia will not have to pay Sarah for painting the store because Sarah did not verbally agree to the contract. -Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract. -No, Sylvia will not have to pay Sarah for painting the store because silence can never be an acceptance of an offer. -Yes, Sylvia will have to pay Sarah for painting the store because silence is always an acceptance of an offer.

-Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract.

In an auction, the bidder is: -the offeree. -the offeror. -counter-offeror. -seller.

-the offeror.

Which of the following is a valid offer? -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. -Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. -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. -Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price. Assessment question

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.

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. -Sales contracts under the UCC -Courts can complete a contract to supply some missing items. -Courts can rewrite contracts even if the intent is vague. -If the contract is in writing, not all terms are required to be included.

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

Owen offers to sell his motorcycle to Julian for $5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his motorcycle to Julian: -at no time, because offers to sell merchandise are irrevocable. -as long as Julian has not yet accepted the offer. -anytime, whether or not Julian has accepted the offer. -even after Julian has accepted but before Julian has delivered the money to Owen.

as long as Julian has not yet accepted the offer.

Mia contracted with Greencare Lawn Service for a pest treatment on Mia's lawn for $1,000. Pat lives next door to Mia. Greencare mistakenly treats Pat's lawn instead of Mia's. Pat watched them perform the treatment while looking through the window of his living room, but did not go outside and stop them. When Greencare seeks payment from Pat, Greencare can probably receive: -nothing, because Greencare's contract was with Mia, not Pat. -$1,000 from Pat, because Pat received the full value of the service. -$1,000 from Mia, because there was a contract. -from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment. Assessment question

from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment.

The weekly Kroger advertisement states that five-pound chubs of ground chuck are available for eighty-nine cents per pound. Arlene sees the advertisement; she realizes that ground chuck has not been priced this low in quite some time, so she hurries to the store to purchase some. Arlene loads seven chubs of ground chuck in her shopping cart. When she goes to the checkout to pay, however, the cashier informs Arlene that the price in the advertisement is a typo and that the correct price is $1.89 per pound. Arlene insists that the store must honor the price listed in the advertisement, because it is an offer that she has just accepted. The cashier calls the store manager for a decision. The store manager will likely explain to Arlene: -that the advertisement is a valid offer because its terms are definite. -that the advertisement is a valid offer because it is in writing. -that advertisements are not offers, but merely a request for offers. -that the advertisement is a valid offer, and the store must honor the price in the advertisement.

-that advertisements are not offers, but merely a request for offers.

Jones Construction Company is building a series of new subdivisions in Newtown over the next two years. Jones enters into a verbal agreement with Harley Concrete Inc. to construct all the driveways and sidewalks in the subdivisions that Jones will be building. Jones and Harley agree on a price of $130 per cubic yard and that Jones will pay Harley at the end of each project. Harley completes the first project, which is four sidewalks and sixteen driveways, and bills Jones for the project. Jones decides that the price is too high and refuses to pay, claiming that they have no obligation to pay because the parties did not have a valid contract. If Harley sues Jones for payment the court would probably: -hold that Harley is entitled to nothing because parties are free to terminate contracts if they so choose. -apply quasi contract theory and award $130 per cubic feet, the contract price, to Harley. -apply quasi contract theory and award the fair market value of the work that Harley completed. -hold that Harley is entitled to nothing because the contract violates the Statute of Frauds.

apply quasi contract theory and award the fair market value of the work that Harley completed.

When an agreement fails to qualify as an enforceable contract, but one of the parties breaches the agreement, the non-breaching party: -has no remedy. -may sue for reformation. -may sue for unjust enrichment. -may sue for specific performance.

may sue for unjust enrichment.