Business Law Chapter 14

Which of the following does not constitute a valid offer?

A) Preliminary negotiations B) Advertisements C) An offer communicated by the offeror to the offeree's agent D) A. and B. D**

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

Express authorization

According to the __________ rule, an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offeree receives it

Mailbox

__________ terms in an offer and its resulting contract allow a court to determine damages in the event that one of the parties breaches the contract. They include the subject matter, price, quantity, quality, and parties

Material

Offeror intent is determined based upon a(n) __________ standard

Objective

Formation of a contract begins when the party initiating the contract, called the __________, makes an offer to another party, called the __________

Offeror; offeree

According to the "mirror-image" rule, if the terms of the acceptance do not mirror the terms of the offer

The attempted acceptance is a counteroffer

If an offer merely authorizes a certain method of acceptance but does not condition acceptance on the use of this method, and the offeree uses an unauthorized means of acceptance

The contract is not formed until acceptance is received by the offeror

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

With reserve

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

Without reserve