Module 4 Quiz

The correct answer is "common law." Common law is the source for much of US law, Contract law is based on common law as well. Contract law can be modified or replaced by statutory law such as the Universal Commercial Code, or by administrative agency regulations.

The primary source for contract law is expectations. social values. personal interests. common law.

The correct answer is "if it is signed by Bean." This case is an illustration of a firm offer made to Coffee Café by Bean. The electronic signature in an email is sufficient to meet the requirement that the offer be both written and signed.

Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient if it is signed by Coffee. under no circumstances. if it is signed by Bean. if Coffee responds with an acknowledgment of the deal.

The correct answer is "irrevocable for the stated period." This case is an illustration of a firm offer made to Dale by Bon for a specified period. The email constitutes a written and signed firm offer and Bon would be in breach of contract if he sells the truck to another party during the specified period.

Bon, an agent for City Motors Inc., e-mails Dale on May 1 that the dealer will sell to her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1. Bon's offer to Dale is irrevocable until Dale responds. irrevocable for the stated period. revocable on the payment of consideration to Dale. revocable at any time

The correct answer is "the terms of the original offer." In the law of contracts, the mirror image rule, also referred to as an unequivocal and absolute acceptance requirement, states that an offer must be accepted exactly with no modifications. The offeror is the master of their own offer. An attempt to accept the offer on different terms instead creates a counteroffer, and this constitutes a rejection of the original offer. Therefore, they proceed according to the terms of the original offer.

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona's TV set is included. Neither party is a merchant. Their contract is formed according to under no circumstances. whatever is reasonable. the terms of the original offer. the new terms of the acceptance.

The correct answer is "a sale of goods." The UCC defines a sale as "the passing of title [evidence of ownership rights] from the seller to the buyer for a price" [UCC 2-106(1)]. The price may be payable in cash or in other goods or services. In the example given in the question, Embers ordered 12 extinguishers from Firefighting and the goods were delivered. We can assume this transaction is a sale. If the transaction is concerned with land or intangible assets, the UCC would not apply.

Embers Corporation orders 12 fire extinguishers from Firefighting Inc., which delivers the equipment. This is most likely a contract for services. a sale of goods. a gift. a lease of goods

The correct answer is "whatever is reasonable." In this case the parties agreed to terms of sale that were mutually beneficial - Harvest got the grain, Grinders got paid. Both parties agreed to leave some of the terms until later. The court will weigh the evidence in the case and the terms of the contract and render a decision based on what is reasonable.

Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will generally presume whatever is reasonable. nothing. whatever favors the plaintiff. whatever favors the non-breaching party.

The correct answer is "the sale to Steve." The UCC defines a sale as "the passing of title [evidence of ownership rights] from the seller to the buyer for a price" [UCC 2-106(1)]. The price may be payable in cash or in other goods or services. In the example given in the question, Jo is leasing to Kia. Real Estate is not covered by the UCC but by the Civil Code of many states. Jo employs Maria to manage the building. Employment law stems in part from general contract law such as terms and conditions of employment. The UCC does not cover gifts, so the gift to Jo's daughter Liu would not be covered.

Jo owns a condominium that she leases to Kia. Jo employs Maria to manage the condominium. Jo gives her daughter Liu $450 on her sixteenth birthday. Jo sells her car to her neighbor Steve for $1,500. Article 2 of the UCC covers the sale to Steve. the gift to Liu. the lease to Kia The employment of Maria.

The correct answer is "unilateral contract." In this case, Sari can only accept the offer if she completes the task within the thirty-minute deadline. A unilateral contract is a promise for an act, formed not when promises are exchanged but when the act is performed.

Juan offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Juan and Sari will have a void contract. a unilateral contract. a bilateral contract. an unenforceable contract.

The correct answer is "Nona promised to pay for the watch." In this case Macy and Nona have entered into a bilateral contract, goods exchanged for payment. If Macy had insisted that Nona pay in cash within an hour, and Nona agreed, a unilateral contract would have existed.

Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when Macy offered to sell the watch. Macy delivered the watch. Nona promised to pay for the watch. Nona paid for the watch.

The correct answer is "an express contract." In an express contract the terms of the agreement are fully and explicitly stated in words, oral or written. The agreement between Marketing and N'Ice is simply stated. Marketing will create a campaign, N'Ice will pay for the work.

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have a formal contract. an implied contract. an express contract. no contract.

The correct answer is "a sale." The UCC defines a sale as "the passing of title [evidence of ownership rights] from the seller to the buyer for a price" [UCC 2-106(1)]. The price may be payable in cash or in other goods or services. In the example given in the question, Mining Corporation is purchasing the business assets of Open Pit including its equipment and supplies. If the transaction were concerned with land or intangible assets, the UCC would not apply.

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sale. a sublease. a lease. a contract for services.

The correct answer is "a lease." Leases of personal property (goods such as automobiles and industrial equipment) have become increasingly common. In this context, a lease is a transfer of the right to possess and use goods for a period of time in exchange for payment. The key words in the question are "for the use" and "for a year". Use of a product over a period of time is indicative of a lease.

Seacoast Transport Company pays Trucks & Trailers Inc. a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is a sale. a contract for services. a sublease. a lease