Fin 331 quiz 2

A revocation is effective at the time it is dispatched by the offeror.

False

A voidable contract creates no obligation and is not enforceable by any party.

False

All terms of contracts, even "fine-print" provisions of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.

False

Pratt, an owner of an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor, Stacey. Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

False

The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.

false

Generally speaking, advertisements for the sale of goods at specified prices are considered to be offers.

False

Contracts must always be in writing to be enforceable.

False

What can an offeror do to minimize the risk posed by the mailbox rule?

Include a receipt stipulation in the contract

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true?

There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie.

Abby promises to pay Brian $50 if he mows her lawn. Brian does not promise to mow Abby's lawn; however, later that day, Brian completely and satisfactorily mowed Abby's lawn. This is an example of a unilateral contract.

True

Alan and Ben have a contract. Alan has performed 100 percent and Ben has performed 50 percent of it. This contract is now executory.

True

Consideration can be a promise for another promise.

True

Consideration is what distinguishes enforceable agreements from gratuitous promises.

True

John promises to pay Robert $100 per week, in exchange for Robert's promise not to beat John up. There is no consideration for John's promise.

True

If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

True

Kevin offered to mow his Uncle Jordan's lawn for $100. To his offer, Uncle Jordan replied by saying "I know you're taking advantage of me but I accept." Uncle Jordan has indeed accepted the offer made by Kevin.

True

Mr. Blue and Mr. Green are in negotiations for a regular delivery of newspapers to Mr. Blue's business. Mr. Blue did not formally announce his acceptance to the offer. But when Mr. Green sent a shipment of newspapers as they agreed, Mr. Blue accepted the shipment and paid for them. According to the UCC, Mr. Blue and Mr. Green have an enforceable contract.

True

Mr. Green agrees to purchase a lawn mower from Ms. White for $300. The act of payment of $300 by Mr. Green is consideration for the act of passing ownership of the lawn mower from Ms. White to Mr. Green.

True

Mr. White contracts with Mr. Green for 100 black coffee mugs. Mr. White decides he needs the mugs faster than the time allotted in the contract and asks for a rush shipment. Mr. Green notifies Mr. White that he will ship 100 coffee mugs but that the only ones available are red. A court will find that the shipment of red mugs under the UCC is not a breach of the original agreement.

True

The only person with the legal power to accept an offer and create a contract is the original offeree.

True

The rule on adequacy of consideration reflects the laissez-faire assumption of freedom of contract.

True

UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.

True

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

bilateral, executory, and express.

Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:

unilateral and executed

Bill is 25 years old. His uncle promised in writing to pay him $2,000 if Bill would refrain from drinking alcohol for one year. Bill refrained from drinking alcohol for one year. However, his uncle now refuses to pay Bill as they agreed. The uncle claims that because Bill suffered no detriment by refraining from alcohol, his non-drinking does not constitute legal consideration, and, therefore, no contract was formed. If Bill sues his uncle, Bill will:

win because Bill had a legal right to drink alcohol.