unit 9 ch 10 & ch11

Suppose that Jack makes an offer to sell the restaurant on July 10th. Hal and Sophia decide to think it over. On July 15th, they mail a letter of acceptance to Jack. On July 16th, Hal and Sophia change their mind and call Jack, stating that they do not want to purchase the business. On July 20th, Jack receives the letter of acceptance. Would there be a valid contract? Yes, a valid contract was formed on July 20th when the letter of acceptance was received. Yes, a valid contract was formed on July 15th when the letter of acceptance was sent. No, because Hal and Sophia informed Jack that they did not want to buy the business prior to Jack receiving the letter of acceptance. Yes, a valid contract was at the time that Jack opens the letter and actually reads it.

Yes, a valid contract was formed on July 15th when the letter of acceptance was sent.

Bill faxes Harry an offer at 9 a.m. on Monday and the fax arrives at Harry's office at 9:02 a.m. Monday. Because Harry is taking a vacation day on Monday, he does not read the fax until Tuesday at noon. Harry decides to accept Bill's offer and tells his assistant at 3 p.m. Tuesday to prepare an acceptance for his signature. The acceptance is placed on Harry's desk at 4:45 p.m. Tuesday. Harry signs the acceptance and gives it to his assistant to fax back to Bill at 9 a.m. Wednesday. The assistant does so immediately; however, due to malfunctioning of Bill's fax machine, Bill does not receive Harry's acceptance until Friday morning. The offer is effective at __________ and the acceptance is effective at __________. a. 9:02 Monday; approximately 9 a.m. Wednesday b. Tuesday noon; Friday morning c. 9 a.m. Monday; 3 p.m. Tuesday d. Tuesday noon; 9 a.m. Wednesday

a. 9:02 Monday; approximately 9 a.m. Wednesday

Who would likely be considered a merchant under the UCC with respect to the goods in question? a. An authorized Apple computer dealer selling accessories for Apple computers and Apple-related products. b. An authorized Apple computer dealer selling the old shelving in the Apple store that was used to display the Apple products before the store was redecorated. c. An authorized Apple computer dealer selling household goods at a yard sale at his home. d. All of these are correct.

a. An authorized Apple computer dealer selling accessories for Apple computers and Apple-related products.

Annie wants to buy a vehicle that will tow a camper. She gives the specific measurements and weight of the trailer to the salesman. The salesman tells her that the SUV Annie sees on the car lot would be just perfect to tow the trailer. Annie test drives the vehicle and then buys it. In this case: a. Annie was not justified in relying upon the salesman's representation that the car would tow the trailer. b. Annie has a valid cause of action for fraud. c. the element of scienter is missing. d. the salesman is in a confidential relationship with Annie.

a. Annie was not justified in relying upon the salesman's representation that the car would tow the trailer.

Assuming a court did find there was a valid offer, if there was an action brought against the store, would Vinny's mistake of giving the newspaper the wrong price relieve the store of liability? Yes, because a unilateral mistake always allows contracts to be rescinded by either party. No, because it is a mutual mistake between Vinny and the newspaper, therefore the contract cannot be rescinded. Yes, since the mistake would be obvious to a reasonable person. No, because it is a unilateral mistake, and therefore whoever made the mistake cannot use it as a defense.

C. Yes, since the mistake would be obvious to a reasonable person.

If Joe introduces himself as Dr. Early to sell to Gensol, knowing that people will assume that he was a medical doctor, but he never tells anyone that he is, would contracts entered into be considered fraudulent? Probably, because he would have scienter. Probably not, because there is no statement of a material fact since he did not say he was a medical doctor. Probably not, because he would have scienter. Probably, since he is giving his opinions of the merits of Gensol.

Probably not, because there is no statement of a material fact since he did not say he was a medical doctor.

Debra delivers a package to Jackie and requests Jackie to sign a receipt for the package, holds out a simple sheet of paper that says "Receipt," and shows a line where Jackie is supposed to sign. The line, which appears to be at the bottom of the receipt, is actually a promissory note for a $10,000 loan. Jackie signed the line, as indicated by Debra and did not know that she was signing a note. This scenario is an example of: a. Undue Influence. b. Fraud in the execution. c. Duress. d. Fraud in the inducement.

b. Fraud in the execution.

The law very carefully scrutinizes contracts between those in a relationship of trust and confidence that is likely to permit one party to take unfair advantage of the other. Which of the following is not an example of that type of relationship? a. Agent and principal. b. Hair dresser and client. c. Parent and child. d. Doctor and patient.

b. Hair dresser and client.

Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Which statement is true? a. Harry has revoked Bill's offer. b. Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract. c. Under the UCC, Harry has accepted the offer even though his acceptance was not the mirror image of the offer. d. Harry has made a counteroffer. If Bill does not accept the counteroffer, Harry can still accept Bill's original offer unless Bill revokes it.

b. Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract.

Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Which statement is true? a. Harry has revoked Bill's offer. b. Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract. c. Under the UCC, Harry has accepted the offer even though his acceptance was not the mirror image of the offer. d. Harry has made a counteroffer. If Bill does not accept the counteroffer, Harry can still accept Bill's original offer unless Bill revokes it. Hide Feedback

b. Harry has made a counteroffer. Unless Bill accepts the counteroffer, there is no contract.

Moe is Larry's attorney. Larry is a high school dropout with a tenth-grade education and no job. Moe graduated from an elite law school and is a highly-skilled attorney. Larry recently inherited a substantial amount of money from his mother. Rather than continue to utilize his late mother's financial management company (Golden Wealth), Moe successfully persuades Larry--after hours of closed door meetings and very high-level talks about the stock market, tax law, and legal jargon--to move his money from Golden Wealth and enter into a 10-year management agreement with Stooge Wealth Management, which is owned by Moe's best friend Curly. If Larry seeks to later void his agreement with Stooge Wealth Management, what would be his winning argument? a. Moe and Larry experienced mutual mistake. b. Moe exerted undue influence on Larry to switch from Golden Wealth to Stooge Wealth. c. Larry experienced unilateral mistake. d. Larry was under duress to enter into an agreement with Stooge Wealth Management.

b. Moe exerted undue influence on Larry to switch from Golden Wealth to Stooge Wealth.

Jose offers to sell George his iPad 3 for $150 and explains that George has five days to accept. After three days, Jose accidentally drops his iPad 3 from his third-floor apartment balcony, shattering it into tiny pieces. On the fourth day, George, who does not know that the iPad was shattered, notifies Jose that he accepts the offer. Do Jose and George have a valid contract? a. No, because the offer and acceptance were not in writing. b. No, the destruction of the iPad terminated Jose's offer. c. Yes, so long as the mirror rule is fulfilled. d. Yes, an offer was made and George accepted it.

b. No, the destruction of the iPad terminated Jose's offer.

Which of the following would be material to the sale of a racehorse? a. The horse's coloring is chestnut. b. The horse's running time in the last race was the fastest in the circuit. c. The horse was ridden by Josh Jockey in the last race. d. All of these are correct.

b. The horse's running time in the last race was the fastest in the circuit.

Stephanie induces Wanda to purchase 100 shares in Zazzy Corporation at a price of $100 per share. Stephanie tells Wanda that she paid $150 for them the previous month. In fact Stephanie only paid $50. How can this representation of a past event be characterized? a. The fact that was misrepresented was not material. b. The representation of a past event is a misrepresentation of fact. c. This is a mutual mistake of fact. d. The representation is a misrepresentation of law.

b. The representation of a past event is a misrepresentation of fact.

Sam agrees to sell Gina a BMW automobile, both believe to be inoperable, purely for parts. The contract price is $500. Prior to the delivery of the BMW, Sam discovers that the car was simply out of fuel, runs like a dream, and refuses to deliver the automobile to Gina. The value of the operable BMW is now at $3,000. If the court allows Sam to rescind the contract, what would be the reason? a. All of these are correct. b. This is a case of material mistake by both parties. c. Sam was under duress. d. This is a case of unilateral mistake on Sam's part.

b. This is a case of material mistake by both parties.

To be effective, an offer must: a. be in a specified format. b. be communicated to the offeree c. always contain the price of a product or service offered. d. be spoken directly to the offeree.

b. be communicated to the offeree

A person should not be held to an agreement he has not entered voluntarily. Accordingly, the law will not enforce any contract induced by: a. puffery. b. duress. c. mistake. d. All of these are correct.

b. duress.

A person is not entitled to relief from fraud, unless she can show that she: a. was unduly influenced. b. justifiably relied on the misrepresentation. c. was physically forced to comply. d. All of these are correct.

b. justifiably relied on the misrepresentation.

An offer for the sale of goods under the UCC: a. must include a price. b. must include the quantity. c. must be made by a merchant. d. must include the time and place of delivery.

b. must include the quantity.

Baxter, a plumber, wants to submit a bid on a city sewer project. He computes the cost, but mistakenly omits the cost of one item. Accordingly, he submits a bid of $430,000 to the city. The next highest bid is $675,000, and the rest of the bids are even higher. The city is happy to have such a low bid, so it accepts Baxter's bid and awards him the contract for the job, even though the city engineer is of the opinion the job cannot be done for less than $650,000. In this case: a. Baxter must perform for the agreed upon price, because he has made a unilateral mistake. b. the city was aware of Baxter's mistake. When it accepted the bid, with knowledge of Baxter's mistake, the city sought to take an unconscionable advantage of Baxter's error. c. there is a case of mutual mistake. d. All of these are correct.

b. the city was aware of Baxter's mistake. When it accepted the bid, with knowledge of Baxter's mistake, the city sought to take an unconscionable advantage of Baxter's error.

Which of the following, if any, are requisites for fraud in the execution? a. False representation as to the very nature of the contract. b. Signing party does not know the character or essential terms of the contract. c. Renders the transaction void. d. All of these are correct.

d. All of these are correct.

Which of the following offers cannot be revoked? a. Any offer by a merchant under the UCC. b. Any offer that is in writing that promises to leave the offer open for three months or less. c. Any offer that is in writing, signed, and promises to leave the offer open whether it is made by a merchant or not. d. All of these are incorrect.

d. All of these are incorrect.

How do parties usually show mutual assent? a. By one party making an offer and the other party making a counteroffer. b. By one party making an offer in writing and the other party accepting in writing. c. By one party making an oral offer and the other party accepting by performing. d. By one party making an offer in words or by conduct and the other party accepting in words or by conduct.

d. By one party making an offer in words or by conduct and the other party accepting in words or by conduct.

__________ is an intentional misrepresentation of material fact by one party to the other, who consents to enter into a contract in justifiable reliance on the misrepresentation. Fraud in the inducement renders the contract __________ by the defrauded party. a. Silence; void b. Fraud by concealment; void c. Fraud in the execution; voidable d. Fraud in the inducement; voidable

d. Fraud in the inducement; voidable

Assuming an otherwise valid offer, which of the following would be Melnick's best argument in trying to enforce a contract for the sale of three peppers for two cents? The mistake was immaterial. A mutual mistake invalidates a contract. A mistake of value usually invalidates a contract. A unilateral mistake does not relieve the party who made the mistake from contract liability.

A unilateral mistake does not relieve the party who made the mistake from contract liability.

Suppose that Jack, Sophia, and Hal enter into a contract to close on the business without the non-competition agreement. Jack states that he would probably sign the non-competition agreement if they included an extra $100,000. A month later, Hal and Sophia bring Jack $100,000. What is the result? If Jack does not accept the $100,000, he may not sell the frozen food, but only for a reasonable amount of time. If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause. If Jack does not accept the $100,000, there is no valid contract for the sale of the business or for the non-competition agreement. Jack cannot change his mind, since he stated that he would probably accept $100,000 additional for the non-competition agreement.

If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

Ignore Vinny's agreement with Oscar and assume that Vinny and Maria had an otherwise valid contract. Could Maria avoid her obligations if she finds out the car does not have air conditioning? No, the only condition in her acceptance was that it pass a smog inspection. Yes, she wanted a car with air conditioning so she could later say she meant for it to be in the contract. Yes, since most people prefer cars with air conditioning. Yes, it is implied that she can test drive the car before a contract is formed.

No, the only condition in her acceptance was that it pass a smog inspection.

If Joe introduces himself as Dr. Early to sell to Gensol, knowing that people will assume that he was a medical doctor, but he never tells anyone that he is, would contracts entered into be considered fraudulent? Probably not, because he would have scienter. Probably, because he would have scienter. Probably, since he is giving his opinions of the merits of Gensol. Probably not, because there is no statement of a material fact since he did not say he was a medical doctor.

Probably not, because there is no statement of a material fact since he did not say he was a medical doctor.

Suppose that Jack states that he would sell the restaurant with the non-competition agreement for an extra $100,000. Hal and Sophia say they will buy the restaurant, but will only pay an extra $75,000 for the non-competition agreement. Jack says no to this counteroffer. Hal and Sophia then say they will pay $100,000 for the non-competition agreement. Do they now have a valid contract? Yes, but only for sale of the restaurant, without the non-competition agreement. Yes, for the sale of the restaurant with non-competition agreement for an extra $75,000. There would be no valid contract. Yes, for the sale of the restaurant with the non-competition agreement for an extra $100,000.

There would be no valid contract.

Suppose at the end of the meeting, Jack makes an offer regarding the restaurant buyout, which includes the non-competition agreement. Prior to Hal and Sophia agreeing to the offer however, Jack changes his mind. Can he do so? No, unless the offer states that it is revocable. Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance. Yes, and there is no need to actually communicate the revocation to Hal and Sophia (or their agent) prior to acceptance. No, once an offer is made, it can never be revoked.

Yes, as long as he actually communicates the revocation to Hal and Sophia (or their agent) prior to acceptance.

For purposes of general contract law (common law), an offer must: a. be sufficiently definite and certain. b. be made to only to one person. c. be intended by the offeror to be an offer. d. All of these are correct.

a. be sufficiently definite and certain.

Contracts induced by threats of __________ are not voidable, unlike threats of __________ regardless of whether the coerced party had committed an unlawful act. a. civil prosecution; criminal prosecution b. criminal prosecution; civil prosecution c. tortious conduct; civil prosecution d. None of these are correct.

a. civil prosecution; criminal prosecution

A resulting contract is void when it is brought about by: a. fraud in the execution. b. fraud in the inducement. c. innocent misrepresentation. d. All of these are correct.

a. fraud in the execution.

The mirror image rule relates to which required element of a contract? a. The offer. b. The acceptance. c. Both the offer and the acceptance. d. Only to acceptances in contracts subject to UCC.

b. The acceptance.

According to general (common) contract law, the __________ must be the __________ of the offer. a. counteroffer; acceptance b. acceptance; mirror image c. acceptance; consideration d. contract; revocation

b. acceptance; mirror image

When only one party is mistaken as to a fact or facts of the transaction, it is termed: a. negligent misrepresentation. b. unilateral mistake. c. subjective concealment. d. mutual mistake.

b. unilateral mistake.

Which of the following will terminate an offer? a. Rejection by the offeror. b. Subsequent illegality of the purpose but not of the subject matter of the offer. c. Destruction of the subject matter of the offer. d. Death of the offeree but not of the offeror.

c. Destruction of the subject matter of the offer.

Retail stores typically put advertisements in newspapers describing goods and stating prices. These ads are generally considered to be: a. offers only if they are made by merchants b. offers only if they are not made by merchants. c. invitations to buyers to make an offer to buy the goods described. d. firm offers.

c. invitations to buyers to make an offer to buy the goods described.

Sometimes a party makes misrepresentations, which if untrue, could constitute a material misrepresentation. Which of the following fits that description? a. "This is the one that I would buy." b. "This is the best tablet on the market." c. "These tires will wear like iron." d. "This car has a new engine."

d. "This car has a new engine."

If an offer has no stated time by which it must be accepted, when does the offer terminate? a. Never. b. After one week. c. After one month. d. After a reasonable period of time.

d. After a reasonable period of time.

The Jones' have always admired a house that sits on the top of a hill owned by the Smiths. Martin is a mutual friend of both the Jones and the Smiths. One day, Martin mentions to the Smiths how much the Jones would love to buy the Smith home. The Smiths say that if they sell the house, they would be happy to sell it to the Jones. Martin relays this conversation to the Jones and the Jones immediately call the Smiths to accept the Smith's offer to sell. Have Smiths made an offer to sell their home to the Jones? a. No. The Smiths did not objectively intend to make an offer because they did not clearly state they were willing to sell the house. b. No. The Smiths did not include a selling price in their conversation with Martin so the offer would fail for lack of specificity and definiteness. c. None of these are correct. d. All of these are correct.

d. All of these are correct.

Mike, a 75-year-old mechanic, returned Carrie her car after fixing the brakes. Mike told Carrie: "I put some new brakes on her—she should brake with complete ease!" When Carrie drives away, she cannot stop her car and crashes into a dumpster. It is later discovered that Mike failed to reconnect one of the brake lines. There is no indication that Mike knew that he failed to reconnect the brake line. If Carrie sues Mike for fraud, and the court sides with Mike, what would be the court's reason? a. Mike was puffing. b. Carrie did not experience duress. c. Mike's statement was not a fact. d. Mike lacked scienter because he did not make the statement with the intent to deceive

d. Mike lacked scienter because he did not make the statement with the intent to deceive

When is there an effective acceptance of an offer to enter into a unilateral contract? a. When the offeree says he probably will do what was asked of him in the offer. b. When the offeree begins to do what was asked of him in the offer. c. When the offeree has substantially but not fully performed what was asked of him in the offer. d. When the offeree has fully performed what was asked of him in the offer.

d. When the offeree has fully performed what was asked of him in the offer.

One issue before the court in Neugebauer v. Neugebauer case was: a. whether the price for the land was adequate consideration. b. whether the actions of Lincoln in arranging the purchase of his mother's land were unconscionable. c. whether Lincoln's actions toward his mother in securing the land contract were fraudulent. d. whether the real estate contract in the case should be rescinded on the grounds of undue influence.

d. whether the real estate contract in the case should be rescinded on the grounds of undue influence.

If a court was to consider whether Joe (or Pharzime) committed fraud in their contracts, what of the following elements would not need to be proven? damages scienter false representation justifiable reliance

damages

If a court was to consider whether Joe (or Pharzime) committed fraud in their contracts, what of the following elements would not need to be proven? false representation scienter justifiable reliance damages

damages

If a court found that Joe (or Pharzime) committed fraud in inducement to their contracts, to what remedy or remedies is the aggrieved party entitled? rescission rescission and damages, if out of pocket expenses were incurred as a result of the fraud restitution ratification of the contract

rescission and damages, if out of pocket expenses were incurred as a result of the fraud

If a court found that Joe (or Pharzime) committed fraud in inducement to their contracts, to what remedy or remedies is the aggrieved party entitled? restitution rescission and damages, if out of pocket expenses were incurred as a result of the fraud rescission ratification of the contract

rescission and damages, if out of pocket expenses were incurred as a result of the fraud

Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes online and places an order for the table. Two months later, Furniture Store sends Joe an email notifying Joe of the store's acceptance of his order and charges his account. Joe no longer wants the table. According to the court in Sherrod v. Kidd: a. Joe is not likely to be contractually bound to this purchase because two months is likely to be more than a reasonable amount of time within which the store had to accept Joe's offer. b. Joe will be contractually bound to this contract unless he dies or becomes incompetent before the store sends the email confirmation that his offer has been accepted. c. Joe is contractually obligated to pay for and accept the table because he did not notify the store that he had withdrawn his offer to buy the table. d. Joe was contractually bound when he went online and accepted the store's offer to sell the table.

a. Joe is not likely to be contractually bound to this purchase because two months is likely to be more than a reasonable amount of time within which the store had to accept Joe's offer.

In the case of Berardi v. Meadowbrook Mall Company, the court found economic duress, such as that found renders a contract void. Is this statement correct? a. No, the court affirmed the summary judgment. b. No, economic duress cannot occur between two people in business. c. Yes, Meadowbrook took unfair advantage of Berardi to collect its debt. d. Yes, the court ruled that there was economic duress and overturned the lower court's summary judgment.

a. No, the court affirmed the summary judgment.

Sam emailed Bob offering to sell him his 1970 Corvette for $7,000. Later, Sam finds out 1970 Corvettes which are in excellent condition and have all the original parts sell for closer to $57,000. He changes his mind about selling his Corvette to Sam for $7,000. Which of the following statements about the offer is correct? a. Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke. b. Sam cannot revoke his offer to Bob because he made it via email and email is considered a writing. c. Sam can reject his offer to Bob at any time so long as there is still an offer to reject. d. Sam cannot revoke his offer to Bob if Sam sells cars because then his offer is a firm offer.

a. Sam can revoke his offer to Bob at any time so long as there is still an offer to revoke.

Which is NOT a correct about the UCC's "Battle of the Forms" rule? a. The UCC battle of the forms rule is what common law calls the mirror image rule. b. The UCC battle of the forms rule changes the common law's mirror image rule. c. The UCC battle of the forms rule may result in a contract with terms that are not identical to the terms included in the offer. d. What gets included in the final contract terms may depend upon whether the parties are merchants.

a. The UCC battle of the forms rule is what common law calls the mirror image rule.

Betty is looking at the grocery ads in the newspaper and sees that canned tuna is on sale for 6 cents. Because this is an amazingly low price, she rushes off to the grocery store. She loads 10 cans into her cart, goes to the checkout counter and hands the cashier 60 cents. The cashier asks for $6.90 and tells her that the tuna is 69 cents per can and that the ad was a misprint. Betty demands that the tuna be sold to her for 6 cents a can. Which of the following statements about the ad is correct? a. The ad is an invitation for others to make offers. Betty has made an offer to buy the tuna for 6 cents a can and the grocer has rejected Betty's offer, but countered with an offer to sell it to Betty for 69 cents per can. b. The ad is a firm offer made by a merchant and the grocer must sell Betty the tuna for 6 cents a can. c. The ad is a contract and the store has a contractual obligation to sell the tuna to Betty for 6 cents a can. d. The ad is an offer and Betty has accepted the grocer's offer; therefore, there now is a contract between the grocer and Betty for the sale of tuna in exchange for 6 cents per can.

a. The ad is an invitation for others to make offers. Betty has made an offer to buy the tuna for 6 cents a can and the grocer has rejected Betty's offer, but countered with an offer to sell it to Betty for 69 cents per can.

Sam agrees to sell Gina a BMW automobile, both believe to be inoperable, purely for parts. The contract price is $500. Prior to the delivery of the BMW, Sam discovers that the car was simply out of fuel, runs like a dream, and refuses to deliver the automobile to Gina. The value of the operable BMW is now at $3,000. if the court allows Sam to rescind the contract, what would be the reason? a. This is a case of material mistake by both parties. b. Sam was under duress. c. All of these are correct. d. This is a case of unilateral mistake on Sam's part.

a. This is a case of material mistake by both parties.

In the Maroun v. Wyreless Systems, Inc. case, the court considered which of the following reason to grant summary judgment in Wyreless Systems' favor? a. Wyreless Systems' complained-of statements by Maroun were based on future events, and thus could not be a basis for misrepresentation. b. Wyreless Systems was merely puffing its terms to Maroun. c. Wyreless Systems is not liable for duress. d. Wyrless Systems properly exercised the business judgment rule.

a. Wyreless Systems' complained-of statements by Maroun were based on future events, and thus could not be a basis for misrepresentation.

Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes to the store to purchase the table but sees another very similar table that is not on sale ("the regularly priced table"). He offers to buy the regularly priced table from the store for the sale price of the Brandname table. The store says that it cannot sell it at the sale price, but it can sell it for 10% off the listed price. Joe says that is too much money to spend for the regularly priced table. Joe continues to shop around. Seeing nothing he likes, he decides to buy the regularly priced table for 10% off. When he goes to pay for the table, the store charges him full price. If challenged in court, the court is most likely to: a. find that the Joe's initial rejection of the store's offer to sell the regularly price table for 10% off effectively terminated that offer; that Joe is now making an offer to purchase the regularly priced table for 10% less than the asking price; and the store is free to accept or reject Joe's offer. b. find that by going into the store to look at the advertised table, Joe accepted the store's offer to sell the Brandname table to Joe for the sale price and, therefore, Joe is contractually obligated to pay for and accept the Brandname table. c. find that the store is contractually obligated to sell the table to Joe at 10% off the regular price because the store made that offer to Joe and Joe accepted the store's offer. d. find that the store effectively revoked its offer when it charged Joe full price.

a. find that the Joe's initial rejection of the store's offer to sell the regularly price table for 10% off effectively terminated that offer; that Joe is now making an offer to purchase the regularly priced table for 10% less than the asking price; and the store is free to accept or reject Joe's offer.

To establish fraud, the misrepresentation must have been known by the one making it to be false and must be made with an intent to deceive. That knowledge is known as: a. scienter. b. negligent misrepresentation. c. sales puffery. d. All of these are correct.

a. scienter.

Furniture Store runs an ad in the local Sunday newspaper announcing a special Veteran's Day offer of a free Brandname chairside table to the first three veterans who come into the store on Veteran's Day. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location and its hours. Joe is a Veteran. He goes to the store on Veteran's Day, but he arrives after the hours listed in the ad and the store has closed. Joe sticks a post-it on the store door saying that he is a veteran and wants the table. Which of the following statements is correct about his offer? a. According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer, but will likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store. b. Joe will be entitled to the table as long as no more than two other veterans accepted the offer before him. c. According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer and is not likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store because it does not ensure that the offeror will receive the acceptance at all and it does not ensure that the acceptance will be received before the offer has expired by its terms. d. According to the court in Lefkowitz v. Great Minneapolis Surplus Store, Inc., Joe's post-it will be considered an offer rather than an acceptance because the ad was not specific enough to be considered an offer.

c. According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer and is not likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store because it does not ensure that the offeror will receive the acceptance at all and it does not ensure that the acceptance will be received before the offer has expired by its terms.

Which of the following offers cannot be revoked? a. An offer to pay the high school student next door if he takes in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is prior to leaving for vacation. b. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before any mail has been delivered. c. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before your return from vacation but after he has collected your mail for all the days that you have been on vacation up until the revocation. d. None of these are correct.

c. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before your return from vacation but after he has collected your mail for all the days that you have been on vacation up until the revocation.

Chase and Tyler are best friends and fellow police officers. One day, Chase came home with a brand new, top-of-the-line Ford F-150 4x4 pickup valued at $38,000 and showed it to Tyler. Tyler told Chase that he wanted a truck just like his. Jokingly, Chase says, "Sure thing, buddy. I'll sell you my new pickup for $100 and a six-pack of beer!" If Tyler seeks to accept Chase's offer, what is Chase's best defense? a. Chase was merely advertising a price to Tyler. b. Chase's offer is undervalued. c. Chase intended the offer as a joke and a reasonable person would understand it to be a joke. d. Chase's terms were open.

c. Chase intended the offer as a joke and a reasonable person would understand it to be a joke.

Sam emailed Bob offering to sell him his 1970 Corvette for $7,000 and also said that he would give Bob two weeks to accept Sam's offer before he started advertising the Corvette for sale. One week later, Bob learns that Sam has sold his 1970 Corvette to Terry. Which of the following statements about the offer is correct? a. Terry will not have to sell the car to Bob for $7,000 if Bob wants the car if Terry paid $9,000 for the car. b. Sam's offer to Bob is not a firm offer, but he cannot sell the car to Terry until the two weeks are up. c. Sam's action of selling the car to Terry is a revocation of his offer to Bob. d. Sam's offer to Bob is a firm offer; and he must get his car back from Terry and sell it to Bob for $7,000 if Bob accepts his offer within the two weeks.

c. Sam's action of selling the car to Terry is a revocation of his offer to Bob.

Maggie owns a valuable show dog, which she knows is suffering from a disease only discoverable by a competent veterinarian. Maggie offers to sell this show dog to Naomi but does not inform her about the dog's condition. Naomi, who is not a veterinarian, makes a reasonable examination of the dog and concludes that the dog is in normal condition and purchases it from Maggie. If Naomi later discovers that the show dog suffers from the disease, can he have the sale set aside? a. None of these answers are correct. b. No, because Maggie and Noami already agreed to the sale. c. Yes, because the dog has a hidden defect that would not be discovered in an ordinary examination and Maggie failed to disclose it. d. No, because Naomi should have conducted a more rigorous examination of the dog.

c. Yes, because the dog has a hidden defect that would not be discovered in an ordinary examination and Maggie failed to disclose it.

Sometimes the law imposes a duty of disclosure. When a fiduciary is silent, silence may constitute fraud. A fiduciary is one who: a. has the same duty of disclosure to the other party to the relationship as one who is not a fiduciary. b. must deal at arm's length with the other party to the relationship. c. is in a confidential relationship who owes a duty of trust and loyalty to another. d. All of these are correct.

c. is in a confidential relationship who owes a duty of trust and loyalty to another.

Patrick held a baseball bat to Eric's head to compel him to sign a contract advantageous to Patrick. This contract was entered under: a. improper threats. b. undue influence. Patrick held a baseball bat to Eric's head to compel him to sign a contract advantageous to Patrick. This contract was entered under: a. improper threats. b. undue influence. c. physical duress. d. false representation. d. false representation.

c. physical duress.

Francisco is a concert violinist who is scheduled to perform at the Kennedy Center for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, sold by the dealer who was trying to make quick money. In this case: a. the sale may be rescinded, because the dealer has made a nonfraudulent misrepresentation. b. Francisco has made a unilateral mistake and cannot avoid the contract. c. the dealer has committed fraud in the inducement. d. the sale is voidable by the seller for mutual mistake.

c. the dealer has committed fraud in the inducement.

Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Bill says he is not interested in fixing the roof. Harry then tells Bill he will still buy the house. Bill tells Harry the house is no longer for sale to Harry. Which statement is true? a. Bill must sell the house to Harry because Harry accepted his offer to sell the house for $90,000. b. If Bill will not sell the house to Harry for $90,000, he cannot sell the house to anyone for $90.000. c. Harry's counteroffer terminated Bill's offer; however, Bill can still change his mind and accept either Harry's counteroffer or Harry's offer to buy Bill's house for $90,000. d. Harry's counteroffer terminated Bill's offer, and Bill's rejection of both Harry's counteroffer ($90,000 plus fix the roof) and offer ($90,000) leave Bill free to make a new offer to sell the house to anyone he chooses, including Harry, and under any terms he chooses as long as the terms are not illegal.

d. Harry's counteroffer terminated Bill's offer, and Bill's rejection of both Harry's counteroffer ($90,000 plus fix the roof) and offer ($90,000) leave Bill free to make a new offer to sell the house to anyone he chooses, including Harry, and under any terms he chooses as long as the terms are not illegal.

Furniture Store runs an ad in the local Sunday newspaper announcing a Veteran's Day special on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. If Joe goes into the store sometime during the day on Veteran's day and tries to buy a Brandname chairside table, but is told the store has sold out of that particular table, according to the court inLefkowitz v. Great Minneapolis Surplus Store, Inc.: a. the store is not likely to be in breach of contract because an ad made to the generalpublic can never be an offer. b. the store is likely to be in breach of contract because the ad was an offer that Joe accepted. c. the store is not likely to be in breach of contract because Joe wasn't the first person to accept the offer made in its ad. d. the store is not likely to be in breach of contract because the facts and circumstances regarding its ad indicate that the ad was intended to be like most ads—an invitation for the public to make an offer—and the store did not accept Joe's offer.

d. the store is not likely to be in breach of contract because the facts and circumstances regarding its ad indicate that the ad was intended to be like most ads—an invitation for the public to make an offer—and the store did not accept Joe's offer.