BA 330 Quiz 7

13. After watching her son fumble the football five times in one game the boy's mother shouts, "I will sell that boy to the first person who hands me $100 bucks!" The boy's mother has: a. made an acceptance to the first person who can produce$100 b. made a firm offer and will be bound by her offer for a reasonable period of time. c. made an offer to anyone within hearing distance and will be bound to by he offer to the first person who produces $100 d. not made an offer because a reasonable person would not conclude that she was serious, besides she does not have the right to sell her son

d. not made an offer because a reasonable person would not conclude that she was serious, besides she does not have the right to sell her son

16. Bilateral contracts are created when the offeree gives a a. payment of money only b. performance of a particular act only c. prudent awaeness only d. return promise to the offeror

d. return promise to the offeror

5. All promises are legal contracts.

False

7. I tell you that if you promise to paint my house this month, I'll pay you $1,000 when you finish the job. If you accept this a unilateral contract.

False

8. When Olga asks Sven if he wants to sell his motorcycle, Sven says that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2000. A contract exists

False

6. In contract law a person's words and conduct mean whatever a reasonable person would think they mean. This is the objective theory of contracts

True

9. It is necessary for a contract to contain reasonably definite terms

True

19. When Myrtle comes home fro work she sees that someone has weeded her three plant patch. Later, a man comes to collect for his weeding work. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to weed her path. Which of the following answers is correct a. Myrtle would not have to pay for the yard work b. This is an express, voidable contract c. This is an implied, unilateral contract, and she must pay the price requested by the man d. The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred to her

a. Myrtle would not have to pay for the yard work

20. Jerry offers to shovel the snow from Ben's driveway for $25. Ben replies "OK." This is an example of a. an express, bilateral contract b. an express, unilateral contract c. an implied unilateral contract d. an implied, bilateral contract

a. an express, bilateral contract

11. Coffee Brokers, Inc., offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is a. terminated b. valid for a reasonable time to give Java a "second chance." c. valid for the period of time prescribed by a state statue d. valid until coffee brokers revokes the offer

a. terminated

17. Ann promises to buy a barely used (never opened) business law textbook from Ben, who promises to get the book to Ann before the next term starts. If neither Ann or Ben are really drunk, really mentally incompetent and are both 21 years old, these promises are a. unenforceable b. enforceable c. voidable d. void

b. enforceable

15. Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed a. an express contract b. an implied in law contract c. a quasi contract d. an implied in fact contract

d. an implied in fact contract

12. The intent of the offeror to make an offer is generally determined by reference to : a. the subjective intention of the offerer b. the assumptions of the offereor c. the beliefs of the offerer d. an objective assessment of the words and conduct of the offeror

d. an objective assessment of the words and conduct of the offeror

14. Sam announces that he plans to sell his business at a certain price. Tina gives Sam a check for the stated amount. Sam a. may refuse to accept the check because he only expressed an opinion as to the worth of the business b. is bound to sell his business to Tina c. may refuse to accept the check, because he only expressed a willingness to discuss a possibility of entering into a contract d. may refuse to accept the check, because he only expressed an intent to do something in the future

d. may refuse to accept the check, because he only expressed an intent to do something in the future

18. Royal Properties advertises a building for sale in the local newspaper. Top Quality Growing, Inc. sends a Royal a letter saying, " We accept your offer." Royal and Top Quality have a. a contract for the sale of the building b. a contract to consider the offer before any others c. a contract to negotiate a sale of the building d. no contract

d. no contract

1. A minor may disaffirm (cancel) a contract entered into with an adult

True

10. With just a few exceptions an offeror can revoke an offer at any time before it is accepted.

True

2. Minors (persons under age 18) or persons who, by reason of mental illness or defect, are unable to understand the nature and consequences of the transactions create voidable contracts

True

3. The elements of a contract are agreement, consideration, legality, and capacity

True

4. Advertisements are generally not treated as offers to contract

True