Law Chapter 11
What RULE (law) did the court apply in the United States Life Insurance Co v Wilsoncase? (Choose TWO correct answers)
A "REINSTATEMENT" clause is an offer to revive the Insurance Policy, with the insurer promising that revival will take place upon dispatch of payment The common law "mailbox rule" states that a payment is effective when mailed, not when received or acknowledged
The UCC states that an order requesting prompt or current shipment of goods may be accepted __________.
by a prompt promise to ship
If an offer is unclear about which form of acceptance is necessary to create acontract, the offer may be accepted: ___________.
by any reasonable method under the circumstances
Intent to accept an offer is objectively demonstrated __________
by either words or conduct or a combination of the two
Three factors that courts use to determine whether an offeree accepted a contractual offer are if the offeree: _______, _______, and _______. (Choose three correct answers)
communicated his or her acceptance to the offeror accepted on the terms proposed by the offeror intended to enter a contract
What was the court's CONCLUSION (decision, holding) in the Duro Textiles v Sunbelt Corp case?
For Duro. Sunbelt's forum selection clause is a material alteration to the contract and is not part of the contract between the parties.
As traditionally applied by the common law of contracts, the mailbox rule would make acceptances effective upon dispatch when an offeree used __________.
a manner of communication that was expressly or impliedly authorized by the offeror
Under the common law of contracts, only one of the following would be a valid communication method for acceptance of an offer: __________.
a manner of communication used by an offeror in making the offer
If an offeror specifies in detail what behavior is required of an offeree in an offer, the offeree must ordinarily __________.
comply with all the terms of the offer before a contract results
The following three methods of 'instantaneous acceptance' can be a(n): __________. (Choose three correct answers)
email phone texting face to face meeting
Generally, an offeree who accepts an offeror's performance knowing what the offeror expects in return for his performance: ____________.
has implicitly accepted the offeror's terms
If an offer has been communicated, a contract is formed if an offeree communicates any of the following EXCEPT:___________. (Choose ONE correct answer)
"I will call you tomorrow"
What was the court's CONCLUSION (holding, decision) in the Bauer v Qwest Communications Co case?
Affirmed against Susman. Given the parties' lengthy relationship and course of dealings, Susman's silence was an assent to be bound.
What was the court's CONCLUSION (decision, holding) in the Cabot Oil & Gas v Daugherty Petroleum case?
Affirmed for Daugherty. Daugherty's decision to abandon the negotiations and not to purchase the leases does not constitute a breach of contract.
What was the court's CONCLUSION (holding, decision) in the Long v Provide Commerce case?
Affirmed for Long. The ProFlowers' website links were not conspicuous enough to form a binding arbitration agreement
What was the court's CONCLUSION (decision, holding) in the United States Life Insurance Co v Wilson case?
Affirmed for Wilson. The policy was in effect at the time of Griffith's death
What RULE (law) did the court apply in the Long v Provide Commerce case? (Click ALL that apply)
Clickwrap agreements require web site users to click on an 'I agree' box after being presented with a list of terms and conditions of use Contracts formed on the Internet are either 'clickwrap' agreements or 'browsewrap' agreements Browsewrap agreements post the site's terms and conditions of use via a hyperlink at the bottom of the screen.
What was the court's ANALYSIS (legal reasoning) in the Duro Textiles v Sunbelt Corp case? (Chose TWO correct answers)
Courts consider forum selection clauses to be material because of subtle differences in courts, jurors, law and litigation expense. Duro's primary argument is that Sunbelt's forum selection clause "materially altered" the contract and, therefore, was not incorporated into it.
What RULE (law) did the court use in the Pena v Fox case? (Chose TWO correct answers)
Florida law further requires that an acceptance of an offer must be absolute and unconditional, identical with the terms of the offer. The common law requires acceptance to be a "mirror image" of the offer in all material respects, or else it will be considered a counteroffer
What was the court's ANALYSIS (legal reasoning) in the Pena v Fox case? (Chose TWO correct answers)
Fox's proposed acceptance would release additional parties which Ms. Pena's offer would not. His acceptance did not mirror her offer. Fox's "agents and employees" was a new term, and it was a part of USAA's response to Pena's settlement proposal which offered to only release Fox
What RULE (law) did the court use in the Cabot Oil & Gas v Daugherty Petroleum case? (Choose TWO correct answers)
Mutuality of assent requires an offer by one party and acceptance by the other of some conduct that evinces the intention of the parties to contract Strong evidence is required to rebut the presumption that the parties intended to execute a formal purchase and sale agreement (PSA)
_____ goods are different from the goods originally ordered by a buyer.
Nonconforming
What was the court's ANALYSIS (legal reasoning) in the Long v Provide Commerce case? (Chose TWO correct answers)
ProFlowers' website was insufficient to put plaintiff on inquiry notice of the subject Terms of Use Both parties agree that the subject Terms of Use for the ProFlowers.com Web site falls into the browsewrap category
What was the court's CONCLUSION (decision, holding) in the Pena v Fox case?
Reversed for Pena. There was no meeting of the minds between these parties, and no settlement agreement that barred Ms. Pena's claims.
What was the court's ANALYSIS (legal reasoning) in the Bauer v Qwest Communications Co case? (Choose TWO correct answers)
Since the parties had worked on the class actions for more than a decade, Susman's silence was reasonably interpreted as assent to written agreement. Susman admits that he had a history of promptly speaking up when he found something objectionable which he did not do in this case
What was the court's ANALYSIS (legal reasoning) in the United States Life Insurance Co v Wilson case? (Choose TWO correct answers)
The mailbox rule governing the time of formation of a contract applies in the case at bar to control the time the Policy was reinstated or revived On July 23 2007 Griffith directed Bank of America to prepare a paper check payable to USLIC & with dispatch occurring on July 25 2007
What RULE (law) did the court apply in the Duro Textiles v Sunbelt Corp case? (Chose TWO correct answers)
UCC § 2-207(1). Between merchants additional or different terms become part of the contract unless: (b) they materially alter it Forum selection clauses are prima facie valid and should be enforced unless enforcement would be 'unreasonable' under the circumstances.
What is the main ISSUE (legal question) in the Pena v Fox case? (Choose TWO correct answers)
Was USAA's settlement proposal a 'mirror image' of Pena's offer that she could accept? Whether the settlement offer tendered by USAA was a binding contract under the common law?
What was the main ISSUE (legal question) in the Duro Textiles v Sunbelt Corp case? (Chose TWO correct answers)
Was the forum selection clause a material change to the original invoice sent to Duro by Sunbelt? Was the forum selection clause a material element of the contract under UCC 2-207 the "battle of the forms"?
What is the main ISSUE (legal question) in the Long v Provide Commerce case? (Choose TWO correct answers)
Were the terms and conditions on the ProFlowers website conspicuous enough to form a binding contract and compel arbitration? Were the terms and conditions on the ProFlowers website conspicuous enough to form a binding contract?
What was the main ISSUE (legal question) in the United States Life Insurance Co v Wilson case?
Whether Griffith had reinstated the policy by payment of the unpaid premium prior to his death on July 28, 2007?
What is the main ISSUE (legal question) in the Cabot Oil & Gas v Daugherty Petroleum case?
Whether the correspondence between the parties created a binding enforceable contract?
When an offer is unclear about which form of acceptance is necessary to create a contract, an offeree may __________.
accept the offer in any manner that is reasonable
A(n) _____ is a "manifestation of assent to the terms of an offer made by an offeree in the manner invited or required by the offer."
acceptance
A traditional contract law states that __________.
an acceptance of an offer must be a mirror image of the offer
The knock-out rule is considered by a majority of the courts when there is an acceptance that ____________.
contains terms that are different from the terms of the offer
The Uniform Civil Code provides that a(n) _________ creates a contract, even if it includes terms that are different from those stated in the offer or even if it states additional terms that the offer did not address.
definite and timely expression of acceptance
When an offer stipulates a certain means of communication for acceptance, an acceptance by the stipulated means of communication is effective when it is ____________.
dispatched
Under the mailbox rule, properly addressed and dispatched acceptances can become effective when they are __________.
dispatched by offerees
One true statement about acceptance of an offer by other than the stipulated means of communication is that it: ____________.
does not create a contract.
Acceptance of a bilateral contract can either be ___________ or ___________. (Pick TWO correct answers)
express by promise implied by actions
A(n) _________ of an offer occurs when an offeree accepts the terms of the offer while complaining about them.
grumbling acceptance
Oral acceptance of an offer creates a binding contract __________.
if the parties had concluded their negotiations and reached agreement on all the essential aspects of a transaction
A(n) __________ occurs when an offeree merely asks about the terms of an offer without indicating that he or she is rejecting it.
inquiry regarding terms
A modern version of the mailbox rule holds that, unless indicated otherwise, an agreement is created if the offer _______________ or ____________. (Check TWO correct answers)
is properly dispatched by any reasonable means is accepted by any reasonable method of communication
A correct statement about communication in the context of acceptance of an offer would be that: ____________.
it is a vital component of the present intent to contract required for the creation of an offer.
The UCC provides that the terms of a contract created by an exchange of performance are those on which the parties' writings agree, supplemented by appropriate "gap-filling" provisions are also known as the __________ rule.
knock-out
If an offeree seeks to change the terms of an offer before accepting it, the offeree is said to have __________.
made a counteroffer
A risk associated with the __________ rule is that it could lead to an offeror being bound by an acceptance that he or she never receives.
mailbox
The rule protects an offeree's reasonable belief that a binding contract was created when an acceptance was dispatched is the __________ rule.
mailbox
To accept an offer for a unilateral contract, the offeree: ____________.
must perform the requested act
According to the UCC, __________ is created if a seller notifies the buyer within a reasonable time that the shipment of nonconforming goods is intended as a(n) __________. (Choose ONE correct answer)
no contract, accommodation
Under UCC 2, prompt shipment of _____________ or ___________ operates as an acceptance of the order. (Choose two correct answers)
nonconforming goods conforming goods
In contract law, the general rule is that an offeree's silence is ____________.
not an acceptance
If both parties are merchants, additional terms become part of the contract UNLESS the:__________ (Choose THREE correct answers)
offer expressly limited acceptance to its own terms offeror objects to the new terms within a reasonable time after receiving the acceptance new terms would materially alter the offer
Courts applying modern contract rules may prevent an _______ from __________ an offer once the offeree has begun performance.
offeror
The ___________ is the "master" of the offer.
offeror
The UCC provides that a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time is effective __________.
on dispatch
To accept an offer to enter a bilateral contract, an offeree must __________.
only make the promise requested in the offer
The person with the legal power to accept an offer and create a contract is the _________.
original offeree
To accept an offer to enter a unilateral contract, an offeree must __________.
perform the requested act
Even if there is silence, __________ or ___________ between the parties may indicate the offeree's intention to accept the offer. (Pick TWO correct answers)
prior business dealings customary trade practices
The UCC specifically states that an order requesting prompt or current shipment of goods may be accepted either by a(n) _________ or by a(n) _________. (Choose TWO correct answers)
prompt shipment of the goods prompt promise to ship
The UCC provides that an offer that does not specify a particular means of acceptance is considered to invite acceptance by any __________.
reasonable means of communication
Under the common law of contracts, when an offeree used a manner of communication that was unauthorized by an offeror to communicate acceptance of an offer, the acceptance became effective when _________, assuming that the offer was still open at that time.
received
In the context of the acceptance of an offer, an offeror has the power to __________.
specify the manner in which acceptance must be communicated
An offeror, as the master of an offer, has the power to specify the precise time, place, and manner in which acceptance must be communicated. This is called a(n) __________.
stipulation
The general rule is that an offeree's silence to an offer indicates ___________.
that, without more, there is no acceptance
The modern version of the common law mailbox rule is found in: ______________.
the Restatement (Second) of Contracts
Under the common law, if a material term is changed by the offeree, most likely: ___________.
the acceptance is a counteroffer because it violates the mirror-image rule
If an offeree adds additional terms to an offer, if _____________, the additional terms not become a part of the contract. (Choose THREE correct answers)
the new terms materially alter the terms of the offer the offeror gives notice of objection within a reasonable period of time the offer expressly limited acceptance to its own terms
One true statement of an offeree's acceptance in a bilateral contract is that: ____________.
the offeree can accept with a promise, which can be either express or implied.
Courts may use any of the following factors in determining whether there is acceptance, EXCEPT if: _______ (Choose ONE correct answer)
the offeror communicated his acceptance to the offeree
If the parties decide to put their agreement in writing, a party to the agreement who later wants "out of the deal" may argue that she is not bound because: ____________.
the parties intended to be bound by a written signed agreement
Under the common law, if the offeree inquires about the terms of an offer but later accepts the terms, most likely: ___________.
there is a valid enforceable offer
An attempt to accept an offer by anyone other than the original offeree is _________.
treated as an offer
If an offeree adds additional terms to an offer, the terms are _________.
treated as proposals for addition to the contract
According to the Uniform Civil Code's Section 2-207, an attempted acceptance that ________ would not be a valid acceptance.
was expressly conditioned on the offeror's agreement to the offeree's terms
According to the UCC's "Battle of the Forms" Doctrine, an acceptance that was expressly conditioned on the offeror's agreement to the offeree's terms: __________.
would not be a valid acceptance
