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Business Law Study guide
Business Law Study guide MCQs
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John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustratio...
made an offer to anyone within hearing distance and will be bound by his offer to the first
made a firm offer and will be bound by his offer for a reasonable period of time.
made an acceptance to the first person who can produce $100.
not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.
?
Which of the following is generally considered to be a legal offer?
Placing an item up for auction.
A catalog advertisement.
A price list.
None of the above.
?
The intent of the offeror to extend an offer to the offeree is generally determined by reference to:
the beliefs of the offeror.
the subjective intention of the offeror.
the assumptions of the offeror.
the words and conduct of the offeror.
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The Johnsons decided to sell their summer cabin on Beech Lake. They sent flyers out to all who previously had expressed an interest in buying the cabi...
will not be formed because the flyer was sent out as an invitation to negotiate.
will be formed because the first to respond gets the property.
will be formed because the price is included.
will not be formed because of the parole evidence rule.
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Regency Construction placed an order for two hundred 2 x 4s from Lumber Jack. If the place of delivery and time for shipping the goods are not specifi...
the place of delivery is Lumber Jack’s and the time for delivering the lumber is a reasonable time based on normal trade practice.
the place of delivery is Regency Construction and the time for shipping is within 30 days.
the place of delivery is Lumber Jack's and the time for delivering the lumber is within 30 days.
there is no contract because having more than one open term made the offer too indefinite.
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Arthur offers to sell his fishing boat to Mark. Before they conclude their negotiations, Arthur dies. Which of the following is true?
Arthur's heirs must sell the boat to Mark.
The offer terminates automatically upon Arthur’s death.
The offer remains valid for a reasonable time after Arthur's death.
There is a contract if Mark accepts before learning of Arthur's death.
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On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter t...
was not formed because the revocation was effective before the acceptance was sent.
was not formed because the revocation was effective before the acceptance was received.
was formed on January 18.
was formed on January 20.
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Which of the following offers are considered to be irrevocable for a given period?
Firm offers.
Option contracts.
A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period.
All of the above.
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Brett displays his 1880 spinning wheel at an antique trade show. Marysees the spinning wheel and is interested in buying it. Brett says he will sell i...
Mary’s counteroffer terminates Brett’s offer of $2,500.
If Brett rejects Mary's counteroffer, she can still accept the original offer of $2,500.
Brett's statement was not an offer bur merely an opinion.
Mary's counteroffer is not valid as she did not wait a reasonable time before making it.
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If an offer specifies no time limit in which to accept:
the offeree has 30 days to respond.
the offeree has 10 days to respond.
the offeree has a reasonable period during which to accept.
the offer is not valid due to its indefiniteness, therefore the time of acceptance is irrelevant.
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James offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. W...
Jane can still accept the offer. She will be entitled to compensation for breach of contract.
The offer is terminated by law.
James can still revoke his offer so long as he does so before Jane accepts.
Jane can still accept the offer. She will be entitled to the insurance proceeds.
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Hensley and Boyer have been negotiating for several months over issues related to the purchase and sale of some real estate. They draft a letter of in...
protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far.
may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement.
has no legal effect, but provides a record for the parties as to where the negotiations stand.
courts will consider to be a valid offer which the other party must accept if offered in good faith.
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If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business:
the contract may indicate a method for determining the price, without stating a definite price.
Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC.
the contract price must remain the same for the entire three-year contractual period.
their contractual requirements regarding definiteness would be the same under the UCC and the common law.
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Elias offered to sell his computer to Kevin. Elias is:
the offeree.
the offeror.
subject to the UCC rules as a computer is a "good" under Article 2.
required to leave his offer open for a reasonable time.
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Acme Co. offers to buy 1000 widgets from Widget World Co. The written offer provides for 1000 at $10 per widget, to be delivered May 1. The offer has ...
No contract exists. The purported acceptance contains additional terms, so it is a counteroffer, which has not been accepted.
No contract exists if the additional terms are construed to be material terms.
A contract exists. If the additional terms are construed to be material, they are not part of the contract. If the additional terms are not material, they are part of the contract.
A contract exists, but the additional terms are not part of the contract no matter what.
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Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she bids on the lamp and ...
Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer.
Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp.
Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp.
Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.
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Oxtron, Inc. sent the following price list to its customers. Dispensers SBC-500J $670.00 True TDD-1$875.00 True TDD-2$1,465.00 True TDD-3$1,515.00...
These price quotes would generally be considered offers.
These price quotes would generally not be considered offers.
These price quotes would generally be considered firm offers.
Oxtron could not change its prices without giving reasonable notice.
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David and George have a contract wherein George agrees to buy sporting goods and equipment. Since the goods are not to be delivered for several months...
The price will be the reasonable price based on fair market value of the goods at the time of delivery.
David has the freedom to set any price he wants considering George was foolish enough to enter into a contract without a price established.
George has the right to establish a price because he is the buyer. David should have taken steps to protect his sales interest.
None of the above. The contract is not valid because the terms are not definite and certain.
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Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be:
unenforceable due to its vagueness.
unenforceable due to the difficulty of devising an appropriate remedy for a breach.
enforceable as long as both parties act in good faith and Bob doesn’t suddenly demand more hay than what was reasonably estimated.
No contract was formed as the quantity term was indefinite.
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Travel Lust offered to sell 10 round-trip tickets to Elaine. Travel Lust stated that the acceptance must be in writing by USPS next-day service. Which...
Elaine calls Travel Lust and states that she will buy the tickets.
Elaine sends an email to Travel Lust stating she will buy the tickets.
Elaine sends a letter by USPS next-day service to Travel Lust stating that she will buy the tickets.
All of the above responses will create a contract between Travel Lust and Elaine since they constitute reasonable means of communication.
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Seth told the salesperson at Outdoor Times that he wanted a sleeping bag that would keep him comfortable if the temperature drops to 10 degrees Fahren...
no warranties will be included in the purchase.
Seth will still receive a warranty of merchantability and a warranty of fitness for a particular purpose.
Seth will receive a warranty of fitness for a particular purpose because the salesperson gave the warranty orally.
Seth will receive only a warranty of merchantability.
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Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but ...
Robert wins; this is an enforceable contract with complete and definite terms.
Robert wins; the UCC will decide which 40 acres are to be sold.
Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate.
Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.
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Jack mails an offer to Joan that states, "I offer to sell you my car for $2000. If I don't hear from you in 10 days, I will assume you are w...
Jack hasa deal. His offer was intended and contains definite terms.
Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer.
Joan is not bound. Generally silence or inaction is not acceptance.
Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.
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In which case is the offer still valid at the time the acceptance is made?
Hal offered to sell a book to Sid. Hal died, and Sid sent an acceptance two days later.
By-Waste Co. telephones XXX Co. offering to dispose of XXX Co.'s chemical waste by a particular method. XXX says it has another way to dispose of the waste. Then XXX finds out the method it planned to use violates environmental protection statutes, so it sends a letter of acceptance to By-Waste.
Ray offers to sell his AT&T stock for a particular price by May 1. On May 2, Kathy agrees to buy the stock.
In a face-to-face transaction, Pat offers to sell Mike his stereo and Mike accepts.
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A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this cas...
no contract can be created.
the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.
the warranty term is an "additional term" that becomes part of the contract in most states.
the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects.
