Business Law chapter 11 T/F

. One necessary element for an effective offer is a reasonable price related to market value. a. True b. False

The first requirement for an effective offer is a serious intent on the part of the offeror a. True b. False

An offer does not need to be communicated to the offeree to become effective. a. True b. False

An agreement is evidenced by one event: an offer. a. True b. False

An effective offer requires reasonably definite terms. a. True b. False

An offer must be practical to be effective. a. True b. False

An offeror's subjective intent determines the effectiveness of an offer. a. True b. False

An offer made in obvious anger is still an effective offer. a. True b. False

An expression of opinion—"this is excellent"—is an offer. a. True b. False

An invitation to negotiate is an agreement. a. True b. False

A price list is treated as an invitation to negotiate. a. True b. False

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate. a. True b. False

An invitation to negotiate—"can you afford this?"—is an offer. a. True b. False

Most advertisements—"this property for sale"—are offers. a. True b. False

A preliminary agreement cannot constitute a binding contract. a. True b. False

An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite. a. True b. False

In most cases, an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts. a. True b. False

Revocation is effective on dispatch. a. True b. False

An offer terminates automatically when the time specified in the offer has passed. a. True b. False

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree. a. True b. False

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer. a. True b. False

A statute or court decision that makes an offer illegal automatically terminates the offer. a. True b. False

There are no revocable offers. a. True b. False

An acceptance can materially change or add to the terms of the original offer without rejecting it. a. True b. False

No offer can be accepted by silence. a. True b. False

If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time. a. True b. False

An offeree's power of acceptance is terminated when the offeror dies unless the offer is irrevocable. a. True b. False

An acceptance must be unequivocal. a. True b. False

In a bilateral contract, communication of acceptance is necessary. a. True b. False

Under the mailbox rule, an acceptance becomes valid when it is dispatched. a. True b. False

The mailbox rule applies to communication by phone as well as by mail. a. True b. False

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received. a. True b. False

An e-contract must meet basic requirements that are different from those required of a paper contract. a. True b. False

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction. a. True b. False

The UETA applies only to electronic records and electronic signatures relating to a transaction. a. True b. False