Chapter 12 Homework

Which term refers to whether an offeree accepts an offer by promising, by making a down payment or by performing? a. intent b. definiteness c. method of acceptance d. manner of acceptance

If an offer specifies no time limit in which to accept, a. the offeree has a reasonable period during which to accept. b. the offer is not valid and therefore it does not matter when the offeree responds. c. the offeree has 10 days to respond. d. the offeree has 30 days to respond.

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business, a. the contract price must remain the same for the entire three-year contractual period. b. their contractual requirements regarding definiteness would be the same under the UCC and the common law. c. the contract may indicate a method for determining the price, without stating a definite price. d. 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.

Which of the following are generally considered to be legal offers? a. price lists b. a note scribbled on a restaurant napkin that includes the details of the offer c. catalog advertisements d. placing an item up for auction

On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning. a. True b. False

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers. a. True b. False

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists. a. True b. False

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. This constitutes bad faith in its advertising, so consumers may have protection through state consumer protection statutes. a. True b. False

The intent of the offeror to extend an offer to the offeree is generally determined by reference to a. the subjective intention of the offeror. b. the assumptions of the offeror. c. the beliefs of the offeror. d. the words and conduct of the offeror.

You have placed an antique sofa up for auction and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer. a. True b. False

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has a. made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100. b. made an acceptance to the first person who can produce $100. c. not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer. d. made a firm offer and will be bound by his offer for a reasonable period of time.

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract. a. True b. False

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true? a. The offer is terminated by law. b. Jane can still accept the offer. She will be entitled to the insurance proceeds. c. Dick can still revoke his offer so long as he does so before Jane accepts. d. Jane can still accept the offer and John must find a 1955 Thunderbird to sell.

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct? a. Mary's counteroffer terminates Carl's offer of $1,500. b. Mary's offer is an option contract and she cannot revoke the offer. c. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection? d. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.

According to the UCC, one or more open terms will not cause a sales contract to fail for indefiniteness as long as the parties intended to make a contract and there is a reasonably certain basis for the court to determine the open terms. a. True b. False

Vick Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vick Valve must honor the prices on the list and sell the valves to Honest Hank. a. True b. False

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500. a. True b. False

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true? a. There is a contract if Tim accepts before learning of Floyd's death. b. Floyd's heirs must sell the car to Tim. c. Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined. d. The offer terminates automatically upon Floyd's death.

Revocation is the withdrawal of an offer by the offeror. a. True b. False

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 to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian a. was formed on January 20. b. was formed on January 18. c. was not formed because the revocation was effective before the acceptance was received. d. was not formed because the revocation was effective before the acceptance was sent.

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 intent that a. 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. b. has a legal binding effect concerning the issues outlined in the letter. c. may or may not be an offer, depending on the exact language and whether the document indicates that the parties have reached an agreement. d. courts will consider to be a valid offer which the other party must accept if offered in good faith.

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 cabin stating that they were planning on selling their cabin. The flyer described the location of the property, the size of the lot, and the price. If one of the recipients responds by sending a letter accepting, an agreement a. will be formed because the first to respond gets the property. b. will not be formed because of the parol evidence rule. c. will not be formed because the flyer was sent out as an invitation to make an offer. d. will be formed because the price is included.

In an option contract, the offeror may not revoke an offer during the option period. a. True b. False

Regarding contracts, in seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties. a. True b. False

Which of the following offers are considered to be irrevocable for a given period? a. Option contracts. b. A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. c. Firm offers. d. All of the above.