Business Law, 8e: Chapter 10

Chapter 10
Contractual Agreement: Mutual Assent:

Your Full Name:

Your Email Address:

The Email address of an instructor to mail your quiz results:

1. According to the text, advertisements, catalog prices, and circulars are offers that can be accepted.: a. True
b. False

2. Randy sent Roxanne an offer to purchase her computer for $1,500. Roxanne sent a letter saying, "I'll sell the computer for $1,700, not a nickel less." The next day, Roxanne changes her mind and sent Randy another letter saying, "I've decided to accept your $1,500 offer after all." Under these facts, there is now a contract.: a. True
b. False

5. An offer is effective only if it is communicated by the offeror in person.: a. True
b. False

6. A revocation of an offer ordinarily is effective only when it is received by the offeree.: a. True
b. False

7. At common law, the addition of any materially different terms in the acceptance converts the acceptance into a counteroffer.: a. True
b. False

8. Under the "mailbox rule," an acceptance that is mailed is effective when mailed, even if it never is received by the offeror.: a. True
b. False

9. A contract to buy all the buyer's requirements from the seller is too vague to be a contract.: a. True
b. False

11. Monica Lopez stated during a television interview that she would pay $10,000 to anyone who found a defective product manufactured by her company, Tristar Tires. Joe took a defective Tristar tire to Monica, who said she was only joking about the $10,000. If Joe sues, the likely result will be:: a. Joe will lose because Monica stated that she was only joking.
b. Joe will lose because this is a reward.
c. Joe will win if a reasonable person would have thought Monica intended what she said.
d. Joe will win because of promissory estoppel.

12. Consider the following sequence of events: i. On August 1,Anahid (who is not a merchant) mailed Raul a valid offer. The offer contained the words, "This offer shall be held open until August 7". ii. On August 2, Raul received the offer. iii. On August 3, Anahid mailed a revocation of her offer to Raul. iv. On August 4, Raul received the revocation. v. On August 5, Raul mailed an acceptance of Anahid's offer to Anahid. vi. On August 8, Anahid received the acceptance. Under these facts, when was a contract formed, if at all?: a. August 1.
b. August 2.
c. August 5.
d. No contract was formed.

13. Under the UCC, which of the following terms may a court supply if they have been omitted by the parties?: a. Mode of payment.
b. Price.
c. Place of delivery.
d. All of the above.

14. Randy offered to sell his truck to Manoka for $10,000. In making the offer Randy said, "If you want to buy the truck, leave a note under the windshield wiper." Manoka left a message on Randy's answering machine accepting the offer to buy the truck. Under the common law,: a. a contract has been formed because the means of acceptance was reasonable.
b. a contract has been formed because of detrimental reliance.
c. a contract has not been formed because the means of acceptance was not as prescribed.
d. a contract has not been formed because of the equal dignities rule.

15. An agreement to hold an offer open for a specific time period is called:: a. an irrevocable offer.
b. an output agreement.
c. a revocation.
d. an option.