Business Law: Text & Cases, Chapter 12

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1

Fresh Service, Inc., offers to deliver produce to Growers’ Market’s customers for a certain price. Fresh’s intent to extend a serious offer to Growers’ Market is determined by reference to Fresh’s

a. ​assumptions.

b. ​beliefs.

c. ​intentions.

d. ​words and conduct.

d. ​words and conduct.

2

Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby who owns Nero’s Motors, hands Maya $10. This is

a. ​a valid acceptance because Maya is seriously frustrated.

b. ​a valid acceptance because Nero is a professional dealer.

c. ​not a valid acceptance because Maya does not seriously intend to sell.

d. ​not a valid acceptance because Nero is only passing by.

c. ​not a valid acceptance because Maya does not seriously intend to sell.

3

An ad on the NewsNow Web site asks viewers to “send us your story and we might share it with the world.” Ollie submits a manuscript, adding, “I accept your offer.” Between NewsNow and Ollie, there is

a. ​a contract for the publication of Ollie’s story.

b. ​a contract to consider Ollie’s story before any others.

c. ​a contract to negotiate for the publication of Ollie’s story.

d. ​no contract.

d. ​no contract.

4

Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is

a. ​effective.

b. ​not effective because comedy is not a serious subject.

c. ​not effective because Anton’s tutoring will be subjective.

d. ​not effective because Brooke has no knowledge of the subject.

a. ​effective.

5

Idina admires Jules’s collection of guitars. July says, “I plan to sell the collection when I get tired of it.” Jules’s statement is

a. ​an offer.

b. ​not an offer because it has not been communicated to Idina.

c. ​not an offer because July expressed only an intent to enter into a future contract.

d. ​an acceptance.

c. ​not an offer because July expressed only an intent to enter into a future contract.

6

Jon says to Kris, “I would like to sell you my sports memorabilia collection.” This is not an offer because it

a. ​does not describe the subject matter sufficiently.

b. ​does not include a price term.

c. ​only expresses an opinion.

d. ​only invites Kris to negotiate.

d. ​only invites Kris to negotiate.

7

Pastries, Inc., sends its catalogue to Rollo and includes a “personalized” letter inviting the purchase of any item at the advertised price. This is

a. ​an offer because of the “personalized” letter.

b. ​an offer because there is no room for price negotiation.

c. ​an offer only if Rollo previously bought items from Pastries.

d. ​not an offer.

d. ​not an offer.

8

Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he

a. ​did not confer a benefit on Laredo by returning the dog.

b. ​did not know of the reward when he returned the dog.

c. ​did not ask for the reward when he returned the dog.

d. ​returned the dog.

b. ​did not know of the reward when he returned the dog.

9

On May 1 Ralph offers to cure and smoke Sam’s pork. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph’s revocation of the offer

a. ​became effective on May 1.

b. ​became effective on May 3.

c. ​became effective on May 5.

d. ​did not become effective because Sam responded to the offer.

c. ​became effective on May 5.

10

Rhonda asks Steve, “Do you want to buy me to repair your fishing net?” This is

a. ​a valid offer.

b. ​not a valid offer because the terms are not definite.

c. ​not a valid offer because Rhonda did not express an intent.

d. ​not a valid offer because Steve did not respond.

b. ​not a valid offer because the terms are not definite.

11

Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting the offer by April 1. Simone may revoke the offer

a. ​before Thom accepts the offer.

b. ​before April 1, whether or not Thom has accepted the offer.

c. ​only after Thom accepts the offer.

d. ​only after April 1.

a. ​before Thom accepts the offer.

12

Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving’s offer. For a court to determine if a contract has been breached, under the common law, the offer must include terms that are

a. ​exactly precise.

b. ​reasonably definite.

c. ​unequivocally approximate.

d. ​vague or uncertain.

b. ​reasonably definite.

13

Fix-It-Quik, Inc., offers Gina a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

a. ​after a reasonable period.

b. ​after a work week (five business days).

c. ​after a month (thirty calendar days).

d. ​never.

a. ​after a reasonable period.

14

Business Properties, Inc. (BPI), offers to sell a cold storage warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

a. ​creates an illegal contract by adding a clause to BPI’s offer.

b. ​makes the offer irrevocable for three days if BPI accepts.

c. ​negates BPI’s offer by changing the price term.

d. ​voids BPI’s offer by extending the time term.

b. ​makes the offer irrevocable for three days if BPI accepts.

15

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

a. ​the deal is binding except for the promise to hold the offer open.

b. ​a reasonable period of time is implied.

c. ​the offer must be held open for an indefinite period.

d. ​the deal is done.

b. ​a reasonable period of time is implied.

16

Lou offers to service Millie’s heating and air conditioning system for one year for $500. Under the mirror image rule, Millie’s response will be considered an acceptance if the terms of the acceptance

a. ​exactly mirror those of the offer.

b. ​change the items offered, but do not change the price.

c. ​change the price, but do not change the items offered.

d. ​change both the price and the items offered.

a. ​exactly mirror those of the offer.

17

Fabien offers to sell his Graphic Signs, LLC, business to Hanna for $100,000. Hanna replies, “The price is too high. I will buy it for $75,000.” Hanna has

a. ​accepted the offer.

b. ​made a counteroffer without rejecting the offer.

c. ​rejected the offer and made a counteroffer.

d. ​rejected the offer without making a counteroffer.

c. ​rejected the offer and made a counteroffer.

18

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara’s Travel Group for $500. Referring to the prices for similar tours, Tiara’s says, “We’ll pay no more than $400.” Rafi’s offer is

a. still open.

b. terminated.

c. rejected and subject to a counteroffer.

d. revoked.

c. rejected and subject to a counteroffer.

19

Coffee Brokers, Inc., offers to buy Dining Company’s coffee-roasting services for a certain price. Dining responds that the price is too low and thereby rejects the offer. The offer is

a. ​terminated.

b. ​valid for a reasonable time to give Interstate a "second chance."

c. ​valid for the period of time prescribed by a state statute.

d. ​valid until Interstate revokes the offer.

a. ​terminated.

20

Wally offers to repair and service a forklift for Valu Lumber Outlet, but Wally dies before Valu accepts. Most likely, Wally’s death

a. ​does not affect the offer.

b. ​shortens the time of the offer but does not terminate it.

c. ​extends the time of the offer.

d. ​terminates the offer.

d. ​terminates the offer.

21

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco’s acceptance is complete

a. ​as soon as he says he will do the job.

b. ​once he starts to work.

c. ​only after he hauls away the debris.

d. ​when he hears the offer.

c. ​only after he hauls away the debris.

22

Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay’s acceptance by e-mail will be considered effective when

a. ​received.

b. ​sent.

c. ​followed up by a confirmation letter sent by regular mail.

d. ​composed on a Relay computer.

b. ​sent.

23

Pacific Charter Company offers to provide an air-conditioned bus to Quincy’s tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by

a. ​e-mail.

b. ​phone.

c. ​regular mail.

d. ​any of the choices.

c. ​regular mail.

24

Green River Gas Company offers to sell Far East Energy, Ltd., a certain quantity of liquefied natural gas. If Far East sends an acceptance via Green River’s authorized mode of communication, it will be effective when it is

a. ​in transit.

b. ​received.

c. ​sent.

d. ​written.

c. ​sent.

25

Rico, a user of SmartPhoneApps.com’s Web site, can download apps for free if he first clicks on “I accept” after viewing certain terms. This is

a. ​a contract that does not include the terms.

b. ​a contract that includes the terms.

c. ​not a contract but the terms are enforceable.

d. ​unenforceable.

b. ​a contract that includes the terms.

26

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is

a. ​a browse-wrap term.

b. ​a click-on agreement.

c. ​a shrink-wrap agreement.

d. ​a partnering agreement.

b. ​a click-on agreement.

27

Due on Receipt, Inc., makes tax software, which is packaged with a shrink-wrap agreement. Evenflo Products Company distributes the software to retailers, including a Flatprice discount store, where Greta buys a package of it. The parties to the shrink-wrap agreement are

a. ​does not read it.

b. ​learns of it after the contract is formed.

c. ​learns of it before the contract is formed.

d. ​has difficulty learning how to play the game.

b. ​learns of it after the contract is formed.

28

Global Corporation enters into contracts with buyers in e-commerce and traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

a. ​electronic means.

b. ​paper documents.

c. ​updates and cross-checks to orally verify any e-terms.

d. ​notarized documents.

a. ​electronic means.

29

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

a. ​reasonably clear.

b. ​vaguely ambiguous.

c. ​practical.

d. ​standardized.

a. ​reasonably clear.

30

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include

a. ​a provision relating to the resolution of any dispute.

b. ​a detailed history of the music business.

c. ​positive reviews from users of the service.

d. ​an updated list of the music available through the service.

a. ​a provision relating to the resolution of any dispute.

31

Archway Architects, Inc., makes travel arrangements online and stores the confirming documents and receipts on its servers. Under the UETA, “information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form” is

a. ​an e-contract.

b. ​a shrink-wrap agreement.

c. ​a partnering agreement.

d. ​a record.

d. ​a record.

32

Dispatch Corporation and Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is

a. ​a partnering agreement.

b. ​a click-on agreement.

c. ​a shrink-wrap agreement.

d. ​a choice-of-law clause.

a. ​a partnering agreement.

33

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

a. ​transact business electronically.

b. ​submit to the recipient’s jurisdiction.

c. ​respond to e-mail sent to that address.

d. ​nothing.

a. ​transact business electronically.

34

Grain Farms and Hi-way Shipping Company make a deal for Hi-way’s services, communicating entirely online. Under the UETA, an electronic record of their deal is considered sent when it

a. ​reaches a midway point between the sender and recipient.

b. ​comes into the recipient’s control.

c. ​is read by the recipient.

d. ​leaves the sender’s control.

d. ​leaves the sender’s control.

35

Orb, Inc., does business online around the globe. The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements improve global commercial certainty by

a. ​all of the choices.

b. ​determining an Internet user’s location for legal purposes.

c. ​providing that e-signatures are the equivalent of signatures on paper.

d. ​providing for the recognition of judgments by other nations’ courts.

a. ​all of the choices.