Reference no: EM13833801

1. Gavin tells Rod that he will pay him $400 to paint his house. Rod starts to paint, intending to accept. Halfway through his paint job, Gavin tells Rod that he wants to revoke the offer. Under this scenario:

A) Gavin is not allowed to revoke because the contract is unilateral
B) Gavin is allowed to revoke, but is liable to Rod for the reasonable value of benefit received
C) Gavin may not revoke because the contract is bilateral
D) Gavin is allowed to revoke if he finds Rod's efforts half-hearted or ineffective

2. If an offer does not state a time for acceptance, it is:
A) valid for a reasonable time, which depends on the circumstances of the offer
B) valid for 20 days from the day the offer is received by the offeree
C) valid for 10 days from the day the offer is made
D) valid until the offeree accepts it 

3. Which of the following statements about shrinkwrap contracts is true?
A) The label on the shrinkwrap states that by removing the shrinkwrap, the buyer accepts the terms of the software seller's licensing agreement
B) Critics point out that all the consumers understand the contract before accepting the terms and conditions
C) The practice of using shrinkwraps never raises ethical problems like those involved in the use of small print, complex, or "hidden" language
D) Shrinkwrap contracts are enforceable even when the terms violate contract rules such as unconscionability

4. Beck tells his mom that he is thinking of selling his vintage coupe to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances:
A) the offer has been conditionally tendered
B) the offer violates the UCC's rule against third-party interveners in quasi-contracts 
C) the offer has not been communicated
D) the offer has been effectively communicated

5. Advertisements are regulated outside of contract law by:
A) the Federal Trade Commission
B) the UCC
C) the CISG
D) the Restatement

6. Which of the following must be present for an offer to have a legal effect?
A) Invitation to offer
B) Communicating the intention to make an offer
C) Definiteness
D) Invitation to negotiate

7. To determine whether the offeror has created a present intent to contract, courts consider:
A) how the offer was made
B) the status of the person who has made the offer 
C) the intent of the parties subjectively
D) whether the offeror has communicated it to the offeree

8. Which of the following basic requirements must be met, for an offer to sell goods to be a firm offer?
A) The offeror must be a merchant
B) It must contain assurances that it'll be revocable
C) It must have been made orally
D) It is revocable for the period of time stated in the offer

9. Under the UCC, a sales contract can be created:
A) when the offeror forms subjective intent to contract
B) if the contract is reduced to writing
C) in any manner sufficient to show agreement, including conduct
D) when the contract contains the price terms

10. An offeree who attempts to accept after an offer has terminated is making:
A) an offer
B) a revocation
C) a solicitation.
D) a counteroffer

11. A subcontractor's bid:
A) is considered an offer
B) can be withdrawn even if the general contractor has relied on it
C) can be revocable
D) is considered to be a part of a shrinkwrap agreement

12. When parties fail to expressly agree on the terms of a sales contract:
A) the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute
B) the contract is automatically void
C) the contract will not be enforceable under the UCC
D) the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created

13. Which of the following authorities requires that, at minimum, the terms of the offer must be sufficiently clear so that what was promised can be determined?
A) The common law and the Restatement
B) The CISG and the UCC. 
C) The UCC and the Restatement
D) The UCC only

14. Ads for the sale of goods at a specified price are considered as ________ by the courts.
A) an unfair offer
B) giving everyone who sees the ad the power to bind into a contract
C) solicitation of an offer
D) invitations to negotiate

15. Which of the following statements about offers is true?
A) Any definite offer made by a merchant is a "firm offer" under the UCC
B) An offer is effective upon dispatch
C) The death of the offeror will terminate the offer immediately
D) A grumbling acceptance is a rejection and terminates the offer

16. Brian offers to sell Jerry his Ranch house but a hurricane destroys the house before Jerry accepts the offer. What would be the possible outcome of this offer?
A) If the offer is not revoked within a week after the incident took place, the offer is considered to be open and Jerry can claim the recovery charges
B) Jerry must be paid the recovery charges for losing the house as he had already been offered by Brian
C) A written statement must be produced to the court of law, to terminate the offer
D) The offer is terminated when the house is destroyed as it happened without the knowledge or fault of either of the parties

17. The doctrine of promissory estoppel does not require:
A) an injustice as a result of reliance
B) a consideration
C) a promise
D) a significant reliance on a promise

18.
A counteroffer:
A) does not significantly alter the material terms of the contract
B) is an inquiry into the terms of the offer
C) impliedly rejects an offer
D) is a mirror-image of the offer

19. In an auction:
A) acceptance occurs when an offeror makes the highest bid
B) bidders are treated as offerors, making offers the seller is free to accept or reject
C) an item cannot be withdrawn from sale prior to acceptance
D) the seller is required to accept the final offer when the auction is advertised as being "with reserve."

20. Advertisements for rewards, such as for the return of lost property, information, or the capture of criminals, are generally:
A) held to be offers for bilateral contracts
B) held to be invitations but not offers
C) held to be offers for unilateral contracts
D) held to be firm offers

21. Kyle offered to sell Pam 500 television sets. Kyle is the:
A) distributor
B) agent
C) offeror
D) offeree

22. In an agreement between two parties, if the facts indicate that a term was left out because the parties were unable to reach an agreement about it, it would probably mean that:
A) the intent to contract is absent, and no contract was created 
B) the CISG must fill in the gaps only if the price terms are left in the agreement
C) the party's intent to contract and CISG must fill in any gaps left in the agreement
D) the UCC must fill in any gaps left in the agreement

23. In an option contract:
A) a separate contract for the limited purpose of holding the offer open is created
B) the offeree is bound to accept the offer
C) a joint contract is created for the limited purpose of keeping the offer open
D) the offeree has purchased the right to accept within the stated period

24. Which of the following would terminate an offer without notice to the offeree?
A) Promissory estoppel
B) Physical inability of the offeree to perform
C) Insanity of either party 
D) Enactment of a statute making the contract illegal after acceptance

25. According to the CISG, an offer:
A) must express the quality of the goods to be valid
B) is sufficiently definite, though it lacks the price terms 
C) must be directed to a specific person
D) is not valid, if it impliedly provides means of determining the quantity of the goods

26. When the offeror does not specifically indicate what he/she was willing to do and what he/she wanted the offeree to agree to do in return, his/her behavior will probably be classed as:
A) an offer
B) an invitation to bid
C) an invitation to negotiate
D) a quasi-contract