Question 1

Which of the following was the result in the case in the text Adone v. Paletto involving the rejection of a purported acceptance of an offer of compromise because it was not made within the time limit of 10 days specified in the offer?

Accepted Answer

A)   Rejection of the acceptance was unjustified because offers of compromise may not contain time limits.
B)   Rejection of the acceptance was unjustified because allowing only 10 days for acceptance is unreasonable.
C)   Rejection of the acceptance was unjustified because of the plaintiffs' severe injuries.
D)   Rejection of the acceptance was enforceable because a trial had already been held.
E)   Rejection of the acceptance was enforceable because the 10 days in which the other party had to accept had expired.F) C) and D)
G) A) and B) E

Question 2

In order for a court to evaluate whether or not there is a valid contract, what standard does a court use to interpret a contract?

Accepted Answer

A)   An express standard.
B)   A subjective standard.
C)   A subjective reasonableness standard.
D)   A common law reasonableness standard.
E)   An objective standard.F) A) and B)
G) A) and C)

Question 3

Under which of the following situations does an offer immediately terminate?

Accepted Answer

A)   Revocation
B)   Revocation and rejection
C)   Death or incapacity of the offeror or illegality
D)   Revocation and death or incapacity of the offeror
E)   Illegality or lapse of timeF) A) and B)
G) B) and E) C

Question 4

If no means of communicating an acceptance is specified in an offer, which of the following is generally true?

Accepted Answer

A)   The acceptance must be in writing.
B)   The acceptance must be made verbally either by telephone or in person.
C)   No valid contract may be entered into because the offer must specify a means by which to accept.
D)   Acceptance may be made by any reasonable means.
E)   Acceptance must be made orally or in writing within twenty-four hours.F) A) and B)
G) A) and C)

Question 5

[Leaky Tub and Flaming Watercraft] Isaiah finished college, got a good job, and decided to sell some used items and buy newer ones. A used hot tub with a leak in it and a personal watercraft were at the top of the list. Isaiah offered to sell to Yasmeen the hot tub for $500. Yasmeen was interested but not willing to pay $500. She said "I'll give you $400." Isaiah said that he would think about it. Later, the same day, Isaiah offered to sell Donna the hot tub for $500. Donna said "Would you consider $450?" Isaiah said he would think on it. A few minutes later, Paul who had heard that Isaiah wanted to sell the hot tub accepted Isaiah's offer to sell for $500, and they agreed that the transfer would be made the next day. A few minutes later, Yasmeen called saying that she accepted Isaiah's offer to sell the hot tub for $500. A few minutes after that, Donna called and told Isaiah that she accepted his offer to sell the hot tub for $500. Isaiah told Yasmeen and Donna that he had already sold it, and they were angry and threatened to sue. Isaiah offered to sell the personal watercraft to Haley for $800. She said that she would think it over and let him know the next day. Unfortunately, through no fault of anyone, there was a fire at Isaiah's home that night and the personal watercraft burned. Haley called the next day and accepted before Isaiah could tell her the watercraft burned. When she found out about the fire, Haley told Isaiah that he had better come up with another watercraft, or she was going to sue.
-Which of the following is correct regarding the final status of the negotiations between Isaiah and Yasmeen?

Accepted Answer

A)   Isaiah made an offer which was rejected by Yasmeen when she made a counteroffer for $400.
B)   Isaiah had made an offer which was still outstanding even though Yasmeen had made a counteroffer for $400.
C)   Isaiah had made an offer but it was revoked because Yasmeen did not immediately accept it.
D)   Isaiah had made an offer, and it was still outstanding because he did not revoke it before ending his initial conversation with Yasmeen in which she offered $400.
E)   No binding offer was ever made because an insufficient material term involving who would move the hot tub was omitted.F) A) and C)
G) A) and E)

Question 6

When, generally speaking, is a revocation effective?

Accepted Answer

A)   When it is mailed by the offeror.
B)   When it is received by the offeree.
C)   Immediately upon the offeror's decision to revoke.
D)   Within 24 hours of the offer being made.
E)   Whenever the offeror decides not to accept the offer.F) B) and E)
G) A) and E)

Question 7

Duncan and Maria are going to an auction. Duncan notices that the ad simply says "Auction today." This means that an auction is presumed to be ________ if nothing is stated to the contrary in the terms of the auction.

Accepted Answer

A)   without controls
B)   with controls
C)   without reserve
D)   with reserve
E)   without qualificationsF) C) and E)
G) D) and E)

Question 8

Which of the following is the result if the subject matter of an offer becomes illegal?

Accepted Answer

A)   The offer immediately terminates.
B)   There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal.
C)   There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal.
D)   There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal.
E)   There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.F) A) and E)
G) A) and D)

Question 9

Which of the following is not a required element of a valid offer?

Accepted Answer

A)   Serious intent by the offeror.
B)   Intent by the offeror to be bound by an agreement.
C)   Reasonably definite terms.
D)   Communication to the offeree.
E)   A written document setting forth terms of the offer.F) A) and E)
G) C) and E)

Question 10

Camila, wanting to sell a used business law book, calls Jada and tells her that if she does not hear from her within twenty-four hours, she will assume that Jada wishes to purchase the book for $50. Which of the following is correct regarding the status of the proposed book sale?

Accepted Answer

A)   There is no contract because in this situation silence cannot be used to form a contract.
B)   There can be no contract because the offer was not made in person.
C)   There can be no contract because the offer was not made in writing.
D)   Jada can avoid the creation of a contract only if she can prove by a preponderance of the evidence that she did not hear about the offer before the stated expiration time.
E)   Jada can avoid the creation of a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.F) A) and D)
G) A) and E) A

Question 11

Katrina and Kellen have discussed the sale of a new washer and dryer. Kellen offers to sell the washer and dryer for $1,000. When would the offer expire?

Accepted Answer

A)   In three weeks
B)   In seven days
C)   In forty-eight hours
D)   After a reasonable amount of time
E)   Offers never expire.F) B) and E)
G) B) and D)

Question 12

What was the result in the Opening Case in which the plaintiff attempted to buy a jet from Pepsi for Pepsi points and some additional funds?

Accepted Answer

A)   The plaintiff prevailed, and Pepsi had to sell the jet as offered because Pepsi failed to specifically reserve details of the offer to a separate writing.
B)   The plaintiff prevailed, and Pepsi had to sell the jet as offered because Pepsi's advertisement was considered an offer which the plaintiff validly accepted.
C)   The plaintiff prevailed, and Pepsi had to provide the jet as offered because Pepsi did not revoke the offer soon enough.
D)   The plaintiff did not prevail because the jet was unobtainable as a military aircraft.
E)   The plaintiff did not prevail because Pepsi reserved the details of the offer to a separate writing, and Pepsi had the authority to reject the plaintiff's offer to purchase.F) A) and B)
G) A) and C)

Question 13

If an offer authorizes certain means of acceptance, use of an unauthorized means of acceptance is acceptable but the contract is not formed until the acceptance is received by the offeror.

Accepted Answer

A) True 
 B)False

Question 14

When a counteroffer is made, what happens to the original offer?

Accepted Answer

A)   It remains in effect in all circumstances.
B)   It remains in effect only if the original offer specified a designated acceptance time.
C)   It remains in effect unless the counteroffer is materially different.
D)   It terminates.
E)   It terminates, but only if the counteroffer specifically states that the original offer is unacceptable.F) B) and C)
G) B) and E)

Question 15

Gordon asks Nina to paint his room purple for him for $150. Nina says she will try to get to it this week. Nina goes and gets purple paint and paints Gordon's room. Do they have a contract?

Accepted Answer

A)   No, there was no offer for Nina to accept.
B)   No, Nina did not say she accepted the offer.
C)   Yes, but only if Gordon likes the color of paint.
D)   Yes, Nina accepted the unilateral contract by buying the paint and painting the room.
E)   Yes, but only if Gordon likes how Nina painted the room.F) A) and B)
G) None of the above

Question 16

Which of the following is true regarding acceptable means of acceptance if no means of communicating an acceptance is specified in an offer?

Accepted Answer

A)   If no means of communicating an acceptance is specified in an offer, acceptance must be done through the U.S. mail system.
B)   If no means of communicating an acceptance is specified in an offer, acceptance must be done either in person or through telephone communication.
C)   If no means of communicating an acceptance is specified in an offer, acceptance must be done either through the U.S. mail or through fax transmittal.
D)   If no means of communicating an acceptance is specified in an offer, acceptance must be done either through U.S. mail or through e-mail.
E)   If no means of communicating the acceptance is specified, any reasonable means is generally acceptable.F) B) and C)
G) A) and B)

Question 17

Which of the following provides that a revocation is effective only when received by the offeree?

Accepted Answer

A)   The Acceptance Rule
B)   The Contract Rule
C)   The Reasonable Rule
D)   The Mailbox Rule
E)   The Contract Legality RuleF) A) and B)
G) A) and C)

Question 18

When considering whether an offer has expired, what is presumed to be a reasonable amount of time?

Accepted Answer

A)   Forty-eight hours.
B)   Seven days.
C)   Ten days.
D)   Forty-five days.
E)   There is no set amount of time, and what constitutes a reasonable amount of time varies depending upon the subject matter of the offer.F) B) and D)
G) All of the above

Question 19

Kai offers to sell a rare book to Penny for $1,000. Penny wants to do more research first, but gives Kai $10 to hold the book for her for a week so she can buy it at the end of the week if her research shows the book is worth it. Kai takes Penny's $10 but dies the next day. Penny notifies Kai's widow that she wants to buy the book anyway. Does Penny have the right to buy the book for $1,000?

Accepted Answer

A)   Yes, but only if Kai's surviving family members do not object.
B)   Yes, but only if she sent her acceptance in the mail prior to Kai's death.
C)   Yes, but only if the acceptance was received by Kai prior to his death.
D)   Yes, as long as she acted to buy the book within a week of the original agreement.
E)   No, because Paul's death invalidates their original agreement.F) B) and D)
G) A) and D)

Question 20

Which of the following are ways in which an offer can be terminated:

Accepted Answer

A)   Revocation, rejection, counteroffer, illegality, death, incapacity, and lapse of time.
B)   Revocation, acceptance, counteroffer, illegality, and lapse of time.
C)   Revocation, adhesion, unilateral termination, and bilateral termination.
D)   Rejection, counteroffer, illegality, acceptance, adhesion, lapse of time, and bilateral termination
E)   Unilateral termination, bilateral termination, illegality, incapacity, and acceptance.F) A) and B)
G) D) and E)

Exam 14: Agreement

Which of the following was the result in the case in the text Adone v. Paletto involving the rejection of a purported acceptance of an offer of compromise because it was not made within the time limit of 10 days specified in the offer?

Correct Answer
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E

In order for a court to evaluate whether or not there is a valid contract, what standard does a court use to interpret a contract?

Correct Answer
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Under which of the following situations does an offer immediately terminate?

Correct Answer
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C

If no means of communicating an acceptance is specified in an offer, which of the following is generally true?

Correct Answer
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Correct Answer
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When, generally speaking, is a revocation effective?

Correct Answer
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Duncan and Maria are going to an auction. Duncan notices that the ad simply says "Auction today." This means that an auction is presumed to be ________ if nothing is stated to the contrary in the terms of the auction.

Correct Answer
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Which of the following is the result if the subject matter of an offer becomes illegal?

Correct Answer
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Which of the following is not a required element of a valid offer?

Correct Answer
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Camila, wanting to sell a used business law book, calls Jada and tells her that if she does not hear from her within twenty-four hours, she will assume that Jada wishes to purchase the book for $50. Which of the following is correct regarding the status of the proposed book sale?

Correct Answer
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A

Katrina and Kellen have discussed the sale of a new washer and dryer. Kellen offers to sell the washer and dryer for $1,000. When would the offer expire?

Correct Answer
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What was the result in the Opening Case in which the plaintiff attempted to buy a jet from Pepsi for Pepsi points and some additional funds?

Correct Answer
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If an offer authorizes certain means of acceptance, use of an unauthorized means of acceptance is acceptable but the contract is not formed until the acceptance is received by the offeror.

Correct Answer
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When a counteroffer is made, what happens to the original offer?

Correct Answer
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Gordon asks Nina to paint his room purple for him for $150. Nina says she will try to get to it this week. Nina goes and gets purple paint and paints Gordon's room. Do they have a contract?

Correct Answer
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Which of the following is true regarding acceptable means of acceptance if no means of communicating an acceptance is specified in an offer?

Correct Answer
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Which of the following provides that a revocation is effective only when received by the offeree?

Correct Answer
verified

When considering whether an offer has expired, what is presumed to be a reasonable amount of time?

Correct Answer
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Correct Answer
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Which of the following are ways in which an offer can be terminated:

Correct Answer
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Exam 14: Agreement

Which of the following was the result in the case in the text Adone v. Paletto involving the rejection of a purported acceptance of an offer of compromise because it was not made within the time limit of 10 days specified in the offer?

Correct AnswerverifiedE

In order for a court to evaluate whether or not there is a valid contract, what standard does a court use to interpret a contract?

Correct AnswerverifiedShow Answer

Under which of the following situations does an offer immediately terminate?

Correct AnswerverifiedC

If no means of communicating an acceptance is specified in an offer, which of the following is generally true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When, generally speaking, is a revocation effective?

Correct AnswerverifiedShow Answer

Duncan and Maria are going to an auction. Duncan notices that the ad simply says "Auction today." This means that an auction is presumed to be ________ if nothing is stated to the contrary in the terms of the auction.

Correct AnswerverifiedShow Answer

Which of the following is the result if the subject matter of an offer becomes illegal?

Correct AnswerverifiedShow Answer

Which of the following is not a required element of a valid offer?

Correct AnswerverifiedShow Answer

Camila, wanting to sell a used business law book, calls Jada and tells her that if she does not hear from her within twenty-four hours, she will assume that Jada wishes to purchase the book for $50. Which of the following is correct regarding the status of the proposed book sale?

Correct AnswerverifiedA

Katrina and Kellen have discussed the sale of a new washer and dryer. Kellen offers to sell the washer and dryer for $1,000. When would the offer expire?

Correct AnswerverifiedShow Answer

What was the result in the Opening Case in which the plaintiff attempted to buy a jet from Pepsi for Pepsi points and some additional funds?

Correct AnswerverifiedShow Answer

If an offer authorizes certain means of acceptance, use of an unauthorized means of acceptance is acceptable but the contract is not formed until the acceptance is received by the offeror.

Correct AnswerverifiedShow Answer

When a counteroffer is made, what happens to the original offer?

Correct AnswerverifiedShow Answer

Gordon asks Nina to paint his room purple for him for $150. Nina says she will try to get to it this week. Nina goes and gets purple paint and paints Gordon's room. Do they have a contract?

Correct AnswerverifiedShow Answer

Which of the following is true regarding acceptable means of acceptance if no means of communicating an acceptance is specified in an offer?

Correct AnswerverifiedShow Answer

Which of the following provides that a revocation is effective only when received by the offeree?

Correct AnswerverifiedShow Answer

When considering whether an offer has expired, what is presumed to be a reasonable amount of time?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following are ways in which an offer can be terminated:

Correct AnswerverifiedShow Answer

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E

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C

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A

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