Business Law Ch11: Question Preview (ID: 23797)

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If the terms and conditions of a contract cannot be easily understood. a court may create a fake contract called a quasi-contract to determine a correct resolution.
a) true b) false c) d)
An offeror must have a serious intention to become bound by the offer.
a) true b) false c) d)
An invitation to negotiate—“can you afford this?”—is an offer.
a) false b) true c) d)
An expression of opinion—“your customers will like this”—is an of¬fer.
a) false b) true c) d)
An offeree’s power of acceptance is terminated when the offeror dies unless the offer is irrevocable.
a) true b) false c) d)
An acceptance subject to new conditions implicitly rejects the offer.
a) true b) false c) d)
If an offeror does not expressly authorize a certain mode of acceptance, then acceptance may be made by any reasonable means.
a) true b) false c) d)
A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.
a) true b) false c) d)
Under federal law, an electronic signature can be as valid as a signature on pa¬per.
a) true b) false c) d)
The UETA does not apply to a transaction unless the parties agreed to conduct the transaction electronically.
a) true b) false c) d)
Nate tells Opal, “I might sell the skis that I bought last fall since I haven’t used them and the skiing season is almost over.” This is
a) a statement of future intent b) an offer c) an invitation to accept an offer d) an acceptance of an offer
Yvon asks Zack, “Do you want to buy one of my fishing rods?” This is
a) not a valid offer because the terms are not definite b) a valid offer c) not a valid offer because Yvon did not state an intent d) not a valid offer because Zack did not respond
Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re-ward because he
a) did not know of the reward when he found and returned the dog b) did not confer a benefit on Elmo by returning the dog c) does not need the money d) returned the dog
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
a) terminated b) valid for a reasonable time to give Java a second chance c) valid for the period of time prescribed by a state statute d) valid until ICBI revokes the offer
Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, “The price is too high. I will buy it for $90,000.” Dina has
a) rejected the offer and made a counteroffer b) accepted the offer c) made a counteroffer without rejecting the offer d) rejected the offer without making a counteroffer
Quik Fix-IT, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate
a) after a reasonable period of time b) after a typical work week (five business days) c) after a usual month (thirty calendar days) d) never
Alan offers to transfer Beth’s DVDs to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Beth accepts the offer by
a) e-mail b) messenger c) regular mail d) telegram
Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re¬quired urgently. It would be most reasonable for Unified to accept via
a) a fax send to TF as soon as the offer is received b) a fax, a letter, or a phone call to TF within two weeks c) a letter mailed to TF within two days d) a phone call to TF within five business days
Flem, a user of’s Web site, can download gaming software for free if he first clicks on “I accept” after viewing certain terms. This is
a) a contract that includes the terms b) a contract that does not include the terms c) not a contract but the terms are enforceable d) unenforceable
Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to make and sell copies of the song. This provision is
a) a click-on agreement b) a browse-wrap term c) a shrink-wrap agreement d) a choice-of-law clause
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