Business 005 - Business Law I » Winter 2021 » Chapter 12 Homework

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Question #1
An acceptance is sufficient to evidence an agreement.
A.   FALSE
B.   TRUE
Question #2
An expression of opinion--"your customers will like this"--is an offer.
A.   FALSE
B.   TRUE
Question #3
Rejection of an offer terminates it.
A.   TRUE
B.   FALSE
Question #4
The death of a party to a contract will always result in the automatic termination of that contract.
A.   FALSE
B.   TRUE
Question #5
A valid offer requires reasonably certain terms.
A.   FALSE
B.   TRUE
Question #6
An invitation to negotiate--"can you afford this?"--is an offer.
A.   FALSE
B.   TRUE
Question #7
An advertisement--"this property for sale"--is an offer.
A.   FALSE
B.   TRUE
Question #8
A contract lacking a quantity term may not be enforceable.
A.   TRUE
B.   FALSE
Question #9
The communication of an offer must be by mail or in person.
A.   FALSE
B.   TRUE
Question #10
If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time.
A.   TRUE
B.   FALSE
Question #11
In a bilateral contract, communication of acceptance is necessary.
A.   TRUE
B.   FALSE
Question #12
A valid offer requires a reasonable price related to market value.
A.   FALSE
B.   TRUE
Question #13
No offer can be accepted by silence.
A.   FALSE
B.   TRUE
Question #14
Dona and Eden sign a lease that includes a clause permitting Dona to extend the lease at an amount of rent to be agreed on at the time of the extension. The clause is
A.   enforceable, because it is part of a lease.
B.   not enforceable, because it does not include a price term.
C.   not enforceable, because it is not in the right form.
D.   enforceable, if the parties intend the clause to be binding.
Question #15
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.   an invitation to accept an offer.
B.   an offer.
C.   a statement of future intent.
D.   an acceptance of an offer.
Question #16
Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is
A.   a contract for the sale of the building.
B.   no contract.
C.   a contract to consider the offer before any others.
D.   a contract to negotiate a sale of the building.
Question #17
Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is
A.   not a valid offer because Yvon did not state an intent.
B.   not a valid offer because Zack did not respond.
C.   not a valid offer because the terms are not definite.
D.   a valid offer.
Question #18
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 reward because he
A.   returned the dog.
B.   did not know of the reward when he found and returned the dog.
C.   does not need the money.
D.   did not confer a benefit on Elmo by returning the dog.
Question #19
State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is
A.   sent.
B.   received.
C.   written.
D.   in transit.
Question #20
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
A.   valid until ICBI revokes the offer.
B.   valid for the period of time prescribed by a state statute.
C.   valid for a reasonable time to give Java a "second chance."
D.   terminated.
Question #21
Optimal Sales Corporation plans to move to a new office. Optimal offers to sell its office furniture to Plentiful Marketing, Inc., but does not specify a time for Plentiful to respond. The offer expires
A.   never.
B.   after thirty days.
C.   after a reasonable period of time.
D.   after thirty minutes.
Question #22
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.   made a counteroffer without rejecting the offer.
C.   rejected the offer without making a counteroffer.
D.   accepted the offer.
Question #23
May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is
A.   a valid acceptance because May is seriously frustrated.
B.   not a valid acceptance because May does not seriously intend to sell.
C.   not a valid acceptance because Nick is a car dealer.
D.   a valid acceptance because Nick is a car dealer.
Question #24
Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City'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.   unequivocally approximate.
B.   vague or uncertain.
C.   reasonably definite.
D.   exactly precise.
Question #25
First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank have
A.   no contract for a loan.
B.   have a contract for a loan at 12 percent interest.
C.   have a contract for a loan at 0 percent interest.
D.   have a contract for a loan at 15 percent interest.

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