BUSAD 120 - Business Law » Fall 2022 » Chapter 12 Quiz

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Question #1
Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic’s authorized mode of communication, it will be effective when it is
A.   sent.
B.   received.
C.   in transit.
D.   written.
Question #2
Shipping Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. Between Shipping and its customers, the UETA applies if the parties agree to conduct transactions by
A.   any of the choices.
B.   verbal communication.
C.   electronic means.
D.   paper documents.
Question #3
Pye tries to start his car with no success. He yells that he will sell the car to anyone for $10. Qua, a passerby, hears Pye’s yell. This is not an effective offer because it lacks
A.   practicality.
B.   communication.
C.   serious intent.
D.   definite terms.
Question #4
In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.
A.   True
B.   False
Question #5
Hometown Bank posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by
A.   a post on the website.
B.   payment of the reward.
C.   apprehension of the criminal.
D.   any of the choices.
Question #6
An agreement to agree to the material terms of a contract at some future date may be enforceable.
A.   True
B.   False
Question #7
A click-on agreement can indicate the acceptance of an online offer.
A.   False
B.   True
Question #8
Bo admires Cid’s collection of coins. Bo asks, “Will you sell it?” This statement is
A.   an offer.
B.   not an offer, because it is an invitation to negotiate.
C.   not an offer, because it is a request.
D.   not an offer, because it is an expression of intent.
Question #9
A request to negotiate is an offer.
A.   True
B.   False
Question #10
Acceptance may consist of words or conduct.
A.   True
B.   False
Question #11
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 done.
B.   the offer must be held open for an indefinite period.
C.   the deal is binding except for the promise to hold the offer open.
D.   a reasonable period of time is implied.
Question #12
An offer must express reasonably definite terms to be effective—no term may be reasonably inferred.
A.   True
B.   False
Question #13
To control specific offers for goods or services and thus the resulting contracts, important terms to provide online include
A.   an updated list of the goods or services.
B.   a detailed history of the particular business.
C.   a provision relating to the resolution of any dispute.
D.   positive reviews from customers or clients.
Question #14
An expression of opinion can indicate an intent to enter into a binding agreement.
A.   True
B.   False
Question #15
Rejection of an offer is effective only when it is actually received.
A.   False
B.   True
Question #16
A preliminary agreement can constitute a binding contract if the parties have agreed on all essential terms.
A.   False
B.   True
Question #17
Acceptance is timely if it is effective before the offer is terminated.
A.   False
B.   True
Question #18
An ad for the New Plays Festival asks playwrights to submit their work and “we might produce it for the world.” Oded submits a play with a note that states, “I accept.” Between the Festival and Oded, there is
A.   none of the choices.
B.   a contract to produce Oded’s play.
C.   a contract to consider producing Oded’s play.
D.   a contract to negotiate with Oded to produce the play.
Question #19
Lon says to Misty, “I would like to sell you my sofa.” This statement is
A.   an offer.
B.   a request, not an offer.
C.   an invitation to negotiate, not an offer.
D.   an ad, not an offer.
Question #20
Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to
A.   respond to e-mail sent to that address.
B.   transact business electronically.
C.   submit to the recipient’s jurisdiction.
D.   nothing.
Question #21
The offeree must accept the offer without adding or changing any terms.
A.   True
B.   False
Question #22
Simone offers Tom a dozen guitar lessons for a certain price per lesson but conditions the deal on Tom accepting the offer by April 1. Simone may revoke the offer
A.   only after Tom accepts it.
B.   only after April 1.
C.   before Tom accepts it.
D.   before April 1, whether or not Tom has accepted it.
Question #23
Coffee Beans Inc. offers to buy Brewing Company’s roasting services for a certain price. Brewing responds that the price is too low and thereby rejects the offer. The offer is
A.   valid for the period of time prescribed by a state statute.
B.   terminated.
C.   valid for a reasonable time.
D.   valid until Coffee Beans revokes the offer.
Question #24
An offer terminates automatically when the period of time specified in the offer has passed.
A.   True
B.   False
Question #25
For a contact to be considered valid and enforceable, the parties to a deal must
A.   necessarily have it in writing.
B.   subjectively intend to agree to the terms.
C.   know with certainty what kinds of promises will be enforced.
D.   manifest their voluntary consent to the same bargain.

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