Question 1

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

Accepted Answer

A)   a partnering agreement.
B)   a click-on agreement.
C)   a shrink-wrap agreement.
D)   a browse-wrap term.E) A) and D)
F) A) and C) B

Question 2

On May 1 Ralph offers to cure and smoke Sam's pork, and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives and reads the letter on May 5 and responds to Ralph on May 6. Ralph's revocation of the offer became effective on

Accepted Answer

A)   May 3.
B)   May 5.
C)   May 6.
D)   no date because the offer is irrevocable.E) C) and D)
F) A) and C)

Question 3

To control specific offers for goods or services and thus the resulting contracts, important terms to provide online include

Accepted Answer

A)   a provision relating to the resolution of any dispute.
B)   a detailed history of the particular business.
C)   positive reviews from customers or clients.
D)   an updated list of the goods or services.E) A) and B)
F) B) and C)

Question 4

An offer can be accepted by the offeree or any third party.

Accepted Answer

A) True 
 B)False

Question 5

Acceptance is timely if it is effective before the offer is terminated.

Accepted Answer

A) True 
 B)False  True

Question 6

Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

Accepted Answer

A)   still open.
B)   terminated.
C)   rejected and subject to a counteroffer.
D)   revoked.E) All of the above
F) B) and D)

Question 7

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is

Accepted Answer

A)   an offer.
B)   an invitation to submit offers, not an offer itself.
C)   a catalogue, not an offer.
D)   a circular, not an offer.E) A) and B)
F) None of the above

Question 8

Ian goes to Jona for a portrait. Jona says that the work will be "perfect." When the portrait is finished, however, Ian thinks that it is "poor." With respect to breach of contract, Jona is

Accepted Answer

A)   liable.
B)   not liable, because a portrait is not a serious subject for a contract.
C)   not liable, because "perfect" is an opinion.
D)   not liable, because Ian went to Jona, not vice versa.E) B) and C)
F) B) and D)

Question 9

Acceptance may consist of words or conduct.

Accepted Answer

A) True 
 B)False

Question 10

An offer must contain definite terms to be valid.

Accepted Answer

A) True 
 B)False

Question 11

An exchange of e-mails cannot create a complete and unambiguous binding agreement.

Accepted Answer

A) True 
 B)False

Question 12

Two disinterested parties are required for an offer to be effective.

Accepted Answer

A) True 
 B)False

Question 13

Courts normally have not enforced the terms of click-on agreements.

Accepted Answer

A) True 
 B)False

Question 14

Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber accepts. Most likely, Kelly's death

Accepted Answer

A)   does not affect the offer.
B)   shortens the time of the offer but does not terminate it.
C)   extends the time of the offer.
D)   terminates the offer.E) A) and D)
F) B) and D)

Question 15

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

Accepted Answer

A)   terminated.
B)   valid for a reasonable time.
C)   valid for the period of time prescribed by a state statute.
D)   valid until Coffee Beans revokes the offer.E) None of the above
F) A) and C)

Question 16

An offer terminates automatically when the period of time specified in the offer has passed.

Accepted Answer

A) True 
 B)False

Question 17

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

Accepted Answer

A) True 
 B)False

Question 18

An invitation to submit bids is an offer.

Accepted Answer

A) True 
 B)False

Question 19

The offeree must accept the offer without adding or changing any terms.

Accepted Answer

A) True 
 B)False

Question 20

An offer made in undue excitement is an effective offer.

Accepted Answer

A) True 
 B)False  False

Exam 11: Agreement

Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must agree to a provision stating that she will not make and sell copies of the music. This provision is

Correct AnswerverifiedB

On May 1 Ralph offers to cure and smoke Sam's pork, and promises to keep the offer open until June 1. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives and reads the letter on May 5 and responds to Ralph on May 6. Ralph's revocation of the offer became effective on

Correct AnswerverifiedShow Answer

To control specific offers for goods or services and thus the resulting contracts, important terms to provide online include

Correct AnswerverifiedShow Answer

An offer can be accepted by the offeree or any third party.

Correct AnswerverifiedShow Answer

Acceptance is timely if it is effective before the offer is terminated.

Correct AnswerverifiedTrue

Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is

Correct AnswerverifiedShow Answer

The U.S. Department of Justice needs to have construction work done on a federal courthouse. The agency asks contractors to submit bids. This is

Correct AnswerverifiedShow Answer

Ian goes to Jona for a portrait. Jona says that the work will be "perfect." When the portrait is finished, however, Ian thinks that it is "poor." With respect to breach of contract, Jona is

Correct AnswerverifiedShow Answer

Acceptance may consist of words or conduct.

Correct AnswerverifiedShow Answer

An offer must contain definite terms to be valid.

Correct AnswerverifiedShow Answer

An exchange of e-mails cannot create a complete and unambiguous binding agreement.

Correct AnswerverifiedShow Answer

Two disinterested parties are required for an offer to be effective.

Correct AnswerverifiedShow Answer

Courts normally have not enforced the terms of click-on agreements.

Correct AnswerverifiedShow Answer

Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber accepts. Most likely, Kelly's death

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An offer terminates automatically when the period of time specified in the offer has passed.

Correct AnswerverifiedShow Answer

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

Correct AnswerverifiedShow Answer

An invitation to submit bids is an offer.

Correct AnswerverifiedShow Answer

The offeree must accept the offer without adding or changing any terms.

Correct AnswerverifiedShow Answer

An offer made in undue excitement is an effective offer.

Correct AnswerverifiedFalse

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True

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