Question 1

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

Accepted Answer

A)  communication.
B)  definite terms.
C)  serious intent.
D)  practicality.E) B) and C)
F) None of the above

Question 2

Fresh Agro Inc. offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

Accepted Answer

A)  market assumptions.
B)  all of the choices.
C)  subjective, unexpressed intentions.
D)  words and actions.E) A) and B)
F) A) and C) D

Question 3

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) A) and C)
F) A) and B)

Question 4

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

Accepted Answer

A)  the deal is binding except for the promise to hold the offer open.
B)  a reasonable period of time is implied.
C)  the offer must be held open for an indefinite period.
D)  the deal is done.E) B) and D)
F) A) and B)

Question 5

Lon says to Misty, "I would like to sell you my sofa." This statement is

Accepted Answer

A)  an offer.
B)  an invitation to negotiate, not an offer.
C)  an ad, not an offer.
D)  a request, not an offer.E) All of the above
F) B) and C)

Question 6

An offer must express reasonably definite terms to be effective-no term may be reasonably inferred.

Accepted Answer

A) True 
 B)False  False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Rena asks Sully, "Do you want to pay me to repair your forklift?" This is

Accepted Answer

A)  an offer.
B)  not an offer, because the terms are not definite.
C)  not an offer, because Rena did not express an intent.
D)  not an offer, because Sully did not respond.E) A) and B)
F) A) and C)

Question 10

Merely inquiring about an offer constitutes rejection.

Accepted Answer

A) True 
 B)False

Question 11

On December 1, Petroleum Inc. sent Quito & Rosa (Q&R)a letter, via overnight delivery, offering to employ Q&R to review Petroleum's tax situation for the current year for $10,000. In the letter, the company stated that Q&R had ten days to accept. On December 5, Q&R sent an e-mail message that stated, "The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day, Smith & Taylor, a Q&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, Q&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why Q&R and Petroleum do, or do not, have a contract.

Accepted Answer

Q&R and Petroleum have a contract. Q&R e...

Question 12

One element necessary for an effective offer is the offeror's good faith belief in its reasonableness.

Accepted Answer

A) True 
 B)False

Question 13

Acceptance of an offer by a method not authorized by the offeror renders the offer invalid.

Accepted Answer

A) True 
 B)False

Question 14

For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least

Accepted Answer

A)  accurately precise.
B)  reasonably definite.
C)  unequivocally approximate.
D)  vaguely uncertain.E) B) and C)
F) A) and D)

Question 15

An expression of opinion can indicate an intent to enter into a binding agreement.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  a post on the website.
B)  any of the choices.
C)  payment of the reward.
D)  apprehension of the criminal.E) None of the above
F) A) and D)

Question 17

An offer must be expressed in plain language to be effective.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False  True

Question 19

Bo admires Cid's collection of coins. Bo asks, "Will you sell it?" This statement is

Accepted Answer

A)  an offer.
B)  not an offer, because it is an invitation to negotiate.
C)  not an offer, because it is an expression of intent.
D)  not an offer, because it is a request.E) A) and B)
F) None of the above

Question 20

Vida, a user of phone-app.com's website, can download apps for free by first clicking on "I accept" after viewing certain terms. This is

Accepted Answer

A)  a contract that does not include the terms.
B)  a contract that includes the terms.
C)  not a contract but the terms are enforceable.
D)  unenforceable.E) All of the above
F) A) and B)

Exam 12: Agreement

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

Correct Answer
verified

Fresh Agro Inc. offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

Correct Answer
verified
D

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 Answer
verified

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

Correct Answer
verified

Lon says to Misty, "I would like to sell you my sofa." This statement is

Correct Answer
verified

An offer must express reasonably definite terms to be effective-no term may be reasonably inferred.

Correct Answer
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False

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

Correct Answer
verified

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

Correct Answer
verified

Rena asks Sully, "Do you want to pay me to repair your forklift?" This is

Correct Answer
verified

Merely inquiring about an offer constitutes rejection.

Correct Answer
verified

Correct Answer
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Q&R and Petroleum have a contract. Q&R e...
View Answer

One element necessary for an effective offer is the offeror's good faith belief in its reasonableness.

Correct Answer
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Acceptance of an offer by a method not authorized by the offeror renders the offer invalid.

Correct Answer
verified

For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least

Correct Answer
verified

An expression of opinion can indicate an intent to enter into a binding agreement.

Correct Answer
verified

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

Correct Answer
verified

An offer must be expressed in plain language to be effective.

Correct Answer
verified

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

Correct Answer
verified
True

Bo admires Cid's collection of coins. Bo asks, "Will you sell it?" This statement is

Correct Answer
verified

Vida, a user of phone-app.com's website, can download apps for free by first clicking on "I accept" after viewing certain terms. This is

Correct Answer
verified

Exam 12: Agreement

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

Correct AnswerverifiedShow Answer

Fresh Agro Inc. offers to deliver produce to Growers' Market for a certain price. Fresh's intent to extend an offer is determined by reference to Fresh's

Correct AnswerverifiedD

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

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

Correct AnswerverifiedShow Answer

Lon says to Misty, "I would like to sell you my sofa." This statement is

Correct AnswerverifiedShow Answer

An offer must express reasonably definite terms to be effective-no term may be reasonably inferred.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rena asks Sully, "Do you want to pay me to repair your forklift?" This is

Correct AnswerverifiedShow Answer

Merely inquiring about an offer constitutes rejection.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedQ&R and Petroleum have a contract. Q&R e...View AnswerShow Answer

One element necessary for an effective offer is the offeror's good faith belief in its reasonableness.

Correct AnswerverifiedShow Answer

Acceptance of an offer by a method not authorized by the offeror renders the offer invalid.

Correct AnswerverifiedShow Answer

For a court to determine if a contract has been breached and to give an appropriate remedy, the offer must include terms that are at least

Correct AnswerverifiedShow Answer

An expression of opinion can indicate an intent to enter into a binding agreement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An offer must be expressed in plain language to be effective.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

Bo admires Cid's collection of coins. Bo asks, "Will you sell it?" This statement is

Correct AnswerverifiedShow Answer

Vida, a user of phone-app.com's website, can download apps for free by first clicking on "I accept" after viewing certain terms. This is

Correct AnswerverifiedShow Answer

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D

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False

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Correct Answer
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Correct Answer
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Q&R and Petroleum have a contract. Q&R e...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

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