Question 1

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance

Accepted Answer

A)   exactly mirror those of the offer.
B)   change the items offered, but do not change the price.
C)   change the price, but do not change the items offered.
D)   change both the price and the items offered.E) All of the above
F) B) and D)

Question 2

An ad on the NewsNow website asks viewers to "send us your story and we might share it with the world." Ollie submits a manuscript, adding, "I accept your offer." Between NewsNow and Ollie, there is

Accepted Answer

A)   a contract for the publication of Ollie's story.
B)   a contract to consider Ollie's story before any others.
C)   a contract to negotiate for the publication of Ollie's story.
D)   none of the choices.E) A) and B)
F) A) and C)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Rhonda asks Steve, "Do you want to hire me to repair your fishing net?" This is

Accepted Answer

A)   an offer.
B)   not an offer because the terms are not definite.
C)   not an offer because Rhonda did not express an intent.
D)   not an offer because Steve did not respond.E) None of the above
F) B) and C)

Question 5

An offer requires a serious intent to be bound by the terms of the offer.

Accepted Answer

A) True 
 B)False

Question 6

An invitation to submit bids is an offer.

Accepted Answer

A) True 
 B)False

Question 7

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is

Accepted Answer

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

Question 8

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

Accepted Answer

A)   accepted the offer.
B)   made a counteroffer without rejecting the offer.
C)   rejected the offer and made a counteroffer.
D)   rejected the offer without making a counteroffer.E) All of the above
F) B) and C)

Question 9

Idina admires Jules's collection of guitars. She asks, "Will you sell it?" This statement is

Accepted Answer

A)   an offer.
B)   an invitation to negotiate, not an offer.
C)   an advertisement, not an offer.
D)   a request, not an offer.E) B) and C)
F) B) and D)

Question 10

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate.

Accepted Answer

A) True 
 B)False

Question 11

An agreement exists when one party makes an offer to another party.

Accepted Answer

A) True 
 B)False

Question 12

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but nevertheless finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

Accepted Answer

A)   communication.
B)   definite terms.
C)   serious intent.
D)   specific performance.E) C) and D)
F) B) and D)

Question 13

Charter Company offers to provide an air-conditioned bus to Denny's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by

Accepted Answer

A)   e-mail.
B)   phone.
C)   regular mail.
D)   meeting face-to-face.E) None of the above
F) A) and B)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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) None of the above
F) A) and B)

Question 16

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

Accepted Answer

A)   transact business electronically.
B)   submit to the recipient's jurisdiction.
C)   respond to e-mail sent to that address.
D)   nothing.E) All of the above
F) A) and B)

Question 17

Luke puts his motorcycle up for sale via a post on an online auction site. This is

Accepted Answer

A)   an offer.
B)   an invitation to negotiate, not an offer.
C)   a price list, not an offer.
D)   a request, not an offer.E) A) and C)
F) A) and D)

Question 18

The use of a substitute method of acceptance is not effective on dispatch.

Accepted Answer

A) True 
 B)False

Question 19

An offer must be communicated to the offeree to become effective.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 9: Offer and Acceptance

An offer requires a serious intent to be bound by the terms of the offer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance

Correct AnswerverifiedShow Answer

The use of a substitute method of acceptance is not effective on dispatch.

Correct AnswerverifiedShow Answer

Charter Company offers to provide an air-conditioned bus to Denny's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by

Correct AnswerverifiedShow Answer

An offer must be communicated to the offeree to become effective.

Correct AnswerverifiedShow Answer

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rhonda asks Steve, "Do you want to hire me to repair your fishing net?" This is

Correct AnswerverifiedShow Answer

Pastries Inc. sends Rollo its catalogue showcasing a variety of baked goods for certain prices. This is

Correct AnswerverifiedShow Answer

An ad on the NewsNow website asks viewers to "send us your story and we might share it with the world." Ollie submits a manuscript, adding, "I accept your offer." Between NewsNow and Ollie, there is

Correct AnswerverifiedShow Answer

An agreement exists when one party makes an offer to another party.

Correct AnswerverifiedShow Answer

An invitation to submit bids is an offer.

Correct AnswerverifiedShow Answer

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

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

Idina admires Jules's collection of guitars. She asks, "Will you sell it?" This statement is

Correct AnswerverifiedShow Answer

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but nevertheless finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

Correct AnswerverifiedShow Answer

Luke puts his motorcycle up for sale via a post on an online auction site. This is

Correct AnswerverifiedShow Answer

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