GOVT 404 Quiz Mutual Assent

GOVT 404 Quiz Mutual Assent to Contract

1. The Electronics Barn publishes an advertisement in the local newspaper. This week’s advertisement includes an advertisement for a television for just $115. The television advertised is actually worth $1,150, and the price in the advertisement was the result of an employee who “thought it would be funny” to run the advertisement “as a joke.”
2. An auction for the sale of goods, without reserve, constitutes what?
3. Xavier is considering hiring Zoe to repair the cracked, leaking foundation of Xavier’s commercial warehouse property. During a meeting, the two agree on the timing, price, and scope of work that would be performed, but they agree that “We won’t have a binding deal until we have put this agreement in writing and we have both signed it.” Xavier asks his lawyer to draft the agreement. However, the lawyer is busy, and does not produce a writing promptly. Under time pressure to get the work started, Xavier tells Zoe to go ahead and start the excavation work, and he assures her that he’ll pay her for the work. Zoe starts working on the excavation.
4. True or False: When applying the “Battle of the Forms” provision of the Uniform Commercial Code, it is never important whether the parties are merchants as defined under the Uniform Commercial Code, since the Uniform Commercial Code applies to all contracts for the sale of goods, even contracts not involving merchants.
5. Which of the following is the best definition of an option?
6. Alexis and Rollie enter into an option contract. The option allows Alexis until Friday, February 17, at 5:00 p.m. to respond to Rollie’s offer to sell Alexis 500 shares of his stock in Rollie Corporation for $35,000. Alexis meets with family members to discuss the investment opportunity. After getting wise counsel on whether she should buy the stock at that price, she decided to exercise her option and buy the stock. On February 16, she writes a letter to Rollie, indicating her willingness to pay $35,000 for the stock, and encloses a check in the amount of $35,000. She puts the letter and check in a properly addressed, postage-paid, envelope, and places the envelope in the mail on Thursday, February 16. Rollie receives the envelope on Saturday, February 18. Choose the best answer.
7. On February 11, Lawrence sends a letter via first-class mail to Protein Source, Inc., offering to buy 225 bags of animal feed from Protein Source, Inc., at a total price of $1,000. Protein Source, Inc., responds by mailing a letter, via first-class mail, on February 12, indicating that Protein Source, Inc., is not interested in selling animal feed at the price offered by Lawrence. The letter is received by Lawrence on February 14.
8. Danielle is the office manager for an insurance brokerage. The company’s parking lot needs to be sealed and repainted. She calls Jasper, who owns an asphalt sealing and painting company, and says, “Hi, can you tell me what you usually charge to seal and paint parking lots?” Jasper responds with the amount, per square foot, that his company charges for painting and sealing. Does Jasper’s response constitute an offer?
9. Which of the following is not a necessary element for a rm offer under the Uniform Commercial Code?
10. Driveaway is a used-car dealership. It publishes an offer in the local newspaper that promises that Driveaway will sell a 2013 pickup truck, valued at $28,000, for $20,000, to the “first customer who walks through our door on Monday morning with $20,000 in cash!” The ad runs in the Friday edition of the newspaper. If Driveaway wants to revoke its offer, what should it do?
11. Three identical, adjacent, undeveloped residential real estate parcels are for sale in a new housing development. Lots 1 and 2 are owned by Pender. Lot 3 is owned by Cathleen. Pender and Cathleen are at a community event together. Brice is a real estate investor who happens to meet Pender and Cathleen at the event. He offers to purchase Lot 3 from Cathleen, who says his offer is too low for her to consider. Pender, however, tells Brice that he accepts Brice’s offer.
12. True or false: A contract must identify the terms of the agreement with enough detail so that a court will have a reasonable basis for determining if a breach of contract has occurred and, if it has, what remedy is appropriate.
13. If an offeror and offeree enter into a valid option contract, the offeree will retain the power of acceptance during the option period, unless:
14. Randy makes an offer to Ellen that requires acceptance by performance. When is Ellen’s acceptance effective?
15. Elise, a human resources manager for a company, interviews Gretchen, a prospective employee, on Monday. The evening after the interview, Elise calls Gretchen and offers her a position with the company, describing the position, salary, and benefits. During the telephone conversation, Gretchen asks Elise where her office would be located in the company’s office suite, if she decided to accept the offer. Elise tells Gretchen that she is no longer interested in hiring Gretchen, and hangs up. Choose the best answer:
16. On Monday, Rex makes an offer to Dante by email. The email says the offer will expire Friday at 5:00 p.m. Choose the best answer:
17. Rudolph and Bonita meet to discuss a contract for Rudolph to design a new living room in Bonita’s home. Rudolph looks at the house, sketches out some ideas, and says he will provide her with detailed design plans if Bonita will pay him $3,500 once the plans are complete. Bonita, intending to make a contract, shakes Rudolph’s hand and indicates that she “can’t wait” to see his designs. Choose the best answer:
18. Zolton is a human resources manager at a medical device manufacturing company. He interviews Trenton for a position as a salesperson. He offers to hire Trenton for a 6-month contract term that will pay him a base salary plus a bonus in the amount of 1.5% of Trenton’s total monthly sales, payable at the end of each three- month period that Trenton is employed. Trenton responds by saying, “I’d just need those bonuses to be paid monthly, instead of every three months—but otherwise that sounds good to me.”
19. Manufacturer offers to pay Consultant a single payment in exchange for manufacturing-process consulting services. Manufacturer and Consultant negotiate back and forth over the course of a week, without either party accepting the other’s final offer. When the offeree responds to the offeror’s last offer by beginning performance, what rule dictates what the terms of the contract are?
20. Renata writes an offer to sell real estate to Max. She puts the offer in an envelope and mails it to Max’s office. Max opens the envelope, reads the letter, and decides that he will accept the offer. He then exclaims, there, alone in his office: “I’m going to buy Renata’s property! Yes!” Next, he writes out a note on Renata’s letter, as follows: “I accept.” He then signs his name below his note. Last, Max puts the letter in an envelope and mails it back to Renata, who receives it two days later. When was Max’s acceptance effective?
21. Which of the following events does not terminate an offeree’s power of acceptance?
22. A retailer of home-cleaning products instructs its salespeople to make sales of its product by visiting residences of prospective customers during the day. One salesperson visits a prospective purchaser’s residence, finds nobody answering the door, and leaves a box of assorted cleaning products at the door together with a note that says: “Please make payment in the amount of $350 within 10 days. If you do not return the products within 24 hours you will be deemed to have agreed to purchase them.” If 24 hours expire and the customer has not returned the box of cleaning products, does the customer’s silence alone constitute acceptance of the offer to purchase the cleaning products? Explain your answer.