Quizzes- Law 1 - Fall 2012

Quiz B - Chapter 11 - Agreement
1.    John says to Kris, “I would like to sell you my sports memorabilia collec­tion.” This is not an offer because it
 
a.    does not describe the subject matter specifically.
b.    does not include a price term.
c.    only expresses an opinion.
d.    only invites Kris to negotiate.
    
2.    Delta Electronics, Inc., makes an offer to the owners of Eagle Computer Corporation to buy the entire company. The power to revoke the offer rests with
 
a.    Delta and Eagle together only.
b.    Delta or Eagle.
c.    Delta, the offeror, only.
d.    Eagle, the offeree, only.
    
3.    National Transport, Inc., offers to sell a truck to Local Delivery Company. Before accepting the offer, Local learns that the truck has been sold to Midstate Trucking Corporation. National is
 
a.    liable to Local for breach of contract.
b.    liable to Midstate for breach of contract.
c.    not liable, because the sale revoked the offer to Local.
d.    not liable, if National offers a substitute truck to Local.
     
4.    Mike offers to sell Nora a warehouse. This offer is irrevocable
 
a.    if Mike does not advertise the offer generally.
b.    if Nora pays to have the offer held open.
c.    if there are no other potential buyers.
d.    under no circumstances.
 
5. Owen announces that he plans to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc., gives Owen a check for the stated amount. Owen
 
a. is bound to sell PSC to Quality Bookkeeping.
b. may refuse to accept the check, because he only expressed an intent to do something in the future.
c. may refuse to accept the check, because he only expressed an opinion as to the worth of the business.
d. may refuse to accept the check, because he only expressed a willingness to discuss a possibility of entering into a contract.
 
6. Donna and Earl sign a lease that includes a clause permitting Donna to extend the lease at an amount of rent to be agreed on at the time of the extension. The clause is
 
a. enforceable, because it is part of a lease.
b. enforceable, if the parties intend the clause to be binding.
c. not enforceable, because it does not include a price term.
d. not enforceable, because it is not in the right form.
 
7. Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, “We accept your offer.” Between Royal and Standard, there is
 
a. a contract for the sale of the building.
b. a contract to consider the offer before any others.
c. a contract to negotiate a sale of the building.
d. no contract.
 
8. Chuck decides to try to sell his vintage cars in an auction “with reserve.” If Chuck changes his mind, he can withdraw his cars
 
a. only before the auction begins.
b. only before the auctioneer announces that the cars are sold.
c. only before the auctioneer delivers the cars to the buyers.
d. up to within thirty days after the auction.
 
9.    Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank’s acceptance is complete
 
a.    as soon as Frank says he will unload the truck.
b.    once Frank starts to unload the truck.
c.    only after Frank unloads the truck.
d.    when Frank hears Eve’s offer.
 
10.    Rita offers to sell an MP3 player to Steve, but receives a letter of accep­tance from Tony. A valid contract exists between
 
 a.    Rita and Steve.
 b.    Rita and Tony.
 c.    Rita, Steve, and Tony.
 d.    none of the above.
    
11.    Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 a.m. Monday. A contract is formed if Shopping Stores’ acceptance is received
 
a.    any time on Monday.
b.    before 10 a.m. Monday.
c.    before 11 a.m. Monday.
d.    within twenty-four hours of 10 a.m. Monday.
 
12.    First Mining Corporation offers to sell Great Foundries, Inc., seven tons of aluminum. Great Foundries sends an acceptance via First Steel’s authorized mode of communication. This acceptance is effective when it is
 
a.    in transit.
b.    received.
c.    sent.
d.    written.
 
13. Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, “We accept your offer.” Between Royal and Standard, there is
 
a. a contract for the sale of the building.
b. a contract to consider the offer before any others.
c. a contract to negotiate a sale of the building.
d. no contract.

14. Chuck decides to try to sell his vintage cars in an auction “with reserve.” If Chuck changes his mind, he can withdraw his cars
 
a. only before the auction begins.
b. only before the auctioneer announces that the cars are sold.
c. only before the auctioneer delivers the cars to the buyers.
d. up to within thirty days after the auction.
 
15. Ed advertises a reward for the return of his lost dog. Flo, who does not know of the reward, finds and returns the dog. Flo cannot recover the reward because she
 
a. did not confer a benefit on Ed by returning the dog.
b. did not know of the reward when she found and returned the dog.
c. does not need the money.
d. returned the dog.
 
16. Quality Vehicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck has been sold to State Trucking, Inc. Quality is
 
a. liable to Regional for breach of contract.
b. liable to State for breach of contract.
c. not liable, because the sale revoked the offer to Regional.
d. not liable, if Quality offers a substitute truck to Regional.
 

17. Tom offers to sell United Produce Company a boxcar load of tomatoes. The offer is sent via Federal Express overnight because an acceptance is required urgently. It would be reasonable for United to accept via

a. a fax, a letter, or a phone call to Tom within two weeks.

b. a fax sent to Tom as soon as the offer is received.

c. a letter mailed to Tom two days later.

d. a phone call to Tom two weeks later.

18. Antonio leased a store from Melanie under a ten﷓year lease with a five﷓year renewal option. The lease required written notice of the intent to renew at least six months before the lease expired. The lease indicated that notice “may be delivered either personally or by depositing the same in United States mail.” Six months and one day before the expiration of the ten-year lease, Antonio sent a fax to Melanie during regular business hours stating his intention to renew the lease for five years. Antonio received an electronic confirmation that the fax had been successfully transmitted. Based on the ruling in  Osprey L.L.C. v. Kelly-Moore Paint Co., under these circumstances, Antonio’s fax

a. was not a valid method of transmitting notice of his intention to renew the lease because personal delivery or U.S. mail delivery was required by the lease.

b. was not a valid method of transmitting notice of his intention to renew the lease because a fax can never provide legally valid notice.

c. was a valid method of transmitting notice of his intention to renew the lease because a fax performs the same function and serves the same purpose as personal delivery or U.S. mail delivery.

d. was a valid method of transmitting notice of his intention to renew the lease because any method of transmission would have been valid under the circumstances.

19. Andy offers to sell Barb ten computers for her office. Barb sends a rejection first, then later changes her mind and sends an acceptance. Whether they have a contract is determined by

a. Barb’s rejection.

b. Barb’s acceptance.

c. whether Barb’s rejection or acceptance is received first.

d. whether Barb’s rejection or acceptance is received last.

20. Alan offers to transfer Beth’s videotapes to CDs for $500. The mailbox rule will not apply if Beth accepts the offer by

a. e-mail.

b. messenger.

c. regular mail.

d. telegram.