Royal hotel inc orally orders 100 standard sets of sheets

Question

Question 1. Royal Hotel Inc. verbally orders 100 sets of sheets and pillowcases, each to be embroidered with the chain's coronet logo, for $1,000, from Textile Inc. Textile starts on the order and has completed 45 sets when Royal calls back and cancels the order. Which of the following is true?

• There is no contract; Textile never accepted the offer.
• The contract is unenforceable; it falls within the UCC Statute of Frauds.
• The contract is fully enforceable; this is the part performance exception to the Statute of Frauds.
• The contract is fully enforceable; this is the specially manufactured goods exception to the Statute of Frauds.

Question 2. Delta Inc. offers to sell Omega Corp. a packaging machine. Omega responds "We'll take it but only if there is a six-month warranty." Which of the following is true?

• There is a contract, and Omega has a six-month warranty.
• There is a contract, but Omega does not have a six-month warranty.
• There is a contract unless the warranty term is a material change.
• There is no contract.

Question 3. Unlike the common law, the UCC provides that a firm's offer cannot be revoked if it

• is made by a merchant.
• is in a signed document.
• gives assurance it will be held open.
• All of these

Question 4. Under the UCC, a court is most likely to find a contract is unconscionable and should be voided if

• the terms are grossly unfair.
• the parties do not have equal bargaining power.
• the parties are both merchants.
• Two of these
• All of these

Question 5. Merlin posts his car for sale. Breanna calls and leaves a voicemail, saying, "Hey, I definitely want to buy your car! I'll pick it up tomorrow, okay?" Which of the following best describes the situation?

• There is a contract, because Breanna has accepted the offer.
• There is no contract, because Breanna did not use a proper form of acceptance.
• There is no contract, because Breanna made a counteroffer.
• There is no contract, because Merlin never made an offer.

Question 6. Ashley sees a maintenance crew from Acme Co. beginning to resurface her driveway, a service she has not contracted for. Ashley thinks a new driveway would be good, so she doesn't say anything. If Acme sues Ashley for the value of the resurfacing,

• Ashley wins; she did not have a contract with Acme.
• Acme wins: there was an implied unilateral contract.
• Acme wins: Ashley unjustly accepted a benefit she could have rejected.
• Ashley wins; there is no quasi contract because she was not obligated to send Acme away.

Question 7. If an offeree attempts to add different terms in an acceptance, which conflict with what the offeror stated

• the terms cancel each other out.
• the offeror's terms govern the contract.
• the offeree's terms govern the contract.
• the offeree's terms govern the contract unless the offeror objects.

Question 8. Royal Hotel Inc. orally orders 100 standard sets of sheets from Textile Inc. for a price of $500. Textile immediately sends back a written invoice with the details of the conversation. Royal and Textile

• have an enforceable contract unless Royal objects within 10 days.
• have an enforceable contract unless Textile objects within a reasonable time.
• do not have an enforceable contract because it was an oral agreement.
• do not have an enforceable contract because Royal never signed the invoice.

Question 9. Seller agrees to supply all the gasoline Buyer needs for the next year at $3.00 per gallon. After three months, the price of gas falls to $2.33 per gallon. Buyer refuses to keep buying from Seller unless Seller lowers the price. Seller agrees. Two months later, the average price for gas goes up to $3.50 per gallon. Seller asks Buyer to agree to a price raise, but Buyer refuses. Which of the following is true?

• Buyer must pay $3.00 per gallon for the rest of the year.
• Buyer must pay $2.33 per gallon for the rest of the year.
• Buyer must pay $3.50 per gallon for the rest of the year.
• Seller can legally refuse to supply Buyer with any more gasoline for the rest of the year.

Question 10. Alpha orders 100 Grade A widgets from Beta. Beta does not have any Grade A widgets in stock, so it ships Alpha 100 Grade B widgets instead. Which of the following is true?

• Beta has made a counteroffer.
• Beta has accepted Alpha's offer.
• Beta has breached.
• Two of these