1. The means used by an offeror to communicate the offer:
A) always follows the offeror's particular trade usage in communication, as it impliedly authorizes a given means of acceptance
B) is the only authorized means of communication for accepting
C) is the impliedly authorized means for accepting regardless of circumstances
D) is the impliedly authorized means for accepting unless the circumstances do not indicate otherwise
2. When an offeree uses a nonauthorized means of acceptance, the acceptance is:
A) effective upon dispatch
B) illegal
C) not effective upon receipt by the offeror.
D) not effective until it is received by the offeror
3. In general, if the offeree uses a means of acceptance that is slower than that used by the offeror to communicate that offer:
A) the acceptance is not effective even upon receipt
B) it is an authorized means of communication
C) the acceptance is effective when dispatched
D) it is an unauthorized means of communication
4. If one or both parties to a form contract are nonmerchants, the additional terms proposed by one of the parties are treated as:
A) revocation
B) void
C) proposals for addition to the contract
D) expressly conditional
5. On April 1, 2008, Joe received a telegram from Adam offering to build Joe a resort cottage for $100,000. On April 5, 2008, at 10:00 AM, Adam sends Joe a telegram attempting to revoke the offer. At 11:00 AM on the same day, Joe sends Adam an e-mail attempting to accept the offer. At 11:30 AM, Joe receives Adam's revocation. Assume Adam's offer was silent on the question of what means Joe could use to accept. Which of the following is true when the offeror impliedly authorizes acceptance by any reasonable means?
A) the parties may have a contract if the court concludes that mail was a reasonable way for Joe to accept Adam's offer
B) the parties would not have a contract because Joe did not use the means impliedly authorized by trade usage
C) the parties would not have a contract because the impliedly authorized means of communication was a telegram
D) the parties may have a contract if Adam reads the acceptance e-mail before the revocation reaches Joe
6. To create acceptance to an offer for a bilateral contract:
A) acceptance must always be properly communicated to the offeror
B) the offeree must perform the act requested by the offeror
C) silence will never constitute acceptance of an offer
D) an offeror is allowed to word his or her offer so that the offeree will be bound to the contract
7. If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms:
A) the parties have created a contingent contract
B) the parties have created a bilateral contract
C) the parties have created a unilateral contract
D) the parties have created a multilateral contract
8. Under the UCC, an order requesting "prompt" shipment of goods:
A) invites acceptance by either a prompt promise to ship or by prompt shipment of the goods
B) impliedly invites acceptance only by a prompt promise to ship
C) requires acceptance via writing within a "reasonable" time frame
D) impliedly invites acceptance only by a prompt shipment of goods
9. Jane tells Mark, she would pay him $50 if Mark finds her lost bag. This is an example of a:
A) unilateral contract
B) multilateral contract
C) bilateral contract
D) contingent contract
10. According to the UCC's rule, when forms are not exchanged:
A) though the acceptance varies from the offer, it cannot be considered as a rejection
B) differing terms must be included as a part of the contract
C) acceptance can have terms additional to the offer
D) acceptance cannot materially vary from the offer
11. Browse-wrap agreements are:
A) in paper form
B) viewed by all courts as enforceable
C) per se illegal
D) viewed by some courts as unenforceable
12. Which of the following under the UCC is true about the way to communicate acceptance?
A) any means deemed reasonable by the court in light of the circumstances is an authorized way of acceptance
B) a means slower and safer than the way the offer was communicated is an authorized way of acceptance
C) dispatches that comply with only the stipulated requirements for acceptance is an authorized way of acceptance
D) any form of acceptance that is not implied by trade usage is an authorized way of acceptance
13. An acceptance is effective as soon as it is dispatched:
A) if the offeree uses an authorized or a stipulated means of communication
B) if the offeree uses any reasonable means of communication
C) if the offeree uses only an authorized means of communication
D) if the offeree uses only a stipulated means of communication
14. A stipulation:
A) is a condition made by the offeror about the manner in which the offer must be accepted
B) is a contingency clause built into a unilateral contract
C) needs a timely expression of acceptance
D) requires acceptance in writing, else the attempt to accept becomes ineffective
15. Under the UCC, if the parties are both merchants, additional terms in the offeree's form may be included in the agreement unless:
A) the offer expressly limited acceptance to its own terms
B) the offeror gives notice of objection to the new terms without considering time limit
C) the offeree clearly makes a counteroffer by expressly rejecting the offer
D) the new terms materially abide the offer
16. On June 1, Fred sends Wilma an e-mail offering to build her a new garage for $20,000. In his e-mail, Fred wrote, "acceptance by certified mail is advisable." On June 2 at 8 am, Fred sends Wilma a certified letter attempting to revoke the offer. At 2 pm the same day, Wilma mails Fred a letter via certified mail attempting to accept his offer. Under these circumstances:
A) Wilma's acceptance is effective upon dispatch
B) the parties do not have a contract until Fred receives Wilma's acceptance
C) Fred's revocation is effective and the parties do not have a contract
D) the parties do not have a contract as the trade usage is telegrams and not certified mail
17. The offeree may accept an offer within a reasonable time by any reasonable means of communication:
A) if the offer merely suggests a method or place of communication or is silent on these points
B) if the offeror suggests a method or a place of communication in the offer
C) if the written offer is lost in transit
D) if the parties are dealing by telephone
18. Under both the UCC and the common law, the acceptance cannot materially vary from the offer:
A) in the sale of real estate, services, and in sale of goods when forms are not exchanged
B) only in the sale of real estate and services
C) when silence is the mode of acceptance
D) only in sale of goods when the contract is made by the exchange of forms
19.Under the UCC's "battle of the forms":
A) timely expression of acceptances creates a contract only if it includes terms that are identical to those stated in the offer
B) no contract is created when the attempted acceptance is expressly conditional on the offeror's agreement to the terms of the acceptance no contract is created when the attempted acceptance is expressly conditional on the offeror's agreement to the terms of the acceptance
C) if one of the parties is a merchant, the additional terms in the offeree's form are included in the agreement
D) timely expression of acceptances creates a contract even if it includes terms that are different from those stated in the offer
20. Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms, when the acceptance form has terms additional to or different from the offer:
A) a contract can result, and the differing terms must be included as part of that contract
B) no contract will result because the acceptance form will not be considered as a counteroffer
C) no contract will result because the acceptance form will be considered as a counteroffer and thus an implicit rejection of the offer
D) a contract can result, but the differing terms may not be part of the contract
21. Mack's Bar sent Olive Outlet an order for 200 cases of olives, to be shipped "as soon as possible." The day Olive Outlet receives Mack's order it does not have 200 cases of olives in stock, so it sends Mack 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack that they are shipping the onions in lieu of olives. Later that day, Mack phones the Outlet and tries to revoke his offer. Under the UCC, which of the following statements holds true to this situation?
A) Mack's bar must accept the shipment as they were notified
B) Olive Outlet has accepted and breached the contract
C) Olive Outlet's shipment is considered a counteroffer
D) Mack's bar must reject the shipment as the goods are nonconforming
22. On May 1, 2002, Bob received a telegram from Ralph offering to support him in his new construction project. On May 5, 2002, at 9:00 AM, Ralph sends Bob a telegram attempting to revoke the offer. At 11:00 AM on the same day, Bob mails Ralph a letter attempting to accept the offer. At 11:30 AM, Bob receives Ralph's revocation.Assume Bob and Ralph are both construction contractors and the custom in the construction business is to offer by telegram and accept by mail. Which of the following statements holds true in this situation?
A) Bob's acceptance would be effective only when Ralph reads the acceptance, which would then create the contract
B) the parties would not have a contract as Bob used a nonauthorized means of communicating his acceptance
C) Ralph's revocation can make changes to the contract, though it reaches Bob after he sends the acceptance mail
D) the parties would have a contract because Bob used the means of communication impliedly authorized by trade usage
23. In a browse-wrap contract:
A) a written draft of the agreement is prepared and the user accepts the terms by signing on it
B) time, place, or method of communication is spelled out in the contract
C) the agreements claim that a user assents to the terms by taking a specified action
D) the user assents to contractual terms by clicking on a button that reads "yes" or "I agree."
24. Under the UCC, when acceptance is made expressly conditional on agreement to new terms and the parties begin performance:
A) no contract is created
B) mere silence on the part of the offeree when new terms are added is not an acceptance
C) a contract is created
D) only a written stipulation will make the contract enforceable
25. If an offeree dispatches both an acceptance and a rejection to an offer:
A) the acceptance is effective as soon as it is dispatched and a contract is created
B) the rejection is effective as soon as it is dispatched and no contract can be created
C) neither the acceptance nor the rejection is effective and another response must be issued
D) whichever response reaches the offeror first will determine whether a contract is created
26. In a unilateral contract, the offer is accepted when:
A) the offeree attempts to perform the act
B) the offeror verbalizes his assent
C) the offeree performs the requested act
D) the offeror puts across his promise in writing
27. Mack's Bar sent Olive Outlet an order for 200 cases of olives, to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it ships the olives. Later that day, Mack phones the Outlet and tries to revoke his offer. Under these circumstances:
A) Mack cannot revoke, since a contract was created when Outlet shipped the olives
B) Mark cannot revoke, since the olives will get spoilt if it is shipped back
C) Mack can revoke based on principles of promissory estoppel
D) Mack can revoke because the acceptance had not been received