SMC Business Law Sec 1059 Week 2 Ch 5 Quiz (2015)

Week 2 Chp. 5 QuizGrading SummaryGrade Details – All QuestionsQuestion 1. Question : Under the very liberal rules of the Uniform Commercial Code the courts are inclined to rule that a contract was formed even if it does not appear from the evidence that the parties intended to create a contract. Student Answer: True False Question 2. Question : Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of SMC’s parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Assume, for the purpose of answering this question, that Austen’s bid was an offer. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is “withdrawing” her bid from Austen. Assume that Austen is considered responsible within the industry. Which of the following statements is most accurate? Student Answer: Austen should not rely on Bronte’s offer to do the electrical work Austen has accepted Bronte’s offer, thereby forming a contract Austen is not bound by Bronte’s bid until he informs her of his intent to accept Bronte has accepted Austen’s offer by submitting the lowest bidQuestion 3. Question : An advertisement offering a reward for the return of specifically described lost property is treated as an offer for a unilateral contract. Student Answer: True False Question 4. Question : Which of the underlying facts is a required element of an offer? Student Answer: A writing A conscious subjective intent to contract on the offeror’s part Facts and circumstances that outwardly indicate to a reasonabe person that the offeror intended to form a contract None of the aboveQuestion 5. Question : Which of the following offers terminates earliest? Assume that there is no time limitation unless the below choice says otherwise Student Answer: An offer for the sale of land An offer to purchase stock on a stock exchange An offer that states it will remain open for one week An offer with a valid five-day option attached to itQuestion 6. Question : Worldwide Widget (WW) proposed, in writing, an offer to sell a 250 of its XL Turbo Widgets to Howell Hardware (HH) for 1,000 each and included an assurance to keep the offer open for 180 days. WW was in the business of manufacturing and selling this product. The written offer/assurance was signed by WW’s CEO. Student Answer: This ‘firm’ offer became irrevocable for 180 days This ‘firm’ offer was irrevocable for 90 days This was not a ‘firm’ offer because WW was not a merchant and the deal was not covered by the UCC None of the aboveQuestion 7. Question : Assume that Seller and Buyer enter into a valid option contract that gives Buyer until November 1, 2012 to purchase the Seller’s home (at an agreed price and terms). Assume that Seller died on October 24, 2012. The option: Student Answer: Is still valid and passes to the seller’s estate Is terminated when Seller died Was revoked by operation of law when Seller died Both B & C None of the aboveQuestion 8. Question : Indefiniteness of the terms in an offer bears on intent because it can indicate that the parties are still in the process of negotiation. Indefiniteness can also leave the court with insufficient information to calculate a remedy if a later agreement based on an indefinite offer is breached. Student Answer: True False Question 9. Question : Identify which, if any, of the below statements is correct. Student Answer: Offerors who promise not to revoke in exchange for the payment of some bargained for consideration cannot revoke for the period of the option. A signed writing, by a merchant, which contains “assurances” that the offer will be held open will prohibit the merchant from revoking his offer Promissory estoppel recognizes another limitation on an offeror’s power of revocation All of the aboveQuestion 10. Question : The offeror is the ‘Master of the Offer’ and accordingly, he can: Student Answer: Dictate the manner in which acceptance must occur Determine the precise length of time that the offer will remain open Both of the above statements are correct Revoke the offer under any and all circumstances None of the aboveQuestion 11. Question : In general, when are offerees bound by fine-print terms stated in offers? Student Answer: Always Only when they had actual or reasonable notice of the term Only when they actually read them None of the above Question 12. Question : An offer that fails to provide a specific time for acceptance is invalid because it is deemed to be indefinite. Student Answer: True False Question 13. Question : The so-called “firm offer”: Student Answer: Requires consideration Arises under Article 2 of the UCC Can be made orally Cannot be made by a merchant None of the aboveQuestion 14. Question : Advertisements are usually treated as ‘invitations’ to make an offer. Student Answer: True FalseQuestion 15. Question : A says to B: “I promise to pay you a fair price if you’ll promise to mow my lawn.” B makes the requested return promise to mow the lawn. An enforceable bilateral contract was formed between A and B. Student Answer: True False Question 16. Question : Bob promises Ron that the offer to sell to Ron the home that Bob owns will remain open for five days. Two days later, Bob revoked the offer. According to the facts in this question, Bob had the legal power and right to revoke his offer. (Don’t assume any additional facts). Student Answer: True False Question 17. Question : By applying the rules under the Uniform Commercial Code: Student Answer: The court will become more involved (take a hands on approach) instead of the laissez faire approach followed in times past The court will fill in terms such as price, quantity, payment terms and delivery when such are not included by the parties The courts hope to further the reasonable expectations of people and as a result, often rule that a contract was formed where no contract would have resulted at common law All of the aboveQuestion 18. Question : Under Article 2 of the UCC, some promises to hold an offer open will be enforced despite the absence of consideration. Student Answer: True False Question 19. Question : Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle’s offer. Which of the following is true? Student Answer: Kyle must sell Maggie his car unless Kyle is a merchant under the UCC There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie Kyle and Tara have a contract for the purchase of Kyle’s car Maggie’s letter is a valid acceptance of Kyle’s offerQuestion 20. Question : Chica, a women’s fashion retailer, sends catalogs to its customers, who can then order from the catalog via phone or online. Donna decides to order a black dress priced at $99.00. Donna calls to accept the offer by placing her order. The sales representative who answers the phone tells Donna that the black dress is no longer in stock. Under these facts: Student Answer: Chica is not liable for breach of contract Chica is liable for breach of contract Chica is liable for “bait and switch.” Chica is liable under a quasi-contract theory