BUS 311 Week 2 Quiz Chapter 007

1. Offer and acceptance are the essential elements of a contract.

BT: Knowledge

PO: 1

True False

1. Even when an offer specifies all the terms and conditions of a contract, it is not considered as definite and certain.

BT: Knowledge

PO: 2

True False

1. As a general rule, if an offer is to be definite and certain, it should cover the same points as a good newspaper story.

BT: Knowledge

PO: 2

True False

1. The requirement of offer and acceptance is usually fairly straightforward in contracts involving just two or, perhaps, a few parties.

BT: Knowledge

PO: 3

True False

1. If goods are advertised in a newspaper at an incorrect price, and the fault is of the newspaper, the merchant may recoup his losses from the publication.

BT: Knowledge

P O: 3

True False

1. Acceptance of a public offer by anyone, as indicated by the performance of the act, does not result in an enforceable contract.

BT: Knowledge

P O: 3

True False

1. Silence does not indicate assent to an offer, even if both parties agree beforehand that this is to be the means of acceptance.

BT: Knowledge

PO: 4

True False

1. A person can be compelled to speak or to write in order to avoid a binding agreement, and is under no obligation to reply to an offer.

BT: Knowledge

P O: 4

True False

1. The general rule of contract provides that the acceptance of an offer must be the same as the offer.

BT: Knowledge

P O: 4

True False

1. A counteroffer, that is, a conditional, or qualified, acceptance of an offer, is generally interpreted as an acceptance and is not binding on the parties.

BT: Knowledge

PO: 4

True False

1. The Uniform Commercial Code (UCC) provides that additional (or different) terms are to be construed as proposals for addition to the contract, and between merchants, become part of the contract.

BT: Knowledge

PO: 4

True False

1. An offer is not terminated due to lapse of time.

BT: Knowledge

P O: 5

True False

1. An offer can be terminated by an offeror's revocation before acceptance.

BT: Knowledge

P O: 5

True False

1. Even after an offer is rejected by the offeree, it can be revived or made into a counteroffer once the communication of the rejection has been received by the offeror.

BT: Knowledge

P O: 5

True False

1. Just as a qualified acknowledgment of the rejection of an offer serves to keep an offer alive, a qualified rejection may have a similar effect.

BT: Knowledge

P O: 5

True False

1. A proposal that is both offered by the offeror and accepted by the offeree is a contract which is:

A. void.

B. invalid.

C. valid.

D. voidable.

1. All of the following are required for a valid offer, EXCEPT:

A. definite and certain.

B. communicated to the offeree.

C. made with serious intent.

D. stated in writing.

1. The omission of one or more essential terms does not necessarily make the offer:

A. voidable.

B. valid.

C. invalid.

D. void.

1. According to the ___, uncertainty with respect to specific terms does not necessarily invalidate a contract.

A. Uniform Civil Code

B. Uniform Commercial Code

C. United States Commercial Code

D. Uniform Contract Code

1. All of the following are considered to be forms of oral communications in acceptance of an offer, EXCEPT:

A. silence.

B. television.

C. e-mail.

D. in person.

1. A purchase order issued by one firm to another is generally considered a(n):

A. offer.

B. acceptance.

C. first step in negotiation.

D. request for proposal.

1. Purchase orders are usually considered to be:

A. an uncommon form of offer acceptance.

B. invalid forms of offer acceptance.

C. oral communication to acceptance.

D. offers to buy.

1. The offer and acceptance by the conduct of the parties is called as a(n):

A. express contract.

B. implied contract.

C. conduct contract.

D. social contract.

1. All of the following are offers that are obviously not made with the intent of entering into a valid, enforceable agreement, EXCEPT:

A. under severe emotional strain.

B. in anger.

C. through electronic means.

D. under jest.

1. The offer and acceptance issue gets complicated when there is little or no direct contact between the parties, as in the case of all of the following EXCEPT:

A. bidding.

B. advertising.

C. public offers.

D. agreement.

1. A call for a bid or estimate for materials to be furnished or work to be done is not considered a(n):

A. offer.

B. acceptance.

C. request for proposal.

D. invitation to acceptance.

1. Advertising is generally regarded as a(n):

A. invitation to trade.

B. firm offer.

C. commitment to sell.

D. executory contract.

1. The words, "first come, first served" in advertisements create a language of:

A. promise.

B. offer.

C. acceptance.

D. request.

1. If an advertisement contains a positive promise and a positive statement of what the advertiser expects in return, the courts will usually hold that the advertisement is a(n):

A. proposal.

B. offer.

C. request.

D. informal invitation.

1. If an advertisement offers a reward for information that might lead to the arrest of a criminal or to the return of a lost article, it is regarded as a:

A. request for an offer.

B. reward offer.

C. public offer.

D. call for a bid.

1. The general rule regarding the effective date and time an acceptance becomes binding is:

A. when the parties intend.

B. three days after receipt of the acceptance.

C. three days after acceptance is sent.

D. upon receipt by the offeree.

1. If the offer is silent as to the time the acceptance is effective, the ____ states that an acceptance sent via the postal system or by courier is effective when sent.

A. rule of contract

B. mailbox rule

C. acceptance rule

D. sent rule

1. A person cannot be compelled to speak or to write in order to avoid a(n):

A. void agreement.

B. voidable agreement.

C. binding agreement.

D. illegal agreement.

1. Offers are terminated for all of the following reasons EXCEPT:

A. lapse of time.

B. revocation.

C. rejection.

D. silence.

1. The offeror may not communicate revocation to the offeree through:

A. written words.

B. spoken words.

C. action.

D. coercion.

1. When no definite time for acceptance is stated in an offer, it terminates after passing of:

A. a reasonable time.

B. 18 months.

C. two months.

D. two years.

1. What is considered a reasonable time (in case of termination of contract by lapse of time) can vary according to the:

A. assessment of a court-appointed judge.

B. circumstances.

C. opinion of the parties.

D. opinion of the witness.

1. The offer, once rejected by the offeree, cannot be revived or made into a counter offer once the communication of the rejection has been received by the:

A. offeror.

B. offeree.

C. courier authority that communicates.

D. agent of the offeree.

1. If the offeror acknowledges the rejection but restates the offer, the offeree:

A. loses the opportunity to accept, but retains the authority to make a counteroffer.B) does not have any opportunity to accept, or reject, or make a counteroffer.

B. still has the opportunity to accept, or reject, or make a counteroffer.

C. cannot be revived or make a counteroffer.