Chapter 10 Flashcards
A manifestation of a willingness to enter into a contract if the other person agrees to the terms is a(n):
Multiple Choice
Offer
Acceptance
Promise
Option contract
Offer
An offer is the manifestation of a willingness to enter into a contract if the other person agrees to the terms.
true or false
True
Which of the following was the result in Permison v. Comcast Holdings Corporation, the case in the text involving whether a cable customer was bound by an arbitration clause?
Multiple Choice
The court ruled that regardless of whether the customer agreed to the clause, arbitration clauses are unenforceable as a matter of law.
The court ruled that the customer was assumed to have received information regarding the arbitration clause and that the customer was bound by it because it was the standard operating procedure of Comcast technician’s to provide that information.
The court ruled that there was insufficient evidence that the customer received and had an opportunity to review and understand the terms of the offer and that the plaintiff cable company had provided insufficient evidence to result in enforcement of the arbitration agreement.
The court ruled that the arbitration agreement was enforceable regardless of whether the customer actually received it because, as a matter of federal law, arbitration agreements are enforced in cable agreements.
The court ruled that there was insufficient evidence that the customer received and had an opportunity to review and understand the terms of the offer and that the plaintiff cable company had provided insufficient evidence to result in enforcement of the arbitration agreement.
Bidders at auctions are generally held to be the offerees.
true or false
false
If there is no offer, there is nothing to accept, and a contract cannot be created.
true or false
True
To avoid problems from the revocation of offers for unilateral contracts, many courts hold a contract to be bilateral:
Multiple Choice
only as a last resort.
if one party makes a promise in return for the other party’s performance of an act.
on a compulsory basis, as determined by Article 2 of the Uniform Commercial Code (UCC).
whenever possible.
whenever possible.
The offeror who makes a firm offer and promises to hold it open for six months:
Multiple Choice
could revoke after three months, even if the offeree has already accepted the offer.
could revoke after three months, assuming the offeree has not already accepted the offer.
cannot revoke the offer under any circumstances unless the offeree consents to the revocation.
could revoke after six months, even if the offeree has already accepted the offer.
could revoke after three months, assuming the offeree has not already accepted the offer.
A separate offer for the limited purpose of holding an offer open is a(n):
Multiple Choice
Option contract
Bilateral contract
Executed contract
Unilateral contract
Option contract
Shrinkwrap contracts:
Multiple Choice
Are enforced by courts unless the terms violate contract rules such as unconscionability.
Are inherently void, but legal.
State that a buyer must be aware of the terms of the contract for the contract to be binding.
Are not only void, but are illegal in most states.
Are enforced by courts unless the terms violate contract rules such as unconscionability.
Preston, who makes a living doing remodeling, put his car up for sale for $5,000 on March 1. Betty wanted to buy the car but was not sure whether or not she could get a loan. On March 3, she paid Preston $100 to hold the car for her for one week. Preston took the money but sold the car one day later, on March 4, and told Betty that he had revoked the contract. Which of the following is true regarding the position of the parties?
Multiple Choice
Preston and Betty had a quasi contract, but Preston was entitled to disregard it so long as he returned Betty’s $100 to her.
Preston and Betty had an option contract which Preston breached by selling the car.
Preston and Betty did not have an enforceable contract, and Preston was entitled to sell the car.
Preston made a firm offer which Betty was entitled to enforce, and Preston breached the contract.
Preston and Betty had an option contract which Preston breached by selling the car.
“I’m thinking of selling my computer for $350”, is:
Multiple Choice
Consideration
An option contract
Not an offer
An offer
Not an offer
If an offer does not state a time for acceptance, it is valid for:
Multiple Choice
Twenty days.
Fifteen days.
An indefinite period of time.
A reasonable period of time.
A reasonable period of time.
The offer itself may include terms that limit the duration of the offer.
true or false
true
Penny, whose main job is in law but who makes ceramics as a hobby, mailed Albert, a ceramics merchant, a signed letter on December 10 offering to sell her supplies because she planned to discontinue her ceramics hobby. Surprisingly, however, during the Christmas season, she started receiving a number of offers to buy her merchandise and began to give consideration to starting a side business in ceramics. She called Albert on December 18 and told him that she revoked her offer. Albert told her that it was too late because he had just put in the mail, on December 17, an acceptance to her offer. Assuming that Penny had not yet received the letter accepting her offer, which of the following would courts in most states rule?
Multiple Choice
That Penny could revoke her offer because she had not received Albert’s letter.
That Penny could not revoke her offer because it had not been left open for a reasonable amount of time under the circumstances.
That it was too late for Penny to revoke the contract once Albert mailed the acceptance.
That it was too late for Penny to revoke the contract once Albert mailed the acceptance.
An option is a separate contract for the limited purpose of holding an offer open.
true or false
true
