Question 1

Which of the following is $\underline{\text{not}}$ a risk associated with international contracting?
A)Currency exchange rates
B)Transportation costs
C)Fee collection
D)None of the above

Accepted Answer

All three options - currency exchange rates, transportation costs, and fee collection - are risks associated with international contracting, so none of the above is not a risk.

Question 2

Which is $\underline{\text{not}}$ a requirement for a merchant's confirmation memorandum?
A)evidenced by a record
B)signed by both parties
C)underlying oral agreement
D)none of the above

Accepted Answer

A merchant's confirmation memorandum does not require signatures from both parties to be valid under the Uniform Commercial Code (UCC). It needs to be in writing (evidenced by a record) and confirm an oral agreement, but only the sender needs to sign it.

Question 3

Which of the following contracts must be in writing to be enforceable?
A)A contract for the sale of an easement for $250.
B)A contract for the sale of a bike for $175.
C)A six-month marketing consulting contract.
D)All of the above must be in writing to be enforceable.

Accepted Answer

Contracts involving the sale of an interest in land, including easements, must be in writing to be enforceable according to the Statute of Frauds. Contracts for the sale of goods over $500 (not applicable to the bike sale) and short-term service contracts (like the six-month consulting contract) do not require a written agreement to be enforceable.

Question 4

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125.
Day 2: Tina faxes Mike an acceptance.
Day 2: Mike receives Tina's fax.
Day 3: Mike calls Tina to revoke his offer.
Mike and Tina:
A)do not have a contract since Tina used the wrong means of acceptance.
B)do not have a contract because Mike revoked his offer before Tina accepted properly.
C)have a contract as of the receipt of the fax.
D)have a contract as of when the fax was sent.

Accepted Answer

The answer of Day 1: Mike sends Tina a letter...

Question 5

The following series of events occurred between Bull's Meat Market and The Butcher:?
May 1 - The Butcher faxes Bull's and offers to buy 200 lbs.of T-bone steak at $3.29 per lb.
May 2 - Bull's faxes back: "Price is okay.Payment prior to delivery."?Bull's and The Butcher:
A)have a contract on May 2 with the payment term.
B)have a contract on May 2 without the payment term.
C)do not have a contract.
D)none of the above

Accepted Answer

Both parties have agreed to the terms of the sale: 200 lbs. of T-bone steak at $3.29 per lb. and payment being made prior to delivery. This constitutes a contract with a payment term specified.

Question 6

The mailbox rule applies to:
A)all acceptances.
B)acceptances communicated through the offer's stipulated means.
C)acceptances under UCC only.
D)revocations and acceptances.
E)none of the above

Accepted Answer

The mailbox rule, also known as the postal rule, generally applies to acceptances communicated through the means expressly or impliedly stipulated by the offer. This rule states that an acceptance is effective upon dispatch when the offeree uses a manner of communication expressly or impliedly authorized by the offeror.

Question 7

The language "I offer to sell you my 1974 White Ford Torino" is:
A)a valid offer.
B)not a valid offer because it lacks a definite price.
C)not a valid offer because there are no terms for payment.
D)not a valid offer because it is oral.

Accepted Answer

The language "I offer to sell you my 1974 White Ford Torino" constitutes a valid offer as it contains a clear identification of the subject matter (the car) and an intent to enter into a contract. The absence of a definite price or terms of payment may be addressed during the negotiating process but does not necessarily invalidate the offer itself. The fact that it is communicated orally does not affect its validity, though it may be more difficult to prove in case of disputes.

Question 8

Which of the following contracts would $\underline{\text{not}}$ have to be in writing under the old UCC?
A)a contract for the sale of an easement for $450
B)a contract for consulting services for $10,000 over the next 90 days
C)a three-year advertising contract
D)a contract for the sale of furniture for $700
E)All of the above must be in writing.

Accepted Answer

The Uniform Commercial Code (UCC) primarily applies to transactions involving the sale of goods. Consulting services, as mentioned in option B, do not fall under the category of goods; therefore, a contract for consulting services would not necessarily have to be in writing under the old UCC to be enforceable.

Question 9

Ann Frazer has just purchased a new Maserati.Ann will be borrowing the money from her bank.Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day.Ann:
A)has a contract regardless of whether her bank approves her loan.
B)has made a conditional acceptance and has no contract.
C)will be excused from her contract if the bank does not approve her loan.
D)none of the above

Accepted Answer

The answer of Ann Frazer has just purchased a new...

Question 10

Which of the following is effective upon mailing or dispatch?
A)offers
B)rejections
C)counteroffers
D)revocation
E)none of the above

Accepted Answer

None of the options listed (offers, rejections, counteroffers, revocations) are effective upon mailing or dispatch by default. The effectiveness of these actions typically depends on the receipt by the other party, except for the acceptance of an offer under the mailbox rule, which is not listed among the options.

Question 11

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each."
Pat's Pumps' return fax: "Ok.Will deliver tomorrow AM."
Pat and Walt:
A)do not have a contract because the faxes will not satisfy the statute of frauds.
B)do not have a contract because of the mirror image rule.
C)had a contract when Pat's fax was sent.
D)had a contract when Pat's fax was received.

Accepted Answer

A contract was formed when Pat's Pumps sent the fax accepting the offer made by Walt's Pool World. This is known as the "mailbox rule" which states that an acceptance is effective when it is sent, not when it is received. Therefore, the contract was formed when the acceptance was sent, and they both agreed to the terms of the contract.

Question 12

Under both UCC and common law,a counteroffer:
A)must be accepted by the original offeror.
B)is effective upon mailing or dispatch.
C)is also a rejection.
D)none of the above

Accepted Answer

Under both UCC and common law, a counteroffer is also a rejection of the original offer. This means that the original offer is no longer valid and the parties must either negotiate a new offer, or the counteroffer must be accepted to create a valid contract. Choice A is incorrect because a counteroffer does not need to be accepted by the original offeror. Choice B is incorrect because, under common law, acceptance is only effective upon receipt, not mailing or dispatch.

Question 13

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?
A)a contract for the sale of an easement for $75
B)a contract for the sale of a computer monitor for $220
C)a contract for consulting for 6 months @ $10,000 per month plus expenses
D)All of the above must be in writing.

Accepted Answer

Under the statute of frauds, contracts for the sale of an interest in land, such as an easement, must be in writing to be enforceable, regardless of the price. The other contracts do not necessarily require a written agreement under the statute of frauds.

Question 14

Under the UCC and between merchants,additional terms in acceptance:
A)are part of the contract unless they are material.
B)are part of the contract unless the offer was limited.
C)result in rejection of the original offer.
D)none of the above

Accepted Answer

The additional terms in acceptance between merchants are generally considered part of the contract unless they are material and would alter the original offer. This is known as the "battle of the forms" scenario, where the terms of each party's offer and acceptance may differ, but they can still form a contract as long as there is a meeting of the minds on the essential terms. The UCC provides rules and guidelines for resolving disputes in these situations.

Question 15

Jane: "I'll pay you $50 if you will clean my windows."
Al: "I'll do it for $75."?Jane: "$65 and it's a deal."
Al: "No way."
Jane: "Too late.We have a contract."
Which of the following statements is true?
A)Jane is correct, there is a contract.
B)There is no contract.
C)There is a contract to clean the windows for $65.
D)There is a contract to clean the windows for $75.

Accepted Answer

There is no contract because there was no agreement reached on the price. Jane and Al negotiated but never agreed on the final price before Al refused the offer.

Question 16

Jane Linden is negotiating with James Paul to buy his2012 Mini-Cooper.The following excerpts from letters have occurred so far: 
Jane: "I would be interested in purchasing your Mini-Cooper."
James: "I am thinking of selling my Mini-Cooper."
Jane: "I am considering selling my diamond tennis bracelet to buy your Mini-Cooper."
Which of the following statements is true?
A)James and Jane have a contract to sell the Mini-Cooper.
B)James and Jane do not have a contract to sell the Mini-Cooper.

Accepted Answer

There is no clear offer and acceptance in their communication, nor is there an agreement on the terms and conditions of the sale. Therefore, there is no contract between James and Jane to sell the Mini-Cooper.

Question 17

Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike.The following conversation has taken place:?
Jerry: "I will buy your mountain bike for $375.00."
Pamela: "I will sell it to you."
Jerry: "Good.The tire pump is included."
Which of the following statements is true?
A)Jerry and Pamela have a contract for the bike at $375.00.
B)Jerry and Pamela do not have a contract for the bike at $375.00.
C)Jerry and Pamela have a contract for the bike at $375.00 with the tire pump.
D)none of the above

Accepted Answer

Jerry's offer to buy the bike for $375.00 and Pamela's acceptance form a contract at that price. The subsequent mention of the tire pump does not alter the already formed agreement.

Question 18

To be valid,a UCC merchant's firm offer:
A)must be supported by consideration.
B)must be evidenced by a record.
C)must be signed by both parties.
D)all of the above

Accepted Answer

According to the UCC, a firm offer made by a merchant must be in writing and contain a signature from the offeror to be valid. While consideration is a necessary element of a contract, it is not specifically required for a firm offer to be valid under the UCC. Therefore, only option B is correct.

Question 19

Under the UCC and between nonmerchants,additional terms in acceptance:
A)constitute a counteroffer.
B)are part of the contract.
C)result in rejection or the original offer.
D)none of the above

Accepted Answer

Under the Uniform Commercial Code (UCC), when a contract is formed between nonmerchants, additional terms in an acceptance do not automatically become part of the contract, nor do they constitute a counteroffer or result in rejection of the original offer. Instead, the contract is formed based on the terms of the original offer, and additional terms are considered proposals for addition to the contract, which do not become part of the contract unless the original offeror expressly agrees.

Question 20

John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle.The following conversation has taken place:
John: "I will buy your mountain bike for $325.00."
Bill: "I couldn't sell it for less than $375.00."
John: "I'll take it for $375.00."
Which of the following statements is true?
A)Bill and John have a contract for the sale of the bike at $375.00.
B)Bill and John have a contract for the sale of the bike at $325.00.
C)Bill and John do not have a contract.
D)none of the above

Accepted Answer

The answer of John Freeden is negotiating with Bill Murray...

Quiz 11: Contracts and Sales: Introduction and Formation

Which of the following is not‾\underline{\text{not}}not​ a risk associated with international contracting?

Which is not‾\underline{\text{not}}not​ a requirement for a merchant's confirmation memorandum?

Which of the following contracts must be in writing to be enforceable?

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina:

The following series of events occurred between Bull's Meat Market and The Butcher:? May 1 - The Butcher faxes Bull's and offers to buy 200 lbs.of T-bone steak at $3.29 per lb. May 2 - Bull's faxes back: "Price is okay.Payment prior to delivery."?Bull's and The Butcher:

The mailbox rule applies to:

The language "I offer to sell you my 1974 White Ford Torino" is:

Which of the following contracts would not‾\underline{\text{not}}not​ have to be in writing under the old UCC?

Ann Frazer has just purchased a new Maserati.Ann will be borrowing the money from her bank.Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day.Ann:

Which of the following is effective upon mailing or dispatch?

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok.Will deliver tomorrow AM." Pat and Walt:

Under both UCC and common law,a counteroffer:

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Under the UCC and between merchants,additional terms in acceptance:

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75."?Jane: "$65 and it's a deal." Al: "No way." Jane: "Too late.We have a contract." Which of the following statements is true?

Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike.The following conversation has taken place:? Jerry: "I will buy your mountain bike for $375.00." Pamela: "I will sell it to you." Jerry: "Good.The tire pump is included." Which of the following statements is true?

To be valid,a UCC merchant's firm offer:

Under the UCC and between nonmerchants,additional terms in acceptance:

John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle.The following conversation has taken place: John: "I will buy your mountain bike for $325.00." Bill: "I couldn't sell it for less than $375.00." John: "I'll take it for $375.00." Which of the following statements is true?

Which of the following is $\underline{\text{not}}$ a risk associated with international contracting?

Which is $\underline{\text{not}}$ a requirement for a merchant's confirmation memorandum?

Which of the following contracts would $\underline{\text{not}}$ have to be in writing under the old UCC?