Question 1

According to the Uniform Commercial Code (UCC), if one or both parties are nonmerchants, additional terms proposed by the offeree automatically become part of the agreement unless the offer expressly limited acceptance to its own terms.

Accepted Answer

Under the UCC, if one or both parties are nonmerchants, additional terms proposed by the offeree do not automatically become part of the agreement. Instead, these terms are considered proposals for addition to the contract, and for them to become part of the agreement, the offeror must expressly agree.

Question 2

According to the Uniform Commercial Code and the Restatement Second, an offeror who remains silent impliedly authorizes the offeree to accept by any reasonable means of communication.

Accepted Answer

The Uniform Commercial Code and the Restatement Second of Contracts allow for acceptance by any reasonable means if the offeror does not specify a method, implying authorization through silence.

Question 3

A seller cannot accept a buyer's offer by simply promising to ship the goods or by shipping the goods.

Accepted Answer

A seller can accept a buyer's offer by either promising to ship the goods or by actually shipping the goods. This is known as acceptance by performance.

Question 4

The Uniform Commercial Code (UCC) changes the common law rule by saying that a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer or states additional terms on points the offer did not address. This controversial rule is known as the _____.
A) "Battle of the Forms"
B) "Mirror Image" Rule
C) Doctrine of Substantial Performance
D) Last Clear Chance Doctrine

Accepted Answer

The Uniform Commercial Code (UCC) changes the common law rule by saying that a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer or states additional terms on points the offer did not address. This controversial rule is known as the "Battle of the Forms." The only exception to this rule occurs when the attempted acceptance is expressly conditional on the offeror's agreement to the terms of the acceptance. In that case, no contract is created.

Question 5

The Uniform Commercial Code and the United Nations Convention of Contracts for the International Sale of Goods both hold that acceptances are effective when they are dispatched.

Accepted Answer

The Uniform Commercial Code (UCC) follows the "mailbox rule," where acceptances are effective upon dispatch. However, the United Nations Convention on Contracts for the International Sale of Goods (CISG) states that acceptances are effective when they reach the offeror.

Question 6

According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, _____ contract is created.
A) no
B) an implied
C) a conditional
D) a unilateral

Accepted Answer

According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, no contract is created.

Question 7

In determining whether the offeree accepted the offer, the court looks for the offeree's present intent to contract.

Accepted Answer

The offeree's present intent to contract is a crucial element in determining the acceptance of an offer by the offeree. The court may consider various factors, such as the offeree's words, actions, and the context in which the offer was made, to ascertain whether there was an intention to accept the offer.

Question 8

After the court has found that one of the parties to a dispute made an offer, the next thing it looks for to determine is whether the offeree accepted the offer.

Accepted Answer

After establishing that an offer was made, the court then looks for acceptance by the offeree.

Question 9

The Uniform Commercial Code (UCC) specifically states that an order requesting "prompt" or "current" shipment of goods impliedly invites acceptance by either a prompt promise to ship or a prompt shipment of the goods.

Accepted Answer

This statement is true according to section 2-206(1)(a) of the Uniform Commercial Code. If a buyer requests prompt or current shipment of goods, the seller can accept the order by either promising to promptly ship the goods or by actually shipping them promptly.

Question 10

According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.

Accepted Answer

This is known as the "Battle of the Forms" rule in contract law and is outlined in UCC Section 2-207. It allows for additional terms to be included in a contract as long as both parties are merchants and the new terms do not materially alter the original offer.

Question 11

In determining whether the offeree accepted the offer, the court looks for the offeree's _____ intent to contract.
A) present
B) future
C) subjective
D) revocable

Accepted Answer

In determining whether the offeree accepted the offer, the court looks for the offeree's present intent to contract. The court looks for the same present intent to contract on the part of the offeree that it earlier looked for on the part of the offeror.

Question 12

According to the common law, a timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer.

Accepted Answer

Under common law, a timely expression of acceptance must mirror the terms of the offer exactly for a contract to be formed; this is known as the "mirror image rule." If the acceptance includes terms that are different from those in the offer, it may be considered a counteroffer rather than an acceptance.

Question 13

If the offer or circumstances do not indicate otherwise, the means the offeror used to communicate the offer is the impliedly authorized means for accepting.

Accepted Answer

If the offer is made through a particular means of communication (such as email, fax, or mail), it is implied that the offeror authorizes the offeree to use the same means to accept the offer, unless otherwise specified or the circumstances indicate otherwise. This is known as the "mailbox rule."

Question 14

To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree need not necessarily perform the act requested by the offeror.

Accepted Answer

In a unilateral contract, the offeror promises something in exchange for the offeree's performance of a specific act. Therefore, in order to accept the offer, the offeree must perform the act requested by the offeror. Failure to perform the act requested will mean that the offeree has not accepted the offer.

Question 15

An offeror can minimize problems with the timing of acceptances since he or she has the power to control the conditions under which the offer can be accepted.

Accepted Answer

The offeror can determine the conditions under which the offer can be accepted, such as setting a deadline or specifying the method of acceptance, to avoid ambiguity and minimize potential issues with timing.

Question 16

In 2003 the American Law Institute approved an amendment to Section 2-207of the Uniform Commercial Code (UCC) eliminating the _____ test of the _____.
A) substantial performance; Battle of the Forms
B) materiality; Battle of the Forms
C) substantial performance; Mirror Image Rule
D) materiality; Mirror Image Rule

Accepted Answer

In 2003 the American Law Institute approved an amendment to Section 2-207of the Uniform Commercial Code (UCC) eliminating the materiality test of the Battle of the Forms. Because courts have struggled over whether a disputed term "materially alters" an agreement or not, the new Section 2-207 shifts the focus from determining which terms are excluded to which terms are agreed upon; the agreed-upon terms form the contract, while all other terms are rejected. This new version of 2-207 promises to be much clearer to understand and apply. However, many states have not incorporated the revamped 2-207 into their version of the UCC.

Question 17

An offeree's acceptance is not effective upon dispatch if the acceptance is sent by a stipulated means.

Accepted Answer

An offeree's acceptance is generally effective upon dispatch (the mailbox rule) when sent by a stipulated means or a means that is equally or more reliable and efficient, unless the offer specifically states otherwise.

Question 18

With regard to the terms of a contract created by the exchange of nonconforming forms, the Uniform Commercial Code (UCC) states that if the parties are both _____, the additional terms in the offeree's form are included in the agreement unless the offer _____ limited acceptance to its own terms, the new terms would materially alter the offer, and the offeror gives notice of objection to the new terms within _____ after receiving the acceptance.
A) merchants; impliedly; thirty (30) days
B) merchants; expressly; a reasonable time
C) nonmerchants; impliedly; a reasonable time
D) nonmerchants; expressly; thirty (30) days

Accepted Answer

With regard to the terms of a contract created by the exchange of nonconforming forms, the Uniform Commercial Code (UCC) states that if the parties are both merchants, the additional terms in the offeree's form are included in the agreement unless the offer expressly limited acceptance to its own terms, the new terms would materially alter the offer, and the offeror gives notice of objection to the new terms within a reasonable time after receiving the acceptance. If one or both parties are nonmerchants, the additional terms are treated as "proposals for addition to the contract."

Question 19

If an authorized means of acceptance is expressly or impliedly present, any attempt by the offeree to accept by a nonauthorized means is not effective until the acceptance is actually received by the offeror.

Accepted Answer

If the offeror has specified a particular means of acceptance or if it can be inferred from the nature of the offer that a particular means should be used, then only that means of acceptance is effective. If the offeree attempts to accept by a nonauthorized means, the acceptance is not effective until it is actually received by the offeror through the authorized means.

Question 20

If possible, the courts interpret an offer as proposing a unilateral contract.

Accepted Answer

Courts generally interpret an offer as proposing a bilateral contract, where both parties are bound to perform once the promises are exchanged, unless the offer specifically indicates that it can only be accepted by performing an act, which would make it a unilateral contract.

Quiz 11: Creating a Contract: Acceptances