## Quiz 7 :An Introduction to Contracts

Question Type
Busy Corp. sent a letter on January 12th to Slow Co. offering to sell its main office building for $250,000, stating that its offer was open only until January 20th, and it must have a response from Slow Co. by then. Slow Co. received the letter on January 14th and prepared a letter of acceptance on that day but had not posted it. The next morning Busy Corp. called and said that it had changed its mind and was withdrawing its offer. Free Multiple Choice Answer: Answer: C Tags Choose question tag Ian offered to sell his horse to Wanda for$3,500. Wanda wanted to think about it and let Ian know by email. Ian agreed. Wanda emailed Ian at 11:45 that night. At 6 a.m. Ian accepted an offer to sell the horse to William for $3,700. He read his email at 8 a.m. Can Wanda sue Ian for breach of contract? Free Multiple Choice Answer: Answer: A Tags Choose question tag Mary invites some friends to dinner, and they accept. They purchase a much more expensive bottle of wine than they would normally drink and a beautiful bouquet of flowers. Mary calls them two hours before the dinner to tell them she has been invited out by the man of her dreams and is postponing the dinner. Free Multiple Choice Answer: Answer: C Tags Choose question tag Which of the following elements does not constitute a legal relationship in contract? Multiple Choice Answer: Tags Choose question tag As you are walking out of class one night, you discover a notebook, full of equations, belonging to a professor in your school. You write a note telling him who you are and where and when you found it. Then you put the note in an envelope and drop it into one of the university's internal mailboxes. The next day the campus is covered with notices which say "$100 REWARD. A notebook containing mathematical explanation of the meaning of life has been lost. If found, please return to Professor Doddering in Room A123."
Multiple Choice
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Mr. Gatlin went into a supermarket where he saw a new kind of toothpaste on a shelf, priced at $2.69. He decided to try it, so he took it to the checkout and placed it on the moving counter. The staff member at the checkout ran up the sale, took Mr. Gatlin's money and put the toothpaste in a bag, handing it with the receipt and the change to Mr. Gatlin. A contract was formed when: Multiple Choice Answer: Tags Choose question tag Salem said to Crystal over his cell phone, "Do you want to buy my car for$2,000?" Before she heard him, her cell phone dropped the call. Can she accept the offer?
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On June 1st the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14th Sam mailed back his response and eagerly awaited his prize. On July 15th Mega sent out the last prize it had. Sam's response arrived on July 16th. It was the 1001st and Mega wrote back telling Sam that unfortunately all the prizes were gone, and he would not be able to have one.
Multiple Choice
Skinny You is a new "weight loss pill." It is being sold by the company; Skinny Products Inc. Advertisements were placed in the back of Teen Beauty magazine that provided potential consumers with information about the success rate of the pills-"Weight Loss of 10 pounds in 10 days if used as instructed." Skinny Products Inc. guaranteed the weight loss by saying that if customers did not lose 10 pounds in 10 days then they would receive $100. To increase consumer confidence of the money being paid Skinny Products Inc. stated that it had put money in trust. Latisha purchased Skinny You and used it for 10 days, as instructed, but only lost 4 pounds. Can she sue Skinny Products Inc. for breach of contract? Multiple Choice Answer: Tags Choose question tag Mike responds to Flavio's statement that he would like to buy Mike's motorbike for$3,000 by saying that he would want $4,000, given the work he has put into it. Flavio says OK. I'll give you that. Here's$2,000, and I'll give a promissory note for the balance payable at $500 a month for the next 4 months." 1. There is a contract. 2) There is no contract. 3) Flavio's first statement to Mike was an invitation to do business. 4) Flavio's response was a counter offer. 5) Flavio's final statement to Mike was an acceptance. Multiple Choice Answer: Tags Choose question tag Rahul met Jones at a street corner and made a verbal offer to buy his canoe for$200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Brown's acceptance of Rahul's offer was unconditional. True False Answer: Tags Choose question tag Which of the following are NOT presumed to be binding? Multiple Choice Answer: Tags Choose question tag Microsoft uses a click wrap agreement with a clause requiring all disputes to be heard in the state of Washington, U.S.A. Microsoft has its head office in Redmond, Washington. A consumer resides in Ontario. Is this click wrap agreement binding? Multiple Choice Answer: Tags Choose question tag Rahul met Jones at a street corner and made a verbal offer to buy his canoe for$200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Rahul's offer to Jones lapsed when Rahul agreed to purchase Brown's canoe. True False Answer: Tags Choose question tag Rahul met Jones at a street corner and made a verbal offer to buy his canoe for$200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Rahul's offer was merely an invitation to do business. True False Answer: Tags Choose question tag Rahul met Jones at a street corner and made a verbal offer to buy his canoe for$200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Rahul's offer lapsed when Jones did not immediately accept the offer before the two parties departed on their separate business. True False Answer: Tags Choose question tag Johnson became a member of the Book-a-Month Club under an agreement by which members agree to pay for any monthly selection that they have not notified the Club they do not want. Johnson forgets to tell them when he decides he does not want "How to Cook Small Rodents" and the book arrives at his house. Multiple Choice Answer: Tags Choose question tag Rahul met Jones at a street corner and made a verbal offer to buy his canoe for$200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. Rahul's offer to buy the canoe from Jones was a genuine expression of his intention to create a legal relationship. True False Answer: Tags Choose question tag Ian offered to sell his horse to Wanda for$3,500. Wanda wanted to think about it and let Ian know by email. Ian agreed. Wanda emailed Ian at 11:45 that night. What type of contract was formed?