Question 1

Lamar offers to pay Melanie $150 for a hot-air balloon ride for Nina.They agree to meet at dawn the next day to exchange the cash for the ride.At this point, these parties have

Accepted Answer

A bilateral contract is a contract in which both parties make promises, and in this case, Lamar promises to pay Melanie $150 and Melanie promises to give Nina a hot-air balloon ride. Therefore, both parties have made promises, and a bilateral contract is formed. A trilateral contract would involve three parties, but there are only two parties in this scenario. A unilateral contract would involve one party making a promise in exchange for an act, but in this scenario, both parties are making promises. Therefore, the best choice is A) a bilateral contract.

Question 2

Iggy tells Jade, "I might sell the snowboard that I bought this winter since I haven't used it and the season is almost over." This is

Accepted Answer

Iggy is expressing a future intention to possibly sell their snowboard. It is not an offer or acceptance of an offer, nor is it a preliminary negotiation.

Question 3

Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex.These parties have

Accepted Answer

Bilbo and Cato have signed a lease agreement, which is a written agreement that explicitly states the terms and conditions of their agreement. An express contract is a contract in which the terms are explicitly stated, either orally or in writing. Therefore, the situation described in the question fits the definition of an express contract.

Question 4

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor.Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music.This provision is

Accepted Answer

The provision that Bret agrees to is a click-on agreement, which requires her to click an "I Agree" button or similar checkbox acknowledging her acceptance of the terms and conditions.

Question 5

Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000.Hana replies, "The price is too high.I will buy it for $75,000." Hana has

Accepted Answer

Hana has rejected the original offer by saying that the price is too high and has made a counteroffer of $75,000. Therefore, she has rejected the original offer and made a counteroffer.

Question 6

Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings.This means that the parties' contract

Accepted Answer

An informal contract is a contract that does not require any specific formality or legal format to be considered valid. Therefore, the parties' contract does not require any special form.

Question 7

Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse.Dex completes the installation.The act of installing the pump

Accepted Answer

The act of installing the sump pump is the consideration that creates Chicken & Egg's obligation to pay Dex. Consideration does not have to be goods or money; it can be a service or act of some kind.

Question 8

On behalf of Bobble Head Manufacturing Company, Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company.Under the UETA, Carmela's typed name qualifies as

Accepted Answer

Under the Uniform Electronic Transactions Act (UETA), Carmela's typed name at the bottom of an e-mail purchase order qualifies as a "signature." The UETA recognizes electronic signatures as legally binding and equivalent to handwritten signatures in most situations.

Question 9

Vita asks Walter, a cobbler and shoe salesperson, to repair a pair of work boots.There is no discussion of a price, and Vita and Walter do not sign any documents.After the repair, Walter hands Vita a bill.With respect to Vita's obligation to pay the bill, this is

Accepted Answer

This is an example of an implied contract, where the actions of both parties indicate an intent to enter into a contract. Even though there was no verbal or written agreement, Vita's request for a repair and Walter's fulfillment of the repair implies an agreement to pay for the services rendered.

Question 10

Bruce, a minor, enters into a contract with Coralee to buy her car.Later, Bruce opts to avoid the deal.With respect to the contract, this releases

Accepted Answer

In most jurisdictions, a contract with a minor is voidable at the minor's discretion. If Bruce, as a minor, opts to avoid the contract, it releases both parties from their obligations under the contract.

Question 11

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer

Accepted Answer

The answer of Signe offers to sell Thomas her textbook...

Question 12

Mark is creating Nu2U.com, a Web site through which he will enter into contracts over the Internet.Important terms to include in his offers include

Accepted Answer

Provisions specifying the remedies if the contract is breached are important for protecting Mark's rights in case the other party fails to fulfill their obligations. The other options are not directly relevant to the terms of the contract.

Question 13

Ricci, a user of SmartPhoneApps.com's Web site, can download apps for free if she first clicks on "I accept" after viewing certain terms.This is

Accepted Answer

By clicking on "I accept", Ricci is agreeing to the terms presented on the Web site before downloading the apps. This means that there is a contract in place that includes the terms, making choice B the best answer.

Question 14

Deluxe Awnings, Inc., offers Elbert a job as an installer.No time for acceptance is specified in the offer.The offer will terminate

Accepted Answer

In general, job offers that do not specify a deadline for acceptance are open for a reasonable period of time. The length of a reasonable period of time may vary depending on the circumstances, but courts have established that offers typically remain open for a few days to a few weeks. Therefore, option A is the best answer. Option D can also be considered correct since the offer may remain open indefinitely until Elbert accepts or rejects it.

Question 15

Moby negotiates a contract with Nora via e-mail.It is reasonable to infer that Moby has consented to

Accepted Answer

Since Moby negotiated a contract with Nora through email, it is reasonable to infer that Moby has consented to transact business electronically.

Question 16

Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month.Levi promises to do the chores.Jonah and Levi have formed a

Accepted Answer

The answer of Jonah tells Levi he will give him...

Question 17

Henry promises not to open his Hank's Lunchbox Café before 10:00 a.m.if Isis, who owns Isis's Danish & Donuts next door, promises to close by 4:00 p.m.Henry's consideration is

Accepted Answer

Henry's promise to not open before 10:00 a.m. is a forbearance, meaning he is refraining from doing something he has a legal right to do. This forbearance is being made in exchange for Isis's promise to close by 4:00 p.m.

Question 18

Kelby enters into a contract with Lara on a social media network to buy her stock in Mobile Devices Corporation.Neither party prints out a hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

Accepted Answer

The E-SIGN Act makes electronic signatures and contracts legally valid, and they cannot be denied legal effect simply because they are in electronic form. Therefore, even though Kelby and Lara did not print out a hard copy, their contract is legally enforceable.

Question 19

On Monday, O'Shea tells Patterson that she will pay Patterson $1,000 if O-Shea's bill processing and office filing are completed by Friday.On Wednesday, when Patterson has finished more than half of the work, O'Shea says that she has changed his mind.Under the modern-day view, these parties had

Accepted Answer

A unilateral contract is formed when one party makes an offer that can only be accepted through full performance by the other party. In this case, O'Shea made an offer to pay Patterson $1,000 if the work was completed by Friday. Once Patterson began working, a unilateral contract was formed. O'Shea cannot revoke the offer once Patterson has started performing under the modern-day view.

Question 20

Deb buys a song through eSongs, an online music vendor.Before completing the purchase and downloading the song, Deb must review a provision stating that she will not make and sell copies of the song and is required to click "I agree." This provision is

Accepted Answer

The provision that Deb must review and agree to is a click-on agreement, which requires the user to explicitly acknowledge the terms of the agreement by clicking "I agree" before being able to access the product.

Quiz 10: The Formation of Traditional and E-Contracts