Reference no: EM13781278

Question 1. After mowing his own lawn, David goes next door and mows his neighbor Lena's lawn as a nice gesture. As he is finishing up, Lena arrives home. Happy to find a newly mown lawn, Lena says, "That's so nice of you! When I get paid Friday, I'll give you $20." David says, "I accept!" Which best describes the situation?

There is a contract, since David accepted the offer.

There is no contract, because Lena made a unilateral offer.

There is no contract, because Lena gave no consideration.

There is no contract, because David gave only past consideration.

Question 2. Daniel offers to sell his Toyota Camry to Jen for $8,000. Jen replies, "I accept. Make sure you wash and wax the car before you bring it over." Which best describes the situation?

There is a contract; Daniel must wash and wax the car.

There is a contract, but Daniel does not have to wash and wax the car.

There is no contract; Jen made a counteroffer.

There is no contract unless Jen is willing to take an unwashed car.

Question 3. Under the UCC, a court is most likely to find a contract is unconscionable and should be voided if

the terms are grossly unfair.

the parties do not have equal bargaining power.

the parties are both merchants.

Two of these

All of these

Question 4. Peter offers to sell Maxine his car for $5,000, stating, "I need to know by Friday, and you should email me your answer." Maxine calls Peter on Thursday and leaves a voicemail telling him she wants the car. Peter listens to the voicemail on Thursday night. Which statement best describes the situation?

There is a contract since Peter got the message in time.

There is a contract regardless of when Peter gets the message.

Maxine has rejected Peter's offer by using voicemail.

Maxine had made a counteroffer, which Peter can now choose to reject or accept.

Question 5. Beta Inc. offers to buy 25 screwdrivers from Industrial Hardware for $75. Industrial responds, "We have the screwdrivers you wish to purchase, but the price is $80." Beta replies, "No, we can find them cheaper somewhere else." Industrial now responds, "We accept your offer of 25 screwdrivers for $75." Do they have a contract?

No, Industrial's counteroffer terminated Beta's offer.

No, Beta never made an offer since shipment terms were not included.

Yes, Beta made a firm offer.

Yes, Industrial was merely attempting to negotiate.

Question 6. Jason promises to tutor Maria in Essentials of Business Law for three hours next week in exchange for $30. Maria promises to pay the $30. They have a/an:

Express contract

Implied contract

Quasi contract

Formal contract

Question 7. Delta Inc. offers to sell Omega Corp. a packaging machine. Omega responds "We'll take it but only if there is a six-month warranty." Which of the following is true?

There is a contract, and Omega has a six-month warranty.

There is a contract, but Omega does not have a six-month warranty.

There is a contract unless the warranty term is a material change.

There is no contract.

Question 8. Quasi contracts

are not real contracts.

are the same thing as an implied contract.

seek to prevent unjust enrichment.

Two of these

All of these

Question 9. By letter, Martine offers to landscape Harry's yard for $500. Harry thinks that is too much, and on Monday he mails a rejection. However, on Tuesday Harry realizes Martine was giving him a good deal, so he mails an acceptance. Martine however changed her mind about the job on Wednesday, and mailed a revocation, which Harry receives on Thursday. On Friday, Martine receives Harry's acceptance. On Saturday, she receives his rejection. Which best describes the situation?

There is a contract; Harry accepted on Tuesday.

There is a contract; Harry accepted on Friday.

There is no contract; the offer terminated on Monday.

There is no contract, the offer terminated on Thursday.

Question 10. Seller agrees to supply all the gasoline Buyer needs for the next year at $3.00 per gallon. After three months, the price of gas falls to $2.33 per gallon. Buyer refuses to keep buying from Seller unless Seller lowers the price. Seller agrees. Two months later, the average price for gas goes up to $3.50 per gallon. Seller asks Buyer to agree to a price raise, but Buyer refuses. Which of the following is true?

Buyer must pay $3.00 per gallon for the rest of the year.

Buyer must pay $2.33 per gallon for the rest of the year.

Buyer must pay $3.50 per gallon for the rest of the year.

Seller can legally refuse to supply Buyer with any more gasoline for the rest of the year.