LSB Ch. 7 Exam Questions with Correct Answers| Latest Update Guaranteed Success
Mutual assent is typically referred to as a(n) "________" because the parties have agreed to
certain promises and obligations. meeting of the minds
An _______ is a promise or commitment to do (or refrain from doing) a specified activity such
as selling a good at a certain price or offering to provide services at a given rate. offer
Bill and Tom are heavily intoxicated and after his 9th beer, Bill says to Tom, "I'll sell you my
hunting truck for a six pack of beer," and they shake hands on it. The next day Tom comes with
a six pack and asks for the keys. Bill doesn't remember a thing and refuses to turn over the keys.
The issue is whether _______. Bill had objective intent
The modern trend is that advertisements appearing in the mass media, in store windows, or in
display cases are _______. (Choose two correct answers) invitations to make an offer
not offers
After reading the advertisement from BestDeals that stated: "Giant 54" plasma televisions for
$100 to the first 50 buyers on Friday, June 15th" Tom shows up with $100 cash. This could be
an example of advertising as a(n) _______. unilateral offer
An enforceable contract requires _______, also referred to simply as assent or agreement.
mutual assent
True or false: Traditional contract law principles still apply to e-contracts, but courts have had
to develop new applications and theories. in exchange for
An offer may be terminated by action of the parties in one of three ways _______, (2) _______,
or (3) _______. (Choose three correct answers) rejection
revocation
counteroffer
, The first step in determining whether a valid offer exists is analyzing the offeror's objective
_______ when making the offer. intent
An offer is terminated by _______ when the offeror decides to withdraw the offer by expressly
communicating that to the offeree prior to _______. (Choose two correct answers)
acceptance
revocation
Today, courts would look at a price tag on a product in the store is a(n) ________ and not an
offer to sell at that price by the business. invitation of the customer to make an offer
Suppose on September 11, Tom sends an email to Joe revoking Tom's offer. Joe is away from
the office, but Joe's administrative assistant receives the email, but Joe never actually sees the
email. The next day, from his hotel room in Tokyo, Joe calls Tom to accept Tom's offer made on
September 11. Does a contract exist? (Choose all correct answers) No, because Joe's agent
received the email.
No, because Joe made a counter offer.
The primary exception to the rule that advertisements are invitations to negotiate occurs when
the advertisement is specific enough to constitute a(n) _______ contract. unilateral
A(n) _______ by a merchant is _______ under the Uniform Commercial Code. firm offer
irrevocable
E-contracts covers all of the following except ________. (Choose ONE correct answer) click-
notice agreement
One way to make an offer ________ is for the offeror to grant the offeree a(n) _______ to
enter a contract. (Choose two correct answers) irrevocable
Mutual assent is typically referred to as a(n) "________" because the parties have agreed to
certain promises and obligations. meeting of the minds
An _______ is a promise or commitment to do (or refrain from doing) a specified activity such
as selling a good at a certain price or offering to provide services at a given rate. offer
Bill and Tom are heavily intoxicated and after his 9th beer, Bill says to Tom, "I'll sell you my
hunting truck for a six pack of beer," and they shake hands on it. The next day Tom comes with
a six pack and asks for the keys. Bill doesn't remember a thing and refuses to turn over the keys.
The issue is whether _______. Bill had objective intent
The modern trend is that advertisements appearing in the mass media, in store windows, or in
display cases are _______. (Choose two correct answers) invitations to make an offer
not offers
After reading the advertisement from BestDeals that stated: "Giant 54" plasma televisions for
$100 to the first 50 buyers on Friday, June 15th" Tom shows up with $100 cash. This could be
an example of advertising as a(n) _______. unilateral offer
An enforceable contract requires _______, also referred to simply as assent or agreement.
mutual assent
True or false: Traditional contract law principles still apply to e-contracts, but courts have had
to develop new applications and theories. in exchange for
An offer may be terminated by action of the parties in one of three ways _______, (2) _______,
or (3) _______. (Choose three correct answers) rejection
revocation
counteroffer
, The first step in determining whether a valid offer exists is analyzing the offeror's objective
_______ when making the offer. intent
An offer is terminated by _______ when the offeror decides to withdraw the offer by expressly
communicating that to the offeree prior to _______. (Choose two correct answers)
acceptance
revocation
Today, courts would look at a price tag on a product in the store is a(n) ________ and not an
offer to sell at that price by the business. invitation of the customer to make an offer
Suppose on September 11, Tom sends an email to Joe revoking Tom's offer. Joe is away from
the office, but Joe's administrative assistant receives the email, but Joe never actually sees the
email. The next day, from his hotel room in Tokyo, Joe calls Tom to accept Tom's offer made on
September 11. Does a contract exist? (Choose all correct answers) No, because Joe's agent
received the email.
No, because Joe made a counter offer.
The primary exception to the rule that advertisements are invitations to negotiate occurs when
the advertisement is specific enough to constitute a(n) _______ contract. unilateral
A(n) _______ by a merchant is _______ under the Uniform Commercial Code. firm offer
irrevocable
E-contracts covers all of the following except ________. (Choose ONE correct answer) click-
notice agreement
One way to make an offer ________ is for the offeror to grant the offeree a(n) _______ to
enter a contract. (Choose two correct answers) irrevocable
