LGS 200 Exam 2 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of the following is a valid offer?
A. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer.
B. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for
$300,000." Eric seems to be upset, so Arun says he will sell it for $290,000.
C. Arun distributes flyers at work stating he wants to sell his house, listing the address and
the asking price.
D. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease
ends in two months. Arun wants to think about it and six days later has not yet responded. -
CORRECT ANSWER D
Which act or statement is valid?
A. A completed auction with a reserve
B. A detailed advertisement
C. A typical advertisement
D. A price quote - CORRECT ANSWER B
An invitation to bargain or negotiate, price quotes, letter of intent, auctions, and typical
advertisements are not valid acts
What type of acceptance requires an affirmative action?
A. Unilateral contracts
B. The typical type of acceptance to an offer
C. Browsewrap agreements
D. Offeree's silence in response to an offer - CORRECT ANSWER A
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic
charges to her credit card. After taking three months off for winter weather, Harris staff cut
, Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly
protested the charges, stating she did not hire the company to cut grass for the second
summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
A. Lilly's silence is acceptance because the offeree accepted the benefit offered.
B. Lilly's silence is not acceptance in this case because the offeree must affirmatively accept
the terms of the offer in full and communicate that acceptance to the offeror.
C. Lilly's silence is acceptance because of the parties' past dealings.
D. Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to
her. - CORRECT ANSWER A and C
The main 3 requirements for a valid contract are; - CORRECT ANSWER Offer,
Acceptance, Consideration
Which situation would be considered sufficient consideration for a contract to exist?
A. Alice's grandson quit smoking, so Alice promises to give him $5,000.
B. Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work
within a reasonable time if Tonya pays her a bonus.
C. Alice promises to give her granddaughter $10,000.
D. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore. - CORRECT
ANSWER D
What are the elements of consideration? Choose 2
A. A preexisting duty
B. Something of value from each party
C. Past consideration
D. An exchange to which the parties agree - CORRECT ANSWER B and D
Which type of lack of capacity is easiest to prove?
QUESTIONS AND CORRECT ANSWERS
Which of the following is a valid offer?
A. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer.
B. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for
$300,000." Eric seems to be upset, so Arun says he will sell it for $290,000.
C. Arun distributes flyers at work stating he wants to sell his house, listing the address and
the asking price.
D. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease
ends in two months. Arun wants to think about it and six days later has not yet responded. -
CORRECT ANSWER D
Which act or statement is valid?
A. A completed auction with a reserve
B. A detailed advertisement
C. A typical advertisement
D. A price quote - CORRECT ANSWER B
An invitation to bargain or negotiate, price quotes, letter of intent, auctions, and typical
advertisements are not valid acts
What type of acceptance requires an affirmative action?
A. Unilateral contracts
B. The typical type of acceptance to an offer
C. Browsewrap agreements
D. Offeree's silence in response to an offer - CORRECT ANSWER A
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic
charges to her credit card. After taking three months off for winter weather, Harris staff cut
, Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly
protested the charges, stating she did not hire the company to cut grass for the second
summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
A. Lilly's silence is acceptance because the offeree accepted the benefit offered.
B. Lilly's silence is not acceptance in this case because the offeree must affirmatively accept
the terms of the offer in full and communicate that acceptance to the offeror.
C. Lilly's silence is acceptance because of the parties' past dealings.
D. Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to
her. - CORRECT ANSWER A and C
The main 3 requirements for a valid contract are; - CORRECT ANSWER Offer,
Acceptance, Consideration
Which situation would be considered sufficient consideration for a contract to exist?
A. Alice's grandson quit smoking, so Alice promises to give him $5,000.
B. Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work
within a reasonable time if Tonya pays her a bonus.
C. Alice promises to give her granddaughter $10,000.
D. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore. - CORRECT
ANSWER D
What are the elements of consideration? Choose 2
A. A preexisting duty
B. Something of value from each party
C. Past consideration
D. An exchange to which the parties agree - CORRECT ANSWER B and D
Which type of lack of capacity is easiest to prove?
