BUSINESS LAW I
Chapter 6 – Offer and Acceptance
Assignment: Contract Questions
Name _____________________________________________
Date
_______________________
Period ______
______________
13 pts. possible
For each statement below, write in the answer column the letter preceding the word/group of words that best
completes the statement.
Case
The Budget Office Furniture Company advertised a 60” x 30” executive desk for $179.50 in its office
supply catalog. Marlow went to the store and told the salesperson that she wanted to buy one of
the advertised desks. Marlow’s action was:
a. an agreement
c. an offer
b. an acceptance
d. a bilateral contract
1.
_________
2.
_________
An example of a valid offer is:
a. a notice of a reward for finding a lost dog
b. an advertisement to sell a car
c. an offer that is made in jest
d. an offer to sell a stolen stereo
3.
_________
If no fixed time is stated for an offer to remain open, the offer:
a. ends automatically after 30 days
b. ends after a reasonable time
c. ends when the offeree states that it is ended
d. remains open indefinitely
4.
_________
Your friend made the following statement: “I might sell my car next month if I can get a good
price.” This statement is:
a. an offer to a formal contract
b. an offer to a unilateral contract
c. an offer to a bilateral contract
d. not an offer
5.
_________
When goods are sold at an ordinary auction, acceptance takes place when:
a. the auctioneer lets the gavel fall
b. the offeree pays for the goods
c. the auctioneer hears the highest bid
d. the auctioneer presents the goods for sale
6.
_________
Carlos bid $125 for an antique table at a flea market auction. This bid is legally considered:
a. an acceptance to an offer
c. a counteroffer
b. a bilateral contract
d. a valid offer
7.
_________
Revocation of an offer takes place when:
a. the offeror has been properly notified
b. the offeree has been properly notified
c. a proper counteroffer is made
d. the offeree properly refuses the offer
8.
_________
Unless otherwise stated, acceptance of an offer made by mail takes place as soon as the letter of
acceptance is:
a. written by the offeree
c. received by the offeror
b. mailed by the offeree
d. received by the offeree
9.
_________
Fowler, an antique dealer, wrote a letter to Graham on May 9 offering to sell Graham the
grandfather clock that Graham had been interested in at Fowler’s antique show. The letter stated
that the acceptance had to be received by May 15. Graham mailed a letter of acceptance on May
15 that reached Fowler on May 16. A valid contract was made:
a. on May 15
c. on May 16
b. on May 9
d. at no time
10.
_________
If Storm pays Mooney $50 to keep an offer for the sale of a personal computer open for a definite
length of time, their agreement is called:
a. a counteroffer
c. a breach
b. an option
d. a quasi-contract
11.
_________
Preston offered to sell a camera to Bellino, but withdrew the offer before Bellino could accept.
Preston’s withdrawal of the offer is known as a/an:
a. a revocation
c. counteroffer
b. option
d. acceptance
12.
_________
Adams promised to pay Casey $15 if Casey would help look for his lost pet boa constrictor. This is
an example of a/an:
a. bilateral contract
c. void contract
b. unilateral contract
d. formal contract
13.
_________
Jamison offered to sell her college roommate her old laptop computer for $175 cash. The
roommate replied, “I’ll give you $125.” The roommate’s reply was a/an:
a. acceptance
c. revocation
b. contract
d. counteroffer