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Quiz on BUSL - Quiz #6, created by ermarv12 on 30/04/2014.

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BUSL - Quiz #6

BUSL - Quiz #6

Question 1 of 10

1

Jill and Karl contracted for the sale of Jill's horse for $1,000. Unknown to either party, the horse has already died. Karl is required to pay because Karl assumed the risk the horse might die.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 10

1

Al offers to sell Bart his bike for $200. Bart says, "Ok, I accept, but I sure wish I could have gotten it for less." Bart has communicated a counteroffer.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 10

1

Revocations are effective upon being put into the course of transmission to the offerree.

Select one of the following:

  • True
  • False

Explanation

Question 4 of 10

1

One of the elements of fraudulent misrepresentation is the innocent party's reliance on the misrepresentation.

Select one of the following:

  • True
  • False

Explanation

Question 5 of 10

1

The mailbox rule holds the acceptance is effective when received by the offeror or a duly authorized agent of the offeror.

Select one of the following:

  • True
  • False

Explanation

Question 6 of 10

1

A counteroffer

Select one of the following:

  • terminates the offer

  • terminates the offeree's power of acceptance

  • generally continues the negotiations on the offeree's terms

  • all of the above

Explanation

Question 7 of 10

1

Through fraudulent means, Frank induces Ethel to sign a contract to invest with him the profits of her business. When Ethel learns the truth, she may

Select one of the following:

  • only enforce the contract

  • only recover what she invented with Frank

  • Enforce the contract or recover what she invested with Frank

  • take no action

Explanation

Question 8 of 10

1

Oscar offered to buy Felix's vacation cabin on the Upper Peninsula of Michigan for $45,000. Oscar's offer was transmitted by surface mail October 15th and required Felix reply in the same manner. Felix received the offer on the 19th and sent his acceptance on the 20th. Oscar, rethinking his action, sent a letter to Felix on October 16th revoking his previous offer. As of October 20th, the parties

Select one of the following:

  • do not have a contract by reason of Oscar's attempt to revoke his offer

  • do not have a contract because Felix's acceptance has not been received by Oscar

  • are bound to a contract on the terms in Oscar's offer

  • are bound to a contract on the terms in Oscar's offer, and Oscar's revocation will result in a breach of that contract when received

Explanation

Question 9 of 10

1

Which of the following is NOT a requirement for a firm offer?

Select one of the following:

  • The offeror must be a merchant

  • The offeree must be a merchant

  • The offer must be in a signed writing

  • All of the above are requirements for a firm offer

Explanation

Question 10 of 10

1

Owen, a famous chef, sells to Pat a restaurant Owen closed years ago. Pat discovers a collection of Owen's recipes, which are considered valuable, in the restaurant. In a suit to obtain the recipes, Owen will likely

Select one of the following:

  • not prevail because he should have known the recipes were in the restaurant

  • not prevail because the sale of a restaurant includes everything in it

  • prevail because there was no mutual assent

  • prevail because the sale of a restaurant includes nothing in it

Explanation

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