BUS 420 Week 3 Quiz

(TCO 4) Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices for similar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by _____ (Points : 2)        Elmore.
       Ford.
       Grace.
       no one, Elmore's offer is still open.

Question 2. 2. (TCO 4) Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the details. Wanda responds with a letter of acceptance. Wanda and Vito have _____ (Points : 2)

       a contract.
       no contract, because Vito sent the letter to more than one party.
       no contract, because Vito was only inviting bids.
       no contract, because the letter was an invitation to negotiate.

Question 3. 3. (TCO 4) Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have _____ (Points : 2)

       an executed contract.
       an express contract.
       an implied-in-fact contract.
       a quasi-contract.

Question 4. 4. (TCO 4) Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is _____ (Points : 2)

       a formal contract.
       an informal contract.
       a social contract.
       no contract.

Question 5. 5. (TCO 4) Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a 30-second commercial on a local television station, offering a reward for information leading to the apprehension of a certain criminal. CCS could normally terminate the offer by placing _____ (Points : 2)

       a full-page ad in the local paper and a 30-second commercial on the local station.
       a notice in the "Legal Announcements" section of the paper.
       a notice to the news departments of the local stations.
       any, or none, of the choices.

Question 6. 6. (TCO 4) Superior-Plus Properties, Inc., and Topps Construction Company sign a contract that specifies the amounts to be paid for a building project at various stages and on its completion. Additional compensation may be justified by _____ (Points : 2)

       any business obstacles that arise after the time of the contract.
       changes in the market price of needed materials during the contract.
       extraordinary difficulties unforeseen at the time of the contract.
       no circumstances.

Question 7. 7. (TCO 4) Which of the following is true of a minor’s duty towards a contract for necessaries of life? (Points : 2)

       Minors need to reach the age of majority to enter into contracts for necessaries of life.
       Minors are exempt from paying for contracts of necessaries of life.
       Minors must pay the reasonable value of necessaries of life for which they contract.
       Parents are liable to provide necessaries of life to their minor children if they become emancipated.

Question 8. 8. (TCO 4) Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. If Sharon fails to check the results and Mary wins the lottery, which of the following would be true for the contract between Mary and Sharon? (Points : 2)

       Mary can claim for breach of contract against Sharon.
       Sharon can claim for breach of contract against Mary.
       Neither Mary nor Sharon can claim breach of contract.
       Mary’s promise is supported by consideration.

Question 9. 9. (TCO 4) Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work. This promise is _____ (Points : 2)

       enforceable.
       illusory.
       unliquidated.
       unforeseen.

Question 10. 10. (TCO 4) Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. What kind of contract do Mary and Sharon have? (Points : 2)

       Pre-existing duty
       Past consideration
       Illegal consideration
       Illusory promise