BUS 311 Week 2 Quiz 1

BUS 311 Week 2  Quiz 1 | Assignment Help | Ashford University 

BUS 311 Week Two Quiz

 

Question 1

After mowing his own lawn, David goes next door and mows his neighbor Lena’s lawn as a nice gesture. As he is finishing up, Lena arrives home. Happy to find a newly mown lawn, Lena says, “That’s so nice of you! When I get paid Friday, I’ll give you $20.” David says, “I accept!” Which best describes the situation?

 

o   There is a contract, since David accepted the offer.

o   There is no contract, because Lena made a unilateral offer.

o   There is no contract, because Lena gave no consideration.

o   There is no contract, because David gave only past consideration.

 

 

Question 2

Delta Inc. offers to sell Omega Corp. a packaging machine. Omega responds “We’ll take it but only if there is a six-month warranty.” Which of the following is true?

 

o   There is a contract, and Omega has a six-month warranty.

o   There is a contract, but Omega does not have a six-month warranty.

o   There is a contract unless the warranty term is a material change. Correct!

o   There is no contract.

 

 

 

 

 

 

 

 

 

 

Question 3

Alpha orders 100 Grade A widgets from Beta. Beta does not have any Grade A widgets in stock, so it ships Alpha 100 Grade B widgets instead. Which of the following is true?

 

o   Beta has made a counteroffer.

o   Beta has accepted Alpha’s offer.

o   Beta has breached.

o   Two of these

 

 

Question 4

Royal Hotel Inc. verbally orders 100 sets of sheets and pillowcases, each to be embroidered with the chain’s coronet logo, for $1,000, from Textile Inc. Textile starts on the order and has completed 45 sets when Royal calls back and cancels the order. Which of the following is true?

 

o   There is no contract; Textile never accepted the offer.

o   The contract is unenforceable; it falls within the UCC Statute of Frauds. The contract is fully enforceable; this is the part performance exception to the Statute of Frauds.

o   The contract is fully enforceable; this is the specially manufactured goods exception to the Statute of Frauds.

 

 

 

 

 

 

Question 5

Peter offers to sell Maxine his car for $5,000, stating, “I need to know by Friday, and you should email me your answer.” Maxine calls Peter on Thursday and leaves a voicemail telling him she wants the car. Peter listens to the voicemail on Thursday night. Which statement best describes the situation?

 

o   There is a contract since Peter got the message in time.

o   There is a contract regardless of when Peter gets the message.

o   Maxine has rejected Peter’s offer by using voicemail. Correct!

o   Maxine had made a counteroffer, which Peter can now choose to reject or accept.

 

 

 

 

Question 6

Consideration is:

 

o   Part of a bargained -for exchange.

o   Either a benefit or detriment.

o   An element of a contract.

o   Two of the above

o   All of these

 

 

 

 

 

 

Question 7

Beta Inc. offers to buy 25 screwdrivers from Industrial Hardware for $75. Industrial responds, “We have the screwdrivers you wish to purchase, but the price is $80.” Beta replies, “No, we can find them cheaper somewhere else.” Industrial now responds, “We accept your offer of 25 screwdrivers for $75.” Do they have a contract?

 

o   No, Industrial’s counteroffer terminated Beta’s offer.

o   No, Beta never made an offer since shipment terms were not included.

o   Yes, Beta made a firm offer.

o   Yes, Industrial was merely attempting to negotiate.

 

 

 

Question 8

Unlike the common law, the UCC provides that a merchant’s firm offer cannot be revoked if it

 

o   All of these

o   Gives assurance it will be held open.

o   Is in a signed document.

o   Is made by a merchant.

 

 

 

 

 

 

 

 

 

 

Question 9

Petra contracted to paint Bret’s house for $2,000. After beginning the job, Petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells Bret she wants another $500 to finish the job. Bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. Is Bret legally obligated to pay the extra $500?

 

o   Yes, if Petra does finish the paint job.

o   Yes, this is a contract under the UCC.

o   No, Bret made an illusory promise.

o   No, Petra had a pre-existing duty to paint the house for $2,000.

 

 

 

Question 10

Alison contracts to sell “50 bushels of tomatoes grown in my garden” to Flora’s Café. Alison’s garden is wiped out by a hailstorm. The contract is

 

o   Discharged due to impossibility.

o   Discharged due to commercial impracticability.

o   Discharged due to frustration of purpose.

o   Not discharged.