Business Law Final Review

Which of the following is a test that a valid offer must pass?

• Is contractual intent present in the offer?

• Are the essential terms of the offer complete and definite?

• Is it made in anger, terror or jest?

• All of these are tests that a valid offer must pass.

An offer may be terminated by

• a counteroffer.

• failing to act within a reasonable length of time.

• the rejection of the offeree.

• all of these.

Capacity to contract means that the person

• has the ability, according to law, to understand the contract and the consequences thereof.

• has a genuine need for the goods or services purchased.

• has ample room to store goods that are purchased.

• all of these.

In a _________________________ the offeror promises something in return for the offeree's performance and indicates that this performance is the way acceptance is to be made.

• matching offer contract

• unilateral contract

• bilateral contract

• mirror image rule

If the court requires that the terms of the acceptance exactly match the terms contained in the offer in order for the contract to be legally enforceable, the court is imposing the

• mirror image rule.

• matching acceptance rule.

• bilateral rule.

• unilateral rule.

The Uniform Commercial Code (UCC) makes firm offers binding for the stated period of time in the offer but not to exceed

• thirty days.

• six months.

• three months.

• three years.

Generally defined _________________________________________ are agreements between two or more parties that create obligations.

• agendas

• treaties

• offers

• contracts

If an offeree alters a term in the original offer and sends it back to the original offeror, the result is a(n)

• counteroffer

• option.

• contract.

• counter claim.

Michelle was a victim of fraud. The $40,000 portion of her court award that Michelle received in order to punish the party who committed fraud against her is known as

• nominal damages.

• punitive damages.

• actual damages.

• compensatory damages.

Under the UCC once a merchant makes a firm offer to buy or sell goods, the merchant must keep the offer open for as long as is stipulated in the offer but no longer than

• one month.

• 60 days

• three months.

• 180 days.