Business Law Chapter 5

An oral contract is not enforceable at law.

• true

• false

Advertisements in newspapers, price tags, and signs in store windows are treated by the law as invitations to negotiate.

• true

• false

An acceptance of an offer to sell goods may not change the terms of the offer if both offeror and offeree are nonmerchants.

• true

• false

A valid contract must contain at least four of the six elements of a contract.

• true

• false

Consideration is the legal ability to enter a contract.

• true

• false

The taking back of an offer by the offeror is

• revocation

• rejection

• cancellation

• consideration

A contract that amounts to nothing and has no legal effect is

• unenforceable

• voidable

• void

• unilateral

A contract that contains a promise by both parties is

• express

• implied

• bilateral

• unilateral

To be effective, an offer must be communicated to the

• attorney

• offeree

• lender

• offeror

If a valid offer is met with a valid acceptance, the result is

• misrepresentation

• genuine agreement

• legality

• capacity