Seller agrees to supply all the gasoline Buyer needs for the next year at $3.00 per gallon. After three months, the price of gas falls to $2.33 per gallon.
Seller agrees to supply all the gasoline Buyer needs for the next year at $3.00 per gallon. After three months, the price of gas falls to $2.33 per gallon. Buyer refuses to keep buying from Seller unless Seller lowers the price. Seller agrees. Two months later, the average price for gas goes up to $3.50 per gallon. Seller asks Buyer to agree to a price raise, but Buyer refuses. Which of the following is true?
Buyer must pay $3.00 per gallon for the rest of the year.
Buyer must pay $2.33 per gallon for the rest of the year.
Buyer must pay $3.50 per gallon for the rest of the year.
Seller can legally refuse to supply Buyer with any more gasoline for the rest of the year.
Question 2
Merlin posts his car for sale. Breanna calls and leaves a voicemail, saying, “Hey, I definitely want to buy your car! I’ll pick it up tomorrow, okay?” Which of the following best describes the situation?
There is a contract, because Breanna has accepted the offer.
There is no contract, because Breanna did not use a proper form of acceptance.
There is no contract, because Breanna made a counteroffer.
There is no contract, because Merlin never made an offer.
Question 3
Unlike the common law, the UCC provides that a merchant’s firm offer cannot be revoked if it
All of these
gives assurance it will be held open.
is in a signed document.
is made by a merchant.
Question 4
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
discharged due to impossibility.
discharged due to commercial impracticability.
discharged due to frustration of purpose.
not discharged.
Question 5
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?
No, Industrial’s counteroffer terminated Beta’s offer.
No, Beta never made an offer since shipment terms were not included.
Yes, Beta made a firm offer.
Yes, Industrial was merely attempting to negotiate.
Question 6
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?
There is a contract, and Omega has a six-month warranty.
There is a contract, but Omega does not have a six-month warranty.
There is a contract unless the warranty term is a material change.
There is no contract.
Question 7
Under the UCC, a court is most likely to find a contract is unconscionable and should be voided if
the terms are grossly unfair.
the parties do not have equal bargaining power.
the parties are both merchants.
Two of these
All of these
Question 8
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?
Beta has made a counteroffer.
Beta has accepted Alpha’s offer.
Beta has breached.
Two of these
Question 9
By letter, Martine offers to landscape Harry’s yard for $500. Harry thinks that is too much, and on Monday he mails a rejection. However, on Tuesday Harry realizes Martine was giving him a good deal, so he mails an acceptance. Martine however changed her mind about the job on Wednesday, and mailed a revocation, which Harry receives on Thursday. On Friday, Martine receives Harry’s acceptance. On Saturday, she receives his rejection. Which best describes the situation?
There is a contract; Harry accepted on Tuesday.
There is a contract; Harry accepted on Friday.
There is no contract; the offer terminated on Monday.
There is no contract, the offer terminated on Thursday.
Question 10
If an offeree attempts to add different terms in an acceptance, which conflict with what the offeror stated
the terms cancel each other out.
the offeror’s terms govern the contract.
the offeree’s terms govern the contract.
the offeree’s terms govern the contract unless the offeror objects.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
