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4 Pages
CH11-7 w/ answers
Course: BE 325, Summer 2012School: Oregon
Rating:
Word Count: 494
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Warehouse B16. Eagle offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest accepts. Eagle must obtain a. a forklift for Forest, if Eagles insurance covers the loss. b. a forklift for Forest, if it wants one. c. nothing for Forest, because that would extend the time of theoffer. d. nothing for Forest, because the theft terminated the offer. ANSWER: D PAGE: 241 TYPE: = NAT: AACSB...
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Warehouse B16.
Eagle offers to sell a forklift to Forest Lumber Company,
but it is stolen before Forest accepts. Eagle must obtain
a.
a forklift for Forest, if Eagles insurance covers the loss.
b.
a forklift for Forest, if it wants one.
c.
nothing for Forest, because that would extend the time of theoffer.
d.
nothing for Forest, because the theft terminated the offer.
ANSWER: D PAGE: 241 TYPE: =
NAT: AACSB Reflective AICPA Legal
A17.
Quik Fix-It, Inc., offers Pam a job as a plumber. No time for
acceptance is specified in the offer. The offer will terminate
a.
after a reasonable period of time.
b.
after a typical work week (five business days).
c.
after a usual month (thirty calendar days).
d.
never.
ANSWER: A PAGE: 243 TYPE: N
NAT: AACSB Reflective AICPA Legal
B17.
First State Bank offers to lend money to Todd at 15 percent interest.
Before Todd accepts, a statute is enacted prohibiting loans at
interest rates greater than 12 percent. Todd and the bank have
a.
have a contract for a loan at 15 percent interest.
b.
have a contract for a loan at 12 percent interest.
c.
have a contract for a loan at 0 percent interest.
d.
no contract for a loan.
122 TEST BANK AUNIT THREE: CONTRACTS AND E-CONTRACTS
ANSWER: D PAGE: 242 TYPE: =
NAT: AACSB Reflective AICPA Legal
A18.
Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar loadof tomatoes. The offer via is
sent overnight delivery because anacceptance is required urgently. It would be most
reasonable for
Unified to accept via
a.
a fax, a letter, or a phone call to TF within two weeks.
b.
a fax sent to TF as soon as the offer is received.
c.
a letter mailed to TF within two days.
d.
a phone call to TF within five business days.
ANSWER: B PAGE: 244 TYPE: =
NAT: AACSB Reflective AICPA Legal
B18.
Eve tells Frank that she will pay Frank $50 if he unloads her truck.
Franks acceptance is complete
a.
as soon as Frank says he will unload the truck.
b.
once Frank starts to unload the truck.
c.
only after Frank unloads the truck.
d.
when Frank hears Eves offer.
ANSWER: C PAGE: 243 TYPE: =
NAT: AACSB Reflective AICPA Legal
A19.
Alan offers to transfer Beths videotapes to CDs for $500. The
mailbox rule will not apply if Beth accepts the offer by
a. e-mail.
b.
c.
d.
messenger.
regular mail.
telegram.
ANSWER: A PAGE: 244 TYPE: =
NAT: AACSB Reflective AICPA Legal
B19.
Retail Investment Company offers to sell a certain mall to ShoppingStores, Inc., if it accepts
before 10 A.M. Monday. A contract is formedif Shopping Stores acceptance is received
a.
any time on Monday.
CHAPTER 11: AGREEMENT 123
b.
before 10 A.M. Monday.
c.
before 11 A.M. Monday.
d.
within twenty-four hours of 10 A.M. Monday.
ANSWER: B PAGE: 244 TYPE: =
NAT: AACSB Reflective AICPA Legal
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