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Selected Answer:This is a merchant's firm offer.Question 6Tom is a famous fashion designer with a number of shops that earn approximately$15,000 of profit each day. He hires Sam to build a shop for him in Phoenix scheduled to open on January 1. What can Tom put in the contract so he can collect his expected profits if the restaurant is not ready on time?Selected Answer:a liquidated damages clause.Question 7What is true of contracts entered into online?Selected Answer:You are bound to all of the terms that appeared before you clicked "I Accept" or "I Agree".Question 8If a company specifies certain shipping requirements in the first four of its contracts with a vendor but the fifth order does not specify these shipping requirements, thenSelected Answer:The contract is voidable.Response Feedback:The custom that arose between two parties will be used to interpret future contracts between the parties.Question 9Which of the following is not true?Selected Answer:When you delegate, only the party that you delegate your duties to can be held responsible for the result if something goes wrong.Question 10What is true about merchant's confirmatory memoranda?
Selected Answer:All of the answer choices are correct.Question 11What is not true about merchant's confirmatory memoranda?Selected Answer:All of the answer choices are correct.Question 12Sam Seller and Bill Buyer meet at a trade show. Although they do not put their agreement in writing, Sam sends a confirmation of their oral agreement that he alone signed to Bill by fax the following day. What is the effect of this fax?Selected Answer:It is binding unless Bill objects.Response Feedback:This is a merchant's confirmatory memorandum.Question 13Nick bought a used car and asked the former owner, Jim, if it had never been in a crash and Jim said "No". However, after completing the purchase, Nick ran a report on the car and learned that it had been in a car crash. Which of the following is correct?Selected Answer:This is fraud if Jim knew about the crash and misrepresentation if Jim did not know.Response Feedback:You must prove scienter to prove fraud.Question 14A scene depicted in movie, The Social Network shows the Winkelvoss twins offering Mark Zuckerberg a position with a new social media business venture in exchange for some coding services. None of the details are specified. Which is correct about the offer as presented in the film?Selected Answer:The offer was invalid because the terms were not reasonably certain.Response Feedback:An offer was invalid if the terms are not reasonably certain. There was no discussion of compensation and so forth.Question 15In order to have a valid option contract,Selected Answer:the only requirement is the both parties sign it.