Business Law 15th Edition by Jane P. Mallor -Test Bank

Chapter 11

The Agreement: Acceptance

True / False Questions

1. When determining the presence of the intent to accept, a subjective standard is used.

FALSE
The intent to accept, like the intent to contract, is judged by an objective standard.

AACSB: Ethics
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-01 Explain the elements of an acceptance under both the UCC and common law.
Topic: What is an Acceptance?

2. The intent to accept is objectively demonstrated by words or conduct or a combination of the two.

TRUE
Intent to accept is objectively demonstrated by words or conduct or a combination of the two.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Explain the elements of an acceptance under both the UCC and common law.
Topic: What is an Acceptance?

3. In recent times, the mirror-image rule is applied such that only a material difference between offer and acceptance creates a rejection of the offer.

TRUE
The traditional contract law rule is that acceptance must be the mirror image of the offer. In recent years, courts have applied a more liberal approach to this by stating that only material variances between an offer and a purported acceptance result in an implied rejection of the offer.

AACSB: Ethics
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-01 Explain the elements of an acceptance under both the UCC and common law.
Topic: What is an Acceptance?

4. If the offeree accepts the offeror’s terms while complaining about them, it is called a grumbling acceptance.

TRUE
When an offeree accepts an offer while complaining about it, it is called a grumbling acceptance.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Explain the elements of an acceptance under both the UCC and common law.
Topic: What is an Acceptance?

5. The UCC section 2-207 allows a contract to be formed even though the terms of the offer and the terms of the acceptance differ.

TRUE
This section 2-207 allows the formation of a contract even when there is some variance between the terms of the offer and the terms of the acceptance.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Explain the elements of an acceptance under both the UCC and common law.
Topic: What is an Acceptance?

6. Kevin offered to mow the lawn for his Uncle Jordan’s for $100. To his offer, Uncle Jordan replied by saying “I know you’re taking advantage of me but I accept.” Uncle Jordan has indeed accepted the offer made by Kevin.

TRUE
As soon as the offeree states “I accept” or words to that effect, the contract is made, provided that the offer still exists.

AACSB: Ethics
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-02 Determine how acceptance can be communicated in a given scenario and analyze the time at which acceptance is likely to be effective.
Topic: When is Acceptance Communicated?

7. Acceptances by instantaneous forms of communication are effective immediately upon communication to the offeror.

TRUE
When parties are communicating face-to-face, by telephone, or any such means then communication of acceptance is instantaneous and easily.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Determine how acceptance can be communicated in a given scenario and analyze the time at which acceptance is likely to be effective.
Topic: When is Acceptance Communicated?

8. Where an offer stipulates a certain means of acceptance, the offeree’s acceptance is effective upon dispatch even if it uses means other than those specified in the offer.

FALSE
An improperly dispatched acceptance or one that was sent by some means of communication that was nonauthorized would be effective only when received.

AACSB: Ethics
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 11-02 Determine how acceptance can be communicated in a given scenario and analyze the time at which acceptance is likely to be effective.
Topic: When is Acceptance Communicated?

9. To accept an offer for a unilateral contract, the offeree must make the promise requested by the offer.

FALSE
To accept an offer for a unilateral contract, the offeree must perform the must perform the requested act.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Determine how acceptance can be communicated in a given scenario and analyze the time at which acceptance is likely to be effective.
Topic: Special Acceptance Problem Areas

10. To accept an offer for a bilateral contract, the offeree must perform the requested act.

FALSE
To accept an offer for a bilateral contract, the offeree must make the promise requested by the offer.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Determine how acceptance can be communicated in a given scenario and analyze the time at which acceptance is likely to be effective.
Topic: Special Acceptance Problem Areas