1. A bilateral contract is a promise for a promise. True or False?
2. Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms, when the acceptance form has terms additional to or different from the offer:
a. a contract can result and the differing terms must be included as part of the contract.
b. no contract will result because the acceptance form will not be considered as a counter-offer.
c. no contract will result because the acceptance form will be considered as a counter-offer and thus an implicit rejection of the offer.
d. a contract can result but the differing terms may not be part of the contract.
3. (Please Note: There may be more than one correct answer)
If Peggy says to John, "I'll give you $50 if you stand on your head for one hour":
a. The statement can form the basis for a unilateral contract.
b. Peggy and John have created a contigent contract.
c. John must stand on his head to accept Peggy's offer.
d. John must verbalize his assent in order to render effective acceptance.
4. An acceptance is effective as soon as it is dispatched if the offeree uses:
a. only an authorized means of communication.
b. only a stipulated means of communication.
c. an authorized as well as the stipulated means of communication.
d. any reasonable means of communication.
5. Browse wrap agreements are:
a. viewed by some courts as illegal.
b. viewed by some courts as voidable.
c. per se illegal.
d. in paper form.
6. (Please Note: There may be more than one correct answer)
On February 21, 2012, Stateville College President Erhlich sent a letter to Lt Governor Alfred E. Neuman asking Neuman to speak at the Stateville College commencement on the topic "Do Brains and Politics Mix?" On February 24, Neuman responded in a fax, "I'll speak if you will pay a $50,000 speaking fee." On February 25, President Erhlich heard Neuman say something unintelligent on the morning news program and sent an email to Neuman which said "I revoke my offer for you to speak at commencement." Ten minutes later, Neuman checked his email on his smartphone, and five minutes after that Neuman called Erhlich and said, "I've changed my mind. I accept your offer and I'll be glad to speak for free." Which of the following is a correct statement of the law?
a. If Neuman's February 24 fax can be viewed as an inquiry rather than a counter-offer, and Ehrlich had received Neuman's call before Neuman received Ehrlich's email, Ehrlich would have been bound to a contract with Neuman despite his attempt to revoke because his revocation would only have been efffective when received by Neuman.
b. Under these circumstances, Ehrlich had no right to revoke his offer at any time before receiving Neuman's call.
c. Neuman's fax was a counter-offer which terminated Ehrlich's offer.
d. Even if Neuman had phoned to accept before reading Erhlich's email, no contract would have formed because the February 25 email was not effective to revoke the offer made on February 21.