Ask Business Law & Ethics Expert

In response to Bill's request for a price on high grade fuel oil, Sam, a high grade fuel oil wholesaler, wrote to Bill, a high grade fuel oil retailer, on December 20, 2008: "I offer to supply you with high grade fuel oil, at the price of $14.00 per gallon. Because of your past favors, this offer will remain open, (signed) Sam." On December 22, 2008, Bill wrote to Sam stating that he was considering buying high grade fuel oil in 2009, but Bill did not place an order for high grade fuel oil at this time. Sam received Bill's letter on December 24, 2008.

On January 8, 2009, Bill ordered 40,000 gallons of high grade fuel oil from Sam, which were delivered and paid for at the rate of $14.00 per gallon.

On March 7, 2009, the price of high grade fuel oil rose to $17.00 per gallon generally throughout the trade. On March 9, 2009, Sam mailed a letter to Bill stating: "I revoke my December 2008 offer." Sam's letter was misdirected by the post office and Bill did not receive it until March 16, 2009.

Bill placed additional orders, all by mail: on March 10, 2009, for 50,000 gallons of high grade fuel oil; on March 17, 2009, for 70,000 gallons of high grade fuel oil; on March 30, 2009, for 100,000 gallons of high grade fuel oil. Sam received all the orders two days after they were mailed by Bill, but Sam has refused to fill any of Bill's March 2009 orders.

On April 5, 2009, Bill purchased 55,000 gallons of high grade fuel oil from Tom (a competitor of Sam). The cost was Tom's regular price of $20.00 per gallon, although Bill admitted later that by shopping around he might have been able to buy the high grade fuel oil at $18.00 per gallon.

QUESTION 1. Bill's request for a price on high grade fuel oil constitues an offer.

True
False

QUESTION 2. Sam's response to Bill, dated December 20, 2008, is a firm offer.

True
False

QUESTION 3. Bill accepted Sam's offer on December 24, 2008.

True
False

QUESTION 4. According to UCC Section 2-205, all firm offers are valid for three months.

True
False

QUESTION 5. The January 8, 2009, order and delivery constitute an executed contract.
True
False

QUESTION 6. Sam's revocation of his offer of December 20, 2008, was effective on March 9, 2009.
True
False

QUESTION 7. According to the "Mailbox Rule," a revocation is effective on the date it is mailed if it has the corect address and proper postage.
True
False

QUESTION 8. Bill's order on March 10, 209, constitutes a valid acceptance of Sam's offer and therefore creates a valid contract.
True
False

QUESTION 9. Bill's order of March 30, 2009, constitutes a valid acceptance of Sam's offer and therefore creates a valid contract.
True
False

QUESTION 10. Bill could not accept Sam's offer by telephone call to Sam.
True
False

QUESTION 11. Bill is obligated to mitigate his damages by finding the lowest reasonable cover price.
True
False

QUESTION 12. In addition to receiving cover damages from Sam, Bill is entitled to receive reasonable incidental damages.
True
False

QUESTION 13. The revocation of an offer must be made in writing.
True
False

QUESTION 14. The offeree of a firm offer must be a merchant, according to UCC section 2-205.
True
False

QUESTION 15. In this case the amount of cover damages due to Bill is the same as the nominal damages due to him.
True
False

QUESTION 16. A firm offer is the same as an option contract.
True
False

QUESTION 17. Anyone could validly accept Sam's offer of December 20, 2008.
True
False

QUESTION 18. Bill's order on March 17, 2009, constitutes an invitation to negotiate.
True
False

QUESTION 19. No consideration is required to make a valid firm offer, according to the UCC section 2-205.
True
False

QUESTION 20. Bill is entitled to receive punitive damages from Sam.
True
False

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M91923292
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Law & Ethics

Assignment -purpose - this significant task requires

Assignment - Purpose - This significant task requires forward planning and adequate time for research, reading and reflecting. The purpose of the assignment is to enable you to achieve outcomes in knowledge, skill and ap ...

Group report1 this group assignment consists of 2 parts

GROUP REPORT 1. This group assignment consists of 2 parts. Part A is a case study on contract law, and Part B is a question involving Corporations Law. Both questions must be answered. 2. The total word limit for the gro ...

Managing the legal environment assignment - research

MANAGING THE LEGAL ENVIRONMENT ASSIGNMENT - RESEARCH PROJECT Company: Nike (a) Summarise in about 250-500 words the characteristics/features of the organisation (you can choose a statutory/government body or select a bus ...

Corporations law - assignment questions -objectives -

CORPORATIONS LAW - ASSIGNMENT QUESTIONS - Objectives - Answer the following questions with reference to the relevant statute law and general common law principles operating in Australia concerning the consequences of the ...

Business law assignment question -mabo has been said to a

BUSINESS LAW ASSIGNMENT QUESTION - Mabo has been said to a cornerstone of the Australian legal system. Your response must discuss the following: 1. Discussion of the Mabo (No 2) case. 2. Explain the impacts of the case o ...

Assignment - advanced financial accounting1 classification

Assignment - Advanced Financial Accounting 1. 'Classification of liabilities is based on the same principles as the classification of assets.' Do you agree with this? Why or why not? 2. 'Classification of liabilities as ...

Property law for business assignment question -mrs betty

PROPERTY LAW FOR BUSINESS ASSIGNMENT QUESTION - Mrs Betty Joyce lives in an old, war-time vintage army shed in Baldivis. When she started to live in the shed, in the early 1960s, the whole area was a remote backwater. Si ...

Compare and contrast tort law and criminal law explain the

Compare and contrast tort law and criminal law. Explain the purpose of the law of torts in contract to the purposes of criminal law. Why are they different? Support your answer using specific examples from the textbook.

Assessment taskassignment questiondiscussi the main ways

Assessment Task Assignment question: Discuss: i. the main ways that a company may source finance; and ii. the benefits and costs associated with the main sources of corporate finance. Guidance - Students are to read text ...

Australian commercial and corporations law assignment -this

Australian Commercial and Corporations Law Assignment - This assignment deals with critical problem solving skills. This assessment tests course objectives addressing: Knowledge of relevant law, Application of the law to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As