Chapter 11

Question 1

Offer

Answer 1

An act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms

Question 2

Offeror

Answer 2

The person who makes an offer

Question 3

Offeree

Answer 3

The person to whom an offer is made

Question 4

Statements that usually do not amount to offers

Answer 4

1. An invitation to bargain
2. Price Quotes
3. Letter of intent (summarizes negotiating process)
4. Advertisements
5. Auctions

Question 5

Consumer protection statute

Answer 5

Outlaws false advertising

Question 6

Gap-filler provisions

Answer 6

UCC rules for supplying missing terms

Question 7

Output contract

Answer 7

Obligates the seller to sell all of his output to the buyer, who agrees to accept it

Question 8

Requirements contract

Answer 8

Obligates a buyer to obtain all of his needed goods from the seller

Question 9

Revocation

Answer 9

Takes the offer back

Question 10

Option contract

Answer 10

The offeror may not revoke an offer during the option period. Which is if the offeree pays the offeror to hold open its offer.

Question 11

Firm Offers

Answer 11

If a promise made in writing and signed by a merchant, and if it agrees to hold open an offer for a stated period, offeror may not revoke offer.