exam buisness law 2.0

Question 1

acceptance

Answer 1

manifestation of a willingness to enter into a contract on the terms of the offer

Question 2

acceptance following a prior rejection

Answer 2

first communication received by the offeror is effective

Question 3

authorized means

Answer 3

usually any reasonable means of communication

Question 4

commercial reasonableness

Answer 4

judgment of reasonable persons familiar with the business transaction

Question 5

communication

Answer 5

offeree must have knowledge of the offer and the offer must be made by the offeror or her authorized agent to the offeree

Question 6

conditional acceptance

Answer 6

acceptance of an offer contingent upon the acceptance of an additional or different term

Question 7

consideration

Answer 7

the inducement to enter into a contract, consisting of an act or promise that has legal value

Question 8

counteroffer

Answer 8

counterproposal to an offer

Question 9

death or incompetency

Answer 9

of either the offeror or the offeree terminates the offer

Question 10

defective acceptance

Answer 10

does not create a contract but serves as a new offer

Question 11

defective acceptance

Answer 11

does not create a contract but serves as a new offer

Question 12

definiteness

Answer 12

offer’s terms must be clear enough to provide a court with a basis for giving an appropriate remedy

Question 13

destruction of subject matter

Answer 13

of an offer terminates the offer

Question 14

effective moment

Answer 14

acceptance effective upon dispatch unless the offer specifically provides otherwise or the offeree uses an unauthorized means of communication

Question 15

firm offer

Answer 15

irrevocable offer by a merchant to sell or buy goods, made in a signed writing that gives assurance that it will not be revoked for up to three months

Question 16

good faith

Answer 16

honesty in fact

Question 17

intent

Answer 17

determined by an objective standard of what a reasonable offeree would have believed

Question 18

irrevocable offer of unilateral contracts

Answer 18

a unilateral offer may not be revoked for a reasonable time after performance is begun

Question 19

lapse of time

Answer 19

offer remains open for the time period specified or, if no time is stated, for a reasonable period of time

Question 20

mirror image rule

Answer 20

an acceptance cannot deviate from the terms of the offer

Question 21

offer

Answer 21

a proposal indicating a willingness to enter into a contract

Question 22

offeree

Answer 22

person to whom the offer is made

Question 23

offeror

Answer 23

person making the offer

Question 24

option

Answer 24

contract providing that an offer will stay open for a specified period of time

Question 25

output contract

Answer 25

an agreement of a buyer to purchase the entire output of a seller’s factory

Question 26

promissory estoppel

Answer 26

noncontractual promise that binds the promisor because she should reasonably expect that the promise will induce the promisee (offeree) to take action in reliance on it

Question 27

rejection

Answer 27

the refusal to accept an offer

Question 28

requirements contract

Answer 28

an agreement of a seller to supply a buyer with all his requirements for certain goods

Question 29

revocation

Answer 29

cancellation of an offer by an offeror; generally, an offer may be terminated at any time before it is accepted

Question 30

statutory irrevocability

Answer 30

offer made irrevocable by statute

Question 31

stipulated provisions in the offer

Answer 31

the communication of acceptance must conform to the specifications in the offer

Question 32

subsequent illegality

Answer 32

of the purpose or subject matter of the offer terminates the offer

Question 33

Unauthorized Means

Answer 33

acceptance effective when received, provided that it is received within the time within which the authorized means would have arrived

Question 34

without reserve

Answer 34

auctioneer may not withdraw the goods from the auction

Question 35

assumption of risk of mistake

Answer 35

a party may assume the risk of a mistake

Question 36

concealment

Answer 36

action taken to keep another from learning of a fact

Question 37

duress

Answer 37

wrongful or unlawful act or threat that overcomes the free will of a party

Question 38

effect of fault

Answer 38

upon mistake not a bar to avoidance unless the fault amounts to a failure to act in good faith

Question 39

fact

Answer 39

an event that took place or a thing that exists

Question 40

fiduciary

Answer 40

person who owes a duty of trust, loyalty, and confidence to another

Question 41

fraud in the execution

Answer 41

a misrepresentation that deceives the other party as to the very nature of the contract; renders the agreement void

Question 42

fraud in the inducement

Answer 42

misrepresentation regarding the subject matter of a contract that induces the other party to enter into the contract; renders the contract voidable

Question 43

improper threats

Answer 43

improper threats or acts, including economic and social coercion, render the contract voidable

Question 44

innocent misrepresentation

Answer 44

misrepresentation made withoutknowledge of its falsity but with due care

Question 45

justifiable reliance

Answer 45

reasonably influenced by the misrepresentation

Question 46

material

Answer 46

of substantial importance; likely to induce a reasonable person to enter into the contract

Question 47

misrepresentation

Answer 47

some positive statement or conduct that is not in accord with the facts

Question 48

mistake

Answer 48

an understanding that is not in accord with existing fact

Question 49

mutual mistake

Answer 49

both parties have a common but erroneous belief forming the basis of a contract

Question 50

negligent misrepresentation

Answer 50

made without due care

Question 51

opinion

Answer 51

belief in the existence of a fact or a judgment as to value

Question 52

physical duress

Answer 52

coercion involving physical force renders the agreement void

Question 53

puffing

Answer 53

sales talk that is considered general bragging or overstatement

Question 54

scienter

Answer 54

guilty knowledge

Question 55

undue influence

Answer 55

the unfair persuasion of a person by a party in a dominant position based on a relationship of trust and confidence

Question 56

unilateral mistake

Answer 56

erroneous belief on the part of only one of the parties to a contract