Business Law 17th Edition By Arlen Langvardt – Test Bank

Chapter 11 The Agreement: Acceptance

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

Answer: FALSE
Explanation: The intent to accept, like the intent to contract, is judged by an objective standard.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

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

Answer: TRUE
Explanation: Intent to accept is objectively demonstrated by words or conduct or a combination of the two.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

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.

Answer: TRUE
Explanation: 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.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

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

Answer: TRUE
Explanation: When an offeree accepts the offer’s terms while complaining about them, it is called a grumbling acceptance.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

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

Answer: TRUE
Explanation: Section 2-207 of the UCC allows the formation of a contract even when there is some variance between the terms of the offer and the terms of the acceptance.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

6) An acceptance is assent to a proposal by the offeree to the offeror.

Answer: TRUE
Explanation: Acceptance is a manifestation of assent to the terms of the offer made by the offeree in the manner invited or required by the offer.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

7) The intention to accept an offer must be a present intent to contract on the part of the offeree.

Answer: TRUE
Explanation: A court will look to see if the offeree, when accepting an offer, had a present intent to contract.
Difficulty: 1 Easy
Topic: What Is an Acceptance?
Learning Objective: 11-01 Explain the elements of an acceptance under both the Uniform Commercial Code (UCC) and common law.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

8) Kevin offered to mow his Uncle Jordan’s lawn 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.

Answer: TRUE
Explanation: As soon as the offeree states “I accept,” or words to that effect, the contract is created, assuming that the offer is still in existence.
Difficulty: 3 Hard
Topic: When Is Acceptance Communicated?
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.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

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

Answer: TRUE
Explanation: When parties are communicating face-to-face, by telephone, or any such means then communication of acceptance is instantaneous.
Difficulty: 1 Easy
Topic: When Is Acceptance Communicated?
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.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

10) 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.

Answer: FALSE
Explanation: An improperly dispatched acceptance or one that was sent by some means of communication that was nonauthorized would be effective only when received, assuming that the offer was still open at that time.
Difficulty: 2 Medium
Topic: When Is Acceptance Communicated?
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.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation