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Formation and Modification of the Sales Contract Quiz

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Test Ch. 7: Formation and Modification of the Sales Contract
Date: 8/22/2019
Total Score: 3 out of 9
Percentage: 34%
S7+aE11ycvT0cY4I
1. The vice president of sales at Alpha Inc. calls Bree and offers her 100 picture frames at $5 per
unit, stating that the offer is open for ten days. Two days later, he sends her an email revoking the
offer. Bree promptly sends him back her acceptance of the offer. There is
a. a contract; this is a firm offer.
b. no contract; this involves a service not goods.
c. no contract; this is not a firm offer
Explanation: It was not a firm offer because it was not in writing.
d. a contract; the offer could not be revoked.
Review this content to learn more.
2. Under the parol evidence rule, extrinsic evidence may be admitted if it is to:
a. prove that both parties are merchants.
b. prove that one party committed fraud.
Explanation: Parol evidence is only prohibited to contradict or vary the written terms. Fraud could
rarely be determined without evidence other than the written document.
c. add additional terms that the parties discussed but were not included in the written
agreement.
d. contradict the terms of a written agreement.
Review this content to learn more.
3. A contract for sales of goods is required to be in writing if:
a. they are specially manufactured goods.
b. the price is over $500.
Explanation: A written contract for goods over $500 is the basic rule of the Statute of Frauds.

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c. either party is a merchant.
d. both parties are merchants.
Review this content to learn more.
4. Pippa offers to sell Michael her used laptop for $200, letting him know he can accept any time in
the following week. She writes the offer on a cocktail napkin and signs it. Michael accepts the
offer, but then Pippa revokes her offer the next week. There is:
a. no contract because Michael did not accept properly.
b. no contract because Pippa is not a merchant.
Explanation: Firm offers must be made by merchants.
c. no contract because a napkin is not considered proper documentation.
d. a contract because Pippa made a firm offer that Michael accepted in timely fashion.
5. If a high pressure salesperson talks to Jon, who's English is poor, and convinces him to buy a
widescreen television on an installment payment plan that allows the store to repossess the TV
and keep all of Jon's payments if he is more than a day late, this would likely be:
a. voided due to fraud.
b. valid.
c. voided for unconsionability.
Explanation: An unconscionable contract is one where the parties have disparate bargaining
power, one is taking advantage of the other, and the terms are grossly unfair.
d. voided due to duress.
6. Bayway Inc. sends the following letter to Alpha Corp: "We will sell you one used binding
machine for $10,000, with a 90-day warranty." Alpha responds: "We accept your offer for one used
binding machine at $10,000 to be delivered by August 1." The delivery date is not material and
Bayway did not object to the new terms. Which of the following statements is true?
a. There is a contract; Bayway does not have to deliver by August 1.
b. There is a contract and Bayway must deliver by August 1.
Explanation: Under the rule for merchants, UCC 2-207, an acceptance with additional terms is an
acceptance and the new terms become part of the contract unless 1) the offeree objects, 2) the
terms materially alter the contract, 3) the offer originally specified it was limited to its terms. In these
three cirumstances, the contract is on the offeror's original terms.

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Test Ch. 7: Formation and Modification of the Sales Contract • • • Date: 8/22/2019 Total Score: 3 out of 9 Percentage: 34% S7+aE11ycvT0cY4I 1. The vice president of sales at Alpha Inc. calls Bree and offers her 100 picture frames at $5 per unit, stating that the offer is open for ten days. Two days later, he sends her an email revoking the offer. Bree promptly sends him back her acceptance of the offer. There is • a. a contract; this is a firm offer. • b. no contract; this involves a service not goods. • c. no contract; this is not a firm offer Explanation: It was not a firm offer because it was not in writing. • d. a contract; the offer could not be revoked. Review this content to learn more. 2. Under the parol evidence rule, extrinsic evidence may be admitted if it is to: • a. prove that both parties are merchants. • b. prove that one party committed fraud. Explanation: Parol evidence is only prohibited to contradict or vary the written terms. Fraud could rarely be determined without evidence other than the written document. • • c. add additional terms that the parties discussed but were not included in the written agreement. d. contradict the ...
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