1. Beta Inc. offers to buy 25 screwdrivers from Industrial Hardware for $75. Industrial responds, We have the screwdrivers you wish to purchase, but the price is $80. Beta replies, No, we can find them cheaper somewhere else. Industrial now responds, We accept your offer of 25 screwdrivers for $75. Do they have a contract?

A. No, Industrials counteroffer terminated Betas offer.

B. No, Beta never made an offer since shipment terms were not included.

C. Yes, Beta made a firm offer.

D. Yes, Industrial was merely attempting to negotiate.

2. Alpha orders 100 Grade A widgets from Beta. Beta does not have any Grade A widgets in stock, so it ships Alpha 100 Grade B widgets instead. Which of the following is true?

A. Beta has made a counteroffer. B. Beta has accepted Alpha