1- Which of the following is an offer? a-What a fine looking racehorse, would you be interested in selling? b-What a fine looking racehorse, I'd given anything for a horse like that. c-What a fine looking racehorse, I bet he's worth $500,000. d-What a fine looking racehorse, I'll give you $500,000 cash payable next Monday at the close of business. What do you say? 2-A marketing firm employee says to Marsha, "we like your looks for a particular ad we're making, would you like to be in a TV commercial for $100." Marsha's sister Jan overhears the offer, and while Marsha thinks about it, Jan says "I accept." a-Jan cannot accept the offer because the offer needs to be made to their parents b-Jan cannot accept the contract because she is not the offeree c-Jan cannot accept the contract because she does not look like Marsha d-Jan has validly accepted the offer 3- Facebook offers a "bug bounty," where it rewards people for notifying them of software bugs. The highest reward Facebook has paid was $50,000 for identifying a problem in the developer subscription mechanism. Facebook's web page details the terms of the bug bounty program. What kind of contract is Facebook's bug bounty? a-Unilateral, Implied b-Unilateral, Express c-Bilateral, Implied d-Bilateral, Express 4- A gameshow host runs for president promising to build "a big, beautiful wall on the entire Mexican border, believe me, no one's seen anything like it, it'll be the best wall ever and the Mexicans will pay for it." He wins but loses reelection. Alas, there are only a few miles of wall built and the Mexicans did not pay for it. If a supporter of the gameshow host sues for breach of contract, what result? a-There is a contract as political promises are binding on politicians. b-There is no contract because the statement is political hyperbole, not an offer. c-There is a contract but only if the supporter voted for the gameshow host. d-There is no contract because some supporters might be contractors who would benefit by being hired to build the wall. 5-Suppose a factory orders 1000 widgets from a supplier and the supplier agrees. The supplier in fact ships the widgets. Assume the Michigan UCC applies. Is the contract valid even though the only explicit term is quantity? a-No. Under the UCC, the parties must state all reasonably necessary terms and that is lacking here. b-No. Under the UCC, both price and quantity must be stated. c-Yes. Under the UCC, any agreement is enforceable no matter what terms are included or omitted. d-Yes. Under the UCC the only necessary term is quantity. 6-A family walks into a fancy the restaurant, the kind where a server comes to your table, takes your order, and brings you food. Each family member places an order. The meal comes and the family eats it. At no time was price or expectation of payment discussed. What kind of contract exists, obligating the family to pay? a-Written contract b-Public domain contract c-Implied contract d-Express contract 7- Which of the following is most likely to be considered an offer for a unilateral contract? a-The government offers $100,000 for information leading to the arrest and conviction of the police officer killed during the Capitol Building riot. b-The government asks Apple Computer for a backdoor to defeat the IPhone's security. c-An undercover FBI agent offers a suspected drug dealer $10,000 for cocaine. d-The government puts out for bid a construction project for a new post office. 8- Collector says to Rock Star, "I'll sell you my 1955 Black Beauty Les Paul for $125,000." Rock Star says, "Great, but I can only pay $110,000." Collector, says "OK, I'll take $110,000." Which of the following is true? a-Collector's first statement was an offer, Rock Star's statement was a counteroffer, and Collector's last statement accepted the counteroffer. b-Collector's first statement was an offer, Rock Star's response was an acceptance, and Collector's last statement was a counteroffer. c-Collector's first statement was an offer, Rock Star's response was a rejection, and Collector's last statement was an offer. d-Collector's first statement was an offer and Rock Star's statement was an acceptance. 9- Frigaliment is the case where the parties disputed the meaning of the word "chicken." What lesson can we draw from Frigaliment? a-The meaning of words depend on context and experience, and because everyone has a different context and experience it is impossible to communicate with each other b-Words can have different meanings in different contexts and it is therefore important to clarify what the words of a contract mean c-Litigation is an efficient way to sort out the meaning of terms with your customers and suppliers d-The meaning of "chicken" was decided in Led Zeppelin v. Skidmore, because you know sometimes words have two meanings. 10- A car buyer signs a contract to purchase a new car at a dealership. What kind of contract is this? a-Unconscionable contract b-Not a contract as there is no consideration c-Implied contract d-Express contract 11- A law professor in a lecture on offer and acceptance says to the class "I offer to sell you my car for $10,000. Is that an offer?" A student says "yes it is and I accept." Is there a valid contract? a-Yes, because the professor used the words of an offer b-No, because a reasonable person would conclude the professor's statement was an example, not a real offer c-No, because students and professors cannot make contracts d-Yes, because $10,000 was a fair price for the car