Larson Lexus, a new car dealer, runs the following newspaper ad during the Fall of 1994."Three '94 Lexus LS-400s must go! $45,500 each!The first three customers who arrive at our dealership on Saturday, October 8 with this ad can buy one of these cars for $45,500!"Knowing that $45,500 is a very good price for an LS-400, Mike is the first customer to appear at the Larson lot on Saturday, October 8.He hands the ad to the Larson salesman and says that he'd like to buy one of the LS-400s for $45,500.Is the dealership contractually bound to sell Mike the car at that price?

A)No, because advertisements are not offers but rather are invitations to negotiate.

B)No, because a written offer must be accepted in writing.

C)No, because under the UCC rule, ads of this kind are not offers.

D)Yes, because this ad is an offer and Mike accepted it.

23.In general, when are offerees bound by "fine-print" terms stated in offers?Focus only on the rules regarding offers and do not consider unconscionability.

A)Always.

B)Only when they actually read the term.

C)Only when they had actual or reasonable notice of the term.

D)Never.

24.The State of Indiana agrees with the Ace Construction Company that Ace will do some repair work on a bridge.The agreement, however, does not specify the exact work to be done, the quality standards Ace must meet, and the time the job must be completed. Also, the agreement states an ambiguous formula for determining Ace's compensation. Later, before either it or the state has done anything, Ace backs out of the job. Then it is sued by the state. Ace defends by arguing that the contract fails because it (or the offer) is indefinite. Which of the following is true?

A)Ace's argument is correct and the state cannot recover.

B)Ace's argument is no good because here the parties obviously intended to make a contract.

C)Ace's argument is no good because here the court has a reasonably certain basis for giving an appropriate remedy.

D)Ace's argument is no good because here the parties obviously intended to make a contract, and the court has a reasonably certain basis for giving an appropriate remedy.