Question 1

Although Kyrie's job title at a local car dealership is "sales director," in reality, all car deals must be approved by the dealership's owner. One day, Kyrie exceeded her authority and approved a sales contract when the owner was away. Why might the contract be binding on the dealership?

Question 1 options:

1)

because she was acting with apparent authority

2)

because the owner was away

3)

because she is an employee of the car dealership

4)

because she had actual authority

Question 2(1 point)

Kyle sent a cover letter with his new purchasing agent, Hiro, advising suppliers of Hiro's authority to transact purchases under $33 000. How would a court considering a dispute in which a plaintiff alleges Hiro had apparent authority to enter into a $42 000 purchase contract most likely resolve this dispute?

Question 2 options:

1)

Deny the third party's claim based on the principal's stated limitation.

2)

Allow the claim because Hiro was Kyle's agent.

3)

Allow the claim due to actual authority.

4)

Deny the outsider's claim based on the agent's unenduring authority.

Question 3(1 point)

Kellee negotiated a contract in good faith with a party whose introductory letter from his employer reasonably led her to believe he had the proper authority to do so. What would be the most likely outcome of any dispute challenging the existence of an agency relationship?

Question 3 options:

1)

The law sides with the principal through ratification.

2)

A court will determine the agent had actual authority.

3)

The law sides with the customer through estoppel.

4)

A court will determine the agent had apparent authority.

Question 4(1 point)

Which statement best describes fiduciary relationships?

Question 4 options:

1)

All fiduciaries are agents.

2)

All agents are fiduciaries.

3)

All fiduciaries are employees.

4)

All employees are fiduciaries.

Question 5(1 point)

Decian gave Greyson his final sales pitch, offering 10 percent off the list price, 60 days for payment, a delivery date, and delivery terms. What has happened so far at this point in the negotiation process?

Question 5 options:

1)

A consensus on the parties' rights and obligations has been reached.

2)

A consensus on the terms of the offer between parties was reached.

3)

A complete offer has been extended that is now open to acceptance.

4)

There has been a mutual expression of willingness to do business, which is invitation to treat

Question 6(1 point)

Which of the following is NOT an example of an invitation to treat?

Question 6 options:

1)

an advertisement in a newspaper states that all shirts are now 10% off

2)

an item is on a store shelf with a price on the shelf

3)

a item is in a store with a price tag on it

4)

an online shopper puts an item in a cart, goes to the checkout, enters their credit card information and presses "submit"

Question 7(1 point)

Ophelia saw Eager Electronics Inc.'s online ad stating that the store had Instant Pots on sale, $50 off, for sale for the price of $75. Unfortunately, the store was sold out by the time Ophelia arrived at the store with $75, and she now wants to sue Eager for breach of contract, claiming she accepted their offer by arriving at the store and tendering her payment of $75. Why will Ophelia's breach of contract claim be unsuccessful?

Question 7 options:

1)

because the store was not able to actually supply her with an Instant Pot

2)

because the store's ad did not constitute an offer to Ophelia

3)

because the offer expired when the store ran out of Instant Pots

4)

because the offer lapsed due to the passage of time

5)

because the court won't waste time with a case for this amount of money

Question 8(1 point)

Which of the following is an example of lapse?

Question 8 options:

1)

the time specified to accept an offer has expired

2)

one party responds to an offer with a counteroffer

3)

one party withdraws an offer before it is accepted by the other party

4)

one party rejects an offer

Question 9(1 point)

On Tuesday, Wren offered to sell one of her racing motorcycles to Felix for $8000. Felix said he needed time to consider her offer. On Friday morning, Wren sent Felix an e-mail message advising the offer was no longer open. Which of the following actions would allow Felix to try to complete the purchase of the motorcycle?

Question 9 options:

1)

present Wren with a new offer to buy the motorcycle

2)

re-start the offer by communicating a counteroffer

3)

immediately communicate a need for more time to Wren

4)

immediately communicate the acceptance of Wren's offer

Question 10(1 point)

Thea Mechanical Inc. has offered to sell a piece of equipment to Xacy Inc. for $100,000 and has promised to keep its offer open until the last day of the month. What is Thea Mechanical Inc's legal position in this situation?

Question 10 options:

1)

the promise to hold the offer open is contrary to public policy and is unenforceable

2)

the offer can be revoked at any time by Thea Mechanical Inc. without legal consequence, though there may be business consequences to Thea's reputation

3)

Thea Mechanical Inc. is legally bound to keep its offer open until the last day of the month

4)

the offer can be revoked before the last day of the month with the consent of Xacy Inc.

Question 11(1 point)

Astrid offered to sell some furniture to Holden for $4000, but Holden counter-offered with a price of $3500, as long as she would deliver it. Astrid rejected Holden's counter-offer. What is the effect of Holden's counter-offer on Astrid's original offer?

Question 11 options:

1)

Astrid's original offer is still available for acceptance until Astrid specifically revokes it.

2)

Astrid's original offer is no longer available because it has lapsed.

3)

Astrid's original offer is no longer available for acceptance because Holden's counter-offer ended the original offer.

4)

Astrid's original offer is still available because she has not replaced it with a new offer.

Question 12(1 point)

The fact situation here applies to questions 12 - 14. Ezekiel posted an ad on Kijiji with a picture of his home gym equipment, and a caption reading "For Sale, $1500".(Step One, Question 12) Apollo sent a message which stated "That stuff looks great. I really need to work out at home now with this pandemic. I'll buy that stuff for $1500, where should we meet."(Step Two, Question 13) Ezekiel tells Apollo that his gym just was shut down, so Ezekiel has changed his mind and is not selling the equipment anymore. (Step Three, Question 14). What occurred at the following point? - Ezekiel posted an ad on Kijiji with a picture of his home gym equipment, and a caption reading "For Sale, $1500".

Question 12 options:

1)

Invitation to treat

2)

Offer or counteroffer

3)

Lapse

4)

Revocation or rejection

5)

Acceptance

Question 13(1 point)

Refer to the fact pattern in question 12 above. What occurred at the following point? - Apollo sent a message which stated "That stuff looks great. I really need to work out at home now with this pandemic. I'll buy that stuff for $1500, where should we meet."

Question 13 options:

1)

Invitation to treat

2)

Offer or counteroffer

3)

Lapse

4)

Revocation or rejection

5)

Acceptance

Question 14(1 point)

Refer to the fact pattern in question 12 above. What occurred at the following point? - Ezekiel tells Apollo that his gym just was shut down, so Ezekiel has changed his mind and is not selling the equipment anymore.

Question 14 options:

1)

Invitation to treat

2)

Offer or counteroffer

3)

Lapse

4)

Revocation or rejection

5)

Acceptance

Question 15(1 point)

The big box on-line retailer has a notice on its webpage saying that a specific type of television is now on sale for $500 off. Daisy goes to the store and says "I am here to buy the television.Here's $100, I'll come by tomorrow with my truck to pick it up and I'll pay on my credit card".(the salesperson takes her money). When Daisy comes back the next day, the store is all sold out of the television she wanted. Which of the following is correct?

Question 15 options:

1)

Though it might annoy customers, the store is allowed to do this, because the parties were still negotiating

2)

Though it might annoy customers, the store is allowed to do this, because Daisy hadn't paid in full

3)

The store is allowed to do this , because there was no consensus

4)

The parties reached consensus. Daisy made an offer and the store accepted it.