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Question 10: Diggle Company sends a purchase order to Echo Company to buy 50 widgets at $5 each, or, as they are normally packaged by

Question 10: Diggle Company sends a purchase order to Echo Company to buy 50 widgets at $5 each, "or, as they are normally packaged by you, 10 boxes of 5 widgets."Echo sends back an acknowledgement that states it will send Diggle "50 widgets at $5 each, which in our new packaging of 10 per box, is 5 boxes."Do they have a contract, and if so, what are its terms?

a. No, there is no contract because the offer and acceptance are not mirror images of each other.

b. Yes, and the terms of the contract are that Echo will send 5 boxes containing 10 widgets in each box. (original choice)

c. Yes, and the terms of the contract are that Echo must send 10 boxes containing 5 widgets in each box. (corrected)

d.No, because the packaging is a material term.

if the packaging is not material that alters the contract, the modification of the contract would automatically be applied since both buyer and seller are merchants? should the answer be: B_Yes and the terms of the contract are that Echo will send 5 boxes containing 10 widgets in each box?

Question 12: Helix Co. orders 5000 Grade A widgets from Intel Co, without specifying the price.Intel agrees to send them, and then sends 5000 Grade A widgets with an invoice.Do they have a contract?

a.No, the price was not agreed upon.

b.Yes, as long as the quantity and type of product is specified, the court can fill in the open terms relying on course of dealing, course of performance, and industry trade usage. (original choice)

c.Yes, as long as Helix does not timely object to the price. (corrected)

d.No, unless Helix specifically agrees to pay that price.

Why is it not B but C?

Question 13: Able Company agrees to sell Baker Company $300 worth of bananas.What effect does the Statute of Frauds have on this agreement?

a. None. (original choice)

b. The contract must be in writing, with all terms spelled out.

c. There must be a writing with the price and the quantity.

d.There must be a writing with the price, quantity, and signed by the seller. (corrected)

the value is less than $500 in this case so I am assuming the statue of fraud is not taking any effect. why would the answer be D instead of A) None?

Thank you

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