Understanding Business and Personal Law
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Chapter 5: How Contracts Arise
      
  1.All contracts must be in writing to be enforceable.  
  a.   TRUE  
  b.   FALSE  
      
  2.An offer of a reward is an example of a(n)  
  a.   voidable contract.  
  b.   unenforceable contract.  
  c.   bilateral contract.  
  d.   unilateral contract.  
      
  3.A reward offer is one of the most common examples of a unilateral contract.  
  a.   TRUE  
  b.   FALSE  
      
  4.An option contract is one that  
  a.   occurs when the offeror withdraws an offer before it is accepted.  
  b.   is a binding promise to hold an offer for a specific time.  
  c.   is considered a counteroffer to the first offer.  
  d.   ends if it is not accepted within a reasonable time.  
      
  5.The mirror image rule can be defined as  
  a.   an acceptance which has not changed the terms of the original offer in any way.  
  b.   limited acceptance to the terms in an original offer.  
  c.   the ability to add new terms to a contract without an attorney present.  
  d.   a counteroffer made to the original offeror.  
      
  6.A contract that is missing one of the six elements is considered  
  a.   void.  
  b.   unilateral.  
  c.   limited.  
  d.   unenforceable.  
      
  7.When a counteroffer is made, the original offeror is still obligated to accept.  
  a.   TRUE  
  b.   FALSE  
      
  8.People can enter into an implied contract without ever saying a word.  
  a.   TRUE  
  b.   FALSE  
      
  9.To be considered an offer, it must be  
  a.   a contract which follows the UCC, in writing, and must specify an action.  
  b.   unconditional, follow the mirror image rule, and include a counteroffer.  
  c.   made seriously, definite and certain, and communicated to the offeree.  
  d.   an invitation to negotiate, an invitation to deal, and an invitation to trade.  
      
  10.Price tags, signs in store windows, and prices marked on merchandise are treated as offers rather than invitations to negotiate.  
  a.   TRUE  
  b.   FALSE  

 
 
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