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QUESTION 1 Casey\'s General Store places an advertisement in their window with a

ID: 3468497 • Letter: Q

Question

QUESTION 1

Casey's General Store places an advertisement in their window with a photo of a whole pizza and a price of $1.   Danny orders a pizza and tries to pay with $1.   The clerk tells him that the advertisement was for a slice of pizza for $1, not a whole pizza. Danny insists that the offer was for a whole pizza and tells the clerk that she is legally bound to sell the pizza for $1.   Danny rechecks the sign and sees that the photo is of a whole pizza and that nothing on the sign says that the price is for just a slice of pizza. Is Danny right?

Yes, because the photo in the advertisement is a legally binding part of the offer communication

No, because an advertisement is not a contract offer

No, because most people know that Casey's usually sells pizza by the slice

Yes, because the offer was for a whole pizza for $1 and Danny accepted the offer when he ordered the pizza

Yes, because Casey's is negligent for giving the impression that a whole pizza is $1

QUESTION 2

To be valid, an offer must be

a.Made with serious intent

Definite

c. All of these

Communicated

Not revoked

QUESTION 3

Malik sent a text offering to paint Shana's house for $1000. It stated that he would assume that price is acceptable to her if she didn't counteroffer a different price in the next three days.  After four days, Malik heard nothing from Shana so...

a. There is no contract because Malik didn't specify the color

b. There is no contract because there is no written document

There is no contract because Shana needed more time than three days to counteroffer a different price

d. There is no contract because Shana's silence cannot serve as an acceptance

There is a contract because an electronic record (Malik's text) is available as proof of the offer

QUESTION 4

Which of the following is an example of a unilateral contract?

Joe offers to sell his bike to Sally (who is 15 years old) for $25, to be paid by Sally's dad. Sally's dad accepts the offer.

Joe offers to sell marijuana to Sally for whatever amount she has in her wallet at that moment. Sally accepts the offer.

Joe offers a $50 reward for anyone who can find and return his lost iguana. Sally finds and returns the iguana and claims the reward.

Joe offers to mow Sally's lawn if she will move her car from the yard. Sally moves her car.

e. Joe offers to sell his car to Sally for 10% below fair market value. Sally accepts the offer.

QUESTION 5

Jorge loves to tease Maria and he sends her a text that says, "I will pay you a million dollars to marry me!   Ha ha!   Love, Jorge."

a. If Maria thinks that Jorge is serious, then she will be able to bind Jorge into a contract by accepting his offer of one million dollars and marriage

b. By the objective test, it is obvious that Jorge is not serious and Maria will not be able to bind Jorge into a contract whether she believes him or not

Maria has every right to accept Jorge's offer of marriage but she cannot force him to pay her one million dollars

If Maria accepts Jorge's offer, he will be legally bound to pay Maria one million dollars and to marry her

Maria can accept Jorge's offer of one million dollars but she cannot bind him into a contract to marry her

a.

Yes, because the photo in the advertisement is a legally binding part of the offer communication

b.

No, because an advertisement is not a contract offer

c.

No, because most people know that Casey's usually sells pizza by the slice

d.

Yes, because the offer was for a whole pizza for $1 and Danny accepted the offer when he ordered the pizza

e.

Yes, because Casey's is negligent for giving the impression that a whole pizza is $1

Explanation / Answer

1. Option B : Because advertisement is not a contract offer.

2. Option C : All of these

3. Option D : because Shana's silence cannot be considered as acceptance.

4. Option C

5. Option C

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