1. In hybrid contracts involving the sale of goods and services, how do courts generally decide whether to apply the UCC?

a. Courts look at the predominant focus of the contract.

b. Courts only apply the UCC to the goods portion.

c. Courts will not apply the UCC to a hybrid contract.

d. Courts look where the UCC and the common law agree and apply those portions of the law.

2. Which of the following is NOT an element of a contract?

a. Offer.

b. Equal exchange.

c. Consideration.

d. Acceptance.

e. All of these are elements of a contract.

3. On July 1, Mr. Burns makes an oral offer to sell used well piping to a steel mill for recycling into new steel. On July 15, the steel mill mailed Mr. Burns its acceptance. However, on July 17, before the acceptance reaches him, Mr. Burns revokes the offer by faxing his revocation to the mill. The acceptance arrives on July 20. Is there a contract?

a. No, because Mr. Burns revoked his offer before he learned of the mill’s acceptance.

b. No, because the acceptance has to be in the same media as the offer.

c. Yes, because oral offers must remain open for 10 days.

d. Yes, the mill’s acceptance is effective at the time of dispatch.

4. On July 1, Mr. Burns makes an offer to sell used well piping to a steel mill for recycling into new steel. On July 15, the steel mill mails Mr. Burns its acceptance. However, on July 17, before the acceptance reaches him, Mr. Burns revokes the offer by faxing his revocation to the mill. The acceptance never arrives. Is there a contract?

a. No, Mr. Burns has to receive the acceptance before it will become effective.

b. Yes, the mailbox rule holds that a contract is created when the acceptance is dispatched.

c. No, the mill has the duty to assure that the offeror knows of the acceptance, even if he does not receive it.

d. Yes, but only if the mill gave Mr. Burns some form of consideration to keep the offer open.

5. Dwight goes to Bakersfield Cadillac and tries to work out a deal on a new Caddy. Dwight picks out the model he likes and makes an offer of $25,000. Sensing that he is opposite a man of means, the salesman laughs and suggests a price of $35,000 is more in order. Dwight counters with a price of $30,000. The salesman thinks about the price for a minute, then counters with a price of $32,500. Dwight leaves, upset that he could not get the car for $30,000, the price he was willing to pay. The next day, the salesman calls to tell Dwight that his car is on the way and that the salesman thinks $30,000 is a good price.

Dwight thinks he is bound to the deal because the salesman has apparently accepted Dwight’s last price. Bewildered, Dwight just hangs up the telephone. Is there a contract at $30,000?

a. Yes, because Dwight made the $30,000 offer in good faith.

b. Yes, because Dwight was silent when the salesman told him the car was on its way.

c. No, the salesman’s counteroffer of $32,500 terminated Dwight’s $30,000 offer.

d. No, because Dwight’s offer was only open for a reasonable time, and more than a day is not reasonable.