Business Law Appeal Form for Exam; Refutes Incorrect Answers

Business Law Appeal Form for Exam 2

1. Question 20

I. Reason why stated answer is wrong:

i. The offer is terminated once the offeree rejects it.

II. Reason why my answer is right:

i. There is a difference between termination through (1) revocation and (2) rejection of the offer by the offeree. With an option contract, revocation is not possible because the offeror is promising to “hold the offer open for a specified period of time in return for a payment.” Rejection of the offer by the offeree, however, is different because the offeree is the party that terminates the offer. When this happens, the agreement to provide the offeror with compensation vanishes, and the offeror is under no obligation to keep the option contract open. As the text explains, "If the offeree rejects the offer - by words or by conduct - the offer is terminated. Any subsequent attempt by the offeree to accept will be construed as a new offer, giving the original offeror (now the offeree) the power of acceptance."

ii. Source: Text, Page 230

2. Question 23

I. Reason why stated answer is wrong:

i. ABC

II. Reason why my answer is right:

iii. ABC

3. Question 25

I. Reason why stated answer is wrong:

i. ABC

II. Reason why my answer is right:

iv. ABC

4. Question 34

I. Reason why stated answer is wrong:

i. Contract is not enforceable because the wrong product was shipped, thus breaching the contract.

II. Reason why my answer is right:

v. Even if the wrong product was shipped accidentally, this is still a breach of the contract. On sites such as Amazon.com, for example, if one person delivers the wrong product, the person who received the wrong product can cancel it because it would severely inconvenience the receiver to ship it back and wait for the new product. They could more easily find a new seller of the product. Thus, this contract is breached when one party makes a sizable error in shipping the wrong product, and it is, therefore, not enforceable.