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1. Tom offers to buy Jenny's fishing tackle for $500, but she says she wants $600. Tom then proposes a price of $550, but Jenny says she is not interested. Tom is afraid she will walk away from a deal, so he says "OK. I'll accept your offer to sell for $600." There is now a contract between them. Question 13Select one:

a. TRUE

b. FALSE

2. On June 1st the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14th Sam mailed back his response and eagerly awaited his prize. On July 15th Mega sent out the last prize it had. Sam's response arrived on July 16th. It was the 1001st and Mega wrote back telling Sam that unfortunately all the prizes were gone and he would not be able to have one. Question 14Select one:

a. Sam made a counteroffer by returning the completed survey.

b. No contract was formed here as there was no communication of Sam's acceptance before Mega's offer lapsed.

c. Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time.

d. A valid contract was formed between Mega and Sam.

e. Mega had essentially revoked its offer before Sam accepted.

3. In May, Joey, a 17-year-old, enters into a contract to factory order a car. He gives the dealer a $2,000 deposit. The car will be delivered in September. Joey reached the age of majority in July. He took no action. Is he bound by the contract and required to take delivery of the car in September? Question 15Select one:

a. No, it is not binding unless ratified within a reasonable time of attaining the age of majority.

b. No, it is not binding. It is automatically repudiated upon a minor attaining the age of majority

c. Yes, it remains binding unless repudiated within a reasonable time of attaining the age of majority.

d. No, it is not binding unless repudiated within a reasonable time of attaining the age of majority.

e. Yes, it remains binding unless ratified within a reasonable time of attaining the age of majority.

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