COMMERCIAL LAW (UCC ARTICLE 2 ) MULTIPLE CHOICE QUESTION

I -3.On June4,2010,Mandy, a fruit merchant, mailed Chris, a fruitstand operator, a written offer tosell him 100 cratesoforanges (approximately30percrate) for$5.00per crate.By the terms of Mandy's offer, Chris had the exclusive right to accept or decline theofferuntil June25^that5:00p.m.Chris received Mandy's written offeronJune16^that 2:00 p.m.

OnJune17¹\MandywrotetoChrisrevokingtheoffer.Mandypromptlyplacedtheletter inthemail,properly addressed, and with adequatepostage.Laterthesameday, Mandy sold allI00crates of oranges toPaul at$7.50per crate.

OnJune19,havingnoknowledge ofMandy's transaction withPaul,Chrisfaxedaletter toMandy stating hewould purchase 100crates oforanges from Mandy at$5.00 per

crate,providedthatMandydelivertheorangesnolaterthanAugustI^st

Chrissaidhe

would bewillingto takedelivery at thesametime of any additionaloranges inMandy's stock atthesame price.Mandy receivedChris's June 19^th faxat noon that day.Mandy

immediatelysent a returnfax to Chris informinghim of the revocationand subsequent3^rd party sale. Chris receivedMandy'sJune 1J1hletter afew hours afterreceiving Mandy's fax.

1. AssumingthatChrisotherwiseeffectivelyandtimelyacceptedMandy'soffertosell Chris 100 crates oforanges for$5.00 per crate, what is thelegal effect ofChris's statement onhisJune19^th faxthathewaswillingtobuy additionaloranges atthesame price?

1. SupposethatChrisreceived Mandy'sJune17^th letterbeforehesentMandyhisJune 19^th fax.Did Chris and Mandy form a valid contract?

A. Yes,becauseChrissenthisacceptancetoMandybeforeJune25^th

B.No, becauseMandy sent her revocation to Chris before Chrissent his acceptance to Mandy.

C.No, because Chris received Mandy's revocationbefore Chris sent his acceptance to Mandy.

D. Yes,becauseMandymadea firmofferthatwasirrevocableuntilJune25^th