COMMERCIAL LAW (UCC ARTICLE 2) MULTIPLE CHOICE QUESTION

QUESTION 1 & 2

1. FrankandGeorge,wholivedindifferentstates,weregolfingacquaintancesatthe International GolfClub.Both weretraveling salesman-Franksold booksand George sold widgets.Frank wroteGeorge byU.S.mailonFriday,January gth:

Ineed acarfortransportationtotheclub,andwillbuyyourjeepfor$12,000 upon yourbringing ittomyhomeaddress above(stated ontheletterhead) onor before noon February 12 next.Thisoffer is notsubject tocountermand.

Sincerely/s/FrankGeorge replied by mail the following day:

Iacceptyourofferandpromisetodeliverthejeepasyouspecified.

SignedGeorge

This letter, although properly addressedwas misdirectedby the postal service and not receivedbyFrankuntilFebruary10.Frankhadboughtanother jeep fromKoolwho was asalesmanfor ashoecompanyafewhoursbefore.Kool saw Gerogeat the clubon

February 1J'hand said, "I sold my jeep to Frank yesterday for $10,000.Would you considerselling me yours for $9,500.00?Georgereplied, "Iwilllet youknowin afew days."

On February12, George tookhisjeepto Frank'sresidence:he arrivedat 11:55.Frank was asleep anddidn't answer the door until12:15 a.m.Frankthen rejectedon the groundshe'dbought Kool's jeep.

InalawsuitbyGeorgeagainstFrankforbreachofcontract,whatwouldthecourt probably decide regarding George's January 9^th letter?

A).TheletterboundbothtoaunilateralcontractassoonasGeorgemailedit.

B.MailingoftheletterbyGeorgedidnot,ofitself,preventasubsequent effective revocation by Frank of his offer.

C. Regardless ofwhether Frank's offer had proposed a unilateral orbilateral contract,theletterwasaneffectiveacceptance uponreceipt,ifnotupondispatch.

D. The letter bound both parties to a bilateral contract when receivedby Frank on February 10¹¹'.

2. Whatistheprobable legaleffect ofKool'sstatementtoGeorgethatKool hadsold his jeep to Frank for $9,500.00?

A. Kool'sconversation withGeorgeon2/11terminated Frank'soriginaloffer and operated as an offer by Kool to buy George's jeep for$9,500.

B. Thisstatementhadnolegaleffectbecausetheofferhadbeenmadebya prospective buyer rather than a prospective seller.

C.UnlessacontracthadalreadybeenformedbetweenGeorgeandFrank,Kool's statement toGeorgeoperated toterminate George's powertoacceptFrank'soffer.

D. Thisconversation hadnolegaleffectbecauseFrank'sofferwasirrevocable until Feb. 12^th