Four Days Ago, Pete Was Reading the Newspaper and Saw

question 101

Multiple Choice

Four days ago, Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer - $400! When he went to the store this afternoon and said he wanted one, they replied that they didn't have any left, nor could they get one. On these facts, which of the following is true?

• A) Pete could sue them for breach of contract because he was accepting the offer in the newspaper.
• B) The store had revoked the offer before he tried to accept.
• C) The offer by the store had lapsed before he tried to accept.
• D) The wording in the newspaper was merely an invitation to the public to do business, and no contract was formed.
• E) Pete could sue for breach of an option contract.

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Definitions:

Opening Price

The price at which a security first trades upon the opening of an exchange on a given trading day.

Ticker

An information transmission machine that has been replaced by electronic scrolling, which uses symbols to provide up-to-date information during the trading day.

Shares of XYZ

Refers to units of equity ownership in a corporation named XYZ, representing a fraction of the corporation's total capital.

Corporate Bond

A loan to a corporation; the corporation agrees to pay the bondholder back with interest, much like a bank pays a customer with money on deposit.