Alpha Enterprises Sent an Offer to Omega Enterprises

question 108

Multiple Choice

Alpha Enterprises sent an offer to Omega Enterprises. The offer read as follows: AVAILABLE FOR IMMEDIATE SHIPMENT: 600 WIRELESS NOKIA PHONES - MODEL HCG5321 (THE PHONE FROM "CHARLIE'S ANGELS") . PRICE IS $10 EACH. 30 DAYS, SAME AS CASH. ALL WARRANTIES IN EFFECT. THIS OFFER EXPIRES ON TUESDAY, MARCH 15, 2016. Omega sent the following letter in response on March 14, 2016, via overnight delivery: HAPPY TO ACCEPT YOUR OFFER ON THE NOKIA PHONES. SHIP IMMEDIATELY. There was a major snowstorm that hit the east coast on March 14, 2016, and Omega's letter did not arrive at Alpha's headquarters until March 18, 2016. Alpha had sold the phones to another company. Omega demanded the 600 phones for $10 each claiming that it had accepted the offer in time.

• A) Omega is correct; it had valid and timely acceptance and had a contract.
• B) Omega is incorrect; the acceptance must arrive for it to be effective.
• C) Omega is incorrect; the offeree assumes the risk of the delivery means chosen.
• D) Omega is correct, but any damages must be recovered from the overnight shipping company.
• E) none of the above

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate during an event, determined by its physical size and safety regulations.