An Advertisement in a Paper States: "First Come First Served

question 30

Multiple Choice

An advertisement in a paper states: "first come first served, two new BMX bikes, $150 apiece. Doors open at 10:00 a.m." Would the advertisement be treated as a valid offer?

• A) No, because an advertisement is never treated as an offer.
• B) Yes, because the advertisement specifies a limited quantity and provides a specific means by which the offer can be accepted.
• C) Yes, because the advertisement is treated as an offer if the ad specifies a price that it is willing to sell a product for.
• D) No, because the advertisement doesn't say "THIS IS AN OFFER."
• E) Yes, because an advertisement placed in a newspaper is always treated as an offer.

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Definitions:

Non-Interest-Bearing Note

A promissory note that does not accrue interest over its lifetime, typically requiring the borrower to repay only the principal amount.

Actuarial Information

Data and analysis related to the calculation of insurance risks and premiums, often based on statistical methods.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Bondholders

Individuals or entities that hold bonds issued by corporations, municipalities, or governments and are entitled to receive the bond's interest payments plus the return of the bond's principal upon maturity.