Camila, Wanting to Sell a Used Business Law Book, Calls

question 2

Multiple Choice

Camila, wanting to sell a used business law book, calls Jada and tells her that if she does not hear from her within twenty-four hours, she will assume that Jada wishes to purchase the book for $50. Which of the following is correct regarding the status of the proposed book sale?

• A) There is no contract because in this situation silence cannot be used to form a contract.
• B) There can be no contract because the offer was not made in person.
• C) There can be no contract because the offer was not made in writing.
• D) Jada can avoid the creation of a contract only if she can prove by a preponderance of the evidence that she did not hear about the offer before the stated expiration time.
• E) Jada can avoid the creation of a contract only if she can prove beyond a reasonable doubt that she did not hear about the offer before the stated expiration time.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control or jointly control those policies.

Operating Policies

Guidelines and rules that govern the day-to-day operations of an organization.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies by reporting those profits in proportion to their ownership percentage.

Controlling Interest

Ownership of a majority of a company's stock, allowing for the control of its management and operations.