In Late April,Harper Corp Placed an Advertisement in a Newspaper

question 52

Multiple Choice

In late April,Harper Corp placed an advertisement in a newspaper that said: "We cater parties.Up to 150 people for only $3000.No hidden fees or costs." The manager of Martin Inc telephoned Harper and left a voice message that said,"We are calling to place an order to have a party for 150 people on the first of June." The next day,the manager of Harper called Martin and explained that,due to a scheduling conflict,it could not stage a party on the first of June.Martin now says that a contract had been created and that Harper has breached that agreement.Which of the following statements is TRUE?

• A)Because a contract cannot be created between corporations,Harper Corp cannot be held liable to Martin Inc.
• B)A contract was created between the parties as soon as Martin left its message on Harper's answering machine,regardless of when Harper listened to that message.
• C)Because an advertisement is generally presumed to be an invitation to treat,Martin's telephone message probably was not a contractual acceptance.
• D)In classifying the nature and effect of Martin's telephone message,a judge would focus exclusively on the intention that Martin had at the time.
• E)If it did not actually have a scheduling conflict,Harper Corp would be obligated to satisfy Harper Inc's order.

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Definitions:

Oligopoly

A market structure in which a small number of firms dominate the market, leading to limited competition.

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by all consumers in the market.

MR Curve

A graph that represents the relationship between the marginal revenue obtained from selling an additional unit of a good or service and the quantity of that good or service sold.

Patents And Copyrights

Legal instruments that offer creators exclusive rights to their inventions (patents) and artistic works (copyrights) to protect and profit from their creations.