Arnold Has Offered to Take Bob into His Accounting Firm

question 88

Multiple Choice

Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."

• A) Bob has made a counteroffer and hence there is no contract.
• B) Bob has rejected the terms of the original offer, but there is still a contract.
• C) Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract.
• D) Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

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Definitions:

Rational-Ignorance Effect

A phenomenon where individuals decide not to acquire information because the cost of doing so outweighs the expected benefits.

Voters

Individuals who are eligible to vote in elections, making decisions about who will hold public office and on various issues.

Political Choices

Decisions made by individuals, groups, or governments that relate to the governance of a country, state, or local area.

Public Choice Analysis

A branch of economics that studies the decision-making behaviors of voters, politicians, and government officials from the perspective of economic theory.