On June 1, Kareem Sends Fatima an E-Mail Offering to Build

question 13

Multiple Choice

On June 1, Kareem sends Fatima an e-mail offering to build her a new garage for $20,000. In his e-mail, Kareem wrote, "acceptance by certified mail is advisable." On June 2 at 8 a.m., Kareem sends Fatima a certified letter attempting to revoke the offer. At 2 p.m. the same day, Fatima mails Kareem a letter via certified mail attempting to accept his offer. Under these circumstances, _____.

• A) the parties do not have a contract until Kareem receives Fatima's acceptance
• B) Kareem's revocation is effective and the parties do not have a contract
• C) Fatima's acceptance is effective upon dispatch
• D) the parties do not have a contract as the trade usage is telegrams and not certified mail

---

Definitions:

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.

Units Of Good

The individual items or quantities of a product that can be quantified, counted, and often sold individually.

Utility Function

A mathematical representation of a consumer's preference system, ranking different bundles of goods and services by their levels of satisfaction.