In Which of the Following Situations Will the Court Enforce

question 42

Multiple Choice

In which of the following situations will the court enforce a contract?

• A) Tinker offers to sell his car to Evers. Evers asks for some time to decide and Tinker gives him until 6:00 pm. At 4:00 pm Evers sees Chance driving the car and is told that Tinker sold it to him. Evers calls Tinker at 4:30 pm and says "I accept".
• B) Jan offers to sell his boat to Dean. Dean asks for 24 hours to decide and Jan agrees. At midnight, the boat sinks although neither Jan nor Dean knows it's sunk. Dean calls Jan before the 24 hours is over and says, "I accept".
• C) Martin offers to sell his horse to Lewis for $1,000. Lewis replies that $1,000 is too much and says "I'll give you $850 for her". Martin says no and Lewis replies, "Okay, I'll give you $1,000.
• D) Fred offers to sell his car to Wilma. Wilma asks for more time and Fred says you may have until 10:00 am the next morning. Wilma gives Fred $50 for him to keep the offer open to her that is nonrefundable. Fred dies during the night and after hearing that Fred died, Wilma calls Fred's heirs at 9:00 am the next morning and accepts Fred's offer

---

Definitions:

Oligopolists

Firms or entities that dominate an industry or market in an oligopoly, where a small number of companies have significant market power and influence over prices and output.

R&D

Research and development; activities undertaken by companies or governments to innovate and introduce new products or services.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business, potentially including high startup costs, stringent regulations, or strong brand loyalty among consumers.

Patent

An exclusive right given to inventors to produce and sell a new product or machine for 20 years from the time of patent application.