Mike Responds to Flavio's Statement That He Would Like to Buy

question 51

Multiple Choice

Mike responds to Flavio's statement that he would like to buy Mike's motorbike for $3,000 by saying that he would want $4,000, given the work he has put into it. Flavio says OK. I'll give you that. Here's $2,000, and I'll give a promissory note for the balance payable at $500 a month for the next 4 months."
1.There is a contract.
2.There is no contract.
3.Flavio's first statement to Mike was an invitation to do business.
4.Mike's response was a counter offer.
5.Flavio's final statement to Mike was an acceptance.

• A) 1 and 3.
• B) 1, 3 and 4.
• C) 1, 3, 4 and 5.
• D) 2.
• E) 2 and 4.

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Definitions:

State Statute

A written law enacted by a state legislature or other governing authority.

Limited Partnership

A form of business organization that has one or more general partners who manage the business and have unlimited liability for the obligations of the business and one or more limited partners who do not manage and have limited liability.

Limited Liability Status

A legal status which limits the amount of financial loss and legal liability an individual's investment can incur to the amount invested in a corporation, protecting personal assets from company debts and obligations.

Limited Liability Partnership

A partnership where some or all partners have limited liabilities, protecting them from certain debts or obligations beyond their investment.