Singapore American School

ECON 102

Quiz 1

1)Which of the following is correct with respect to the operation of the postbox rule?

1. For the postbox rule to apply, the offer must be made by mail.
2. If the postbox rule applies, an acceptance must be communicated and heard by the offeree before it is effective.
3. If the postbox rule applies, the acceptance is effective at the point of mailing.

4. 

   If the postbox rule applies, the only way for an acceptance to be effective is to send it by mail.

2. Which of the following statements is correct with respect to the law of consideration? The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party.

1. The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party.
2. Without consideration or a seal, there can be no contract.
3. Consideration must have some value but need not be specific.
4. For a contract to be binding, something valuable must have changed hands. This consideration may have been paid before the agreement (past consideration), at the

3. On Monday, Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer — $1,OOO!" When he went to the store on the weekend and said he wanted one, they replied that they didn't have any left, nor could they get one in. On these facts, which of the following is true?

1. 1. Pete could sue them for breach of contract because he was accepting the offer in the newspaper.
   2. The store had revoked the offer before he tried to accept.
   3. The offer by the store had lapsed before he tried to accept.
   4. The wording in the newspaper was merely an invitation to the public to do business,

and no contract was formed.