Tommy, a teenage boy who earns money mowing lawns, observed that Thacker nearby property had become overgrown. Tommy decided to cut Thacker lawn for a reduced fee to encourage Thacker to become a regular customer. While mowing, Tommy saw Thacker come to the front window and wave from inside the house. Tommy returned Thacker’s wave and continued mowing. Upon completion of the job, Tommy knocked on the front door of Thacker’s home, expecting payment. Thacker refused to answer the door and shouted down from an upper story window: "I did not request you to cut my lawn and now you want me to pay you!" 1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
B. An express contract was formed.
C. Both A and B.
D. No contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
A. Personal opinion.
B. Invitation to bid.
C. Product promotion advertisement.
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
A. Money/consideration to be paid.
B. Identification of the object or contract subject matter.
C. Description of parties.
D. All of the above.
4. Which is nota way that an offer can be terminated by action of the parties?
A. Offeror revokes (withdraws) offer after offeree’s acceptance.
B. Offeror performs acts inconsistent with the existence of the offer (e. g., transacts the same business with a different offeree).
C. The offeree rejects the offer.
D. The offeree counteroffers.

1. Which might be Tommy’s best argument to collect from Thacker?

A. An implied contract was formed.

2. Which is an example of a situation where intent to make an offer may be lacking?

D. All of the above.

3. Which is an example of a material (essential) term required to be included in an enforceable contract?

D. All of the above.

4. Which is not a way that an offer can be terminated by action of the parties?

B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).

Explanation:

The contract existing between Tommy and Thacker can be implied or express.   The legally-binding obligation that derives from the actions, conduct, or circumstances of Tommy and Thacker creates an implied contract with the same legal force as an express contract.  On the other hand, an express contract is voluntarily entered into and agreed on verbally or in writing by two or more parties.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: