Note that we have posted several MBE tips (which you can find links to at the bottom of this post) that focus on a specific multiple-choice question that many students answer incorrectly. If you can master these questions, it could increase your MBE score by that many points if you see any of these issues tested again (which, by the way, you will!). These posts of MBE tips and tricks will not only cover substantive law but also strategy. So each “MBE tip of the day” post covers one highly-tested area of substantive law as well as an important MBE strategy. You can sign up to receive these posts directly to your inbox for the upcoming administration at the bottom of this page.
Once you are done reading the Contracts MBE question, uncover the answer as well as read more about our MBE strategy of the day.
Contracts and Sales MBE Question:
An owner of a bicycle warehouse had a conversation with a customer who was interested in buying a popular mountain bicycle. The customer was eager to buy a bicycle and stated that he would talk to his wife to see if she would agree to let him buy it. The customer asked the owner of the bicycle warehouse if the owner would hold the offer for the bicycle open. The owner assured the customer, in a signed writing, that the owner would hold open the offer for the mountain bicycle. No time period was stated.
Two months later, the customer arrived at the owner’s store, ready to buy the bicycle. The owner apologized and explained that the bicycle was already sold. The customer filed a lawsuit against the owner for improper revocation of his offer.
Was the owner’s revocation proper?
(A) No, because if a firm offer does not state a time period, it is held open for three months.
(B) No, because the customer relied on the owner’s offer.
(C) No, because a reasonable time had not passed since the firm offer was made.
(D) Yes, if a reasonable time had passed since the firm offer was made.
Subject:
Legal Issue:
Legal Rule and Analysis: (If you need to look at your outline to find the legal rule, feel free to use it when you have not yet memorized the subject. Using your outline will help you actively learn and memorize your outline!)
Conclusion:
Look at the answer choices provided. Choose an answer choice that matches your conclusion. Review the other answer choices provided.
Answer to Sales MBE Question:
Common Mistake: Students forget the details of the law! Students most commonly pick answer choice (A)–an incorrect answer choice.
Subject: Sales
Legal Issue: Can the owner revoke his offer?
Legal Rule and Analysis: One can generally revoke an offer unless it is a firm offer, option contract, beginning performance on a unilateral contract, or if there is reasonably foreseeable substantial reliance. (You can think of the mnemonic “FOUR” — there are FOUR scenarios in which one cannot revoke an offer: firm offer, option contract, beginning performance on a unilateral contract, or reasonably foreseeable substantial reliance on the offer.)
In this case, the only one that is relevant is firm offer. A firm offer is one made by a merchant for the sale of goods in a signed writing that promises to leave the offer open for a stated time (or a reasonable time will be implied), but either way it cannot be for over three months.
Conclusion: In this case, since no time period was stated, it depends on whether the owner waited a reasonable time to revoke his offer.
Choose an answer choice that most closely matches your conclusion and explain why the others are incorrect: (D) is correct. (D) matches most closely with the conclusion because it recognizes what the issue turns on. (A) is incorrect. Three months is not the “default” time period that a firm offer will be held open. The default time period for a firm offer to be held open is a “reasonable time” not exceeding three months. (B) is incorrect. Mere reliance on an offer is not an exception to revocation unless there is reasonably foreseeable substantial reliance on the offer. (Generally this arises in bidding situations on the bar exam. Otherwise, it is not typically considered reasonable to rely on an offer.) (C) is incorrect. We are not mountain bike experts so how do we know what is considered to be a reasonable time? Be wary of MBE answer choices like this–ones that force you to make a judgment that you are not able to make–like how long it is reasonable to leave open an offer for a popular mountain bike! (D) recognizes that there may be room for argument (by using the word “if”) and is thus, the better answer.
MBE Tip: Spend more time on the MBE topics that are difficult for you. If you are stellar at Torts and Constitutional Law but you really need to review Contracts and Sales, there is no reason to treat all subjects equally (in terms of the amount of time you will spend on them). You know what you need to spend time on better than a bar review course—write out a list of all the topics, from your best to your worst, and allocate your time accordingly. Even spending an extra day or two on a subject can make a big difference. This is especially the case if you have not yet memorized the details of the law — you can see by this question that it is not enough to have a “general idea” of the law—you need to know the details!
Indeed, the best way to avoid getting tricked by MBE questions is to learn the law really well, so that you do not fall into MBE traps!
If you have trouble with the comprehension portion of the law (or if you want outlines that are organized in a logical way that will help you memorize the details!) please feel free to sign up for a private tutoring session for the subjects that are harder for you. A lot of students get private tutoring for Real Property and Contracts–as these tend to be the most difficult subjects for students on the MBE. This will help you on both the essay and the multiple-choice portion of the bar exam.
Key Takeaways for the day:
Takeaway for the Law: Today we reviewed two important aspects of law — when one can revoke an offer (they love revocation questions on the MBE!) and the nuances of firm offer.
Revocation: One can generally revoke an offer unless it is a firm offer, option contract, beginning performance on a unilateral contract, or if there is reasonably foreseeable substantial reliance. (We remember the mnemonic FOUR — there are FOUR scenarios in which one cannot revoke an offer: firm offer, option contract, beginning performance on a unilateral contract, or reasonably foreseeable substantial reliance on the offer.)
Firm offer: A firm offer is one made by a merchant for the sale of goods in a signed writing that promises to leave the offer open for a stated time (or a reasonable time will be implied), but either way it cannot be for over three months.
Takeaway for Practicing: Spend more time on the subjects that are difficult for you! There is no need to “treat all subjects equally!” when you study. If you need private tutoring or outside help, seek it out now rather than waiting. The best way to avoid getting tricked by MBE questions is to learn the law really well, so that you do not fall into MBE traps!
Also, be smart about which answer choice you pick for an MBE question–if it asks you to make a judgment you are not qualified to make, you know it is not correct! This is another way to avoid getting tricked by MBE questions!
If you would like to see “MBE tip of the day” posts from prior days, please click on the links below:
MBE Strategies Blog Post Series: Welcome to our MBE tips and tricks blog post series! This post covers a Contracts/Sales MBE question. Many students get tricked by MBE questions on Contracts and Sales since they are so detail-oriented. You will see 25 questions on Contracts and Sales on the Multistate Bar Exam.
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