Future Business Leaders of America (FBLA) Business Law Practice Exam

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Study for the FBLA Business Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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What action concludes an offer in contract law?

Counter-offer
Acceptance
Rejection
Promotion

The correct answer is: Rejection

In contract law, an offer is concluded when it is rejected. When a party makes an offer, they propose terms that the other party can either accept or reject. If the offered party decides not to accept the terms and explicitly states their refusal, this constitutes a rejection of the offer. Once an offer is rejected, it can no longer be accepted later on unless the original offeror decides to renew or reissue the offer. Other actions related to offers include acceptance and counter-offers. Acceptance binds the parties into a contract, while a counter-offer modifies the terms of the original offer and also serves as a rejection of that offer. Promotion does not pertain to the legal mechanics of offer acceptance or rejection in contract law, and therefore does not conclude an offer. Understanding rejection as a mechanism that definitively closes the door on an offer helps solidify your grasp of contract dynamics.