Section A

In contract law, goods displayed in a shop window with a price tag are generally considered to be:

Answer options:

A binding offer

An invitation to treat

A counter-offer

A declaration of intent

How to approach this question

Recall the legal status of shop displays established in case law.

Full Answer

B.An invitation to treat✓ Correct

Goods displayed in a shop window or on a shelf are an invitation to treat (an invitation for the customer to make an offer), not an offer themselves. The customer makes the offer when they take the goods to the till.

Common mistakes

Assuming a price tag is a legally binding offer to sell at that price.

Question 27 All questions Question 29

Practice the full ACCA LW — Corporate and Business Law Practice Exam 5

60 questions · hints · full answers · grading

More questions from this exam

Q01Section A In the context of the English legal system, an AI ethics consultancy is appealing a de...Medium Q02Section A A statute regulating commercial drone flights was drafted in 2015. A new case involves...Medium Q03Section A Under the Human Rights Act 1998, what is the legal effect if a UK court finds that a p...Medium Q04Section A NovaTech Ltd offers to sell a batch of quantum processors to Q-Compute Plc. Q-Compute ...Medium Q05Section A During a severe economic downturn, a landlord agrees to accept half rent from a commer...Hard

View all 60 questions →