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Ebook Business Law Text Cases An Accelerated Course 14Th Edition Miller Test Bank Full Chapter PDF
Ebook Business Law Text Cases An Accelerated Course 14Th Edition Miller Test Bank Full Chapter PDF
1. One necessary element for an effective offer is a reasonable price related to market value.
a. True
b. False
ANSWER: False
2. The first requirement for an effective offer is a serious intent on the part of the offeror.
a. True
b. False
ANSWER: True
ANSWER: False
12. An “offer” to sell an item on an online auction site generally is treated an invitation to negotiate.
a. True
b. False
ANSWER: True
16. An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite.
a. True
b. False
ANSWER: False
17. In most cases, an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.
a. True
b. False
ANSWER: False
ANSWER: False
19. An offer terminates automatically when the time specified in the offer has passed.
a. True
b. False
ANSWER: True
20. An option contract is created when an offeror promises to hold an offer open for a specified period of time in return
for a payment given by the offeree.
a. True
b. False
ANSWER: True
21. A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.
a. True
b. False
ANSWER: True
22. A court decision that makes an offer illegal automatically terminates the offer.
a. True
b. False
ANSWER: True
24. An acceptance can materially change or add to the terms of the original offer without rejecting it.
a. True
b. False
ANSWER: False
25. If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time.
a. True
b. False
ANSWER: True
26. Generally, an offeree’s power of acceptance is terminated when the offeror or offeree dies.
a. True
b. False
ANSWER: True
b. False
ANSWER: True
29. Under the mailbox rule, an acceptance takes effect at the time it is sent.
a. True
b. False
ANSWER: True
30. Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts.
a. True
b. False
ANSWER: True
33. Contracting parties cannot opt out of the terms of the UETA.
a. True
b. False
ANSWER: False
34. An e-contract must meet the same basic requirements as those required of a paper contract.
a. True
b. False
ANSWER: True
35. A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.
a. True
b. False
ANSWER: True
Multiple Choice
37. Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby
who owns Nero’s Motors, hands Maya $10. This is
a. a valid acceptance because Maya is seriously frustrated.
b. a valid acceptance because Nero is a professional dealer.
c. not a valid acceptance because Maya does not seriously intend to sell.
d. not a valid acceptance because Nero is only passing by.
ANSWER: c
38. An ad on the NewsNow Web site asks viewers to “send us your story and we might share it with the world.” Ollie
submits a manuscript, adding, “I accept your offer.” Between NewsNow and Ollie, there is
a. a contract for the publication of Ollie’s story.
b. a contract to consider Ollie’s story before any others.
c. a contract to negotiate for the publication of Ollie’s story.
d. no contract.
ANSWER: d
39. Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As
an offer, this is
a. effective.
b. not effective because comedy is not a serious subject.
c. not effective because Anton’s tutoring will be subjective.
d. not effective because Brooke has no knowledge of the subject.
ANSWER: a
40. Idina admires Jules’s collection of guitars. July says, “I plan to sell the collection when I get tired of it.” Jules’s
statement is
a. an offer.
b. not an offer because it has not been communicated to Idina.
c. not an offer because July expressed only an intent to enter into a future contract.
d. an acceptance.
ANSWER: c
41. Jon says to Kris, “I would like to sell you my sports memorabilia collection.” This is not an offer because it
a. does not describe the subject matter sufficiently.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kris to negotiate.
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ANSWER: d
42. Pastries, Inc., sends its catalogue to Rollo and includes a “personalized” letter inviting the purchase of any item at the
advertised price. This is
a. an offer because of the “personalized” letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Rollo previously bought items from Pastries.
d. not an offer.
ANSWER: d
43. Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns
the dog, without asking for reward. Miguel cannot recover the reward, because he
a. did not confer a benefit on Laredo by returning the dog.
b. did not know of the reward when he returned the dog.
c. did not ask for the reward when he returned the dog.
d. returned the dog.
ANSWER: b
44. On May 1 Ralph offers to cure and smoke Sam’s pork. On May 3 Ralph mails Sam a letter revoking the offer. Sam
receives the letter on May 5 and responds on May 6. Ralph’s revocation of the offer
a. became effective on May 1.
b. became effective on May 3.
c. became effective on May 5.
d. did not become effective because Sam responded to the offer.
ANSWER: c
45. Rhonda asks Steve, “Do you want to buy me to repair your fishing net?” This is
a. a valid offer.
b. not a valid offer because the terms are not definite.
c. not a valid offer because Rhonda did not express an intent.
d. not a valid offer because Steve did not respond.
ANSWER: b
46. Simone offers Thom a dozen piano lessons for a certain price per lesson but conditions the deal on Thom accepting
the offer by April 1. Simone may revoke the offer
a. before Thom accepts the offer.
b. before April 1, whether or not Thom has accepted the offer.
c. only after Thom accepts the offer.
d. only after April 1.
ANSWER: a
47. Lauren files a suit against Moving Service for breach of contract, based on what Lauren claims was Moving’s offer.
For a court to determine if a contract has been breached, under the common law, the offer must include terms that are
a. exactly precise.
b. reasonably definite.
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c. unequivocally approximate.
d. vague or uncertain.
ANSWER: b
48. Fix-It-Quik, Inc., offers Gina a job as a plumber. No time for acceptance is specified in the offer. The offer will
terminate
a. after a reasonable period.
b. after a work week (five business days).
c. after a month (thirty calendar days).
d. never.
ANSWER: a
49. Business Properties, Inc. (BPI), offers to sell a cold storage warehouse to Corporate Investments. Corporate says that it
will pay BPI $100 to hold the offer open for three business days. This
a. creates an illegal contract by adding a clause to BPI’s offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI’s offer by changing the price term.
d. voids BPI’s offer by extending the time term.
ANSWER: b
50. Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis. Nevin promises to hold the offer open in
return for a small payment but does not state an exact period of time. With respect to this offer
a. the deal is binding except for the promise to hold the offer open.
b. a reasonable period of time is implied.
c. the offer must be held open for an indefinite period.
d. the deal is done.
ANSWER: b
51. Lou offers to service Millie’s heating and air conditioning system for one year for $500. Under the mirror image rule,
Millie’s response will be considered an acceptance if the terms of the acceptance
a. exactly mirror those of the offer.
b. change the items offered, but do not change the price.
c. change the price, but do not change the items offered.
d. change both the price and the items offered.
ANSWER: a
52. Fabien offers to sell his Graphic Signs, LLC, business to Hanna for $100,000. Hanna replies, “The price is too high. I
will buy it for $75,000.” Hanna has
a. accepted the offer.
b. made a counteroffer without rejecting the offer.
c. rejected the offer and made a counteroffer.
d. rejected the offer without making a counteroffer.
ANSWER: c
53. Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara’s Travel Group for $500. Referring to the
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54. Coffee Brokers, Inc., offers to buy Dining Company’s coffee-roasting services for a certain price. Dining responds
that the price is too low and thereby rejects the offer. The offer is
a. terminated.
b. valid for a reasonable time to give Interstate a "second chance."
c. valid for the period of time prescribed by a state statute.
d. valid until Interstate revokes the offer.
ANSWER: a
55. Wally offers to repair and service a forklift for Valu Lumber Outlet, but Wally dies before Valu accepts. Most likely,
Wally’s death
a. does not affect the offer.
b. shortens the time of the offer but does not terminate it.
c. extends the time of the offer.
d. terminates the offer.
ANSWER: d
56. Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property.
Franco’s acceptance is complete
a. as soon as he says he will do the job.
b. once he starts to work.
c. only after he hauls away the debris.
d. when he hears the offer.
ANSWER: c
57. Shelby offers to make digital copies of Relay Company’s business conference videotapes, CDs, DVDs, and other
media for $500. Under the mailbox rule, Relay’s acceptance by e-mail will be considered effective when
a. received.
b. sent.
c. followed up by a confirmation letter sent by regular mail.
d. composed on a Relay computer.
ANSWER: b
58. Pacific Charter Company offers to provide an air-conditioned bus to Quincy’s tour group for $1,500 plus the cost of
the fuel. The mailbox rule applies if Quincy accepts the offer by
a. e-mail.
b. phone.
c. regular mail.
d. any of the choices.
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ANSWER: c
59. Green River Gas Company offers to sell Far East Energy, Ltd., a certain quantity of liquefied natural gas. If Far East
sends an acceptance via Green River’s authorized mode of communication, it will be effective when it is
a. in transit.
b. received.
c. sent.
d. written.
ANSWER: c
60. Rico, a user of SmartPhoneApps.com’s Web site, can download apps for free if he first clicks on “I accept” after
viewing certain terms. This is
a. a contract that does not include the terms.
b. a contract that includes the terms.
c. not a contract but the terms are enforceable.
d. unenforceable.
ANSWER: b
61. Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the
catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is
a. a browse-wrap term.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. a partnering agreement.
ANSWER: b
62. Due on Receipt, Inc., makes tax software, which is packaged with a shrink-wrap agreement. Evenflo Products
Company distributes the software to retailers, including a Flatprice discount store, where Greta buys a package of it. The
parties to the shrink-wrap agreement are
a. does not read it.
b. learns of it after the contract is formed.
c. learns of it before the contract is formed.
d. has difficulty learning how to play the game.
ANSWER: b
63. Global Corporation enters into contracts with buyers in e-commerce and traditional commerce. The UETA applies, if
at all, only to those transactions in which the parties agree to use
a. electronic means.
b. paper documents.
c. updates and cross-checks to orally verify any e-terms.
d. notarized documents.
ANSWER: a
64. Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself
against disputes involving these contracts by making important terms
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a. reasonably clear.
b. vaguely ambiguous.
c. practical.
d. standardized.
ANSWER: a
65. Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control
specific offers for the services and thus the resulting contracts, important terms to provide online include
a. a provision relating to the resolution of any dispute.
b. a detailed history of the music business.
c. positive reviews from users of the service.
d. an updated list of the music available through the service.
ANSWER: a
66. Archway Architects, Inc., makes travel arrangements online and stores the confirming documents and receipts on its
servers. Under the UETA, “information that is inscribed on a tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form” is
a. an e-contract.
b. a shrink-wrap agreement.
c. a partnering agreement.
d. a record.
ANSWER: d
67. Dispatch Corporation and Hauling, Inc., agree in advance to terms that apply to their future e-transactions. This is
a. a partnering agreement.
b. a click-on agreement.
c. a shrink-wrap agreement.
d. a choice-of-law clause.
ANSWER: a
68. Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to
a. transact business electronically.
b. submit to the recipient’s jurisdiction.
c. respond to e-mail sent to that address.
d. nothing.
ANSWER: a
69. Grain Farms and Hi-way Shipping Company make a deal for Hi-way’s services, communicating entirely online.
Under the UETA, an electronic record of their deal is considered sent when it
a. reaches a midway point between the sender and recipient.
b. comes into the recipient’s control.
c. is read by the recipient.
d. leaves the sender’s control.
ANSWER: d
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Essay
71. On December 1, Petro, Inc., sent Rachel & Rico (R&R) a letter, via overnight delivery, offering to employ R&R to
review Petro’s tax situation for the current year for $10,000. In the letter, the company stated that R&R had ten days to
accept. On December 5, R&R sent an e-mail message that stated, “The price for the tax analysis seems too low. Would
you consider paying $15,000?” Petro received the message without responding immediately. The next day, Smith &
Taylor, an R&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, R&R immediately e-
mailed Petro, agreeing to do the work for $10,000. Petro received this message on December 7. Explain why R&R and
Petro do, or do not, have a contract.
ANSWER: R&R and Petro have a contract. R&R effectively accepted Petroleum’s offer to perform a review of the
corporation’s tax situation.
An attempt to change the terms of an offer rejects that offer, terminates it, and makes a counteroffer. Here,
however, the fax did not indicate an intent to reject the offer, and a reasonable person in Petro’s position
would not conclude that the fax was a rejection. R&R’s fax was simply an inquiry about the offer. R&R was
still considering the offer. Learning of Smith & Taylor’s offer did not act as a revocation of Petro’s offer to
R&R (although the offer would have been revoked if R&R had accepted Smith & Taylors’s offer, and R&R
had learned of this acceptance).
In accepting Petro’s offer, R&R used a medium that was reasonable under the circumstances because Petro did
not expressly specify any particular method of acceptance. Thus, R&R’s acceptance was timely sent and
received. Consequently, the acceptance was effective on dispatch.
72. Corporate Code, Inc., sells business software—accounting and book-keeping 2, blank business forms, inventory
control functions, and the like—in different combinations, in different packages, at different prices. Each package
includes a shrink-wrap agreement that limits warranties and remedies. Developmental Research Corporation (DRC) buys
a Corporate Code package and uses the product. Later, DRC files a suit against the software seller, claiming that the
product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in
the shrink-wrap agreement. What is a shrink-wrap agreement? Are such agreements always enforced? Under what
circumstances is a court likely to enforce this agreement?
ANSWER: A shrink-wrap agreement is an agreement whose terms are expressed inside a package that contains computer
hardware or software. The terms usually focus on warranties, remedies, or other issues related to the product’s
use.
Shrink-wrap agreements have not always been enforced. The most important factor is the time at which the
manufacturer communicates the terms to the end-user.
A court is likely to enforce the agreement in this problem, and similar agreements, if the buyer had an
opportunity to read the agreement before using the product. These agreements are enforced partly because
from a business perspective, it is more practical to enclose the full terms of a sale in a package rather than, for
example, to read them over a phone while taking an order for a product. Such an agreement might not be
enforced, however, if a court reasons that the buyer learned of the terms after the parties made their contract,
and the buyer did not then agree to the terms. On this basis, the terms would be proposals for additions to the
contract, which would require the buyer’s express assent.
FOOTNOTES:
[126]Three very interesting bivalve shells, distinct, it appears,
from the other species of the genera to which they respectively
belong, have been discovered in the above-mentioned river by
Major Denham. The first, a species of Ætheria, I distinguish as
Fah. Thermometer.
Date. Winds.
6 a.m. Noon. 3 p.m.
March 1823.
15 E.N.E. 70 98 103
Sunday, 16 S.S.E. 75 95 102
17 S.S.E. 78 99 104
18 E.N.E. 77 104
19 S.E. 98
20 E.N.E. 78 95 101
21 N.E. 82 100 105
22 E.N.E. 80 97 100
Sunday, 23 N.E. 78 90 94
24 N.E. 79 94 97
25 E.N.E. 79 97 101
26 E.N.E. 79 100 103
27 E.N.E. 79 101 103
28 E.N.E. 82 97 98
29 E.N.E. 80 97 100
Sunday, 30 N.E. 80 94 97
31 E.N.E. 80 94 96
April.
1 N.E. 77 98 101
2 N.E. 80 95 100
3 S.E. 80 99 101
7 N.E. 80 99 102
8 N.E. 80 99 103
9 E.N.E. 78 98 102
10 E.N.E. 77 97 99
11 N.E. 72 100 100
12 N.E. 78 104 107
Fah. Thermometer.
Date. Winds.
6 a.m. Noon. 3 p.m.
Sunday, 13 N.E. 84 100 105
14 E.N.E. 82 100 105
15 N.E. 87 103 105
16 E.N.E. 86 95 105
17 E.N.E. 87 99 106
18 E.N.E. 86 103 109
19 N.E. 88 102 106
Sunday, 20 E.N.E. 87 102 107
21 E.N.E. 85 100 100
22 E.N.E. 86 102 103
23 E.N.E. 85 102 103
24 N.E. 83 101 103
25 E.N.E. 85 103 102
26 N.E. 85 103 103
Sunday, 27 N.E. 86 102 102
28 N.E. 83 101 103
29 E.N.E. 81 103 103
30 E.N.E. 82 103 103
May.
1 E.N.E. 85 106 106
2 N.E. 85 103 105
3 N.E. 83 105 98
Sunday, 4 E.N.E. 81 99 99
5 E.N.E. 82 95 96
6 E.N.E. 81 102 102
7 N. 86 104 103
8 N.E. 71 99 96
9 N.E. 81 99 96
10 N.E. 85 95 94
Sunday, 11 N.E. 86 101 95
12 Calm. 81 99 95
13 W.S.W. 75 98 98
14 W.S.W. 75 95 98
15 W.S.W. 74 97 97
16 W.S.W. 72 92 95
17 S.W. 74 97 98
Fah. Thermometer.
Date. Winds.
6 a.m. Noon. 3 p.m.
Sunday, 18 W.S.W. 74 96 99
19 W.S.W. 73 96 99
20 W.S.W. 76 95 99
21 W.S.W. 74 102 100
22 W.S.W. 73 100 100
23 W.S.W. 84 104 101
24 S.W. 76 96 96
Sunday, 25 S.W. 73 96 96
26 S.W. 81 98 100
27 S.W. 76 99 100
28 S.W. 80 98 99
29 W.S.W. 81 97 102
30 W.S.W. 82 100 102
31 W.S.W. 80 100 102
June.
Sunday, 1 W.S.W. 76 97 97
2 W.S.W. 80 97 96
3 W.S.W. 81 99 99
4 W.S.W. 81 99 100
5 W.S.W. 80 99 100
6 S.W. 80 98 98
7 S.W. 75 95 100
Sunday, 8 S.W. 78 98 98
9 S.W. 79 95 97
10 S.W. 78 89 90
11 W.S.W. 75 89 93
12 W.S.W. 79 87 95
13 W.S.W. 80 95 95
14 W.S.W. 81 97 97
Sunday, 15 W.S.W. 82 99 97
16 W.S.W. 81 97 96
17 W.S.W. 81 99 101
18 W.S.W. 80 97 99
19 W.S.W. 79 89 93
20 W.S.W. 78 92 93
21 W.S.W. 77 92 95
Fah. Thermometer.
Date. Winds.
6 a.m. Noon. 3 p.m.
Sunday, 22 W.S.W. 78 98 99
23 S.W. 81 95 87
24 S.W. 76 95 87
25 S.W. 80 97 96
26 S.W. 81 94 95
27 S.W. 87 96 98
28 S.W. 81 97 92
Sunday, 29 S.W. 82 96 97
30 S.W.
July. 1 S.W. 82 97 99
2 S.W. 81 92 92
3 S.W. 82 93 94
4 S.W. 74 85 84
5 S.W. 78 89 94
Sunday, 6 S.W. 78 89 96
7 S.W. 78 89 91
8 S.W. 78 90 92
9 W.S.W. 81 87 92
10 W.S.W. 77 92 95
11 W.S.W. 75 85 97
12 S.W. 75 85 88
Sunday, 13 S.W. 71 79 82
14 S.W. 72 82 89
15 S.W. 75 83 90
16 S.W. 76 87 90
17 S.W. 72 84 93
18 S.W. 76 83 89
19 S.W. 75 86 90
Sunday, 20 S.W. 74 87 89
21 S.W. 72 83 86
22 S.W. 73 84 87
23 S.W. 73 86 89
24 S.W. 74 84 90
25 S.W. 73 83 87
26 S.W. 71 84 86
Sunday, 27 S.W. 80 86 89
Fah. Thermometer.
Date. Winds.
6 a.m. Noon. 3 p.m.
28 S.W. 76 86 90
29 S.W. 73 84 87
30 S.W. 76 85 95
31 W. 76 85 92
Fah. Thermometer.
Date. State of Weather.
6 a.m. Noon. 3 p.m.
1823.
Aug. 1 Rain all night. 75 82 86
2 73 78 79
3 Sunday. Rain in
evening. 74 80 82
4 78 82 83
5 76 82 84
6 Rain much. 73 77 78
7 74 78 81
8 Rain. 76 80 81
9 75 81 82
10 Sunday. Rain, loud
thunder. 74 77 80
11 76 81 83
12 Rain and thunder all
night. 79 83 85
13 75 80 81
14 76 80 85
15 Rain, thunder, vivid
lightning. 77 84 87
16 76 82 85
17 Sunday. 78 83 85
18 77 84 86
19 Rain and thunder during
the night. 79 85 86
20 Rainy day. 78 84 85
21 75 82 83
22 Much rain. 74 79 83
23 Morning cloudy. 74 80 84
Fah. Thermometer.
Date. State of Weather.
6 a.m. Noon. 3 p.m.
24 Sunday. Drizzling rain. 76 83 85
25 Night violent. 75 77 79
26 Night. 75 78 79
27 All night. 74 78 79
28 Day and night, showers. 73 77 79
29 Rain. 74 78 80
30 75 80 82
31 Sunday. Rain, much
thunder. 74 78 80
Sep. 1 74 79 81
2 76 84 86
3 79 85 89
4 80 85 88
5 Morning. Rain and
thunder. 80 80 81
6 78 83 84
7 Sunday. 78 85 86
8 Rain. 79 80 81
9 78 83 85
10 Night, hurricane, east. 80 86 88
11 South. 78 85 87
12 80 86 88
13 79 85 87
14 Sunday. 78 86 89
15 80 86 89
16 81 87 89
17 Cloudy afternoon. 81 88 89
18 80 85 87
19 Hurricane, east and a
half south. Strong 3
p.m. 80 87 85
20 80 84 87
21 Sunday. 78 85 87
22 79 87 89
23 78 86 88
24 80 88 90
25 82 89 92
Fah. Thermometer.
Date. State of Weather.
6 a.m. Noon. 3 p.m.
26 Violent storm, noon wind
N. hail and rain. 80 89 90
27 76 86 89
28 Sunday. 80 86 88
29 81 87 91
30 80 86 91
Oct. 1 Rain and wind in night. 80 87 91
2 78 84 85
3 80 85 88
4 Wind, thunder. 81 87 90
5 Sunday, rain and wind. 80 86 88
6 79 87 89
7 80 88 90
8 80 89 93
9 79 89 92
10 Breeze N.W. 78 89 91
11 77 90 92
12 Sunday, 79 92 94
13 78 92 94
14 79 91 93
15 77 92 93
16 83 92 94
17 81 92 94
18 80 90 93
19 Sunday, 81 92 94
20 79 92 94
21 80 92 94
22 81 93 95
23 75 90 92
24 76 85 88
25 77 87 90
26 Sunday, 77 88 91
27 78 90 92
28 78 90 91
29 79 91 93
30 78 88 90
Fah. Thermometer.
Date. State of Weather.
6 a.m. Noon. 3 p.m.
31 79 89 92
Nov. 1 78 87 90
2 Sunday, 76 89 91
3 75 88 89
4 76 88 90
5 77 87 89
6 77 88 90
7 76 87 90
8 75 86 88
9 Sunday, 76 88 90
10 77 86 89
11 79 87 88
12 76 88 90
13 74 87 89
14 74 86 88
15 73 87 89
16 Sunday, 74 88 89
17 74 83 86
18 75 85 87
19 75 86 88
20 75 85 87
21 75 86 88
22 69 78 81
23 Sunday, 71 79 81
24 69 77 79
25 68 78 80
26 67 79 81
27 66 78 80
28 65 77 79
29 66 77 79
30 Sunday, 67 79 80
Dec. 1 66 79 81
2 67 78 80
3 66 79 81
4 65 78 80
5 67 80 82