Katee gets car insurance from Luna Insurers Enterprises, Inc. ("LIE, Inc."). Every six months, LIE, Inc. automatically renews Katee's policy and charges Katee's credit card for the next six months. This process has been occurring for five years. One week after the automatic renewal, Katee is in a car accident, and her car is totaled. LIE, Inc. refuses to pay and claims there is not a valid contract. Was there a valid contract? O No, because Katee never agreed to silence as a form of acceptance. No, because silence is never acceptance. Yes, because Katee's account was charged. Yes, because the parties agreed to silence as an acceptance arrangement. Kates did not cancel within 24 hours of her card being charged.

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Katee gets car insurance from Luna Insurers Enterprises, Inc. ("LIE, Inc.). Every six months, LIE, Inc.
automatically renews Katee's policy and charges Katee's credit card for the next six months. This
process has been occurring for five years. One week after the automatic renewal, Katee is in a car
accident, and her car is totaled. LIE, Inc. refuses to pay and claims there is not a valid contract.
Was there a valid contract?
O No. because Katee never agreed to silence as a form of acceptance.
No, because silence is never acceptance.
Yes, because Katee's account was charged.
Yes, because the parties agreed to silence as acceptance arrangement.
Yes, because Katee did not cancel within 24 hours of her card being charged.
Transcribed Image Text:Katee gets car insurance from Luna Insurers Enterprises, Inc. ("LIE, Inc.). Every six months, LIE, Inc. automatically renews Katee's policy and charges Katee's credit card for the next six months. This process has been occurring for five years. One week after the automatic renewal, Katee is in a car accident, and her car is totaled. LIE, Inc. refuses to pay and claims there is not a valid contract. Was there a valid contract? O No. because Katee never agreed to silence as a form of acceptance. No, because silence is never acceptance. Yes, because Katee's account was charged. Yes, because the parties agreed to silence as acceptance arrangement. Yes, because Katee did not cancel within 24 hours of her card being charged.
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