Question 1

Under the Electronic Signatures in Global and National Commerce Act,a signature may not be denied legal effect solely because it is in electronic form.

Accepted Answer

A) True 
 B)False  True

Question 2

Creative Solutions Corporation (CSC) sells business application software-accounting and book-keeping programs,blank business forms,inventory control functions,and the like-in different combinations,in different packages,at different prices,downloadable online.To complete a deal,a purchaser clicks on a button that,with reference to certain terms,states,"I agree." What is this sort of agreement called? Do the parties have a binding,enforceable contract that includes the terms? Explain.

Accepted Answer

This is a click-on agreement,which occurs when a buyer,to complete a transaction on a computer,indicates his or her assent to be bound by the terms of an offer by clicking on a button that says,for exam-ple,"I assent," or,in this question,"I agree."Such an agreement is likely enforceable if a party who agrees to the terms has an opportunity to read them before the contract is made,except when they are objectionable on grounds that apply to contracts generally.If the terms are not revealed un-til after an agreement is made,however,it is unlikely that,as in cases in-volving shrink-wrap agreements,they would be considered part of the deal.In this question,the parties probably have a binding contract that includes the terms.The question states that the button referred to the terms,meaning the buyer knew,or should have known,what he was agreeing to.

Question 3

The primary purpose of the Uniform Electronic Transactions Act (UETA) is to remove barriers to e-commerce.

Accepted Answer

A) True 
 B)False  True

Question 4

Revocation is effective on dispatch.

Accepted Answer

A) True 
 B)False

Question 5

Browse-wrap terms require a user to affirmatively indicate his or her consent.

Accepted Answer

A) True 
 B)False

Question 6

May tries to start her new car with no success.She yells that she will sell the car to anyone for $10.Nick,a passerby who owns Nick's Pre-owned Autos,hands May $10.This is

Accepted Answer

A) a valid acceptance because May is seriously frustrated. 
B) a valid acceptance because Nick is a car dealer. 
C) not a valid acceptance because May does not seriously intend to sell. 
D) not a valid acceptance because Nick is a car dealer. 
A) a valid acceptance because May is seriously frustrated. 
B) a valid acceptance because Nick is a car dealer. 
C) not a valid acceptance because May does not seriously intend to sell. 
D) not a valid acceptance because Nick is a car dealer.

Question 7

The death of an offeree does not terminate an offer.

Accepted Answer

A) True 
 B)False

Question 8

Under the E-SIGN Act,Phillip may use an e-signature in all of the following instances except

Accepted Answer

A) opening an account with a financial institution. 
B) obtaining a mortgage. 
C) signing his will. 
A) opening an account with a financial institution. 
B) obtaining a mortgage. 
C) signing his will.

Question 9

Shasta offers to sell a used hay baler to Roberto,but receives a letter of accep-tance from Quito,who has no relation to Roberto.A valid contract exists between

Accepted Answer

A) Shasta and Roberto. 
B) Shasta and Quito. 
C) Roberto and Quito. 
D) none of the choices. 
A) Shasta and Roberto. 
B) Shasta and Quito. 
C) Roberto and Quito. 
D) none of the choices.

Question 10

Pastry Dough,Inc.,sends its catalogue to Octavio and includes a "per-son-alized" letter inviting him to buy any item in it at the ad-vertised price.This is

Accepted Answer

A) an offer because of the "person-alized" letter. 
B) an offer because there is no room for price negotiation. 
C) an offer only if Octavio previously bought items from Pastry Dough. 
D) not an offer. 
A) an offer because of the "person-alized" letter. 
B) an offer because there is no room for price negotiation. 
C) an offer only if Octavio previously bought items from Pastry Dough. 
D) not an offer.

Question 11

Under the UETA,a typed name at the end of an email message is not considered an e-signature.

Accepted Answer

A) True 
 B)False

Question 12

National Shipping Corporation and Office Software Company (OSC) make a deal for OSCs products,communicating entirely online.Under the UETA,an electronic record is considered sent

Accepted Answer

A) only at a midway point between the sender and recipient. 
B) only on coming into the recipient's control. 
C) when it leaves the sender's control or comes into the recipient's control. 
A) only at a midway point between the sender and recipient. 
B) only on coming into the recipient's control. 
C) when it leaves the sender's control or comes into the recipient's control.

Question 13

Under the UETA,a contract is unenforceable if it is solely in electronic form.

Accepted Answer

A) True 
 B)False

Question 14

A record is an interaction between two or more people relating to business,commercial,or governmental activities.

Accepted Answer

A) True 
 B)False

Question 15

Beth goes to Dr.Carlton for surgery.Carlton says that Beth should be fully healed within a week.Beth is not healed within a week.With respect to breach of contract,Carlton is

Accepted Answer

A) liable. 
B) not liable,because surgery is not a proper sub-ject for a contract. 
C) not liable,because the statement was an opinion. 
D) not liable,but Beth is excused from paying Carlton. 
A) liable. 
B) not liable,because surgery is not a proper sub-ject for a contract. 
C) not liable,because the statement was an opinion. 
D) not liable,but Beth is excused from paying Carlton.

Question 16

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

Accepted Answer

A) have a contract for a loan at 15 percent interest. 
B) have a contract for a loan at 12 percent interest. 
C) have a contract for a loan at 0 percent interest. 
D) no contract for a loan. 
A) have a contract for a loan at 15 percent interest. 
B) have a contract for a loan at 12 percent interest. 
C) have a contract for a loan at 0 percent interest. 
D) no contract for a loan.

Question 17

The mailbox rule applies to communication by phone and fax as well as the mail.

Accepted Answer

A) True 
 B)False

Question 18

Bill and Stacy enter into a contract that falls within the provisions of the UETA.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

Accepted Answer

A) an e-document. 
B) an e-signature. 
C) an e-transaction. 
D) a record. 
A) an e-document. 
B) an e-signature. 
C) an e-transaction. 
D) a record.

Question 19

Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac-cepting the offer by March 1.Signe may revoke the offer

Accepted Answer

A) beforeThomas accepts the offer. 
B) before March 1,whether or not Thomas has accepted the offer. 
C) only after Thomas accepts the offer. 
D) only after March 1. 
A) beforeThomas accepts the offer. 
B) before March 1,whether or not Thomas has accepted the offer. 
C) only after Thomas accepts the offer. 
D) only after March 1.

Question 20

A shrink-wrap agreement is an agreement whose terms are expressed in-side a box in which the goods are packaged.

Accepted Answer

A) True 
 B)False

Exam 9: Agreement in Traditional and E-Contracts

Under the Electronic Signatures in Global and National Commerce Act,a signature may not be denied legal effect solely because it is in electronic form.

The primary purpose of the Uniform Electronic Transactions Act (UETA) is to remove barriers to e-commerce.

Revocation is effective on dispatch.

Browse-wrap terms require a user to affirmatively indicate his or her consent.

May tries to start her new car with no success.She yells that she will sell the car to anyone for $10.Nick,a passerby who owns Nick's Pre-owned Autos,hands May $10.This is

The death of an offeree does not terminate an offer.

Under the E-SIGN Act,Phillip may use an e-signature in all of the following instances except

Shasta offers to sell a used hay baler to Roberto,but receives a letter of accep-tance from Quito,who has no relation to Roberto.A valid contract exists between

Pastry Dough,Inc.,sends its catalogue to Octavio and includes a "per-son-alized" letter inviting him to buy any item in it at the ad-vertised price.This is

Under the UETA,a typed name at the end of an email message is not considered an e-signature.

National Shipping Corporation and Office Software Company (OSC) make a deal for OSCs products,communicating entirely online.Under the UETA,an electronic record is considered sent

Under the UETA,a contract is unenforceable if it is solely in electronic form.

A record is an interaction between two or more people relating to business,commercial,or governmental activities.

Beth goes to Dr.Carlton for surgery.Carlton says that Beth should be fully healed within a week.Beth is not healed within a week.With respect to breach of contract,Carlton is

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

The mailbox rule applies to communication by phone and fax as well as the mail.

Bill and Stacy enter into a contract that falls within the provisions of the UETA.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

Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac-cepting the offer by March 1.Signe may revoke the offer

A shrink-wrap agreement is an agreement whose terms are expressed in-side a box in which the goods are packaged.

The Legal and Constitutional Environment of Business

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Tort Law

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Nature and Classification

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Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

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Performance and Breach of Sales and Lease Contracts

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Checks and Banking in the Digital Age

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