Question 1

An acceptance that materially changes a term in the offer will still be considered an acceptance.

Accepted Answer

A) True 
 B)False  False

Question 2

Most advertisements-"this property for sale"-are offers.

Accepted Answer

A) True 
 B)False  False

Question 3

An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.

Accepted Answer

A) True 
 B)False  False

Question 4

An effective offer requires reasonably certain terms.

Accepted Answer

A) True 
 B)False

Question 5

Grant offers to sell his Honda Civic for $10,000 to Ivy.Referring to the prices for similar Hondas,Ivy says,"I'll pay no more than $5,000." Grant says,"Forget it." Grant's offer was terminated by

Accepted Answer

A) Grant. 
B) Honda. 
C) Ivy. 
D) no one-Grant's offer is still open. 
A) Grant. 
B) Honda. 
C) Ivy. 
D) no one-Grant's offer is still open.

Question 6

An online offer should include provisions relating to dispute settlement.

Accepted Answer

A) True 
 B)False

Question 7

Nero and Oona negotiate a contract.Nero prints out a hard copy to review before both parties sign the electronic form of the contract.Neither party signs the hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),the signatures can

Accepted Answer

A) be denied effect because they are in electronic form. 
B) be denied effect because Nero has not signed a hard copy. 
C) be denied effect because Oona has not signed a hard copy. 
D) not be denied effect because they are in electronic form. 
A) be denied effect because they are in electronic form. 
B) be denied effect because Nero has not signed a hard copy. 
C) be denied effect because Oona has not signed a hard copy. 
D) not be denied effect because they are in electronic form.

Question 8

Overnight Delivery Service delivers a package to Pam.At the request of Overnight's delivery person,to acknowledge receipt Pam signs a digital pad.This signing creates

Accepted Answer

A) a cybernotarized signature. 
B) a digitized handwritten signature. 
C) an asymmetric .cryptosystemic signature. 
D) a public-key infrastructure digital signature. 
A) a cybernotarized signature. 
B) a digitized handwritten signature. 
C) an asymmetric .cryptosystemic signature. 
D) a public-key infrastructure digital signature.

Question 9

An agreement is evidenced by a single event: an acceptance.

Accepted Answer

A) True 
 B)False

Question 10

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection

Accepted Answer

A) only before the auctioneer announces that the items are sold. 
B) only before the auctioneer delivers the items to the buyers. 
C) under no circumstances. 
D) within thirty days after the auction. 
A) only before the auctioneer announces that the items are sold. 
B) only before the auctioneer delivers the items to the buyers. 
C) under no circumstances. 
D) within thirty days after the auction.

Question 11

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas.Lena,a resident of Maine,accepts Jelly Jar's offer.If a dispute arises,a court will most likely rule that it must be resolved in

Accepted Answer

A) Kansas. 
B) Kansas or Maine. 
C) Maine. 
D) the location selected by the first party to file a suit. 
A) Kansas. 
B) Kansas or Maine. 
C) Maine. 
D) the location selected by the first party to file a suit.

Question 12

Myra owns a house,which she advertises for sale for $200,000.On May 1,Nicole offers Myra $180,000 for the house.On May 5,Myra delivers to Nicole a form that includes additional terms but does not state a price.At 9 a.m.on May 6,Nicole signs the form and gives it to Odell,her administrative assistant,with instructions to mail it.At 10 a.m.,Myra calls to tell Nicole that the deal is off.The next day,Odell mails the signed form to Myra.When Myra refuses to sell the house,Nicole files a suit against her,alleging breach of contract.Myra claims that there was no contract.What are arguments supporting each party's position What is the court likely to rule Explain.

Accepted Answer

Nicole might assert her intent to accept

Question 13

Business Properties,Inc.(BPI),offers to sell a warehouse to Corporate Investments.Corporate says that it will pay BPI $100 to hold the offer open for three business days.This

Accepted Answer

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. 
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.

Question 14

An auction-"we ask you to bid on this item"-is an offer.

Accepted Answer

A) True 
 B)False

Question 15

Magic Math Corporation makes business accounting software,which is packaged with a shrink-wrap agreement.National Distribution Company distributes the software to retailers,including an Office Stuff store,where Peg buys a package of it.The parties to the shrink-wrap agreement are

Accepted Answer

A) Magic Math and National Distribution only. 
B) Magic Math and Peg only. 
C) Magic Math,National Distribution,Office Stuff,and Peg. 
D) Office Stuff and Peg only. 
A) Magic Math and National Distribution only. 
B) Magic Math and Peg only. 
C) Magic Math,National Distribution,Office Stuff,and Peg. 
D) Office Stuff and Peg only.

Question 16

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

Accepted Answer

A) Kyle's rejection. 
B) Kyle's subjective intent. 
C) whatever Jane decides. 
D) whether Kyle's rejection or acceptance is received first. 
A) Kyle's rejection. 
B) Kyle's subjective intent. 
C) whatever Jane decides. 
D) whether Kyle's rejection or acceptance is received first.

Question 17

Tomato Farms (TF)offers to sell United Grocers,Inc.,a boxcar load of tomatoes.The offer is sent via fax.An acceptance is required urgently.It would be most reasonable for United to accept via

Accepted Answer

A) a fax,a letter,or a phone call to TF within two weeks. 
B) a fax sent to TF as soon as the offer is received. 
C) a letter mailed to TF within two days. 
D) a phone call to TF within five business days. 
A) a fax,a letter,or a phone call to TF within two weeks. 
B) a fax sent to TF as soon as the offer is received. 
C) a letter mailed to TF within two days. 
D) a phone call to TF within five business days.

Question 18

Lively Toys Store and Movin' Products Company (MPC)enter into an e-contract under which MPC agrees to ship a case of electronic,remote-controlled bugs to Lively Toys,which agrees to pay on delivery.The Uniform Electronics Transactions Act (UETA)

Accepted Answer

A) denies the enforcement of such contracts. 
B) does not apply to such contracts. 
C) preempts all other laws with respect to such contracts. 
D) supports the enforcement of such contracts. 
A) denies the enforcement of such contracts. 
B) does not apply to such contracts. 
C) preempts all other laws with respect to such contracts. 
D) supports the enforcement of such contracts.

Question 19

A partnering agreement can indicate the parties' intent with respect to subsequent contracts.

Accepted Answer

A) True 
 B)False

Question 20

An invitation to negotiate-"can you afford this"-is an offer.

Accepted Answer

A) True 
 B)False

Exam 10: Agreement in Traditional and E-Contracts

An acceptance that materially changes a term in the offer will still be considered an acceptance.

Most advertisements-"this property for sale"-are offers.

An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.

An effective offer requires reasonably certain terms.

Grant offers to sell his Honda Civic for $10,000 to Ivy.Referring to the prices for similar Hondas,Ivy says,"I'll pay no more than $5,000." Grant says,"Forget it." Grant's offer was terminated by

An online offer should include provisions relating to dispute settlement.

Nero and Oona negotiate a contract.Nero prints out a hard copy to review before both parties sign the electronic form of the contract.Neither party signs the hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),the signatures can

Overnight Delivery Service delivers a package to Pam.At the request of Overnight's delivery person,to acknowledge receipt Pam signs a digital pad.This signing creates

An agreement is evidenced by a single event: an acceptance.

Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind,she can withdraw her collection

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas.Lena,a resident of Maine,accepts Jelly Jar's offer.If a dispute arises,a court will most likely rule that it must be resolved in

Business Properties,Inc.(BPI),offers to sell a warehouse to Corporate Investments.Corporate says that it will pay BPI $100 to hold the offer open for three business days.This

An auction-"we ask you to bid on this item"-is an offer.

Magic Math Corporation makes business accounting software,which is packaged with a shrink-wrap agreement.National Distribution Company distributes the software to retailers,including an Office Stuff store,where Peg buys a package of it.The parties to the shrink-wrap agreement are

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

Tomato Farms (TF)offers to sell United Grocers,Inc.,a boxcar load of tomatoes.The offer is sent via fax.An acceptance is required urgently.It would be most reasonable for United to accept via

Lively Toys Store and Movin' Products Company (MPC)enter into an e-contract under which MPC agrees to ship a case of electronic,remote-controlled bugs to Lively Toys,which agrees to pay on delivery.The Uniform Electronics Transactions Act (UETA)

A partnering agreement can indicate the parties' intent with respect to subsequent contracts.

An invitation to negotiate-"can you afford this"-is an offer.

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