Exam 19: E-Contracts and E-Signatures

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Omega, Inc., sells business application software-accounting and book?keeping programs, blank business forms, inventory control functions, and so on-in different combinations, in different packages, at different prices. Each package includes a shrink-wrap agreement that limits warranties and remedies. Precision Engineering Associates (PEA) buys an Omega package and uses the product. Later, PEA files a suit against Omega, claiming that the software is flawed and that the flaws caused PEA to suffer business losses. PEA asks for relief that exceeds the limits in the shrink-wrap agreement. What are shrink-wrap agreements? Are these agreements al?ways enforced? Under what circumstances is a court likely to enforce this agree?ment?

(Essay)
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Printing Products Company and Quality Ink, Inc., transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers

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In e-transactions, attribution refers to procedures that may be used to en?sure that a person sending an e-record is the same person whose e-signature accompanies the record.

(True/False)
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Under the Uniform Electronic Transactions Act (UETA), a signature may be denied legal effect solely because it is in electronic form.

(True/False)
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Eagle Oil Company and Federated Refining, Inc., attempt to enter into a contract in electronic form. Under the Electronic Signatures in Global and National Commerce (E-SIGN) Act, solely because this contract is in elec?tronic form, it

(Multiple Choice)
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Unique Sales Corporation and Virtual Purchasing, Inc., attempt to enter into a contract with the use of e-signatures. Among states that have e-signature laws, the laws are

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No Limit Corporation, an online retail sales merchant, and Ollie, a consumer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, for the e-signatures to be enforceable

(Multiple Choice)
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Leo and Mona enter into a contract. A dispute later arises over a particu?lar term. The law governing contracts requires that for that term to be given effect, both Leo and Mona must have read

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Excel Sales Corporation enters into contracts with distributors and other buyers in e-commerce and in traditional commerce. The UETA applies, if at all, only to those transactions in which the parties agree to use

(Multiple Choice)
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Dino and Elle engage in a transaction that involves e-documents. The E-SIGN Act applies if those documents include

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The UETA replaces other state laws on issues relating to contract formation.

(True/False)
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Browse-wrap terms are arguably not enforceable.

(True/False)
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State e-signature laws are uniform.

(True/False)
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A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

(True/False)
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The terms in a click-on agreement may be enforced if the parties expressly agreed to them.

(True/False)
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An electronic symbol, adopted by a person with the intent to sign an e-record, is an e-signature.

(True/False)
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Inventory Control Corporation does business online. Contracts may be formed online for the purpose of

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A contract for a sale of software does not transfer ownership rights in the software to the buyer.

(True/False)
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Focal Point Company, a Web site management firm, enters into a contract over the Internet with Global Travel, an online travel agent, to buy airline tickets for a business trip for Hu, a Focal Point employee. This is an e-contract because

(Multiple Choice)
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Delia, a seller, and Evan, a buyer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, for the e-signatures to be enforceable

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