Deck 8: Agreement in Traditional and E-Contracts

Question 1

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

Answer 1

False

Question 2

An essential element for contract formation is agreement.

Answer 2

True

Question 3

An offer made in obvious anger is an effective offer.

Answer 3

False

Question 4

Revocation is effective on dispatch.

Question 5

An offer does not need to be communicated to the offeree to become effective.

Question 6

In most cases, an offeror can revoke an offer as long as the revocation is communicated before the offeree accepts.

Question 7

The first requirement for an effective offer is a serious intent on the part of the offeror.

Question 8

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

Question 9

An offeror's subjective intent determines the effectiveness of an offer.

Question 10

An expression of opinion-"this is excellent"-is an offer.

Question 11

A statement of future intent-"I plan to sell my car"-is an offer.

Question 12

One necessary element for an effective offer is a reasonable price related to market value.

Question 13

A price list is an invitation to negotiate.

Question 14

An effective offer requires reasonably definite terms.

Question 15

An "offer" to sell an item on an online auction site generally is treated an invitation to negotiate.

Question 16

An offer terminates automatically when the time specified in the offer has passed.

Question 17

An offer may invite an acceptance to be worded in specific terms but that cannot make the contract definite.

Question 18

A preliminary agreement cannot constitute a binding contract.

Question 19

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.

Question 20

The first requirement for an offer is that it must be practical.

Question 21

Under federal law, an e-document is not as enforceable as a paper one.

Question 22

There are no revocable offers.

Question 23

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.

Question 24

If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time.

Question 25

In a bilateral contract, communication of acceptance is necessary.

Question 26

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.

Question 27

An e-contract must meet the same basic requirements as those required of a paper contract.

Question 28

Browse-wrap terms are often unenforceable.

Question 29

Contracting parties cannot opt out of the terms of the UETA.

Question 30

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.

Question 31

Fresh Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to Fresh's

A) ​assumptions.
B) ​beliefs.
C) ​intentions.
D) ​words and conduct.

Question 32

Under the mailbox rule, an acceptance takes effect at the time it is sent.

Question 33

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.

Question 34

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.

Question 35

An acceptance can materially change or add to the terms of the original offer without rejecting it.

Question 36

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

Question 37

Generally, an offeree's power of acceptance is terminated when the offeror or offeree dies.

Question 38

Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts.

Question 39

A court decision that makes an offer illegal automatically terminates the offer.

Question 40

An acceptance must be unequivocal.​

Question 41

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.

Question 42

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.

Question 43

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

A) ​still open.
B) ​terminated.
C) ​rejected and subject to a counteroffer.
D) ​revoked.

Question 44

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.

Question 45

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.

Question 46

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.

Question 47

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.

Question 48

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.

Question 49

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.

Question 50

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.

Question 51

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.

Question 52

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.

Question 53

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.

Question 54

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.

Question 55

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.

Question 56

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.

Question 57

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.
C) ​unequivocally approximate.
D) ​vague or uncertain.

Question 58

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.

Question 59

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.

Question 60

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.

Question 61

Orb, Inc., does business online around the globe. The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements improve global commercial certainty by

A) ​all of the choices.
B) ​determining an Internet user's location for legal purposes.
C) ​providing that e-signatures are the equivalent of signatures on paper.
D) ​providing for the recognition of judgments by other nations' courts.

Question 62

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

A) ​reasonably clear.
B) ​vaguely ambiguous.
C) ​practical.
D) ​standardized.

Question 63

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.

Question 64

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.

Question 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.

Question 66

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.

Question 67

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?

Question 68

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.

Question 69

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.

Question 70

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.

Question 71

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.

Question 72

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.