Deck 9: Agreement in Traditional and E-Contracts

Question 1

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

Answer 1

False

Question 2

Revocation is effective on dispatch.

Answer 2

False

Question 3

A forum-selection clause indicates the forum,or location,for the delivery of goods purchased online.

Answer 3

False

Question 4

In most states,revocation becomes effective on receipt.

Question 5

The death of an offeree does not terminate an offer.

Question 6

The agreement resulting from a buyer clicking on a box containing the words "I agree" is known as a click-on agreement.

Question 7

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

Question 8

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

Question 9

An offer that astatute makes illegal terminates only af-ter a rea-sonable time.

Question 10

A seller's price list is notan offer.

Question 11

For an offer to be effective,the offeror must have a serious intention to become bound by the offer.

Question 12

Some unilateral contracts do not require that an offeror be notified of acceptance.

Question 13

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

Question 14

If an offeror does not expressly specify a certain mode of acceptance,then acceptance can be made by any reasonable means.

Question 15

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 16

An offer made in obvious anger is still an effective offer.

Question 17

In a bilateral contract,communication of acceptance is necessary.

Question 18

A circular letter-"Dear Mr.or Ms.Jones,This is our biggest sale ever!"-isnotevidence of an intent to enter into a contract.

Question 19

The mirror image rule requires an acceptance to adhere exactly to an of-fer to create a contract.

Question 20

An expression of opinion-"this is perfect!"-is an effective offer as long as it is not made in jest.

Question 21

Under the UETA,an e-signature of a notary public is not sufficient to notarize a document.

Question 22

Under federal law,an electronic signature can be as valid as a signature on pa-per.

Question 23

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

Question 24

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

Question 25

Not all of the terms presented in shrink-wrap agreements have been enforced.

Question 26

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

Question 27

A click-on agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.

Question 28

Jacqi tells Kenneth,who does not know how to perform comedy,that she will tutor him in the subject for $500.As an offer,this is

A)effective.
B)not effective,because comedy is not a serious subject.
C)not effective,because Jacqi's tutoring will be subjective.
D)not effective,because Kenneth has no knowledge of the subject.

Question 29

Under federal law,an e-signature is enforceable only if the contracting parties have agreed to use e-signatures.

Question 30

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

Question 31

Browse-wrap terms are arguably not enforceable.

Question 32

Mary admires Julia's collection of scarves.Julia says "I might sell you a few someday,if I get tired of them." Julia's statement is

A)an effective offer.
B)not an effective offer because it has not been communicated to Mary.
C)not an effective offer because the Julia does not show a serious intent to be bound.
D)an acceptance.

Question 33

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

Question 34

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

Question 35

The E-Sign Act does not preempt the uniform version of the UETA.

Question 36

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

A)Fresh's assumptions.
B)Fresh's beliefs.
C)Fresh's intentions.
D)what a reasonable person in Growers' position would conclude Fresh's words and actions meant.

Question 37

Peter and Ray are riding their horses together.Peter jokingly tells Ray that Ray's horse is too slow.Ray laughs and jokingly responds "Yes,he is too slow! I would sell him for $5!" Peter hands Ray $5.This is

A)a valid acceptance because Peter gave Ray the money in a reasonable time.
B)a valid acceptance because there is consideration on both sides.
C)not a valid acceptance because Ray's offer was made in jest.
D)not a valid acceptance because Ray's horse is worth more than $5.

Question 38

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

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 39

The UETA does not require the use of security procedures to verify changes to electronic documents and to correct errors.

Question 40

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.

Question 41

Deb buys a song through eSongs,an online music vendor.Before completing the purchase and downloading the song,Deb must agree to a provision stating that she will not make and sell copies of the song.This provision is

A)a browse-wrap term.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)a wrap-on agreement.

Question 42

Hi-Lite Manufacturing,Inc.,orders supplies online from Indigo Parts Company. To complete the order,the buyer is required to click on a button that says,in reference to certain terms,"I agree." This is

A)a click-on agreement.
B)a default agreement.
C)an attribution agreement.
D)a shrink-wrap agreement.

Question 43

Ali offers to sell Ben a new car for $10,000.Ben accepts the offer and sells his old car so that he will have money for the new one.Ali's offer is probably

A)revocable because the terms of the offer were not definite.
B)irrevocable because Ben sold his old car because of justifiable reliance on Ali's offer to sell him a new car.
C)revocable because any offer is revocable.
D)irrevocable because Ali's offer represents an opinion contract.

Question 44

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

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 45

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 46

Crafted Iron Works,Inc.,offers to design,make,and sell City Transit Agency fourteen streetcars.Crafted authorizes a particular mode of communication,but City Transit sends an acceptance via a substituted means.This acceptance is effective when it is

A)in transit.
B)received.
C)sent.
D)written.

Question 47

Digital Products Company includes a shrink-wrap agreement in a transac-tion with Eagle Engineering Corporation. A shrink-wrap agreement is an agreement whose terms are expressed

A)in code at the end of a computer program .
B)inside a box in which goods are packaged.
C)in small print at the end of a paper contract signed by both parties.
D)on a computer screen.

Question 48

Mark is creating a Web site through which he will enter into contracts over the Internet.Important terms to include in his offers include

A)provisions specifying the remedies if the contract is breached.
B)a detailed history of his business.
C)glowing reviews from former customers.
D)his educational background.

Question 49

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

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 50

Wally offers to sell a certain used forklift to Valu Lumber Outlet,but Wally dies before Valu ac-cepts.Most likely,Wally's death

A)did not affect the offer.
B)shortened the time of the offer but did not terminate it.
C)extended the time of the offer.
D)termi-nated the offer.

Question 51

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

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

Question 52

Liz offers to sell Jock her iPad for $500 without any accessories.Under the mirror image rule,Jock's response will be considered an acceptance ifthe 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 53

Quality Sales Corporation enters into contracts over the Internet.Quality can protect itself against disputes involving these contracts by making im-portant terms

A)reasonably clear.
B)difficult to notice.
C)impossible to find.
D)standardized.

Question 54

Laredo advertises a reward for the return of his lost dog.Mikayla,who does not know of the reward,finds and returns the dog.Mikayla cannot recover the re-ward,because she

A)did not confer a benefit on Laredo by returning the dog.
B)did not know of the reward when she found and returned the dog.
C)does not need the money.
D)returned the dog.

Question 55

Jon says to Kristy,"I would like to sell you my sports memorabilia collec-tion." 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 Kristy to negotiate.

Question 56

On May 1 Jill offers to sell Andrea a herd of sheep.On May 3 Jill mails Andrea a letter revoking the offer.Andrea receives the letter on May 5.Jill's revocation of the offer to sell the sheep became effective on

A)May 1.
B)May 3.
C)May 4.
D)May 5.

Question 57

Jared downloads some video games from the Internet.There is a page indicating the terms of use,but nothing that requires Jared to affirmatively indicate his consent before downloading the games.These terms are

A)a click-on agreement.
B)browse-wrap terms.
C)an attribution agreement.
D)a shrink-wrap agreement.

Question 58

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

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 59

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)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 60

Over the Internet,Red & White Contractors,Inc.,arranges to lease storage space from Blue Services Company. To complete the deal,Red & White clicks on a but-ton that says,in reference to certain terms,"I agree." Most likely,the par-ties have

A)a binding contract that includes the terms.
B)a binding contract that does not include the terms.
C)an unenforceable contract that includes the terms.
D)an unenforceable contract that does not include the terms.

Question 61

Standard Purchasing Corporation and Total Sales,Inc.,enter into a part-nering agreement.Under a partnering agreement,parties agree

A)in advance to terms that apply to their future e-transactions.
B)to become partners.
C)to conduct transactions solely in electronic form.
D)to resolve all disputes without involving a third party.

Question 62

Kay and Leo enter into a contract that falls within the provisions of the UETA.Under the UETA,"an electronic sound,symbol,or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record" is

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

Question 63

Michelle gives out a business card with an e-mail address on it.It is reasonable to infer that Michelle has consented to

A)transact business electronically.
B)submit to the jurisdiction of any selected forum.
C)accept and respond to any correspondence sent to that address.
D)nothing.

Question 64

First Design Corporation,a business firm,and Glen,a consumer,make a deal over the Internet that involves e-signatures.Under the E-SIGN Act,the e-signatures

A)are as valid as signatures on a paper document.
B)must be encrypted to be enforceable.
C)must have been inscribed on a digital tablet to be authenticated.
D)must relate to a partnering agreement.

Question 65

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.

Question 66

Beta Software Company and Gamma Sales Corporation agree to follow a certain security procedure in transacting their business online.Beta fails to follow the procedure,however.Due to this failure,Beta does not detect an error in the deal,which will have a negative impact on Gamma's interest in the deal.Can Gamma avoid the effect of this error? How?

Question 67

Vivian and Rob enter into a contract under which Vivian will clean Rob's house every week for a year.Under the E-SIGN Act,in order for e-signatures to be enforceable for this contract

A)Vivian and Rob must both agree to use e-signatures.
B)only Vivian needs to agree to use e-signatures.
C)only Rob needs to agree to use e-signatures.
D)Vivian and Rob must both register their e-signatures with the federal government.

Question 68

Clean Health Insurance,Inc.sends Kathy a health insurance termination.The health insurance termination is

A)governed by the E-SIGN Act.
B)not governed by the E-SIGN Act.
C)governed by Article 2 of the UCC.
D)governed by Article 2A of the UCC.

Question 69

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

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

Question 70

Fred's Paper Shop frequently buys paper from Online Office Supplies,Inc.Online Office Supplies and Fred's Paper Shop decide to enter into a partnering agreement.One of the advantages of entering into a partnering agreement is that

A)the costs of all transactions will be reduced.
B)the likelihood that disputes will arise under their contract is reduced.
C)neither party will be able to file suit for breach of contract.
D)Fred's Paper Shop will not be able to file suit for breach of contract.

Question 71

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

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

Question 72

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

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