Deck 17: E-Contracts

Question 1

An online offer should include provisions relating to dispute settlement.

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Contracts entered into in e-commerce are known as e-contracts.

Question 5

Under federal law,an electronic signature is as valid as a signature on pa?per,without exceptions.

Question 6

An online offer should NOT include provisions identifying applicable statutes of limitations.

Question 7

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

Question 8

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

Question 9

A shrink-wrap agreement is normally enforced.

Question 10

State e-signature laws are NOT uniform.

Question 11

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

Question 12

Click-on agreements are NOT the Internet equivalents of shrink-wrap agreements.

Question 13

A partnering agreement cannot indicate the parties' intent with respect to subsequent contracts.

Question 14

A partnering agreement reduces the likelihood that a dispute will arise under a contract.

Question 15

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

Question 16

E-signatures are NOT legally effective or enforceable.

Question 17

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

Question 18

Browse-wrap terms are arguably not enforceable.

Question 19

The terms of a shrink-wrap agreement may be enforced in the same way as the terms of other contracts.

Question 20

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

Question 21

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

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 22

Parties may NOT opt out of any terms of the UETA.

Question 23

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

Question 24

Jill has a Web site through which she conducts e-commerce.She wants to protect herself against contract disputes and legal liability.On th

A)provisions specifying the remedies if the contract is breached.
B)a clause identifying any applicable statute of limitations.
C)glowing reviews from former customers.
D)a provision spelling out the refund and return policies.

Question 25

Under the UETA,once an e-record leaves the sender's control,it is sent.

Question 26

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

Question 27

The E-Sign Act does NOT preempt the uniform version of the Uniform Electronic Transactions Act (UETA).

Question 28

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

Question 29

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

Question 30

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 31

The primary purpose of the Uniform Electronic Transactions Act is to remove barriers to e-commerce by giving the same legal effect to electronic records and e-signatures as is given to paper documents and signatures.

Question 32

An e-record is considered received under the UETA only if a person is aware of its receipt.

Question 33

A record does not have legal effect under the UETA unless someone signs it.

Question 34

Under the UETA,a signature may be denied legal effect solely because it is in electronic form.

Question 35

The UETA does not require that an agreement to conduct a transaction electroni?cally be made electronically.

Question 36

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

Question 37

Bret enters into a contract with Collegiate University over the Internet to take an online course titled "Internet Law." This is an e-contract because

A)the contract was entered into in e-commerce.
B)the contract was formed between a student and a university.
C)the contract will be performed online.
D)the subject matter of the contract is "Internet Law."

Question 38

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

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

Question 39

The UETA does not apply to a transaction unless the parties "opt in."

Question 40

The UETA covers only e-records and e-signatures relating to a transaction.

Question 41

Cool Fruit,Inc.,ships a boxcar-load of fruit cross-country to Dandy Grocers,Inc.,for $8,000.Cool e-mails that it will accept $7,000 in full pay?ment.After Dandy pays $7,000,Cool files a suit against Dandy for another $1,000.Under the E-SIGN Act,Cool is most likely enti?tled to

A)an additional $15,000.
B)an additional $7,000.
C)an additional $1,000.
D)nothing more.

Question 42

Mica buys "Nature," a movie,through Open Eyes Wide,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it.This warning is

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

Question 43

Jane orders a laptop and some software.When the goods arrive,Jane opens the boxes.If the shrink-wrap agreement for the products includes the usual terms,and Jane does not want to accept them,most likely she must

A)return the laptop only.
B)return the software only.
C)return the laptop and software.
D)file a lawsuit against the manufacturer.

Question 44

Vivian and Rob enter into a contract under which Vivian will clean Rob's house every week for a year.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 45

Jared downloads some video games from the Internet.There is

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

Question 46

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

A)a divorce decree or a prenuptial agreement.
B)a health-insurance termination.
C)an agreement subject to Article 2 of the Uniform Commercial Code.
D)an eviction or a foreclosure.

Question 47

Final Foto,Inc.,makes photo and video editing software,which includes a shrink-wrap agreement.Gibby buys a package of the software.With respect to the contract for the software's purchase,the shrink-wrap agreement may not be enforced if

A)Gibby does not read it.
B)Gibby learns of it after contracting.
C)Gibby learns of it before contracting.
D)the quality of the software is poor.

Question 48

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 49

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 50

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)buying insurance.
D)signing his will.

Question 51

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

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 52

Deb buys a song through eSongs,an online music vendor.Before completing the purchase and downloading the song,Deb must agree to a provision not to 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 53

Jonathan has not been paying rent for his apartment,and he has violated his landlord's pet policy.The landlord sends an eviction notice to Jonathan.The eviction notice 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 54

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 55

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 56

Integrity Manufacturing,Inc.,and Jiffy Delivery Service make a deal over the Internet that involves e-documents.Under the E-SIGN Act,for an e-document to be enforceable,it must be in a form that can be

A)accurately reproduced only.
B)retained only.
C)accurately reproduced and retained.
D)encrypted.

Question 57

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 58

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 59

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 60

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 61

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 62

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 63

High-Tech Services,Inc.,and Internet Investments Corporation enter into a con?tract that would otherwise be subject to the UETA but purports to "opt out." The UETA covers

A)none of the contract.
B)only the part of the contract that concerns computer data.
C)only the part of the contract that does not concern computer data.
D)the entire contract.

Question 64

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)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 65

Research Products,Inc.,and Scientific Tools Corporation enter into a con?tract online in a state that has enacted a modified version of the UETA in which a procedure for the use of e-signatures is different from that provided in the E-SIGN Act.The alternative procedure is effective if it is

A)consistent with the E-SIGN Act
B)inconsistent with the E-SIGN Act.
C)significantly different from the E-SIGN Act.
D)sufficiently distinctive from the E-SIGN Act.

Question 66

On behalf of Bay Oyster Company,Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company.Under the UETA,qualifying Celia's name as her "signature" is

A)attribution.
B)cybernotarization.
C)acceptance.
D)agreement.

Question 67

Order Processing Corporation and Pinpoint Data,Inc.,enter into a con?tract online in a state that has enacted an unmodified version of the UETA.With regard to the E-SIGN Act

A)the E-SIGN Act does not preempt this version of the UETA.
B)the E-SIGN Act preempts this version of the UETA.
C)the "fit" between the acts is an issue for a court to determine.
D)the two acts "cancel" each other's application.

Question 68

Consumer Payments Processing Corporation (CPPC) and Mall Kiosk Company make a deal for CPPC's services,via e-records.Under the UETA,an e-record is considered received when

A)it enters the recipient's processing system in a readable form.
B)the recipient is aware of its receipt.
C)the recipient is aware that it has been sent.
D)it leaves the sender's control.

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 leaving the sender's control.
D)when it leaves the sender's control or comes into the recipient's control.

Question 70

Dipsy Products,Inc.,and Dangly Sales Corporation transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers

A)none of the contract.
B)only the part of the contract that does not involve e-commerce.
C)only the part of the contract that involves e-signatures.
D)the entire contract.

Question 71

Creative Solutions Corporation (CSC) 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,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 72

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.