Deck 10: Agreement in Traditional and E-Contracts

Question 1

An acceptance must be unequivocal.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

No offer can be accepted by silence.

Question 5

There are no revocable offers.

Question 6

An offer must be communicated to the offeree to be effective.

Question 7

In an auction,the auctioneer is an offeree.

Question 8

An expression of opinion-"your customers will like this"-is an offer.

Question 9

An effective offer requires a reasonable price related to market value.

Question 10

Under the mailbox rule,no acceptance is valid until it is received.

Question 11

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

Question 12

An invitation to submit bids-"how much would you charge to do this work"-is an offer.

Question 13

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

Question 14

An effective offer requires reasonably certain terms.

Question 15

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

Question 16

A person who does not know about a reward can still claim it.

Question 17

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

Question 18

An offer must be practical to be effective.

Question 19

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

Question 20

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

Question 21

Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction,he can withdraw his property

A)only before the auctioneer announces that the ranch is sold.
B)only before the auctioneer delivers the deed to the buyer.
C)under no circumstances.
D)within thirty days after the auction.

Question 22

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

Question 23

Yvon asks Zac,"Do you want to buy one of my fishing rods" This is

A)a valid offer.
B)not a valid offer because the terms are not definite.
C)not a valid offer because Yvon did not state an intent.
D)not a valid offer because Zack did not respond.

Question 24

The UETA does not create rules for e-transactions.

Question 25

The E-Sign Act preempts the uniform version of the Uniform Electronic Transactions Act (UETA).

Question 26

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

Question 27

Wanda tells Vito that she would like to buy his Chocolate Goodies store.Vito declines,but later decides to sell and sends to Wanda,and others,a flyer describing the details.Wanda responds with a letter of "acceptance." Wanda and Vito have

A)a contract.
B)no contract,because Vito sent the letter to more than one party.
C)no contract,because Vito was only inviting bids.
D)no contract,because the letter was an invitation to negotiate.

Question 28

An online offer should include provisions relating to dispute settlement.

Question 29

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

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 30

A record does not require a signature to have legal effect under the UETA.

Question 31

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

Question 32

State law other than the UETA always determines the effect of an error on an agreement between contracting parties.

Question 33

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

Question 34

The terms in a click-on agreement may be enforced if the parties expressly agreed to them.

Question 35

Nate tells Opal,"I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

A)an acceptance of an offer.
B)an invitation to accept an offer.
C)an offer.
D)a statement of future intent.

Question 36

The UETA applies to an e-transaction unless the parties "opt out."

Question 37

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

Question 38

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

Question 39

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

Question 40

A "sale" of software generally involves a right to use the software and a passage of ownership rights in the software to the buyer.

Question 41

Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet,but it is stolen before Value accepts.Most likely,Wally's must obtain

A)a forklift for Value if Wally's insurance covers the loss.
B)a forklift for Value if it still wants one.
C)nothing for Value because that would extend the time of the offer.
D)nothing for Value because the theft termi?nated the offer.

Question 42

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)none of the choices.

Question 43

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

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 44

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

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

Question 45

Lightspeed Corporation makes computers,each of which is packaged with a shrink-wrap agreement.Milo buys a Lightspeed desktop.The shrink-wrap agreement is most likely enforceable if

A)Milo buys the computer directly from Lightspeed.
B)Milo expressly agrees to the terms in the shrink-wrap agreement.
C)Milo reads the shrink-wrap agreement.
D)the terms in the shrink-wrap agreement concern warranties.

Question 46

Corner Convenience Store (CCS)takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station,offering a reward for information leading to the apprehension of a certain criminal.CCS could normally terminate the offer by placing

A)a full-page ad in the local paper and a thirty-second commercial on the local station.
B)a notice in the "Legal Announcements" section of the paper.
C)a notice to the news departments of the local stations.
D)any,or none,of the choices.

Question 47

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

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 48

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

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

Question 49

Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule and the Uniform Electronic Transactions Act (UETA),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 50

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 51

Elmore offers to sell a Ford F-150 for $7,500 to Grace.Before Grace can respond,Elmore refers to the prices for similar Fords and says,"Forget it.I changed my mind." Elmore's offer was terminated by

A)Elmore.
B)Ford.
C)Grace.
D)no one-Elmore's offer is still open.

Question 52

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

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

Question 53

Quik Fix-It,Inc.,offers Pam a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate

A)after a reasonable period of time.
B)after a typical work week (five business days).
C)after a usual month (thirty calendar days).
D)never.

Question 54

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 over the Internet.
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 55

Flem,a user of GameCenter.com's Web site,can download gaming software 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 56

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to

A)accept the offer.
B)make a counteroffer.
C)reject the offer.
D)none of the choices.

Question 57

Mica buys "Nature," a movie,through Open View,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)none of the choices.

Question 58

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

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

Question 59

Final Foto,Inc.,makes photo and video editing software,which includes a shrink-wrap agreement.Gert 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)Gert does not read it.
B)Gert learns of it after contracting.
C)Gert learns of it before contracting.
D)the quality of the software is poor.

Question 60

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 61

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 62

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 63

Michelle gives out a business card with an e-mail address on it.According to the comments that accompany the UETA,it may be 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

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 65

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 66

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.

Question 67

Order Processing Corporation and Pinpoint Data,Inc.,enter into a contract 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

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products,via e-records.Under the UETA,an e-record is considered sent when it

A)is signed and encrypted,and will be sent without changes.
B)is stored in the sender's back-up system.
C)is composed on the sender's computer.
D)leaves the sender's control.

Question 69

On May 1,Brand Name Industries,Inc.(BNI),sent Carol a letter,via overnight delivery,offering to employ her to audit BNI's financial statements for the current year for $10,000.In the letter,BNI stated that Carol had ten days to accept.On May 5,Carol sent BNI a fax that stated,"The price for the audit seems too low.Would you consider paying $12,000" BNI received the fax.The next day,Dan offered to conduct the audit for $8,000.On learning of Dan's offer,Carol immediately e-mailed BNI,agreeing to do the work for $10,000.BNI received this e-mail on May 7.Explain why BNI and Carol do,or do not,have a contract.

Question 70

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 71

Jaime and Kip,consumers,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 involves computer data.
C)only the part of the contract that does not involve computer data.
D)the entire contract.