Deck 12: Agreement in Traditional and E-Contracts

Question 1

An advertisement is generally considered an offer.

Answer 1

False

Question 2

Only the United States has created regulations for global Internet transactions.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

An offer must be practical to be effective.

Question 5

A price list is a form of invitation to negotiate or trade.

Question 6

An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract.

Question 7

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

Question 8

An acceptance can impose new conditions or change the terms of the original offer without rejecting it.

Question 9

No offer can be accepted by silence.

Question 10

A request or invitation to negotiate is an offer.

Question 11

A statute or court decision that makes an offer illegal automatically terminates the offer

Question 12

In an auction, a bidder is an offeree.

Question 13

The UETA does not apply to all writings and signatures.

Question 14

An e-contract must meet basic requirements that are different from those required of a paper contract.

Question 15

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

Question 16

Generally, a contract must express its terms-no reasonable inferences are permissible.

Question 17

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

Question 18

Browse-wrap terms are often unenforceable.

Question 19

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

Question 20

If an offer does not specify a time for acceptance, the offer terminates at the end of a reasonable time.

Question 21

Naomi tells Ogden, who has no knowledge of Shakespearean comedy, that she will tutor him 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 Naomi's tutoring will be subjective.
D) not effective because Ogden has no knowledge of the subject.

Question 22

Quay Trucking Service tells Rafe that it will pay him $50 if he unloads a certain truck at the Shipping Warehouse. Rafe's acceptance is complete

A) as soon as Rafe says he will unload the truck.
B) once Rafe starts to unload the truck.
C) only after Rafe unloads the truck.
D) when Rafe hears Quay's offer.

Question 23

Lewis offers to make digital copies of Motivational Sales Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the UETA, Motivational Sales' 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 Motivational Sales computer.

Question 24

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

A) a browse-wrap term.
B) a click-on agreement.
C) a shrink-wrap agreement.
D) none of the choices.

Question 25

World Shipping 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

A) electronic means.
B) paper documents.
C) updates and cross-checks to orally verify any e-terms.
D) notarized documents.

Question 26

Standard Purchasing Corporation and Topmost 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 27

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 28

Crafted Metal Works, Inc., offers to design, make, and sell Downtown Transit Agency fourteen streetcars. Crafted Metal authorizes a particular mode of communication, but Downtown 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 29

Liz offers to sell Max her iPad for $200. Max says, "Okay, but only if you include the case and other accessories." Max 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 30

Farmland County Bank offers to lend money to Gino, the owner of Home Hardware Store, at 15 percent interest. Before Gino accepts, a state statute is enacted prohibiting loans at rates greater than 12 percent. Gino and the bank have

A) a contract for a loan at 15 percent interest.
B) a contract for a loan at 12 percent interest.
C) a contract for a loan at 0 percent interest.
D) no contract for a loan.

Question 31

Casey offers to sell a certain used forklift to DIY Lumber Outlet, but Casey dies before DIY ac?cepts. Most likely, Casey'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 32

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 33

Medical Billing Collection Corporation and Naturopath Clinic make a deal for Medical Billing'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 34

Mark is creating Nu2U.com, 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 35

On behalf of Bobble Head Manufacturing Company, Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company. Under the UETA, Carmela's typed name qualifies as

A) a "signature."
B) a statement of future intent.
C) a partnering agreement.
D) a preliminary negotiation.

Question 36

Diverse Diversions, Inc., makes computer, video, and mobile device games. Ember buys a hard copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if

A) Ember does not read it.
B) Ember learns of it after contracting.
C) Ember learns of it before contracting.
D) the play of the game is poor.

Question 37

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) before Thomas 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 38

Octavio receives from Pastry Dough, Inc., its catalogue and a "person?alized" letter inviting Octavio to buy any item at the advertised 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 39

Barrett files a suit against City Moving Service for breach of contract, based on what Barrett claims was City Moving's offer. For a court to de?termine 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 40

Lon says to Milli, "I would like to sell you my comic book collec?tion." This is not an offer because it

A) does not describe the subject matter specifically.
B) does not include a price term.
C) only expresses an opinion.
D) only invites Milli to negotiate.

Question 41

Business Solutions Corporation (BSC) sells business application software-wage, price, and inventory coordinating programs, for example-in different combinations and 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 42

Isabel owns a house, which she advertises for sale for $300,000. On April 1, Jon-Pierre offers Isabel $280,000 for the house. On April 5, Isabel has delivered to Jon-Pierre at his office a form that includes additional terms but does not state a price. At 9
a.m. on April 6, Jon-Pierre signs the form and gives it to Karla, his administrative assistant, with instructions to mail it. At 10
a.m., Isabel calls to tell Jon-Pierre that the deal is off. The next day, Karla mails the signed form to Isabel. When Isabel refuses to sell the house to Jon-Pierre, he files a suit against her, alleging breach of contract. Isabel claims that there was no contract. What are arguments supporting each party's position? What is the court likely to rule? Explain.