Deck 19: E-Contracts and E-Signatures

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

A shrink-wrap agreement may not be enforced if its terms are objec?tionable on grounds that apply to contracts in general.

Answer 3

True

Question 4

A contract for a sale of software does not transfer ownership rights in the software to the buyer.

Question 5

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

Question 6

Terms in a shrink-wrap agreement are normally not enforced.

Question 7

Most courts have applied traditional contract law principles to con?tracts formed online.

Question 8

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

Question 9

A click-on agreement is normally not enforced.

Question 10

A contract for a sale of software transfers ownership rights in the software to the buyer.

Question 11

An online offer should include provisions relating to dispute settlement.

Question 12

Terms in a shrink-wrap agreement are always enforced.

Question 13

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

Question 14

Browse-wrap terms are arguably not enforceable.

Question 15

Under the Electronic Signatures in Global and National Commerce (E-SIGN) Act, a signature may be denied legal effect solely because it is in electronic form.

Question 16

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

Question 17

Under federal law, an electronic document is as valid as a paper document, without exceptions.

Question 18

The terms of a contract must have been read to be enforceable.

Question 19

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

Question 20

State e-signature laws are uniform.

Question 21

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

Question 22

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

Question 23

Parties cannot waive or vary the provisions of the UETA by contract.

Question 24

The UETA replaces other state laws on issues relating to contract formation.

Question 25

Under the UETA, a person's name is necessary to give effect to an elec?tronic record.

Question 26

The UETA provides that a contract is enforceable only if it is in electronic form.

Question 27

The UETA requires the use of security procedures to verify changes to e-documents.

Question 28

Under the UETA, once an e-record comes under the recipient's control, it is sent.

Question 29

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

Question 30

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

Question 31

Parties cannot opt out of the UETA.

Question 32

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

Question 33

The Uniform Electronic Transactions Act (UETA) is a federal law.

Question 34

The E-Sign Act preempts the uniform version of the UETA.

Question 35

Under the Uniform Electronic Transactions Act (UETA), a signature may be denied legal effect solely because it is in electronic form.

Question 36

The UETA does not create rules for e-transactions.

Question 37

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

Question 38

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

Question 39

In e-transactions, attribution refers to procedures that may be used to en?sure that a person sending an e-record is the same person whose e-signature accompanies the record.

Question 40

With a partnering agreement, fraud is not a possibility.

Question 41

Leo and Mona enter into a contract. A dispute later arises over a particu?lar term. The law governing contracts requires that for that term to be given effect, both Leo and Mona must have read

A) all of the terms.
B) at least the term in dispute.
C) most of the terms, including the term in dispute.
D) none of the terms.

Question 42

Delta Services, Inc., and E-Products Corporation negotiate a software li?cense. This is

A) a passage of ownership rights to the software.
B) a right to use the software.
C) a passage of ownership rights to, and a right to use, the software.
D) none of the choices.

Question 43

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 44

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 45

Calculations, Inc., makes computers, each of which is packaged with a shrink-wrap agreement. The maker sells its products to retailers, including Delite Catalog Company, through which Evon buys a Calculations laptop. The parties to the laptop's shrink-wrap agreement are

A) Calculations and Delite only.
B) Calculations and Evon only.
C) Calculations, Delite, and Evon.
D) Delite and Evon only.

Question 46

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 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) none of the choices.

Question 47

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 48

Metal Manufacturing, Inc., orders supplies online from National Parts Supply. To complete the order, Metal 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 49

Quality Sales Corporation sells its products in contracts entered into online. Quality can protect itself against disputes involving these contracts by making im?portant terms

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

Question 50

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 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 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

Kia and Lucy 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 53

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 54

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 55

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 56

Office Products, Inc., engages in licensing transactions with Personnel Staffing Agency and other customers. These transactions involve

A) a passage of title and a right of use.
B) a passage of title only.
C) a right of use only.
D) neither a passage of title nor a right of use.

Question 57

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 electronically.
C) the contract will be performed online
D) the subject matter of the contract is "Internet Law."

Question 58

Inventory Control Corporation does business online. Contracts may be formed online for the purpose of

A) licensing and sales of goods and services.
B) licensing only.
C) neither licensing nor sales of goods and services.
D) sales of goods and services only.

Question 59

Focal Point Company, a Web site management firm, enters into a contract over the Internet with Global Travel, an online travel agent, to buy airline tickets for a business trip for Hu, a Focal Point employee. This is an e-contract because

A) the contract was entered into over the Internet.
B) the contract was formed electronically.
C) the buyer is involved in a Web-related business.
D) the seller is involved in business online.

Question 60

Over the Internet, Equipment Contractor, Inc., arranges to lease storage space from Full Service Company. To complete the deal, Equipment 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

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.

Question 62

Uri and Vida enter into a contract in electronic form. Neither party prints out or signs a hard copy. Under Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

A) be denied effect because it is in electronic form.
B) be denied effect because a hard copy has not been printed.
C) be denied effect because a hard copy has not been signed.
D) not be denied effect because it is in electronic form.

Question 63

Central Shipping Corporation and Data Software Company (DSC) make a deal for DSCs products, communicating entirely online. Under the UETA, an e-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 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

Financial Services Corporation engages in an e-transaction with Greater Metro Bank over the Internet. The UETA

A) does not support the transaction, but does create rules for it.
B) does not support the transaction or create rules for it.
C) supports the transaction and creates rules for it.
D) supports the transaction, but does not create rules for it.

Question 66

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 67

Printing Products Company and Quality Ink, Inc., 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 68

Excel Sales 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) e-commerce only.
B) e-commerce or traditional commerce.
C) neither e-commerce nor traditional commerce.
D) traditional commerce only.

Question 69

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 70

Omni Manufacturing, Inc., and Parcel 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) the entire contract.

Question 71

Delia, a seller, and Evan, a buyer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, for the e-signatures to be enforceable

A) both parties must have agreed to use e-signatures.
B) neither party must have agreed to use e-signatures.
C) only Delia must have agreed to use an e-signature.
D) only Evan must have agreed to use an e-signature.

Question 72

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 73

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 74

Office Application Corporation (OAC) sends an e-record to Precision Design, Inc. Under the UETA, the record will be considered received when it

A) enters Precision's processing system in a readable form, even if no person is aware of its receipt.
B) enters Precision's processing system in a readable form, only if a person is aware of its receipt.
C) is midway between the parties' processing systems.
D) passes out of OAC's control.

Question 75

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 76

No Limit Corporation, an online retail sales merchant, and Ollie, a consumer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, for the e-signatures to be enforceable

A) both parties must have agreed to use e-signatures.
B) neither party must have agreed to use e-signatures.
C) only the consumer must have agreed to use an e-signature.
D) only the merchant must have agreed to use an e-signature.

Question 77

Eagle Oil Company and Federated Refining, Inc., attempt to enter into a contract in electronic form. Under the Electronic Signatures in Global and National Commerce (E-SIGN) Act, solely because this contract is in elec?tronic form, it

A) may be denied legal effect.
B) may not be denied legal effect.
C) will be limited to certain terms.
D) will not be enforced.

Question 78

Bakery Foods Corporation and Cookin' Good, Inc., transact a deal that the UETA covers. The UETA covers contracts that are also governed by

A) neither the laws on trusts nor the Uniform Commercial Code (UCC).
B) the laws on trusts and the UCC.
C) the laws on trusts only.
D) the UCC only.

Question 79

Unique Sales Corporation and Virtual Purchasing, Inc., attempt to enter into a contract with the use of e-signatures. Among states that have e-signature laws, the laws are

A) identical.
B) similar.
C) uniform.
D) none of the choices.

Question 80

Mary and Nick make a deal that falls under 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.