Deck 13: E-Contracts and E-Signatures

Question 1

In a partnering agreement,a seller and a buyer agree in advance on the terms that will apply to all of their later electronic transactions.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

A click-on agreement is normally not enforceable.

Answer 3

False

Question 4

The terms in a click-on agreement may be enforced if they are construed as parts of a contract.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

Under federal law,an e-signature is as valid as a signature on pa?per,with?out exceptions.

Question 10

A license contract may involve a right to use software.

Question 11

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

Question 12

The terms in a shrink-wrap agreement may be enforced if they are con?strued as parts of a contract.

Question 13

State e-signature laws are uniform.

Question 14

To date,most courts have applied traditional common law principles to cases arising in e-commerce.

Question 15

A shrink-wrap agreement is normally enforceable.

Question 16

A shrink-wrap agreement is normally enforced unless its terms are objec?tionable on grounds that apply to contracts in general.

Question 17

Browse-wrap terms are generally enforceable.

Question 18

All of the terms presented in shrink-wrap agreements have been enforced.

Question 19

A contract,to be enforced,may require the signature of the party against whom enforcement is sought.

Question 20

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

Question 21

Under the UETA,once an e-record leaves the sender's control,it has no effect.

Question 22

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

Question 23

Under the UETA,a contract solely in electronic form is enforceable.

Question 24

Parties cannot opt out of the UETA.

Question 25

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

Question 26

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

Question 27

International Inventory,Inc. ,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 28

The UETA applies to all writings and signatures.

Question 29

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

Question 30

Gamma Software Corporation sells its products to business and consumer end-users.Like most sales of software,Gamma's sales involve

A)a passage of title only.
B)a right to use the software only.
C)a passage of title and a right to use the software.
D)none of the choices.

Question 31

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-signa?ture accompanies the record.

Question 32

The UETA does not create new rules for electronic transactions.

Question 33

Musicology Instrument Company and Noisemakers,Inc. ,enter into an e-contract.A dispute arises,and Musicology files a suit against Noisemakers.Like most courts to date,the court that hears this suit will probably apply

A)Article 2 of the Uniform Commercial Code.
B)Article 2B of the Uniform Commercial Code.
C)nontraditional e-commerce law principles.
D)traditional common law principles.

Question 34

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

Question 35

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

Question 36

The UETA requires that an agreement to conduct a transaction electroni?cally be made electronically.

Question 37

Quality Sales Corporation enters into contracts over the Internet.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 38

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 39

Under the UETA,other state laws control issues relating to forgery.

Question 40

The UETA provides that a document cannot be notarized electronically

Question 41

Corgy buys software from Digital Products Corporation.When Corgy loads the software,to use the program she 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 42

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)the entire contract.

Question 43

Mocha,a seller,and Ned,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 Mocha must have agreed to use an e-signature.
D)only Ned must have agreed to use an e-signature.

Question 44

Katy 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 45

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 choices.

Question 46

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 47

In Case 13.3,Specht v.Netscape Communications Corp. ,the court held that because the plaintiffs did not expressly assent to the terms of the contract,they

A)must pay for the product downloaded from the defendant.
B)must stop using the product downloaded from the defendant.
C)must submit to arbitration according to the contract.
D)need not submit to arbitration.

Question 48

National Sales Corporation and Online Purchasing,Inc. ,attempt to enter into a contract with the use of e-signatures.Among states that have e-sig?nature laws,the laws are

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

Question 49

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

A)court papers.
B)evictions.
C)foreclosures.
D)none of the choices.

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

USA Manufacturing,Inc. ,orders supplies online from Virtual 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 52

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 53

Mary and Nick make a deal that comes 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.

Question 54

Over the Internet,Builder Contractors,Inc. ,arranges to lease storage space from Carton Services Company.To complete the deal,Builder 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 55

General Electronics,Inc. ,uses shrink-wrap agreements.In most cases,a shrink-wrap agreement is between

A)any seller and buyer.
B)the manufacturer of hardware or software and a retailer.
C)the manufacturer of hardware or software and its user.
D)none of the choices.

Question 56

Finest Design Corporation,a business firm,and Gary,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 First Design must have agreed to use an e-signature.
D)only Gary must have agreed to use an e-signature.

Question 57

Enrich Oil Company and Fluid 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 58

Software Systems,Inc. ,uses shrink-wrap agreements.The terms of a shrink-wrap agreement generally concern

A)neither warranties nor remedies for their breach.
B)only remedies for breach of warranties.
C)only warranties.
D)warranties,remedies for their breach,and other issues.

Question 59

Dina buys from E-Things,Inc. ,a product that includes a shrink-wrap agreement.A dispute arises,and E-Things files a suit against Dina.The court will enforce the agreement if Dina used the product

A)after having had an opportunity to read the agreement.
B)before having had an opportunity to read the agreement.
C)only after actually reading the agreement.
D)none of the choices.

Question 60

Central Processing Corporation and Digital 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 two acts "cancel" each other's application.
D)none of the choices.

Question 61

Omega,Inc. ,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.Each package includes a shrink-wrap agreement that limits warranties and remedies.Precision Engineering Associates (PEA)buys an Omega package and uses the product.Later,PEA files a suit against Omega,claiming that the software is flawed and that the flaws caused PEA to suffer business losses.PEA asks for relief that exceeds the limits in the shrink-wrap agreement.What are shrink-wrap agreements? Are these agreements al?ways enforced? Under what circumstances is a court likely to enforce this agree?ment?

Question 62

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

Question 63

Omni Products,Inc. ,and Plenty 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 64

Precision Applications Corporation (PAC)sends an electronic record to Quotient Systems,Inc. ,a PAC customer.Under the UETA,the record will be considered re?ceived when it

A)enters Quotient's processing system in a readable form,even if no person is aware of its receipt.
B)enters Quotient'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 PAC's control.

Question 65

Growth 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 66

Rolling Stock Corporation and Short Supply,Inc. ,business firms,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 concerns computer information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Question 67

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 information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Question 68

Creative Solutions Corporation (CSC)agrees to sell software to Drew from CSC's Web site.To complete the deal,Drew 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 69

Rite Tool Company and Steel Equipment,Inc. ,enter into an e-contract.Under the Uniform Electronic Transactions Act (UETA),their contract is

A)enforceable only because it is in an electronic form.
B)not unenforceable simply because it is in an electronic form.
C)unenforceable simply because it is in an electronic form.
D)unenforceable unless it is accompanied by digital signatures.

Question 70

Garth and Heddy,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 concerns computer information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Question 71

Select Food Company and Tasty Goods,Inc. ,enter into a contract that the UETA covers.The UETA covers issues relating to

A)agency and contract formation.
B)agency only.
C)contract formation only.
D)neither agency nor contract formation.

Question 72

Nation Shipping Corporation and Office Management Software Company (OMSC)make a deal for OMSCs 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.