Question 1

Corporate Code,Inc.,sells business 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. Developmental Research Corporation (DRC)buys a Corporate Code package and uses the product. Later,DRC files a suit against the software seller,claiming that the product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in the shrink-wrap agreement. What is a shrink-wrap agreement? Are such agreements al-ways enforced? Under what circumstances is a court likely to enforce this agree-ment?

Accepted Answer

The answer of Corporate Code,Inc.,sells business software-accounting and book-keeping programs,blank...

Question 2

Archway Architects,Inc.,makes travel arrangements online and stores the confirming documents and receipts on its servers. 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

Accepted Answer

According to the UETA, information that is stored in an electronic or other medium and is retrievable in perceivable form is considered a "record." This includes confirmations and receipts stored on Archway Architects' servers. E-contracts are a specific type of agreement that is formed electronically, while shrink-wrap and partnering agreements are specific types of contract terms and are not applicable in this scenario.

Question 3

Good Grains Farms and Hiway Shipping Company make a deal for Hiway's services,communicating entirely online. Under the UETA,an electronic record of their deal is considered sent when it

Accepted Answer

According to the UETA, an electronic record is considered sent when it leaves the sender's control.

Question 4

On December 1,Petroleum,Inc.,sent Rachel & Rico (R&R)a letter,via overnight delivery,offering to employ R&R to review Petroleum's tax situation for the current year for $10,000. In the letter,the company stated that R&R had ten days to accept. On December 5,R&R sent an e-mail message that stated,"The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day,Smith & Taylor,an R&R competitor,offered to conduct the appraisal for $8,000. On learning of this offer,R&R immediately e-mailed Petroleum,agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why R&R and Petroleum do,or do not,have a contract.

Accepted Answer

The answer of On December 1,Petroleum,Inc.,sent Rachel & Rico (R&R)a...

Question 5

Megan gives out a business card with an e-mail address on it. It is reasonable to infer that Megan has consented to

Accepted Answer

The answer of Megan gives out a business card with...

Question 6

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Accepted Answer

Making important terms reasonably clear can reduce the likelihood of misunderstandings or disputes between the parties. It also helps to ensure that both parties have a shared understanding of what they are agreeing to.

Question 7

Bret buys a subscription to the catalog of movies provided by Cinematique,an online music vendor. Before accessing the catalog,Bret must agree to a provision stating that she will not make and sell copies of the films. This provision is

Accepted Answer

A click-on agreement is a contract that requires the user to click on a button or checkbox to confirm their acceptance of the terms and conditions. In this case, Bret is required to agree to the provision before accessing the catalog, which makes it a click-on agreement. A browse-wrap term is a provision that is not explicitly agreed upon, while a shrink-wrap agreement is a contract or license agreement that is included within the packaging of a software product. A partnering agreement is a legal arrangement between two or more parties to collaborate on a business venture.

Question 8

Global Dispatch Corporation and Heavy Hauling,Inc.,agree in advance to terms that apply to their future e-transactions. This is

Accepted Answer

A partnering agreement is a contract in which parties agree to terms that will govern their future transactions, often used in business-to-business contexts to streamline processes and ensure mutual understanding.

Question 9

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

Accepted Answer

The UETA applies to transactions in which the parties agree to use electronic means, so option A is the correct choice. Options B, C, and D do not involve the use of electronic means and are therefore not applicable to UETA.

Question 10

Richie,a user of SmartPhoneApps.com's Web site,can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

By clicking "I accept" after viewing the terms, Richie is entering into a contract that includes the terms. Therefore, he is bound by the terms of the contract.

Question 11

Play-It-Loud,LLC,provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts,important terms to provide online include

Accepted Answer

A provision relating to the resolution of any dispute is important to include online to ensure that any disagreements between Play-It-Loud and its customers can be resolved in a fair and efficient manner. This can also help prevent costly litigation.

Answer: D 
 An updated list of the music available through the service is important to provide online so that customers can see what they are paying for and make informed decisions about which pricing schedule to choose. This also helps avoid confusion or misunderstandings about which songs or albums are included in each plan.

B and C are not relevant to providing specific offers and resulting contracts for Play-It-Loud's music-streaming services.

Question 12

Diversions,Inc.,makes video,games. Ember buys a 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 Ember

Accepted Answer

A shrink-wrap agreement is a contract that is included with a product and is only enforceable if the purchaser has an opportunity to read it before the purchase is made. If Ember learns of the shrink-wrap agreement after the contract is formed (i.e. after purchasing the game), it cannot be enforced. Therefore, option B is the correct answer. The other options are irrelevant to the enforceability of the shrink-wrap agreement.

Quiz 11: Agreement