Question 1

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

Accepted Answer

The E-SIGN Act recognizes electronic signatures as legally binding and enforceable. While a hard copy was printed for review, the parties agreed to sign the electronic form of the contract, which is allowed under the E-SIGN Act. Therefore, the signatures are not denied effect because they are in electronic form.

Question 2

Renee, a product designer for Supersize Cosmetics Company, agrees not to work for Supersize's competitors or start a competing business for a specified period of time after termination of employment.This agreement is legal in most states

Accepted Answer

Non-compete agreements are generally enforceable if they are reasonable in duration, geographic scope, and nature of the restriction. The other options (B, C, and D) are not relevant factors in determining the enforceability of a non-compete agreement.

Question 3

Kylie signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Lake Valley Medico, Inc., in exchange for a bonus payment.The covenant is most likely enforceable by

Accepted Answer

The answer of Kylie signs a covenant not to compete...

Question 4

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

Accepted Answer

The answer of Lightspeed Corporation makes computers, each of which...

Question 5

Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery-a medical procedure.The purpose of the licensing statute is to protect the public from unauthorized practitioners.This contract is enforceable by

Accepted Answer

Contracts with unlicensed practitioners are generally unenforceable as they are illegal. Therefore, in this case, the contract with Keaton, an unlicensed physician, is unenforceable by both Jolie and Keaton. It is also unlikely that Jolie's medical insurance company would be able to enforce the contract as it would not cover services from unlicensed practitioners.

Question 6

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

Accepted Answer

By providing an email address on a business card, Michelle has provided an electronic means of communication, which can reasonably infer her consent to transact business electronically.

Question 7

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.

Accepted Answer

The answer of Myra owns a house, which she advertises...

Question 8

Emma, a minor acting on her own, signs a contract to buy an off-road vehicle from Rec Buggies, Inc.Later, after taking possession of the vehicle, Emma decides to disaffirm the deal.She

Accepted Answer

As a minor, Emma has the right to disaffirm the contract. To do so, she must express her intent not to be bound by the contract. This can be done by a variety of means, such as returning the vehicle or notifying Rec Buggies, Inc. in writing. Once Emma has disaffirmed the contract, she is no longer legally bound to it.

Question 9

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.

Accepted Answer

The answer of On May 1, Brand Name Industries, Inc.(BNI),...

Question 10

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

Accepted Answer

The act of signing the digital pad by Pam creates an electronic signature or e-signature, which is a digital way of indicating consent or acknowledgement. It is different from a handwritten or typed signature, which involves pen and paper, or keyboard and screen, respectively. Hence, option A is the best choice. Option D is incorrect because the signing does create a signature, albeit a digital one.

Question 11

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)

Accepted Answer

The UETA supports the enforcement of electronic contracts, including the e-contract entered into by Lively Toys and MPC for the shipment and payment of the remote-controlled bugs.

Question 12

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

Accepted Answer

The provision not to sell copies of the song is a click-on agreement, as Deb must click a button or check a box to indicate agreement before completing the purchase and downloading the song. A dispute-resolution provision is a clause that outlines how any disputes between the parties will be resolved. A shrink-wrap agreement is a type of contract that is included with a product and whose terms are only visible after the product has been opened. None of the choices would not be correct in this scenario.

Quiz 14: Formation of Traditional and E-Contracts

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