Question 1

Royal Properties,Inc.,mails a flyer to hundreds of firms,advertising a building for sale.Standard Manufacturing Company responds by saying,"We accept your offer." Between Royal and Standard,there is

Accepted Answer

The flyer from Royal Properties, Inc. was an invitation to make an offer and not a contractual offer. Standard Manufacturing Company's response of "We accept your offer" was not a valid acceptance as there was no offer made by Royal Properties, Inc. A valid contract requires a clear offer and a clear acceptance of that offer. Therefore, as there was no valid offer and acceptance in this scenario, there is no contract between Royal Properties, Inc. and Standard Manufacturing Company.

Question 2

Quik Fix-It,Inc.,offers Pam a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate

Accepted Answer

In an offer without a specified time for acceptance, it is assumed that the offer will terminate after a reasonable period of time has passed. This can vary depending on the circumstances, but it is generally understood to be a period of time that allows the offeree to consider the offer and make a decision. Therefore, choice A is the best option.

Question 3

Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives.The mailbox rule will not apply if Beth accepts the offer by

Accepted Answer

The mailbox rule states that an offer is considered accepted as soon as it is put in the mailbox by the offeree. However, this rule does not apply to electronic communication, such as email, as there is no physical mailbox involved. Therefore, if Beth accepts Alan's offer by email, the mailbox rule will not apply.

Question 4

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

Accepted Answer

A click-on agreement is a contract that requires a user to click "I agree" or "I accept" before accessing or downloading software or content. In this scenario, Deb must click "I agree" to the provision not to make and sell copies of the song before downloading it. This is a clear example of a click-on agreement. A browse-wrap term is a provision that appears on a website but does not require any affirmative action by the user, and a shrink-wrap agreement refers to terms that are included with a physical product and must be agreed to by opening the package. A choice-of-law clause is a provision that specifies which jurisdiction's laws will govern the contract.

Question 5

Deepwater Mining Corporation offers to sell East China Refining,Inc.,a certain quantity of unrefined oil.If East China sends an acceptance via Deepwater's authorized mode of communication,it will be effective when it is

Accepted Answer

The acceptance of an offer is generally effective when it is sent if it is communicated via the authorized mode of communication, according to the mailbox rule in contract law.

Question 6

Grant offers to sell his Honda Civic for $10,000 to Ivy.Referring to the prices for similar Hondas,Ivy says,"I'll pay no more than $5,000." Grant says,"Forget it." Grant's offer was terminated by

Accepted Answer

Ivy's response is a counteroffer, which effectively rejects Grant's original offer and terminates it.

Question 7

Elmo advertises a reward for the return of his lost dog.Floyd,who does not know of the reward,finds and returns the dog.Floyd cannot recover the re?ward because he

Accepted Answer

Floyd did not know about the reward when he returned the dog, therefore he cannot recover the reward. The fact that he did not confer a benefit on Elmo or does not need the money are not relevant to his ability to recover the reward. The only relevant factor is his lack of knowledge about the reward.

Question 8

Bill offers to sell his Consumer Service Center business to Dina for $100,000.Dina replies,"The price is too high.I will buy it for $90,000." Dina has

Accepted Answer

Dina rejected the initial offer's price and made a counteroffer for a lower price, indicating that she is interested in purchasing the Consumer Service Center business but wants to negotiate a different price.

Question 9

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

The UETA (Uniform Electronic Transactions Act) provides a legal framework for doing business electronically. By providing an email address on her business card, Michelle is likely indicating her consent to receiving and transacting business electronically.

Question 10

Tomato Farms (TF)offers to sell Unified Grocers,Inc.,a boxcar load of tomatoes.The offer is sent via overnight delivery because an acceptance is re?quired urgently.It would be most reasonable for Unified to accept via

Accepted Answer

Since the offer was sent via overnight delivery and requires urgent acceptance, the most reasonable method for Unified to accept would be a fax sent as soon as the offer is received, ensuring a prompt response.

Question 11

Somethin'-in-the-Oven Corporation and Cookin' Good,Inc.,transact a deal under the UETA.Other state law applies to a dispute between the parties relating to

Accepted Answer

The dispute regarding the formation of the parties' contract is governed by state law, specifically the law of the state where the contract was formed. The UETA only provides rules for the validity and enforceability of electronic signatures and records, but does not govern contract formation. Therefore, state law applies to resolve any disputes regarding the parties' agreement on the terms of the contract.

Question 12

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

Accepted Answer

By clicking "I accept" after viewing certain terms, Flem is entering into a contract with GameCenter.com that includes those terms. The terms are therefore enforceable.

Question 13

Yvon asks Zack,"Do you want to buy one of my fishing rods?" This is

Accepted Answer

The terms of the offer are not definite as Yvon's question does not specify which fishing rod, the price, or other essential terms, making it not a valid offer.

Question 14

Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to ex?tend the lease at the same amount of rent.Fanny's intent to sign the lease is determined by reference to Fanny's

Accepted Answer

Fanny's intent to sign the lease is best determined by her words and actions, as she expressly stated that she will sign the lease if it includes a certain condition. Assumptions, beliefs, and unspoken opinions may influence her decision, but they are not the best determinants of her intent in this scenario.

Question 15

Nate tells Opal,"I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

Accepted Answer

Nate is not making an offer nor is he accepting an offer. He is simply expressing his future intent to sell the skis that he had bought last fall.

Question 16

Interstate Coffee Brokers,Inc.(ICBI),offers to sell Java Roasters,Inc.,fifty bags of coffee beans.Java rejects the offer.The offer is

Accepted Answer

Java's rejection of the offer terminates the offer.

Question 17

Lightspeed Corporation makes computers,each of which is packaged with a shrink-wrap agreement.Milo buys a Lightspeed desktop.The terms of the shrink-wrap agreement are most likely enforceable if

Accepted Answer

The terms of a shrink-wrap agreement are typically enforceable if the buyer uses the product after having an opportunity to read the terms, indicating acceptance of the agreement.

Question 18

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

Accepted Answer

The shrink-wrap agreement is typically between the software producer (Magic Math) and the end user (Peg) who opens the package and agrees to the terms by using the software.

Question 19

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products,via e-records.Under the UETA,an e-record is considered sent when it

Accepted Answer

Under the UETA (Uniform Electronic Transactions Act), an e-record is considered sent when it leaves the sender's control. This means that once the sender has released the e-record into the internet or any electronic network, it is considered sent, even if it has not been received by the intended recipient yet. Therefore, option (D) is the best choice.

Question 20

Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn.Neither party prints out a hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),this contract can

Accepted Answer

The E-SIGN Act states that electronic contracts cannot be denied legal effect solely because they are in electronic form. Therefore, the fact that the contract between Howie and Ida was entered into over the Internet and without a hard copy does not impact its legal validity.

Quiz 11: Agreement in Traditional and E-Contracts