Question 1

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.

Accepted Answer

The UETA applies to the entire contract, regardless of whether it specifically mentions the UETA or not. The UETA applies to transactions that involve electronic records and signatures, and both Jaime and Kip transacted over the Internet, therefore the whole contract is subject to the UETA.

Question 2

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.

Accepted Answer

The E-SIGN Act allows contracts to be valid and enforceable when agreed upon in electronic form, without requiring a hard copy or physical signature. Therefore, the contract between Uri and Vida is valid and enforceable even though it is in electronic form and not printed or signed in hard copy.

Question 3

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.

Accepted Answer

The UETA considers an e-record as sent either when it leaves the sender's control or comes into the recipient's control. Therefore, either of these options would be considered as the record being sent.

Question 4

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.

Accepted Answer

The E-SIGN Act applies to electronic records and signatures in transactions that affect interstate or foreign commerce, including agreements subject to Article 2 of the Uniform Commercial Code, which deals with the sale of goods.

Question 5

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.

Accepted Answer

The answer of Financial Services Corporation engages in an e-transaction...

Question 6

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.

Accepted Answer

A partnering agreement typically involves parties agreeing in advance to terms that will govern their future electronic transactions, ensuring a smooth and efficient process.

Question 7

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.

Accepted Answer

The UETA applies to electronic contracts, regardless of whether or not it is explicitly stated in the contract. Therefore, the entire contract between Printing Products Company and Quality Ink, Inc. is subject to the provisions of the UETA.

Question 8

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.

Accepted Answer

The UETA applies to transactions in which the parties agree to use e-commerce only.

Question 9

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.

Accepted Answer

The Uniform Electronics Transactions Act (UETA) supports the enforcement of e-contracts, including the one between Lively Toys and MPC. Therefore, the contract is enforceable even though it was made online.

Question 10

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.

Accepted Answer

According to the E-SIGN Act, for an e-document to be enforceable, it must be accurately reproduced and retained. Therefore, option C is the correct choice as it includes both requirements. Options A and B only address one requirement each and option D is not a requirement.

Question 11

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.

Accepted Answer

According to the E-SIGN Act, both parties must have agreed to use e-signatures in order for them to be enforceable.

Question 12

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.

Accepted Answer

The signing on a digital pad creates a digitized handwritten signature, which is a type of electronic signature.

Question 13

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.

Accepted Answer

The alternative procedure is effective if it is consistent with the E-SIGN Act, as the E-SIGN Act allows states to modify procedures as long as they do not conflict with its provisions.

Question 14

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.

Accepted Answer

Under the UETA, an electronic record will be deemed to be received by a party if it enters the party's processing system in a readable form, even if no person is aware of its receipt. This is known as the "mailbox rule" for electronic communications. Therefore, option A is the best choice.

Question 15

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.

Accepted Answer

The E-SIGN Act does not preempt state laws that are consistent with its provisions, including the UETA. Therefore, the unmodified version of the UETA in this state would still be applicable and enforceable in this online contract between Order Processing Corporation and Pinpoint Data, Inc.

Question 16

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.

Accepted Answer

Under the E-SIGN Act, both parties must have agreed to use e-signatures for them to be enforceable. It is important for both parties to agree to the use of e-signatures to ensure that the electronic signatures are valid and legally binding.

Question 17

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.

Accepted Answer

The E-SIGN Act provides that a contract may not be denied legal effect solely because it is in electronic form. Therefore, the contract between Eagle Oil Company and Federated Refining, Inc., in electronic form will not be denied legal effect.

Question 18

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.

Accepted Answer

The UETA covers contracts that are not governed by the laws on trusts or the UCC.

Question 19

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.

Accepted Answer

The answer of Unique Sales Corporation and Virtual Purchasing, Inc.,...

Question 20

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.

Accepted Answer

The definition given falls under the UETA's definition of a "record". It is not specifically an e-document, e-signature or e-transaction.

Quiz 19: E-Contracts and E-Signatures

Jaime and Kip, consumers, transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers

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

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

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

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

Standard Purchasing Corporation and Total Sales, Inc., enter into a part?nering agreement. Under a partnering agreement, parties agree

Printing Products Company and Quality Ink, Inc., transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers

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

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)

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

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

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

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

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

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

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

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

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

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

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