Question 1

Cool Fruit,Inc.,ships a boxcar-load of fruit cross-country to Dandy Grocers,Inc.,for $8,000.Cool e-mails that it will accept $7,000 in full pay?ment.After Dandy pays $7,000,Cool files a suit against Dandy for another $1,000.Under the E-SIGN Act,Cool is most likely enti?tled to

Accepted Answer

The E-SIGN Act allows electronic agreements to be legally binding. Cool Fruit, Inc.'s acceptance of $7,000 via email constitutes a valid modification of the original contract, making them entitled to nothing more.

Question 2

Mica buys "Nature," a movie,through Open Eyes Wide,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it.This warning is

Accepted Answer

A browse-wrap term is a type of agreement that is presented to a user on a website or other online platform. The user is not required to click on anything to accept the agreement, but simply by continuing to use the website or platform, the user is deemed to have accepted the terms. In this case, the warning not to make and sell a copy of the movie is a browse-wrap term because Mica is not required to click on anything to accept it, but simply by continuing to use the website and downloading the movie, she is deemed to have accepted the terms.

Question 3

Jane orders a laptop and some software.When the goods arrive,Jane opens the boxes.If the shrink-wrap agreement for the products includes the usual terms,and Jane does not want to accept them,most likely she must

Accepted Answer

If Jane does not want to accept the terms of the shrink-wrap agreement for both the laptop and the software, she must return both the laptop and software. This is because the terms of the agreement are likely to state that opening the boxes constitutes acceptance of the terms, and returning the products is the only way to decline the agreement. Jane cannot keep the products without accepting the terms of the agreement, as this would be a breach of contract. Filing a lawsuit would be an extreme and unnecessary option in this situation.

Question 4

Vivian and Rob enter into a contract under which Vivian will clean Rob's house every week for a year.In order for e-signatures to be enforceable for this contract

Accepted Answer

For e-signatures to be enforceable, both parties must agree to use them. Therefore, both Vivian and Rob need to agree to use e-signatures for this contract.

Question 5

Jared downloads some video games from the Internet.There is

Accepted Answer

The answer of Jared downloads some video games from the...

Question 6

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

Accepted Answer

The answer of Dino and Elle engage in a transaction...

Question 7

Final Foto,Inc.,makes photo and video editing software,which includes a shrink-wrap agreement.Gibby buys a package of the software.With respect to the contract for the software's purchase,the shrink-wrap agreement may not be enforced if

Accepted Answer

A shrink-wrap agreement may not be enforced if the buyer, Gibby, learns of it after contracting, as it would not have been part of the original agreement at the time of purchase.

Question 8

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

Accepted Answer

The answer of Digital Products Company includes a shrink-wrap agreement...

Question 9

Hi-Lite Manufacturing,Inc.,orders supplies online from Indigo 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

Accepted Answer

The agreement in this scenario is a click-on agreement, where the buyer is required to click on a button indicating their agreement to certain terms in order to complete the order.

Question 10

Under the E-SIGN Act,Phillip may use an e-signature in all of the following instances except

Accepted Answer

According to the E-SIGN Act, electronic signatures are legally binding in most cases, including opening financial accounts, obtaining mortgages, and buying insurance. However, signing a will is typically governed by state law, which may or may not allow for electronic signatures. Therefore, it is not a guaranteed exception under the E-SIGN Act, and it is best to use a traditional handwritten signature for signing a will.

Question 11

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 Electronic Signatures in Global and National Commerce Act (E-SIGN Act) allows for electronic signatures to be legally binding and enforceable, so the fact that the signatures are only in electronic form does not prevent them from being effective. Additionally, the Act does not require a hard copy to be signed in order for electronic signatures to be valid.

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

This provision is known as a click-on agreement, as it requires Deb to click on an "I agree" button before being able to complete the purchase and download the song. A browse-wrap term is typically found in the terms and conditions section of a website and does not require any action or agreement from the user. A shrink-wrap agreement is typically used for software, where the terms are only visible once the software package has been opened, and a wrap-on agreement is not a recognized term in this context.

Question 13

Jonathan has not been paying rent for his apartment,and he has violated his landlord's pet policy.The landlord sends an eviction notice to Jonathan.The eviction notice is

Accepted Answer

The E-SIGN Act primarily applies to electronic signatures and records. An eviction notice is usually delivered in paper form, and therefore, not governed by the E-SIGN Act. The Uniform Commercial Code (UCC) governs transactions involving the sale and lease of goods, and hence, is not applicable in this scenario.

Question 14

Bill and Stacy enter into a contract that falls within the provisions of 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

Accepted Answer

The UETA defines "record" as "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form." This means that any information, such as a contract, that exists in a tangible or electronic medium and is retrievable in a perceivable form, qualifies as a record under the UETA. Choices A, B, and C are not the best choices because they all refer to specific types of electronic transactions, whereas the UETA's definition of a record is more broad and encompassing.

Question 15

Kay and Leo 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

Accepted Answer

The given definition is of an electronic signature, which is a key element of the UETA and is used to sign electronic documents. Hence, the correct answer is option B, i.e., an e-signature.

Question 16

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

Accepted Answer

According to the E-SIGN Act, for an e-document to be enforceable, it must be accurately reproduced and retained. This means that the document must be able to be reproduced in a readable format and capable of being retained for future reference if needed. Encryption is not a requirement for enforceability under the E-SIGN Act.

Question 17

Over the Internet,Red & White Contractors,Inc.,arranges to lease storage space from Blue Services Company. To complete the deal,Red & White clicks on a but?ton that says,in reference to certain terms,"I agree." Most likely,the par?ties have

Accepted Answer

By clicking "I agree" to specific terms, Red & White Contractors has entered into a binding contract with Blue Services Company that includes the agreed-upon terms. The fact that the agreement was made over the internet does not affect the validity or enforceability of the contract.

Question 18

First Design Corporation,a business firm,and Glen,a consumer,make a deal over the Internet that involves e-signatures.Under the E-SIGN Act,the e-signatures

Accepted Answer

The E-SIGN Act recognizes electronic signatures as legally binding and enforceable, just as traditional signatures on paper documents. Encryption and authentication methods may be used to enhance the security of electronic signatures, but they are not required for their validity. The requirement of a partnering agreement may apply to specific contracts or transactions, but it is not a general condition for the validity of e-signatures under the E-SIGN Act. The use of a digital tablet or other device may be one way to capture an electronic signature, but it is not the only method available.

Question 19

Clean Health Insurance,Inc.sends Kathy a health insurance termination.The health insurance termination is

Accepted Answer

The E-SIGN Act only governs electronic transactions, and while it is possible that the termination was sent electronically, the question does not provide enough information to make that assumption. Therefore, the termination is not necessarily governed by the E-SIGN Act. The UCC and Article 2 and 2A specifically relate to contracts for the sale of goods and leases of goods, respectively, and are not applicable to a health insurance termination.

Question 20

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

Accepted Answer

The answer of Standard Purchasing Corporation and Total Sales,Inc.,enter into...

Quiz 17: E-Contracts