Question 1

Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet,but it is stolen before Value accepts.Most likely,Wally's must obtain

Accepted Answer

The theft of the forklift has terminated the offer, and Wally's Warehouse is no longer able to sell the forklift to Value Lumber Outlet. Therefore, Wally's is not obligated to provide anything to Value in this situation.

Question 2

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 a click-on agreement, as Deb must click a button agreeing to the terms before being able to download the song. A browse-wrap term would not require an affirmative action on Deb's part, and a shrink-wrap agreement would typically apply to physical products, not digital downloads.

Question 3

Tomato Farms (TF)offers to sell United Grocers,Inc.,a boxcar load of tomatoes.The offer is sent via fax.An acceptance is required urgently.It would be most reasonable for United to accept via

Accepted Answer

Since the acceptance is required urgently and the offer was sent via fax, the most reasonable method for United Grocers to accept the offer would be to send a fax back to TF as soon as the offer is received. This ensures a quick and direct response.

Question 4

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 signing on a digital pad generates a digitized handwritten signature. Cybernotarized signature, asymmetric cryptosystemic signature, and public-key infrastructure digital signature involve a more complex process than simply signing on a digital pad. Therefore, B is the best choice.

Question 5

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

In order for a shrink-wrap agreement to be enforceable, the purchaser must expressly agree to its terms. This typically occurs when the purchaser opens the package containing the product and the agreement, and agrees to the terms by clicking an "I Agree" button or continuing to use the product. Reading the agreement is not sufficient to indicate agreement, and the enforceability does not depend on whether the purchaser buys the product directly from the manufacturer. However, if the terms concern warranties, they may be more likely to be enforceable.

Question 6

Corner Convenience Store (CCS)takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station,offering a reward for information leading to the apprehension of a certain criminal.CCS could normally terminate the offer by placing

Accepted Answer

A full-page ad in the local paper and a thirty-second commercial on the local station would effectively reach the same audience as the original offer, thereby properly terminating it.

Question 7

Business Properties,Inc.(BPI),offers to sell a warehouse to Corporate Investments.Corporate says that it will pay BPI $100 to hold the offer open for three business days.This

Accepted Answer

This payment creates an option contract, making the offer irrevocable for three days if BPI accepts. It does not change the price term or extend the time term, and it is not illegal to include such a clause in an offer.

Question 8

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

The answer of Grant offers to sell his Honda Civic...

Question 9

Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule and the Uniform Electronic Transactions Act (UETA),Relay's acceptance by e-mail will be considered effective when

Accepted Answer

Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), acceptance by e-mail will be considered effective when it is sent.

Question 10

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

Accepted Answer

The state statute prohibiting loans at rates greater than 12 percent effectively voids the initial contract for the loan at 15 percent interest. Therefore, there is no valid contract for a loan between Kino and the bank.

Question 11

Elmore offers to sell a Ford F-150 for $7,500 to Grace.Before Grace can respond,Elmore refers to the prices for similar Fords and says,"Forget it.I changed my mind." Elmore's offer was terminated by

Accepted Answer

Elmore terminated his own offer by changing his mind. Therefore, the correct answer is option A.

Question 12

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

Accepted Answer

In this scenario, the offer was made by Jane to sell three desks to Kyle. Kyle initially rejected the offer, which means there was no contract. However, he changed his mind and sent an acceptance later. The key factor in determining whether there is a contract or not is whether Kyle's rejection or acceptance was received first. If the rejection was received first, then there is no contract. But if the acceptance was received first, then a contract is formed. Therefore, the best choice is option D.

Question 13

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

When an offer does not specify a time for acceptance, it is considered an open offer and will remain on the table for a reasonable period of time. The length of time considered reasonable may vary depending on the circumstances, but it is usually determined by what a reasonable person would consider a fair amount of time to make a decision. Therefore, option A is the best choice.

Question 14

Bret enters into a contract with Collegiate University over the Internet to take an online course titled "Internet Law." This is an e-contract because

Accepted Answer

An e-contract is a contract that is formed and performed electronically, such as over the internet. In this case, the contract was entered into over the Internet, making it an e-contract. The other options are factors of the contract but do not make it an e-contract on their own.

Question 15

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 the terms, Flem is agreeing to be bound by the terms, making it a contract that includes the terms.

Question 16

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to

Accepted Answer

Silence generally does not constitute acceptance of an offer in contract law unless there is a prior agreement or relationship that indicates otherwise.

Question 17

Mica buys "Nature," a movie,through Open View,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

The answer of Mica buys "Nature," a movie,through Open View,an...

Question 18

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas.Lena,a resident of Maine,accepts Jelly Jar's offer.If a dispute arises,a court will most likely rule that it must be resolved in

Accepted Answer

The provision in Jelly Jar Company's online offer clearly states that disputes must be resolved in Kansas. As a result, a court is likely to enforce this provision and require that any dispute between Jelly Jar and Lena be resolved in Kansas.

Question 19

Final Foto,Inc.,makes photo and video editing software,which includes a shrink-wrap agreement.Gert 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

The answer of Final Foto,Inc.,makes photo and video editing software,which...

Question 20

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 answer of Magic Math Corporation makes business accounting software,which...

Quiz 10: Agreement in Traditional and E-Contracts