Question 1

An electronic symbol, adopted by a person with the intent to sign an e-record, is an e-signature.

Accepted Answer

That is correct. An electronic symbol used for signing an electronic record is called an e-signature.

Question 2

A click-on agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.

Accepted Answer

A click-on agreement, also known as a click-through agreement or a browse-wrap agreement, refers to online agreements where the terms and conditions are presented to the user in a hyperlink or a separate webpage, often accompanied by a checkbox that must be clicked to accept the terms. It is not related to the packaging of goods.

Question 3

A shrink-wrap agreement may not be enforced if its terms are objec?tionable on grounds that apply to contracts in general.

Accepted Answer

Shrink-wrap agreements are subject to the same legal standards as any other contract, and therefore may be deemed unenforceable if they contain objectionable terms or violate general contract law principles.

Question 4

A contract for a sale of software does not transfer ownership rights in the software to the buyer.

Accepted Answer

In most cases, a software sale is actually a license agreement, which grants the buyer the right to use the software but does not transfer ownership of the software itself.

Question 5

Under federal law, an electronic signature is as valid as a signature on pa?per, without exceptions.

Accepted Answer

Under the U.S. Electronic Signatures in Global and National Commerce Act (E-SIGN Act), electronic signatures are generally valid, but there are exceptions, such as certain legal documents like wills and court orders.

Question 6

Terms in a shrink-wrap agreement are normally not enforced.

Accepted Answer

Shrink-wrap agreements, also known as click-wrap agreements, are typically enforceable unless the terms are deemed unconscionable or illegal. However, courts have been known to strike down certain provisions within these agreements if they are considered unreasonable or unfair to the consumer.

Question 7

Most courts have applied traditional contract law principles to con?tracts formed online.

Accepted Answer

Most courts have recognized online contracts as legally binding agreements and have applied traditional contract law principles, such as offer, acceptance, consideration, and mutual assent, to determine their validity and enforceability.

Question 8

A partnering agreement reduces the likelihood that a dispute will arise under a contract.

Accepted Answer

A partnering agreement establishes common goals and expectations between parties, as well as guidelines for communication and problem resolution. This can help prevent misunderstandings and disagreements, reducing the likelihood of a dispute arising under the contract.

Question 9

A click-on agreement is normally not enforced.

Accepted Answer

A click-on agreement is enforceable if certain requirements are met, such as providing clear notice and obtaining the user's unambiguous consent. Courts have generally upheld the enforceability of click-on agreements, but there can be variations based on the specific circumstances of each case.

Question 10

A contract for a sale of software transfers ownership rights in the software to the buyer.

Accepted Answer

A software sale contract typically grants the buyer a license to use the software rather than transferring ownership rights, which usually remain with the software developer or publisher.

Question 11

An online offer should include provisions relating to dispute settlement.

Accepted Answer

Including provisions for dispute settlement in an online offer can help resolve any potential issues or conflicts that may arise between the parties involved.

Question 12

Terms in a shrink-wrap agreement are always enforced.

Accepted Answer

Terms in a shrink-wrap agreement may not always be enforceable, as there may be issues related to unconscionability, lack of notice, or violation of other laws or public policy.

Question 13

A partnering agreement can indicate the parties' intent with respect to subsequent contracts.

Accepted Answer

A partnering agreement can include provisions outlining how subsequent contracts between the parties will be negotiated and executed, thereby indicating their intent.

Question 14

Browse-wrap terms are arguably not enforceable.

Accepted Answer

Browse-wrap terms refer to terms and conditions that are presented to users online but without requiring them to actively agree to them. This type of agreement is often considered weak because users may not be aware of or have consented to the terms. As a result, browse-wrap terms are often considered unenforceable without clear evidence that a user actually agreed to them.

Question 15

Under the Electronic Signatures in Global and National Commerce (E-SIGN) Act, a signature may be denied legal effect solely because it is in electronic form.

Accepted Answer

The E-SIGN Act established electronic signatures as legally valid and enforceable as traditional handwritten signatures. Therefore, a signature cannot be denied legal effect solely because it is in electronic form under E-SIGN.

Question 16

The terms in a click-on agreement may be enforced if the parties expressly agreed to them.

Accepted Answer

Click-on agreements, also known as browse-wrap agreements, are enforceable if the user explicitly agrees to the terms by clicking "I Agree" or a similar button. This has been established in various court cases.

Question 17

Under federal law, an electronic document is as valid as a paper document, without exceptions.

Accepted Answer

Under federal law, electronic documents are generally valid, but there are exceptions, such as certain wills, trusts, and some court documents that may require paper forms.

Question 18

The terms of a contract must have been read to be enforceable.

Accepted Answer

While it is always recommended to read and understand the terms of a contract before signing, it is not a legal requirement for them to be enforceable. If a person signs a contract willingly and with full knowledge that they have not read the terms, the contract is still considered valid and enforceable in a court of law. However, it is important to note that signing a contract without reading it is not advisable and can lead to unfavorable consequences.

Question 19

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

Accepted Answer

A forum-selection clause specifically designates the jurisdiction or location where any disputes arising from the contract will be resolved. It is a common provision in many contracts.

Question 20

State e-signature laws are uniform.

Accepted Answer

State e-signature laws are not uniform. Each state has its own set of laws and regulations regarding electronic signatures.

Quiz 19: E-Contracts and E-Signatures