Question 1

Orb,Inc.,does business online around the globe.The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements improve global commercial certainty by
A)all of the choices.
B)determining an Internet user's location for legal purposes.
C)providing that e-signatures are the equivalent of signatures on paper.
D)providing for the recognition of judgments by other nations' courts.

Accepted Answer

All of the choices are correct. The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements create a more unified and certain legal framework for online global commerce by establishing rules for determining jurisdiction, recognizing e-signatures, and enforcing judgments in other nations' courts.

Question 2

Mark is creating Nu2U.com,a Web site through which he will enter into contracts over the Internet.Important terms to include in his offers include
A)provisions specifying the remedies if the contract is breached.
B)a detailed history of his business.
C)glowing reviews from former customers.
D)his educational background.

Accepted Answer

Provisions specifying remedies in case of breach are important terms to include in contracts on Nu2U.com as they will help to ensure that the parties involved are aware of their rights and responsibilities in case the contract is breached. This can help to prevent disputes and provide clarity and security for both parties. A detailed history of Mark's business, glowing reviews from former customers, and his educational background may be helpful for building trust and credibility with potential customers, but they are not essential terms to include in the contracts themselves.

Question 3

Lon says to Milli,"I would like to sell you my comic book collection." This is not an offer because it
A)does not describe the subject matter specifically.
B)does not include a price term.
C)only expresses an opinion.
D)only invites Milli to negotiate.

Accepted Answer

The statement "I would like to sell you my comic book collection" is not a definitive offer but rather an invitation to negotiate or discuss the possibility of a sale.

Question 4

Naomi tells Ogden,who has no knowledge of Shakespearean comedy,that she will tutor him in the subject for $50.As an offer,this is
A)effective.
B)not effective because comedy is not a serious subject.
C)not effective because Naomi's tutoring will be subjective.
D)not effective because Ogden has no knowledge of the subject.

Accepted Answer

Naomi's offer is effective because she is offering a service (tutoring) in exchange for payment ($50). The fact that Ogden has no knowledge of the subject does not make the offer ineffective.

Question 5

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
A)an e-document.
B)an e-signature.
C)an e-transaction.
D)a record.

Accepted Answer

An electronic signature is defined by the UETA as an electronic sound, symbol or process attached to a record and executed or adopted by a person with the intent to sign the record. Therefore, option B is the correct answer.

Question 6

Medical Billing Collection Corporation and Naturopath Clinic make a deal for Medical Billing's services via electronic records.Under the UETA,an e-record is considered received when
A)it enters the recipient's processing system in a readable form.
B)the recipient is aware of its receipt.
C)the recipient is aware that it has been sent.
D)it leaves the sender's control.

Accepted Answer

The answer of Medical Billing Collection Corporation and Naturopath Clinic...

Question 7

Standard Purchasing Corporation and Topmost Sales,Inc.,enter into a partnering 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 apply to their future electronic transactions.

Question 8

World Shipping 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)electronic means.
B)paper documents.
C)updates and cross-checks to orally verify any e-terms.
D)notarized documents.

Accepted Answer

The UETA (Uniform Electronic Transactions Act) applies only to transactions in which the parties agree to use electronic means. Therefore, if World Shipping Corporation enters into contracts with distributors or other buyers using electronic means, then the UETA would apply.

Question 9

Barrett files a suit against City Moving Service for breach of contract,based on what Barrett claims was City Moving's offer.For a court to determine if a contract has been breached,under the common law,the offer must include terms that are
A)exactly precise.
B)reasonably definite.
C)unequivocally approximate.
D)vague or uncertain.

Accepted Answer

Under common law, an offer must include terms that are reasonably definite. This means that the terms must be specific enough that a court can determine whether a breach of contract has occurred. If the terms are too vague or uncertain, the court may not be able to determine whether a breach has occurred or what was actually agreed upon in the contract.

Question 10

Deb buys a song through eSongs,an online music vendor.Before completing the purchase and downloading the song,Deb must review a provision stating that she will not make and sell copies of the song and is required to click "I agree." This provision is
A)a browse-wrap term.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)none of the choices.

Accepted Answer

This is a click-on agreement, as it requires the user to actively click "I agree" in order to proceed with the purchase and download of the song.

Question 11

Octavio receives a catalogue from Pastry Dough,Inc.,and a "personalized" letter inviting Octavio to buy any item at the advertised price.This is
A)an offer because of the "person?alized" letter.
B)an offer because there is no room for price negotiation.
C)an offer only if Octavio previously bought items from Pastry Dough.
D)not an offer.

Accepted Answer

Receiving a catalogue and a personalized letter inviting someone to buy at an advertised price is not an offer as it does not specify the quantity of goods, the terms of payment, and other essential details that are necessary to constitute an offer. It is merely an invitation to treat, which means an expression of willingness to negotiate the terms of a possible offer.

Question 12

Quay Trucking Service tells Rafe that it will pay him $50 if he unloads a certain truck at the Shipping Warehouse.Rafe's acceptance is complete
A)as soon as Rafe says he will unload the truck.
B)once Rafe starts to unload the truck.
C)only after Rafe unloads the truck.
D)when Rafe hears Quay's offer.

Accepted Answer

Rafe's acceptance is complete only after he unloads the truck because this is a unilateral contract where acceptance is through performance.

Question 13

Diverse Diversions,Inc.,makes computer,video,and mobile device games.Ember buys a hard copy of Final Infinity.Inside the package is a shrink-wrap agreement.With respect to the contract for the game's purchase,the shrink-wrap agreement may not be enforced if
A)Ember does not read it.
B)Ember learns of it after contracting.
C)Ember learns of it before contracting.
D)the play of the game is poor.

Accepted Answer

A shrink-wrap agreement may not be enforced if the buyer, Ember, learns of it after contracting, as it may not be considered part of the original agreement.

Question 14

Casey offers to sell a certain used forklift to DIY Lumber Outlet,but Casey dies before DIY accepts.Most likely,Casey's death
A)did not affect the offer.
B)shortened the time of the offer but did not terminate it.
C)extended the time of the offer.
D)termi?nated the offer.

Accepted Answer

Casey's death terminated the offer.

Question 15

Crafted Metal Works,Inc.,offers to design,make,and sell Downtown Transit Agency fourteen streetcars.Crafted Metal authorizes a particular mode of communication,but Downtown Transit sends an acceptance via a substituted means.This acceptance is effective when it is
A)in transit.
B)received.
C)sent.
D)written.

Accepted Answer

The general rule is that an acceptance is effective upon dispatch only when the offeror prescribes the mode of communication. In this case, Crafted Metal Works authorized a particular mode of communication, but Downtown Transit sent an acceptance via a substituted means. Therefore, the acceptance is effective upon receipt.

Question 16

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer
A)before Thomas accepts the offer.
B)before March 1,whether or not Thomas has accepted the offer.
C)only after Thomas accepts the offer.
D)only after March 1.

Accepted Answer

Signe can revoke the offer before Thomas accepts it, as offers can generally be revoked any time before acceptance unless consideration is given to keep the offer open.

Question 17

Farmland County Bank offers to lend money to Gino,the owner of Home Hardware Store,at 15 percent interest.Before Gino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Gino and the bank have
A)a contract for a loan at 15 percent interest.
B)a contract for a loan at 12 percent interest.
C)a contract for a loan at 0 percent interest.
D)no contract for a loan.

Accepted Answer

The state statute prohibiting loans at rates greater than 12 percent overrides the previous agreement between Gino and the bank for a loan at 15 percent interest. Therefore, there is no contract for a loan at either 15 or 12 percent interest. The parties may choose to renegotiate the terms of the loan at the new legal rate of 12 percent.

Question 18

On behalf of Bobble Head Manufacturing Company,Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company.Under the UETA,Carmela's typed name qualifies as
A)a "signature."
B)a statement of future intent.
C)a partnering agreement.
D)a preliminary negotiation.

Accepted Answer

Under the Uniform Electronic Transactions Act (UETA), Carmela's typed name at the bottom of the e-mail purchase order qualifies as a "signature" and holds the same legal validity as a handwritten signature.

Question 19

Shasta offers to sell a used hay baler to Roberto,but receives a letter of acceptance from Quito,who has no relation to Roberto.A valid contract exists between
A)Shasta and Roberto.
B)Shasta and Quito.
C)Roberto and Quito.
D)none of the choices.

Accepted Answer

A valid contract requires an offer and acceptance between the parties involved. Since Shasta offered to sell the hay baler to Roberto but received acceptance from Quito, there is no agreement between Shasta and Roberto, nor is there a valid contract between Shasta and Quito. Therefore, the correct answer is D, none of the choices.

Question 20

Liz offers to sell Max her iPad for $200.Max says,"Okay,but only if you include the case and other accessories." Max has
A)accepted the offer.
B)made a counteroffer without rejecting the offer.
C)rejected the offer and made a counteroffer.
D)rejected the offer without making a counteroffer.

Accepted Answer

Max's response changes the terms of the original offer by adding conditions, which constitutes a rejection of the original offer and the making of a counteroffer.

Quiz 12: Agreement in Traditional and E-Contracts

Orb,Inc.,does business online around the globe.The United Nations Convention on the Use of Electronic Communications in International Contracts and other international agreements improve global commercial certainty by

Mark is creating Nu2U.com,a Web site through which he will enter into contracts over the Internet.Important terms to include in his offers include

Lon says to Milli,"I would like to sell you my comic book collection." This is not an offer because it

Naomi tells Ogden,who has no knowledge of Shakespearean comedy,that she will tutor him in the subject for $50.As an offer,this is

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

Medical Billing Collection Corporation and Naturopath Clinic make a deal for Medical Billing's services via electronic records.Under the UETA,an e-record is considered received when

Standard Purchasing Corporation and Topmost Sales,Inc.,enter into a partnering agreement.Under a partnering agreement,parties agree

World Shipping 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

Barrett files a suit against City Moving Service for breach of contract,based on what Barrett claims was City Moving's offer.For a court to determine if a contract has been breached,under the common law,the offer must include terms that are

Deb buys a song through eSongs,an online music vendor.Before completing the purchase and downloading the song,Deb must review a provision stating that she will not make and sell copies of the song and is required to click "I agree." This provision is

Octavio receives a catalogue from Pastry Dough,Inc.,and a "personalized" letter inviting Octavio to buy any item at the advertised price.This is

Quay Trucking Service tells Rafe that it will pay him $50 if he unloads a certain truck at the Shipping Warehouse.Rafe's acceptance is complete

Diverse Diversions,Inc.,makes computer,video,and mobile device games.Ember buys a hard copy of Final Infinity.Inside the package is a shrink-wrap agreement.With respect to the contract for the game's purchase,the shrink-wrap agreement may not be enforced if

Casey offers to sell a certain used forklift to DIY Lumber Outlet,but Casey dies before DIY accepts.Most likely,Casey's death

Crafted Metal Works,Inc.,offers to design,make,and sell Downtown Transit Agency fourteen streetcars.Crafted Metal authorizes a particular mode of communication,but Downtown Transit sends an acceptance via a substituted means.This acceptance is effective when it is

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer

Farmland County Bank offers to lend money to Gino,the owner of Home Hardware Store,at 15 percent interest.Before Gino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Gino and the bank have

On behalf of Bobble Head Manufacturing Company,Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company.Under the UETA,Carmela's typed name qualifies as

Shasta offers to sell a used hay baler to Roberto,but receives a letter of acceptance from Quito,who has no relation to Roberto.A valid contract exists between

Liz offers to sell Max her iPad for $200.Max says,"Okay,but only if you include the case and other accessories." Max has