Question 1

Quick Transport,Inc. ,offers to sell a truckload of palettes to Rapid Delivery Company.Before accepting the offer,Rapid learns that the palettes have been sold to Speedy Trucking Corporation.Quick is
A)liable to Rapid for breach of contract.
B)liable to Speedy for breach of contract.
C)not liable,because the sale revoked the offer to Rapid.
D)not liable,if Quick offers substitute goods to Rapid.

Accepted Answer

The sale of the palettes to Speedy Trucking Corporation effectively revoked the offer to Rapid Delivery Company, as an offer can be revoked before it is accepted.

Question 2

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
A)Elmore.
B)Ford.
C)Grace.
D)no one-Elmore's offer is still open.

Accepted Answer

Elmore terminated the offer himself by saying "Forget it. I changed my mind." Therefore, his offer was no longer available for Grace to accept.

Question 3

Sunshine Cell Phone Company offers to buy a laser printer,with a case of paper and an extra car?tridge,from Office Products,Inc.(OPI),for $200.Paul,OPI's representative,says,"Okay,but no paper and no extra car?tridge." Paul 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

Paul has rejected the offer by taking out the paper and extra cartridge and has made a counteroffer to sell the printer alone.

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
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 the digital pad creates a digitized handwritten signature, which is a type of electronic signature that captures an image of the signer's manual signature on a digital device. This type of signature is considered legally binding and is commonly used in electronic document transactions. The other options provided do not accurately describe the signature created in this scenario.

Question 5

Consumer Payments Processing Corporation (CPPC)and Mall Kiosk Company make a deal for CPPC's services,via e-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 Consumer Payments Processing Corporation (CPPC)and Mall Kiosk...

Question 6

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
A)received.
B)sent.
C)followed up by a confirmation letter sent by regular mail.
D)composed on a Relay computer.

Accepted Answer

Under the mailbox rule and UETA, acceptance by e-mail is considered effective when it is sent, not when it is received.

Question 7

Mica buys "Nature," a movie,through Open View,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica is asked to review a warning not to make and sell a copy of it but is not required to click "I agree." This warning 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 browse-wrap term because Mica is not required to take any active steps such as clicking "I agree" in order to proceed with the purchase and download. The warning is simply presented as part of the website's terms and conditions.

Question 8

Office Application Corporation (OAC)sends an e-record to Precision Design,Inc.Under the UETA,the record will be considered received when
A)it enters Precision's processing system in a readable form.
B)a Precision representative is aware of its receipt.
C)it is midway between the parties' processing systems.
D)passes out of OAC's control even if it is not in a readable form.

Accepted Answer

Under the UETA, a record will be considered received when it enters the recipient's processing system in a readable form. This is known as the "mailbox rule" for electronic communications. The other options are not accurate under the UETA.

Question 9

Consumer Sales,Inc.(CSI),sends its catalogue to Dean and includes a "person?alized" letter inviting him to buy any item in the catalogue 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 Dean previously bought items from CSI.
D)not an offer.

Accepted Answer

The letter inviting Dean to buy any item at the advertised price is not an offer, but rather an invitation to make an offer. An offer must include specific details such as price, quantity, and delivery date, and there must be a clear intent to enter into a contract. Since there is no room for negotiation and the catalogue lists the prices, it is clear that Dean would simply be making an offer to purchase a specific item at the advertised price. Therefore, the personalized letter does not create an offer.

Question 10

Callie owns two trucks.She offers to sell the Dodge for $20,000 to Evan,who accepts.She offers to sell the Ford for $20,000 to Gwen,who says,"Too much." Callie's offer was terminated by
A)Evan and Gwen.
B)Evan only.
C)Gwen only.
D)neither Evan nor Gwen.

Accepted Answer

Callie's offer to sell the Ford to Gwen was terminated by Gwen's response of "Too much." Evan had already accepted Callie's offer to buy the Dodge, so his acceptance did not terminate the offer for the Ford. Therefore, Callie's offer was terminated by Gwen only.

Question 11

Jill tells Ken,who has no knowledge of literary 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 Jill's tutoring will be subjective.
D)not effective,because Ken has no knowledge of the subject.

Accepted Answer

The offer is effective because Jill is offering her expertise in a specific subject and setting a price for her services. It is up to Ken to decide if he wants to pay for the tutoring, regardless of his previous knowledge on the subject.

Question 12

John says to Kris,"I would like to sell you my sports memorabilia collec?tion." 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 Kris to negotiate.

Accepted Answer

The statement "I would like to sell you my sports memorabilia collection" is an invitation to negotiate rather than a definitive offer, as it lacks specific terms and conditions necessary to form a binding contract.

Question 13

Global 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 Uniform Electronic Transactions Act (UETA) applies only to transactions in which the parties agree to use electronic means. Therefore, in contracts where Global Shipping Corporation agrees to use electronic means with distributors and other buyers in e-commerce and traditional commerce, the UETA would apply.

Question 14

Creative Solutions Corporation (CSC)agrees to sell software to Drew from CSC's Web site.To complete the deal,Drew clicks on a button that,with reference to certain terms,states,"I agree." What is this sort of agreement called? Do the parties have a binding,enforceable contract that includes the terms? Explain.

Accepted Answer

The answer of Creative Solutions Corporation (CSC)agrees to sell software...

Question 15

State Bank offers to lend money to Rodeo Promotions,Inc. ,at 15 percent interest.Before Rodeo accepts,a statute is enacted prohibiting loans at interest rates greater than 12 percent.Rodeo and the bank have
A)have a contract for a loan at 15 percent interest.
B)have a contract for a loan at 12 percent interest.
C)have a contract for a loan at 0 percent interest.
D)no contract for a loan.

Accepted Answer

The statute prohibiting loans at interest rates greater than 12 percent has invalidated the previous agreement between Rodeo Promotions, Inc. and the State Bank. Therefore, they have no contract for a loan.

Question 16

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
A)Gert does not read it.
B)Gert learns of it after contracting.
C)Gert learns of it before contracting.
D)the quality of the software is poor.

Accepted Answer

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

Question 17

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
A)creates an illegal contract by adding a clause to BPI's offer.
B)makes the offer irrevocable for three days if BPI accepts.
C)negates BPI's offer by changing the price term.
D)voids BPI's offer by extending the time term.

Accepted Answer

This is a valid option for Corporate to make the offer irrevocable for three days if BPI accepts. This is known as an option contract, where Corporate is essentially buying the right to purchase the property for $100 within the next three days. It does not change the price term, as the $100 payment is separate from the agreed-upon purchase price for the warehouse. It also does not extend the time term of BPI's offer, as the three-day period is set by Corporate's payment for the option, not BPI's offer itself.

Question 18

Brick Products,Inc. ,files a suit against City Trucking Service for breach of contract,based on what Brick claims was City's offer.For a court to de?termine 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 the common law, an offer must include terms that are reasonably definite. This means that while the offer does not necessarily need to be exactly precise, it must be specific and clear enough that its terms can be understood and enforced. A vague or uncertain offer would not be binding as it would not meet the requirement of a reasonably definite offer.

Question 19

On behalf of Bay Oyster Company,Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company.Under the UETA,Celia's typed name qualifies as
A)her "signature."
B)a cybernotary.
C)a partnering agreement.
D)nothing.

Accepted Answer

Under the UETA (Uniform Electronic Transactions Act), Celia's typed name qualifies as her "signature."

Question 20

Eve tells Finlay that she will pay him $50 if he unloads her truck.Finlay's acceptance is complete
A)as soon as Finlay says he will unload the truck.
B)once Finlay starts to unload the truck.
C)only after Finlay unloads the truck.
D)when Finlay hears Eve's offer.

Accepted Answer

In a unilateral contract, acceptance is completed when the requested act is performed. Here, Finlay's acceptance is complete only after he unloads the truck.

Quiz 11: A: Agreement in Traditional and E-Contracts

Quick Transport,Inc. ,offers to sell a truckload of palettes to Rapid Delivery Company.Before accepting the offer,Rapid learns that the palettes have been sold to Speedy Trucking Corporation.Quick is

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

Sunshine Cell Phone Company offers to buy a laser printer,with a case of paper and an extra car?tridge,from Office Products,Inc.(OPI) ,for $200.Paul,OPI's representative,says,"Okay,but no paper and no extra car?tridge." Paul has

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

Consumer Payments Processing Corporation (CPPC) and Mall Kiosk Company make a deal for CPPC's services,via e-records.Under the UETA,an e-record is considered received when

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

Mica buys "Nature," a movie,through Open View,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica is asked to review a warning not to make and sell a copy of it but is not required to click "I agree." This warning is

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

Consumer Sales,Inc.(CSI) ,sends its catalogue to Dean and includes a "person?alized" letter inviting him to buy any item in the catalogue at the advertised price.This is

Callie owns two trucks.She offers to sell the Dodge for $20,000 to Evan,who accepts.She offers to sell the Ford for $20,000 to Gwen,who says,"Too much." Callie's offer was terminated by

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

John says to Kris,"I would like to sell you my sports memorabilia collec?tion." This is not an offer because it

Global 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

State Bank offers to lend money to Rodeo Promotions,Inc. ,at 15 percent interest.Before Rodeo accepts,a statute is enacted prohibiting loans at interest rates greater than 12 percent.Rodeo and the bank have

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

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

Brick Products,Inc. ,files a suit against City Trucking Service for breach of contract,based on what Brick claims was City's offer.For a court to de?termine if a contract has been breached,under the common law,the offer must include terms that are

On behalf of Bay Oyster Company,Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company.Under the UETA,Celia's typed name qualifies as

Eve tells Finlay that she will pay him $50 if he unloads her truck.Finlay's acceptance is complete