Question 1

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
A)Magic Math and National Distribution only.
B)Magic Math and Peg only.
C)Magic Math,National Distribution,Office Stuff,and Peg.
D)Office Stuff and Peg only.

Accepted Answer

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

Question 2

Royal Properties,Inc. ,mails a flyer to hundreds of firms,advertising a building for sale.Standard Manufacturing Company responds by saying,"We accept your offer." Between Royal and Standard,there is
A)a contract for the sale of the building.
B)a contract to consider the offer before any others.
C)a contract to negotiate a sale of the building.
D)no contract.

Accepted Answer

There is no contract formed because Royal's flyer was simply an invitation to make an offer, and Standard's response was an acceptance of an offer that was never made. There was no specific offer communicated between the parties, therefore no contract was formed.

Question 3

Nate tells Opal,"I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is
A)an acceptance of an offer.
B)an invitation to accept an offer.
C)an offer.
D)a statement of future intent.

Accepted Answer

Nate is expressing his intention to potentially sell his skis in the future, but he is not making an offer or accepting an offer.

Question 4

Yvon asks Zack,"Do you want to buy one of my fishing rods?" This is
A)a valid offer.
B)not a valid offer because the terms are not definite.
C)not a valid offer because Yvon did not state an intent.
D)not a valid offer because Zack did not respond.

Accepted Answer

The answer of Yvon asks Zack,"Do you want to buy...

Question 5

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
A)Grant.
B)Honda.
C)Ivy.
D)no one-Grant's offer is still open.

Accepted Answer

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

Question 6

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
A)a contract that does not include the terms.
B)a contract that includes the terms.
C)not a contract but the terms are enforceable.
D)unenforceable.

Accepted Answer

By clicking on "I accept" after viewing certain terms, Flem is entering into a contract that includes those terms.

Question 7

Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives.The mailbox rule will not apply if Beth accepts the offer by
A)e-mail.
B)messenger.
C)regular mail.
D)telegram.

Accepted Answer

The mailbox rule, also known as the "postal rule," states that an acceptance of an offer is effective as soon as it is posted or otherwise communicated through a reliable means of communication, such as mail or telegram. However, email and messenger are instantaneous means of communication and do not depend on the physical delivery of a message, so the mailbox rule does not apply. Therefore, if Beth accepts the offer by email, the acceptance is not effective until Alan receives and reads the message, which could take some time.

Question 8

Michelle gives out a business card with an e-mail address on it.According to the comments that accompany the UETA,it may be reasonable to infer that Michelle has consented to
A)transact business electronically.
B)submit to the jurisdiction of any selected forum.
C)accept and respond to any correspondence sent to that address.
D)nothing.

Accepted Answer

The use of an email address for business purposes can be considered as consent to transact business electronically, as stated in the UETA.

Question 9

Quik Fix-It,Inc. ,offers Pam a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate
A)after a reasonable period of time.
B)after a typical work week (five business days).
C)after a usual month (thirty calendar days).
D)never.

Accepted Answer

An offer without a specified time of acceptance will terminate after a reasonable period of time. This timeframe can vary depending on the circumstances and context of the offer, but it is typically considered to be around one to two weeks. Therefore, option A is the best choice.

Question 10

Interstate Coffee Brokers,Inc.(ICBI),offers to sell Java Roasters,Inc. ,fifty bags of coffee beans.Java rejects the offer.The offer is
A)terminated.
B)valid for a reasonable time to give Java a "second chance."
C)valid for the period of time prescribed by a state statute.
D)valid until ICBI revokes the offer.

Accepted Answer

When Java rejects the offer, the offer is terminated. There is no obligation for ICBI to hold the offer open for a second chance or for any specific period of time. The offer can only be valid until it is revoked, which is not mentioned in this scenario.

Question 11

Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to ex?tend the lease at the same amount of rent.Fanny's intent to sign the lease is determined by reference to Fanny's
A)assumptions.
B)beliefs.
C)unspoken opinions.
D)words and action.

Accepted Answer

Fanny's intent to sign the lease is determined by her words and actions, specifically her request for a lease clause allowing her to extend the lease at the same rent. This shows that Fanny intends to sign the lease with this condition. Her assumptions, beliefs, and unspoken opinions are not relevant in determining her intent to sign the lease.

Question 12

Tomato Farms (TF)offers to sell Unified Grocers,Inc. ,a boxcar load of tomatoes.The offer is sent via overnight delivery because an acceptance is re?quired urgently.It would be most reasonable for Unified to accept via
A)a fax,a letter,or a phone call to TF within two weeks.
B)a fax sent to TF as soon as the offer is received.
C)a letter mailed to TF within two days.
D)a phone call to TF within five business days.

Accepted Answer

The answer of Tomato Farms (TF)offers to sell Unified Grocers,Inc....

Question 13

Lightspeed Corporation makes computers,each of which is packaged with a shrink-wrap agreement.Milo buys a Lightspeed desktop.The terms of the shrink-wrap agreement are most likely enforceable if
A)Milo buys the computer directly from Lightspeed.
B)Milo uses the computer after reading the terms.
C)Milo pays for the computer before reading the terms.
D)the terms concern warranties.

Accepted Answer

The answer of Lightspeed Corporation makes computers,each of which is...

Question 14

Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn.Neither party prints out a hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),this contract can
A)be "denied legal effect" if it falls under the UCC's Statute of Frauds.
B)be "denied legal effect" unless a hard copy is printed.
C)be "denied legal effect" until it is executed.
D)not be "denied legal effect" because it is only in electronic form.

Accepted Answer

The E-SIGN Act recognizes electronic signatures and contracts as legally binding, and it does not require a hard copy to be printed for it to be considered valid. Therefore, the contract entered into by Howie and Ida over the Internet, despite not having a hard copy, is still legally binding.

Question 15

Deepwater Mining Corporation offers to sell East China Refining,Inc. ,a certain quantity of unrefined oil.If East China sends an acceptance via Deepwater's authorized mode of communication,it will be effective when it is
A)in transit.
B)received.
C)sent.
D)written.

Accepted Answer

The answer of Deepwater Mining Corporation offers to sell East...

Question 16

Elmo advertises a reward for the return of his lost dog.Floyd,who does not know of the reward,finds and returns the dog.Floyd cannot recover the re?ward because he
A)did not confer a benefit on Elmo by returning the dog.
B)did not know of the reward when he found and returned the dog.
C)does not need the money.
D)returned the dog.

Accepted Answer

Floyd did not know of the reward when he found and returned the dog, so he cannot recover the reward.

Question 17

Somethin'-in-the-Oven Corporation and Cookin' Good,Inc. ,transact a deal under the UETA.Other state law applies to a dispute between the parties relating to
A)attributing a party's e-signature.
B)the formation of the parties' contract.
C)the sending and receiving of e-records.
D)the legal effect of the parties' e-signatures and e-records.

Accepted Answer

State law governs the formation of contracts, including electronic contracts, so if there is a dispute regarding the formation of the parties' contract, state law would apply.

Question 18

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products,via e-records.Under the UETA,an e-record is considered sent when it
A)is signed and encrypted,and will be sent without changes.
B)is stored in the sender's back-up system.
C)is composed on the sender's computer.
D)leaves the sender's control.

Accepted Answer

According to the UETA, an e-record is considered sent when it leaves the sender's control. This means that once the sender has hit the "send" button or otherwise released the e-record from their possession, it is considered sent for legal purposes. It does not matter whether it has been signed or encrypted, or whether it is stored in the sender's back-up system or composed on their computer.

Question 19

Bill offers to sell his Consumer Service Center business to Dina for $100,000.Dina replies,"The price is too high.I will buy it for $90,000." Dina 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

Dina rejected Bill's offer by stating "the price is too high" and then made a counteroffer for $90,000. She did not accept Bill's offer nor make a counteroffer without rejecting it. Therefore, the best choice is option C.

Question 20

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 make and sell copies of the song.This provision is
A)a browse-wrap term.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)a choice-of-law clause.

Accepted Answer

A click-on agreement is a type of online contract where a user must click a button or check a box indicating their acceptance of the contract terms before being allowed to access or use a product or service. In this case, Deb must agree to the provision not to make and sell copies of the song before being able to download it, making it a click-on agreement.

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

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

Royal Properties,Inc. ,mails a flyer to hundreds of firms,advertising a building for sale.Standard Manufacturing Company responds by saying,"We accept your offer." Between Royal and Standard,there is

Nate tells Opal,"I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

Yvon asks Zack,"Do you want to buy one of my fishing rods?" This is

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

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

Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives.The mailbox rule will not apply if Beth accepts the offer by

Michelle gives out a business card with an e-mail address on it.According to the comments that accompany the UETA,it may be reasonable to infer that Michelle has consented to

Quik Fix-It,Inc. ,offers Pam a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate

Interstate Coffee Brokers,Inc.(ICBI) ,offers to sell Java Roasters,Inc. ,fifty bags of coffee beans.Java rejects the offer.The offer is

Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to ex?tend the lease at the same amount of rent.Fanny's intent to sign the lease is determined by reference to Fanny's

Tomato Farms (TF) offers to sell Unified Grocers,Inc. ,a boxcar load of tomatoes.The offer is sent via overnight delivery because an acceptance is re?quired urgently.It would be most reasonable for Unified to accept via

Lightspeed Corporation makes computers,each of which is packaged with a shrink-wrap agreement.Milo buys a Lightspeed desktop.The terms of the shrink-wrap agreement are most likely enforceable if

Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn.Neither party prints out a hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act) ,this contract can

Deepwater Mining Corporation offers to sell East China Refining,Inc. ,a certain quantity of unrefined oil.If East China sends an acceptance via Deepwater's authorized mode of communication,it will be effective when it is

Elmo advertises a reward for the return of his lost dog.Floyd,who does not know of the reward,finds and returns the dog.Floyd cannot recover the re?ward because he

Somethin'-in-the-Oven Corporation and Cookin' Good,Inc. ,transact a deal under the UETA.Other state law applies to a dispute between the parties relating to

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products,via e-records.Under the UETA,an e-record is considered sent when it

Bill offers to sell his Consumer Service Center business to Dina for $100,000.Dina replies,"The price is too high.I will buy it for $90,000." Dina has

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 make and sell copies of the song.This provision is