Question 1

Omega,Inc. ,sells business application software-accounting and book?keeping programs,blank business forms,inventory control functions,and the like-in different combinations,in different packages,at different prices.Each package includes a shrink-wrap agreement that limits warranties and remedies.Precision Engineering Associates (PEA)buys an Omega package and uses the product.Later,PEA files a suit against Omega,claiming that the software is flawed and that the flaws caused PEA to suffer business losses.PEA asks for relief that exceeds the limits in the shrink-wrap agreement.What are shrink-wrap agreements? Are these agreements al?ways enforced? Under what circumstances is a court likely to enforce this agree?ment?

Accepted Answer

The answer of Omega,Inc. ,sells business application software-accounting and book?keeping...

Question 2

Financial Services Corporation engages in an e-transaction with Greater Metro Bank over the Internet.The UETA
A)does not support the transaction,but does create new rules for it.
B)does not support the transaction or create new rules for it.
C)supports the transaction and creates new rules for it.
D)supports the transaction,but does not create new rules for it.

Accepted Answer

The Uniform Electronic Transactions Act (UETA) supports electronic transactions by giving them the same legal validity as paper transactions, but it does not create new rules; it simply ensures that electronic transactions are legally recognized.

Question 3

Omni Products,Inc. ,and Plenty Sales Corporation transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers
A)none of the contract.
B)only the part of the contract that does not involve e-commerce.
C)only the part of the contract that involves e-signatures.
D)the entire contract.

Accepted Answer

The UETA applies to the entire contract because the transaction is conducted over the Internet, which is considered electronic commerce.

Question 4

Precision Applications Corporation (PAC)sends an electronic record to Quotient Systems,Inc. ,a PAC customer.Under the UETA,the record will be considered re?ceived when it
A)enters Quotient's processing system in a readable form,even if no person is aware of its receipt.
B)enters Quotient's processing system in a readable form,only if a person is aware of its receipt.
C)is midway between the parties' processing systems.
D)passes out of PAC's control.

Accepted Answer

Under the UETA, an electronic record is considered received when it enters the recipient's processing system in a readable form, irrespective of whether a person is aware of its receipt or not. Therefore, choice A is the correct answer.

Question 5

Growth Sales 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)e-commerce only.
B)e-commerce or traditional commerce.
C)neither e-commerce nor traditional commerce.
D)traditional commerce only.

Accepted Answer

The UETA (Uniform Electronic Transactions Act) applies to transactions where the parties have agreed to conduct business electronically, which is typically e-commerce.

Question 6

Rolling Stock Corporation and Short Supply,Inc. ,business firms,transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers
A)none of the contract.
B)only the part of the contract that concerns computer information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Accepted Answer

The UETA applies to the entire contract since it governs electronic transactions in general, regardless of whether they concern computer information or not.

Question 7

High-Tech Services,Inc. ,and Internet Investments Corporation enter into a con?tract that would otherwise be subject to the UETA but purports to "opt out." The UETA covers
A)none of the contract.
B)only the part of the contract that concerns computer information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Accepted Answer

The UETA (Uniform Electronic Transactions Act) allows parties to "opt out" of its provisions, meaning if both parties agree to exclude the UETA, it will not apply to any part of the contract.

Question 8

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 9

Rite Tool Company and Steel Equipment,Inc. ,enter into an e-contract.Under the Uniform Electronic Transactions Act (UETA),their contract is
A)enforceable only because it is in an electronic form.
B)not unenforceable simply because it is in an electronic form.
C)unenforceable simply because it is in an electronic form.
D)unenforceable unless it is accompanied by digital signatures.

Accepted Answer

The UETA has made it clear that e-contracts are not unenforceable simply because they are in an electronic form. They can be as valid and binding as traditional paper contracts, as long as they meet the other requirements of contract formation.

Question 10

Garth and Heddy,consumers,transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers
A)none of the contract.
B)only the part of the contract that concerns computer information.
C)only the part of the contract that does not concern computer information.
D)the entire contract.

Accepted Answer

The UETA (Uniform Electronic Transactions Act) covers the entire contract, regardless of whether or not it mentions the UETA. The UETA provides legal validity and enforceability to electronic contracts, signatures, and records, making them equivalent to their paper-based counterparts.

Question 11

Select Food Company and Tasty Goods,Inc. ,enter into a contract that the UETA covers.The UETA covers issues relating to
A)agency and contract formation.
B)agency only.
C)contract formation only.
D)neither agency nor contract formation.

Accepted Answer

The answer of Select Food Company and Tasty Goods,Inc. ,enter...

Question 12

Nation Shipping Corporation and Office Management Software Company (OMSC)make a deal for OMSCs products,communicating entirely online.Under the UETA,an electronic record is considered sent
A)only at a midway point between the sender and recipient.
B)only on coming into the recipient's control.
C)only on leaving the sender's control.
D)when it leaves the sender's control or comes into the recipient's control.

Accepted Answer

According to the UETA, an electronic record is considered sent when it leaves the sender's control or comes into the recipient's control. Therefore, the best choice is D.

Quiz 13: E-Contracts and E-Signatures

Financial Services Corporation engages in an e-transaction with Greater Metro Bank over the Internet.The UETA

Omni Products,Inc. ,and Plenty Sales Corporation transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers

Precision Applications Corporation (PAC) sends an electronic record to Quotient Systems,Inc. ,a PAC customer.Under the UETA,the record will be considered re?ceived when it

Growth Sales 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

Rolling Stock Corporation and Short Supply,Inc. ,business firms,transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers

High-Tech Services,Inc. ,and Internet Investments Corporation enter into a con?tract that would otherwise be subject to the UETA but purports to "opt out." The UETA covers

Rite Tool Company and Steel Equipment,Inc. ,enter into an e-contract.Under the Uniform Electronic Transactions Act (UETA) ,their contract is

Garth and Heddy,consumers,transact a deal over the Internet.Their contract does not mention the UETA.The UETA covers

Select Food Company and Tasty Goods,Inc. ,enter into a contract that the UETA covers.The UETA covers issues relating to

Nation Shipping Corporation and Office Management Software Company (OMSC) make a deal for OMSCs products,communicating entirely online.Under the UETA,an electronic record is considered sent