Question 1

When Jeff's car breaks down,he asks Kwik Tow,Inc.,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is
A)an express contract.
B)an implied contract.
C)a formal contract.
D)no contract.

Accepted Answer

This is an implied contract because although there was no discussion of price or signed documents, Jeff's request and Kwik's performance of the tow implies an agreement to pay for the service.

Question 2

Greco promises to buy illegal copies of CDs and DVDs from Fava,who promises to deliver on April 15.These promises are most likely
A)enforceable.
B)valid.
C)void.
D)voidable.

Accepted Answer

The promises to buy and deliver illegal copies of CDs and DVDs are against the law and therefore void. A void agreement has no legal effect from the outset and is unenforceable in court.

Question 3

Scot and Tiffany enter into an implied contract.The parties' conduct
A)defines the contract's terms.
B)finds the contract's facts.
C)terminates any unintended consequences.
D)undercuts any terms based on the facts.

Accepted Answer

In an implied contract, the parties' conduct defines the terms of the contract, as opposed to an express contract where the terms are explicitly stated in writing or verbally. Therefore, choice A is the best answer.

Question 4

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

Michelle giving out a business card with an email address on it can be considered as implied consent to transact business electronically.

Question 5

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 sell copies of the song.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

A click-on agreement requires the user to click a button indicating agreement to the terms, which is what Deb must do before downloading the song. A browse-wrap term refers to terms and conditions that are simply available for the user to view on the website, but do not require explicit agreement. A shrink-wrap agreement refers to terms and conditions that are only visible after the product has already been purchased and opened, which does not apply in this scenario.

Question 6

Lou claims that he and Myra entered into an implied contract.To establish this contract,it is not necessary to show that
A)a court imposed a promise in the interest of fairness.
B)Lou expected to be paid for providing services or prop?erty.
C)Lou provided Myra with services or property.
D)Myra failed to reject services or property provided by Lou.

Accepted Answer

An implied contract is formed by the conduct of the parties, not by a court imposing a promise. Therefore, it is not necessary to show that a court imposed a promise in the interest of fairness to establish an implied contract.

Question 7

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino 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.

Accepted Answer

The state statute prohibits loans at rates greater than 12 percent, which means the agreement for a loan at 15 percent interest is no longer valid. Therefore, there is no valid contract between Kino and the bank.

Question 8

Employment Sources,Inc.,enters into a contract with Fred.If Fred is a minor,this contract is most likely
A)enforceable.
B)unenforceable.
C)void.
D)voidable.

Accepted Answer

If Fred is a minor, the contract would be voidable, meaning that Fred would have the option to either continue with the contract or void it. This is because minors are generally not considered competent enough to fully understand the implications of a contract and make a fully informed decision.

Question 9

Vernon claims that his contract with Ulani is voidable.If their contract is avoided
A)both parties are released from it.
B)both parties must fully perform their obligations under it.
C)a wholly different contract is agreed to.
D)a wholly different contract is imposed "as if" the parties had agreed.

Accepted Answer

When a contract is voidable, it means that one party has the option to avoid the contract. If the contract is avoided, both parties are released from their obligations under it. Therefore, the correct choice is A.

Question 10

Wanda tells Vito that she would like to buy his Chocolate Goodies store.Vito declines,but later decides to sell and sends to Wanda,and others,a flyer describing the details.Wanda responds with a letter of "acceptance." Wanda and Vito have
A)a contract.
B)no contract,because Vito sent the letter to more than one party.
C)no contract,because Vito was only inviting bids.
D)no contract,because the letter was an invitation to negotiate.

Accepted Answer

The answer of Wanda tells Vito that she would like...

Question 11

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

The offer to pay $100 to hold the offer open for three days is a valid option for Corporate Investments to make. If BPI accepts the offer, the offer becomes irrevocable for three days. This does not change the terms or void the offer, but simply makes it binding and enforceable for three days.

Question 12

GR8 Marketing Company and Hot Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot have
A)an executed contract.
B)an express contract.
C)an implied contract.
D)no contract.

Accepted Answer

An express contract is formed when the terms are stated clearly in writing or verbally, as in this case where both parties have agreed to specific terms in a document.

Question 13

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by
A)Kyle's rejection.
B)Kyle's subjective intent.
C)whatever Jane decides.
D)whether Kyle's rejection or acceptance is received first.

Accepted Answer

The answer of Jane offers to sell Kyle three desks...

Question 14

Mica buys "Nature," a movie,through Open View,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it.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

The answer of Mica buys "Nature," a movie,through Open View,an...

Question 15

Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule,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

The mailbox rule states that an acceptance is effective when it is sent, not when it is received. Therefore, Relay's acceptance by email will be considered effective when it is sent. The other options are not relevant to the mailbox rule.

Question 16

Lightspeed Corporation makes computers,each of which is packaged with a shrink-wrap agreement.Milo buys a Lightspeed desktop.The shrink-wrap agreement is most likely enforceable if
A)Milo buys the computer directly from Lightspeed.
B)Milo expressly agrees to the terms in the shrink-wrap agreement.
C)Milo reads the shrink-wrap agreement.
D)the terms in the shrink-wrap agreement concern warranties.

Accepted Answer

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

Question 17

Lively Toys Store and Movin' Products Company (MPC)enter into an e-contract under which MPC agrees to ship a case of electronic,remote-controlled bugs to Lively Toys,which agrees to pay on delivery.The Uniform Electronics Transactions Act (UETA)
A)denies the enforcement of such contracts.
B)does not apply to such contracts.
C)preempts all other laws with respect to such contracts.
D)supports the enforcement of such contracts.

Accepted Answer

The Uniform Electronics Transactions Act (UETA) supports the enforcement of electronic contracts, including e-contracts like the one between Lively Toys and MPC for the shipment of products and payment on delivery.

Question 18

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to
A)accept the offer.
B)make a counteroffer.
C)reject the offer.
D)none of the choices.

Accepted Answer

The answer of Kim sends an offer to Leo to...

Question 19

Nero and Oona negotiate a contract.Nero prints out a hard copy to review before both parties sign the electronic form of the contract.Neither party signs the hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),the signatures can
A)be denied effect because they are in electronic form.
B)be denied effect because Nero has not signed a hard copy.
C)be denied effect because Oona has not signed a hard copy.
D)not be denied effect because they are in electronic form.

Accepted Answer

The Electronic Signatures in Global and National Commerce Act (E-SIGN Act) allows electronic signatures to have the same legal effect as signatures on paper documents. Both parties have signed the electronic form of the contract, which is in compliance with the E-SIGN Act, making it valid and enforceable. The fact that they did not sign the hard copy does not affect the validity of the electronic signatures.

Question 20

Demi promises to buy a house from Caleb,who promises to vacate the property on June 1.If these promises are in writing,they are most likely
A)enforceable.
B)unenforceable.
C)void.
D)voidable.

Accepted Answer

If the promises are in writing, they are likely to be enforceable as they can be considered a binding contract between the parties involved.

Quiz 9: Formation in Traditional and E-Contracts

When Jeff's car breaks down,he asks Kwik Tow,Inc.,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is

Greco promises to buy illegal copies of CDs and DVDs from Fava,who promises to deliver on April 15.These promises are most likely

Scot and Tiffany enter into an implied contract.The parties' conduct

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

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 sell copies of the song.This provision is

Lou claims that he and Myra entered into an implied contract.To establish this contract,it is not necessary to show that

Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

Employment Sources,Inc.,enters into a contract with Fred.If Fred is a minor,this contract is most likely

Vernon claims that his contract with Ulani is voidable.If their contract is avoided

Wanda tells Vito that she would like to buy his Chocolate Goodies store.Vito declines,but later decides to sell and sends to Wanda,and others,a flyer describing the details.Wanda responds with a letter of "acceptance." Wanda and Vito have

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

GR8 Marketing Company and Hot Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot have

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

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

Shelby offers to make digital copies of Relay Company's business conference videotapes,CDs,DVDs,and other media for $500.Under the mailbox rule,Relay's acceptance by e-mail will be considered effective when

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

Lively Toys Store and Movin' Products Company (MPC) enter into an e-contract under which MPC agrees to ship a case of electronic,remote-controlled bugs to Lively Toys,which agrees to pay on delivery.The Uniform Electronics Transactions Act (UETA)

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to

Nero and Oona negotiate a contract.Nero prints out a hard copy to review before both parties sign the electronic form of the contract.Neither party signs the hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act) ,the signatures can

Demi promises to buy a house from Caleb,who promises to vacate the property on June 1.If these promises are in writing,they are most likely