Question 1

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)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 state statute overrides any previous agreement between Kino and the bank, therefore there is no valid contract for a loan at any interest rate.

Question 2

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 3

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 4

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

Corporate Investments is offering to pay BPI a sum of money in exchange for BPI keeping the offer open for three days. This creates an option contract, making the offer irrevocable for three days if BPI chooses to accept.

Question 5

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 6

Bret enters into a contract with Collegiate University over the Internet to take an online course titled "Internet Law." This is an e-contract because
A)the contract was entered into over the Internet.
B)the contract was formed between a student and a university.
C)the contract will be performed online.
D)the subject matter of the contract is "Internet Law."

Accepted Answer

The contract was entered into over the Internet, which makes it an e-contract. The other choices may be true, but they do not necessarily define e-contract.

Question 7

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 "I accept" after viewing certain terms, Flem is agreeing to the terms and creating a contract that includes them. Therefore, the correct answer is B.

Question 8

Tomato Farms (TF)offers to sell United Grocers,Inc. ,a boxcar load of tomatoes.The offer is sent via fax.An acceptance is required urgently.It would be most reasonable for United 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 United Grocers,Inc....

Question 9

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 10

Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet,but it is stolen before Value accepts.Most likely,Wally's must obtain
A)a forklift for Value if Wally's insurance covers the loss.
B)a forklift for Value if it still wants one.
C)nothing for Value because that would extend the time of the offer.
D)nothing for Value because the theft terminated the offer.

Accepted Answer

The theft terminated the offer, so Wally's is not obligated to provide anything to Value.

Question 11

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

According to the mailbox rule and UETA, acceptance by e-mail is considered effective when it is sent.

Question 12

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 his own offer by changing his mind, making it no longer available for Grace to accept.

Question 13

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 is creating a digitized handwritten signature. The other options mentioned in the question are not relevant to this scenario. A cybernotarized signature involves a third-party notary who validates the authenticity of a signature, which is not the case here. An asymmetric cryptosystemic signature and a public-key infrastructure digital signature are types of digital signatures that use encryption algorithms to secure the signature, which is not the case here as the signature is simply being digitized.

Question 14

Corner Convenience Store (CCS)takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station,offering a reward for information leading to the apprehension of a certain criminal.CCS could normally terminate the offer by placing
A)a full-page ad in the local paper and a thirty-second commercial on the local station.
B)a notice in the "Legal Announcements" section of the paper.
C)a notice to the news departments of the local stations.
D)any,or none,of the choices.

Accepted Answer

The answer of Corner Convenience Store (CCS)takes out a full-page...

Question 15

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

The provision that Deb must agree to is a click-on agreement because she is required to actively click a button or checkbox indicating her agreement before she can download the song. It is not a browse-wrap term because she must actively agree to it, and it is not a shrink-wrap agreement because she is not purchasing physical media.

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

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 18

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

The answer of Final Foto,Inc. ,makes photo and video editing...

Question 19

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

Since no specific time frame is mentioned in the offer, it would terminate after a reasonable period of time. This can depend on various factors such as industry norms, hiring timelines, and communication between the parties involved.

Question 20

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas.Lena,a resident of Maine,accepts Jelly Jar's offer.If a dispute arises,a court will most likely rule that it must be resolved in
A)Kansas.
B)Kansas or Maine.
C)Maine.
D)the location selected by the first party to file a suit.

Accepted Answer

The provision included in Jelly Jar Company's online offer stating that any disputes arising under the contract must be resolved in Kansas will likely be upheld by a court, and Lena, as the accepting party, would be bound to abide by it. Therefore, the dispute must be resolved in Kansas.

Quiz 8: Agreement in Traditional and E-Contracts

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

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

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

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

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

Bret enters into a contract with Collegiate University over the Internet to take an online course titled "Internet Law." This is an e-contract because

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

Tomato Farms (TF) offers to sell United Grocers,Inc. ,a boxcar load of tomatoes.The offer is sent via fax.An acceptance is required urgently.It would be most reasonable for United to accept via

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

Wally's Warehouse offers to sell a certain used forklift to Value Lumber Outlet,but it is stolen before Value accepts.Most likely,Wally's must obtain

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

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

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

Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station,offering a reward for information leading to the apprehension of a certain criminal.CCS could normally terminate the offer by placing

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

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

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

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

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

Jelly Jar Company includes in its online offers a provision that indicates any disputes arising under the contract must be resolved in Kansas.Lena,a resident of Maine,accepts Jelly Jar's offer.If a dispute arises,a court will most likely rule that it must be resolved in