Question 1

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 2

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 3

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 requesting an option contract, which would make the offer irrevocable for three days if BPI accepts. This does not change the terms of the original offer and is therefore not illegal, nor does it change the price term. It is simply an additional agreement.

Question 4

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 saying he changed his mind. Therefore, the offer is no longer available for Grace to accept or reject.

Question 5

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 6

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.,a...

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) 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

Since the state enacted a statute prohibiting loans at rates greater than 12 percent, the original contract for a loan at 15 percent interest is no longer valid. Thus, there is no valid contract for a loan between Kino and the bank.

Question 8

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 9

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 10

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

For a shrink-wrap agreement to be enforceable, the buyer must have had an opportunity to review and agree to its terms. In this case, Milo must expressly agree to the terms in the shrink-wrap agreement, or else it will not be enforceable. A and D are not necessarily relevant, and while reading the agreement is important, it is not sufficient in and of itself for the agreement to be enforceable.

Question 11

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 12

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 not to sell copies of the song is a click-on agreement because Deb must actively click a button or check a box to agree to the provision before completing the purchase and downloading the song.

Question 13

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

An e-contract is a contract that is formed electronically, with no paper involved. In this scenario, the contract was entered into over the Internet, making it an e-contract. The fact that the subject matter is related to "Internet Law" and that it will be performed online are not necessarily the determining factors for whether or not the contract is an e-contract.

Question 14

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 software,which...

Question 15

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 representation of the person's physical signature captured in a digital format. A cybernotarized signature involves the intervention of a trusted third party, which is not mentioned in the scenario. An asymmetric cryptosystemic signature and a public-key infrastructure digital signature both involve the use of cryptographic keys and are typically used for more secure electronic transactions, which is not necessary in the context of the package delivery.

Question 16

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

If no time for acceptance is specified in the offer, it is generally assumed that a reasonable amount of time will be allowed for acceptance. This would depend on the circumstances of the offer and the industry practices. Therefore, the offer will terminate after a reasonable period of time has elapsed without acceptance.

Question 17

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," Flem is indicating his agreement to the terms presented to him before he can download the gaming software. This creates a contract that includes those terms.

Question 18

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 19

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 in the online offer explicitly states that any disputes arising from the contract must be resolved in Kansas. Lena accepted this offer, which means she agreed to this provision. Therefore, a court will likely enforce this provision and rule that the dispute must be resolved in Kansas.

Question 20

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 of the forklift terminated the offer, as the subject matter of the contract no longer exists. Wally's is not obligated to obtain a forklift for Value or provide any compensation for the failed sale.

Quiz 10: Agreement in Traditional and E-Contracts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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