Question 1

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received.

Accepted Answer

A) True 
 B)False

Question 2

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

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. 
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.

Question 3

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Accepted Answer

A)  reasonably clear. 
B)  vaguely ambiguous. 
C)  practical. 
D)  standardized. 
A)  reasonably clear. 
B)  vaguely ambiguous. 
C)  practical. 
D)  standardized.

Question 4

No offer can be accepted by silence.

Accepted Answer

A) True 
 B)False

Question 5

An offeree's power of acceptance is terminated when the offeror dies unless the offer is irrevocable.

Accepted Answer

A) True 
 B)False

Question 6

Naomi tells Ogden, who has no knowledge of Shakespearean comedy, that she will tutor him in the subject for $50. As an offer, this is

Accepted Answer

A) effective. 
B) not effective because comedy is not a serious subject. 
C) not effective because Naomi’s tutoring will be subjective. 
D) not effective because Ogden has no knowledge of the subject. 
A) effective. 
B) not effective because comedy is not a serious subject. 
C) not effective because Naomi’s tutoring will be subjective. 
D) not effective because Ogden has no knowledge of the subject.

Question 7

An invitation to negotiate is an agreement.

Accepted Answer

A) True 
 B)False

Question 8

Jon says to Kristy, "I would like to sell you my sports memorabilia collec-tion." This is not an offer because it​

Accepted Answer

A)  does not describe the subject matter sufficiently. 
B)  does not include a price term. 
C)  only expresses an opinion. 
D)  ​only invites Kristy to negotiate. 
A)  does not describe the subject matter sufficiently. 
B)  does not include a price term. 
C)  only expresses an opinion. 
D)  ​only invites Kristy to negotiate.

Question 9

Good Grains Farms and Hiway Shipping Company make a deal for Hiway's services, communicating entirely online. Under the UETA, an electronic record of their deal is considered sent when it

Accepted Answer

A)  reaches a midway point between the sender and recipient. 
B)  comes into the recipient's control. 
C)  ​is read by the recipient. 
D)  leaves the sender's control. 
A)  reaches a midway point between the sender and recipient. 
B)  comes into the recipient's control. 
C)  ​is read by the recipient. 
D)  leaves the sender's control.

Question 10

Pete negotiates a deal for the sale of certain real estate to Owen. Pete promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

Accepted Answer

A)  the deal is binding except for Pete's promise to hold the offer open. 
B)  a reasonable period of time is implied. 
C)  Pete must hold the offer open for an indefinite period. 
D)  ​the deal is done. 
A)  the deal is binding except for Pete's promise to hold the offer open. 
B)  a reasonable period of time is implied. 
C)  Pete must hold the offer open for an indefinite period. 
D)  ​the deal is done.

Question 11

Laredo advertises a reward for the return of his lost dog. Mikayla, who does not know of the reward, finds and returns the dog. Mikayla cannot recover the re-ward, because she​​

Accepted Answer

A)  did not confer a benefit on Laredo by returning the dog. 
B)  ​did not know of the reward when she found and returned the dog. 
C)  does not need the money. 
D)  returned the dog. 
A)  did not confer a benefit on Laredo by returning the dog. 
B)  ​did not know of the reward when she found and returned the dog. 
C)  does not need the money. 
D)  returned the dog.

Question 12

The UETA applies only to electronic records and electronic signatures relating to a transaction.

Accepted Answer

A) True 
 B)False

Question 13

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by

Accepted Answer

A)  e-mail. 
B)  phone. 
C)  regular mail. 
D)  any of the choices. 
A)  e-mail. 
B)  phone. 
C)  regular mail. 
D)  any of the choices.

Question 14

Corporate Code, Inc., sells business 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. Developmental Research Corporation (DRC) buys a Corporate Code package and uses the product. Later, DRC files a suit against the software seller, claiming that the product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in the shrink-wrap agreement. What is a shrink-wrap agreement? Are such agreements al-ways enforced? Under what circumstances is a court likely to enforce this agree-ment?

Accepted Answer

A shrink-wrap agreement is an agreement

Question 15

Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carlton is

Accepted Answer

A)  liable. 
B)  not liable, because surgery is not a proper sub-ject for a contract. 
C)  not liable, because the statement was an opinion. 
D)  not liable, but Beth is excused from paying Carlton. 
A)  liable. 
B)  not liable, because surgery is not a proper sub-ject for a contract. 
C)  not liable, because the statement was an opinion. 
D)  not liable, but Beth is excused from paying Carlton.

Question 16

An offer made in obvious anger is still an effective offer.

Accepted Answer

A) True 
 B)False

Question 17

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.

Accepted Answer

A) True 
 B)False

Question 18

Bret buys a subscription to the catalog of movies provided by Cinematique, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the films. This provision is

Accepted Answer

A)  a browse-wrap term. 
B)  a click-on agreement. 
C)  a shrink-wrap agreement. 
D)  ​apartnering agreement. 
A)  a browse-wrap term. 
B)  a click-on agreement. 
C)  a shrink-wrap agreement. 
D)  ​apartnering agreement.

Question 19

An expression of opinion-"this is excellent"-is an offer.

Accepted Answer

A) True 
 B)False

Question 20

An e-contract must meet basic requirements that are different from those required of a paper contract.

Accepted Answer

A) True 
 B)False

Exam 11: Agreement

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received.

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

No offer can be accepted by silence.

An offeree's power of acceptance is terminated when the offeror dies unless the offer is irrevocable.

Naomi tells Ogden, who has no knowledge of Shakespearean comedy, that she will tutor him in the subject for $50. As an offer, this is

An invitation to negotiate is an agreement.

Jon says to Kristy, "I would like to sell you my sports memorabilia collec-tion." This is not an offer because it​

Good Grains Farms and Hiway Shipping Company make a deal for Hiway's services, communicating entirely online. Under the UETA, an electronic record of their deal is considered sent when it

Pete negotiates a deal for the sale of certain real estate to Owen. Pete promises to hold the offer open in return for a small payment but does not state an exact period of time. With respect to this offer

Laredo advertises a reward for the return of his lost dog. Mikayla, who does not know of the reward, finds and returns the dog. Mikayla cannot recover the re-ward, because she​​

The UETA applies only to electronic records and electronic signatures relating to a transaction.

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by

Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carlton is

An offer made in obvious anger is still an effective offer.

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.

Bret buys a subscription to the catalog of movies provided by Cinematique, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the films. This provision is

An expression of opinion-"this is excellent"-is an offer.

An e-contract must meet basic requirements that are different from those required of a paper contract.

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Jon says to Kristy, "I would like to sell you my sports memorabilia collec-tion." This is not an offer because it

Laredo advertises a reward for the return of his lost dog. Mikayla, who does not know of the reward, finds and returns the dog. Mikayla cannot recover the re-ward, because she