Exam 3: Question Pool

Which of the following statues requires that commercial email not have deceptive headings and clearly indicate if the email is an advertisement?

CAN-SPAM

Which of the following protects email messages from unauthorized interception?

ECPA

Denton agreed to build a cedar deck for the Thrashers for $7,000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

False

Nella offers to sell her crop of strawberries, which have just been picked, to Morgan's Market. Since Nella does not specify a time limit for acceptance, Morgan's can accept the offer at any point in time.

False

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an

executory, bilateral, express contract.

Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

False

Rachel works for the Internal Revenue Service and keeps some personal information on her computer at work. There has been suspicion that Rachel has not been keeping tax return information confidential. The Fourth Amendment to the Constitution, prohibiting unreasonable searches and seizures, protects Rachel from having the government review the personal information she has on her computer.

False

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods.

False

The European Union does not view privacy as a fundamental right of its citizens and the EU's policies toward privacy are limited.

False

The element of a contract that states the parties must be adults of sound mind is consent.

False

The principle of net neutrality asserts that all information contained on the Internet should be regulated equally among each of the fifty states.

False

Vick Valve Company makes valves for plumbing fixtures. At the beginning of the year, it sends out a price list addressing each one, "To our valued customers." Honest Hank Hardware orders a variety of valves at the prices quoted on the price list. Vick Valve must honor the prices on the list and sell the valves to Honest Hank.

False

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

False

Which of the following is NOT true under the Electronic Communications Privacy Act?

ISPs are prohibited from disclosing the content of electronic messages to anyone other than the addressee, even if the disclosure is necessary for the performance of the ISP's service.

After Jan's boyfriend broke up with her, she posted unflattering pictures of him on her Facebook page and wrote about how he was a terrible boyfriend, calling him a liar and a cheater. Jan's actions are protected by the First Amendment to the Constitution.

True

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

True

At issue in Verizon v. Federal Communications Commission was the Open Internet Order and the treatment of ISPs as common carriers.

True

At its inception, the Communications Decency Act of 1996 created broad immunity for internet service providers (ISPs) and websites.

True

Courts distinguish between mere gifts between parties and legally binding commitments by the element of consideration.

True

Hilda owes Lex $3,000, which is an undisputed amount. If she offers him her car in full settlement of the debt and he accepts, the agreement is binding and he can no longer claim she owes him anything on the original debt.

True

If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and method.

True

In a unilateral contract, one party makes a promise that the other party can accept only by actually doing something.

True

In an option contract, the offeror may not revoke an offer during the option period.

True

Jorgeson Co., on its website, promised the company would not give a customer's personal information to third parties without the customer's consent, but then gave out such information anyway. This practice violates Section 5 of the FTC Act.

True

One purpose of contract law is to determine which agreements are worthy of legal enforcement.

True

Regarding contracts, in seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

True

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

True

Social media postings, wikis, customer reviews, and blogs are all examples of user-generated content.

True

Software clickwrap and browsewrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

True

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

True

The Internet was started in the 1960s as a project to link military contractors and universities. The World Wide Web was created as a subnetwork of the Internet.

True

Under the ECPA, any intended recipient has the right to disclose the content of an email.

True

When you surf the Internet, tracking tools collect information about you, often without your knowledge.

True

You have placed an antique sofa up for auction, and the auctioneer has not made any special announcements about the sale. You can withdraw the sofa at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.

True

Sherry, a 12-year-old, visited a website that wanted to know her family size, her parents' educational level, and her weekly allowance. The site also asked Sherry's name, mailing and email addresses, and age.

Under COPPA, the website must disclose how it will use the information it acquires from Sherry.

The case of Chaney v. Fayette County Public School District held that

when someone shares a photo with friends online, he or she cannot justifiably expect that the photo will be kept private.

Which of the following represents a unilateral offer?

"I will pay you $50 if you mow my lawn."

What phrase explains how a requirements contract can be valid?

"in good faith"

The Children's Online Privacy Protection Act prohibits internet operators from collecting information from children under what age without parental permission?

13

Which of the following is an example of an implied contract?

Alberto visits his physician to be treated for a sinus infection. They do not discuss payment, but the following week Alberto receives a bill from his physician for services rendered.

Under the Stored Communications Act, which of the following are considered electronic communication?

All of these are correct.

What are some ways we lose our privacy in the digital world?

All of these are correct.

An agreement to settle a debt for less than the sum claimed is referred to as

An accord

The CAN-SPAM Act

Applies to virtually all promotional e-mails, whether or not the sender has a pre-existing relationship with the recipient.

Jamie is building a house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be

Earnie wins, as the modification was due to unforeseen difficulties.

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets.

A valid contract can legally be voided by either party.

False

After Jan's boyfriend broke up with her, she posted sexually explicit pictures of him on her Facebook page and wrote about how he was a terrible boyfriend. Jan's actions are protected by the First Amendment to the Constitution.

False

All oral contracts are quasi-contracts until they are completely executed.

False

April put an advertisement in the newspaper advertising the sale of her computer for $500. Simultaneously, six people responded to the ad by mail with formal written acceptances. April is bound on all six contracts to sell her computer for $500.

False

Bernie owes an undisputed amount to Wilde's Heating & Air Conditioning. Which of the following is true?

If Wilde's agrees to accept less than the full amount as full payment, the agreement is not binding.

Which of the following is a true statement regarding the EU General Data Protection Regulation?

It allows people to stop companies from processing their personal data.

Juan agrees to paint Michelle's house for $1,000. Halfway through the job, Juan tells Michelle that he will need an extra $250 to finish the job. Which of the following is a correct evaluation of the situation?

Michelle will not have to pay the extra $250 because Juan has a preexisting duty to paint the house for $1,000.

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate?

Myrtle would not have to pay for the yard work.

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1. The contract contained a provision that required all modifications to be written and signed by the company presidents. In early August, an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is:

NSB wins because the modification has to be in writing.

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?

No, past consideration is not valid consideration.

Jaime offered to buy Kevin's bike. Jamie is the

Offeror

A promise to do (or not do) something in the future counts as consideration.

True

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?

Police Officer Paul is not entitled to the reward because he was under a preexisting duty to make the arrest.

Which of the following is NOT a core principle of the Fair Information Practices (FIPS)?

Privacy/Refusal

Which of the following regulates deceptive practices regarding a company's privacy policy?

Section 5 of the FTC Act

What does it mean if an auction is with reserve?

The items for sale have a minimum price.

Floyd offers to sell his 1967 Ford Mustang convertible to Tim. Before they conclude their negotiations, Floyd dies. Which of the following is true?

The offer terminates automatically upon Floyd's death.

What is net neutrality?

The principle that all information which flows on the Internet must receive equal treatment.

A website printed some truthful, but secret, information about Danielle. Which of the following would likely result in a court ruling that Danielle had NOT stated a claim under the public disclosure tort?

The website printed that Danielle had participated in a robbery in 2010

Oxtron, Inc. sent the following price list to its customers.​ Dispensers: SBC-500J $670.00 TDD-1 $875.00 TDD-2 $1,465.00 TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 ​ Which statement is correct?

These price quotes would generally not be considered offers.

Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo.

This contract was a voidable contract, Robert can disaffirm.

You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy hats and shirts. This banner ad is most likely the result of

Tracking software

A forbearance is, in essence, the opposite of an act.

True

What is spam?

Unsolicited commercial email

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?

Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.

One of the factors leading courts away from a laissez-faire approach to contract law was

a change in relative bargaining power between parties to contracts.

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?

a computer

An unliquidated debt can be described as

a debt in which the existence or amount is in dispute.

As it pertains to consideration, which of the following constitutes value?

a forbearance

Which of the following are generally considered to be legal offers?

a note scribbled on a restaurant napkin that includes the details of the offer

If someone provides a service that he or she is already obligated to do, it is an example of

a preexisting duty.

Which of the following is NOT required to establish promissory estoppel?

a promise made by the plaintiff in response to the defendant's promise

What type of contract is a possible remedy for an injured plaintiff in a case with no valid contract, when the plaintiff can show benefit to the defendant, reasonable expectation of payment, and unjust enrichment?

a quasi-contract

The basic distinction between an executory contract and an executed contract is that

all parties have fulfilled their obligations in an executed contract.

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of

an accord and satisfaction.

Marco agrees to sell Clowns R Us some balloons. The contract states that Clowns may buy as many balloons as it wishes. This agreement is

an illusory contract.

What is user-generated content?

anything created and made publicly available by end users

The practice of inferring needs and preferences from a consumer's online behavior and then targeting related advertisements to them is referred to as

behavioral marketing

The practice of inferring needs and preferences from a consumer's online behavior and then targeting related advertisements to them is referred to as

behavioral marketing.

Data disposal laws require

businesses to destroy customer data and maintain reasonable security procedures to guard against theft.

The courts will find an implied contract when

conduct of the parties indicates they intended an agreement.

Unsolicited commercial email (UCE) or unsolicited bulk email (UBE) messages

constitute about 90 percent of all email.

You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy hats and shirts. This banner ad is most likely the result of

data mining.

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated.

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an

enforceable requirements contract.

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

not enforceable because Becky does not have a legal right to drink alcohol.

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has

not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Upon graduating from college, Kathy announced her plans to enter law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Kathy agreed and postponed the wedding for a year. Kathy successfully completed her first year of law school, but soon thereafter, Kathy's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise. If Kathy sues the estate, she will probably be

successful because there was consideration.

Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check,

the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks.

What is net neutrality?

the principle that all information which flows on the internet must receive equal treatment