Business Law Exam 2
Which of the following represents a unilateral offer?
"I will pay you $50 if you mow my lawn."
Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.
False
. What is user-generated content?
anything created and made publicly available by end users
6. Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.
false
1. In a unilateral contract, one party makes a promise that the other party can accept only by actually doing something.
true
11. In 2018, the European Union (EU) implemented the European General Data Protection Regulation (GDPR).
true
Which of the following statutes requires that commercial email not have deceptive headings and clearly indicate if the email is an advertisement?
CAN-SPAM
36. Which of the following protects email messages from unauthorized interception?
ECPA
21. Burns Medicine Shop developed a website where customers could ask the pharmacists questions and could refill prescriptions online. What statute requires Burns to have and disclose a privacy policy to anyone using the website?
d. No statutes presently require websites to have or disclose a privacy policy.
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.
12. 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
13. The element of a contract that states the parties must be adults of sound mind is consent.
false
2. A valid contract can legally be voided by either party.
false
3. Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.
false
8. Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.
false
Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.
false
The federal government has preempted the field of online privacy, so states may not pass their own online privacy statutes.
False
Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.
False
33. The law that protects the privacy of medical records is called the
Health Insurance Portability and Accountability Act (HIPAA).
In a unilateral contract, one party makes a promise that the other party can accept only by actually doing something.
True
Some of the elements of a contract are acceptance, consideration, legality, and capacity.
True
The Electronic Communications Privacy Act (ECPA) of 1986 is a federal statute that regulates email.
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
When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.
True
35. 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.
Spam is illegal per se.
false
The European Union (EU) does not view privacy as a fundamental right of its citizens, and the EU's policies toward privacy are limited.
false
An express contract
is not valid in many states.
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
Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.
true
The Foreign Intelligence Surveillance Act (FISA) requires government agencies to delete irrelevant and personally identifying data before providing it to other agencies.
true
The tort of public disclosure of private facts prohibits the unjustifiable revelation of truthful, but secret, information.
true
When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.
true
When you shop online, most retailers collect personal information about you.
true
Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a
unilateral, implied contract.
34. Under the Electronic Communications Privacy Act,
violators are subject to both criminal and civil penalties.
Miles purchased a lawnmower with an attached warning that said, "The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely
win, as this warning would be unenforceable.
5. Some of the elements of a contract are acceptance, consideration, legality, and capacity.
true
7. Under a contract, Danielle is required to paint a room with paint chosen by the homeowners, the Flynns. After Danielle paints the room according to the contract requirements, her duties under the contract are discharged.
true
9. One purpose of contract law is to determine which agreements are worthy of legal enforcement.
true
At its inception, the Communications Decency Act of 1996 created broad immunity for internet service providers (ISPs) and websites.
true
Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
true
Courts may award damages called quantum meruit, which means
"as much as he deserves."
40. The Children's Online Privacy Protection Act (COPPA) prohibits internet operators from collecting information from children under what age without parental permission?
13
Tim sent an email to Belinda offering to sell his car to her for $5,000. Belinda texted Tim back offering to pay $4,000 for the car. A valid contract did not exist because
Belinda did not accept Tim's offer; she is still negotiating.
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.
30. Emily, an 11-year-old girl, wants to sign-up for a fashion newsletter and sweepstakes. In order to do so, the website wants to know Emily's name, address, phone number, and email address. Which of the following is correct?
Emily must have permission from her parents in order to furnish the information to the website.
31. Which statement regarding FIPS is true?
FIPS has been ineffective in shaping privacy policies.
13. The element of a contract that states the parties must be adults of sound mind is consent.
False
2. A valid contract can legally be voided by either party.
False
3. Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.
False
6. Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.
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
Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued,
Matt would win; this is an implied contract.
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.
Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred did not ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?
Patty may win under the doctrine of promissory estoppel.
24. Which of the following regulates deceptive practices regarding a company's privacy policy?
Section 5 of the FTC Act
32. Musical Productions has a privacy policy posted on its website, but it does not follow the provisions contained within it. Musical Productions is in violation of
Section 5 of the Federal Trade Commission Act.
39. A website printed some truthful, but secret, information about Danielle. Which of the following would likely result
The website printed that Danielle had participated in a robbery in 2010.
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 unenforceable because it needed to be in writing to be enforceable.
Which of the following statements regarding the Foreign Intelligence Surveillance Act (FISA) is true?
To spy on people located in the United States who are communicating abroad, the government must obtain permission from a secret Foreign Intelligence Surveillance Court.
12. Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
True
14. Quasi-contract is a possible remedy for an injured plaintiff.
True
4. Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.
True
6. The internet of things gathers, sends, and receives data.
True
7. Under a contract, Danielle is required to paint a room with paint chosen by the homeowners, the Flynns. After Danielle paints the room according to the contract requirements, her duties under the contract are discharged.
True
9. One purpose of contract law is to determine which agreements are worthy of legal enforcement.
True
Madison purchases several 50-pound bags of mulch at the local gardening store. An employee carries the bags of mulch to Madison's truck and loads them into the back for her. Will Article 2 of the UCC govern the contract in this situation?
Yes, because the primary purpose of this contract is the sale of goods.
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 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
Jennifer has offered to sell her laptop computer for $500 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is
a voidable contract, one that Jack can void.
29. Under the Stored Communications Act, which of the following are considered electronic communication?
a. voice mail b. email c. social media d. All of these are correct.
The case of Chaney v. Fayette County Public School District held that
a. when someone shares a photo with friends online, they cannot justifiably expect that the photo will be kept private.
19. Spam, officially known as unsolicited commercial email or unsolicited bulk email,
accounts for about 55 percent of all email traffic.
The basic distinction between an executory contract and an executed contract is that
all parties have fulfilled their obligations in an executed contract.
Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of
an express, bilateral contract.
An agreement in which parties intend to form a valid bargain, but a court declares that some rule of law prevents enforcing it is called
an unenforceable agreement.
23. Under what circumstances is intrusion into someone's private life a tort?
b. if a reasonable person would find it offensive
As English judges were developing the common law of contracts in the twelfth and thirteenth centuries,
b. promises were found not binding unless written and sealed.
38. Data disposal laws require
businesses to destroy customer data and maintain reasonable security procedures to guard against theft.
26. Which of the following is a true statement regarding the EU General Data Protection Regulation?
c. It allows people to stop companies from processing their personal data.
An agreement in which parties intend to form a valid bargain, but a court declares that some rule of law prevents enforcing it is called
c. an unenforceable agreement.
The courts will find an implied contract when
conduct of the parties indicates they intended an agreement.
What element of a contract refers to both parties receiving some measurable benefit?
consideration
Which of the following types of property would be considered "goods" under the Uniform Commercial Code?
d. a computer
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.
37. The FTC regulates truth in advertising and endorsements. Its rules apply
equally to bloggers, YouTubers, online reviewers, and others on social media.
Noncompetition agreements are
more common today than they were in the past, although policy issues they raised in the 1700s have never gone away.
20. Which of the following is NOT a core principle of the Fair Information Practices (FIPS)?
privacy/refusal
1. Under the Electronic Communications Privacy Act (ECPA), any intended recipient has the right to disclose the content of an email.
true
14. Quasi-contract is a possible remedy for an injured plaintiff.
true
The Electronic Communications Privacy Act includes
the Wiretap Act and the Stored Communications Act.
25. What are some ways we lose our privacy in the digital world?
through data breaches b. through surveillance c. via the internet of things d. All of these are correct.
15. 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
