Ch 11 - Agreement

Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew eagerly accepts. Do they have a valid contract? a. Probably not, because the terms are not definite. b. Probably, because the parties knew what they were discussing. c. Probably, because Kelly failed to communicate the offer to the offeree. d. Definitely not, because the offeree did not accept the offer.

a. Probably not, because the terms are not definite.

Xavier is an engineer who specializes in computer-aided design. Xavier visits a Web site and purchases computer-aided design software through the site's online store. Xavier clicks on-screen "I agree" boxes indicating agreement with the contract terms. In obtaining the software, Xavier has most likely obtained: a. a license to use a single copy of the software b. ownership of the software c. the right to pass title to the software to another d. joint partnership with the software company

a. a license to use a single copy of the software

McKenna offers to sell Lori her collection of hand-painted European tiles. Before Lori has a chance to accept, McKenna says, "Sorry, I changed my mind. I'm not going to sell the tiles." McKenna has just made: a. a revocation. b. a rejection. c. a counteroffer. d. restitution.

a. a revocation.

Kristin contracts with Jacob to buy a car through an online auction service. All of their negotiations and transactions are conducted electronically. None of their communications ever mention the Uniform Electronic Transactions Act (UETA), which was adopted by their state in its entirety in 2001. Their contract is: a. automatically covered by the UETA. b. covered by the UETA only if the transaction occurred after 2004. c. not covered by the UETA. d. covered by the UETA only if their contract involves computer information.

a. automatically covered by the UETA.

RexCo and Wilkinson Motors agree to contract online. Both companies agree to an encryption security procedure to verify changes in electronic documents and correct errors. RexCo sends a message to Wilkinson Motors that contains an error, because RexCo's information-processing system erroneously changed the language of the document. Wilkinson Motors will: a. be able to avoid the effect of the error. b. have to comply with the erroneous submission. c. be required to renegotiate the terms of the message. d. be able to sue RexCo for fraud.

a. be able to avoid the effect of the error.

The doctrine that prevents an offeror from revoking an offer once the offeree has justifiably relied to his detriment or has begun performance is known as: a. promissory estoppel. b. voidability of estoppel. c. an option. d. a lapse of time.

a. promissory estoppel.

KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet. A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most likely: a. required to file any lawsuits in Colorado b. required to arbitrate any disputes in Colorado c. not required to file their lawsuits in Colorado d. not required to accept this term of the contract

a. required to file any lawsuits in Colorado

Exilware designs software, which it frequently sells to Avertron, the maker of hardware systems. Exilware is in New Hampshire, and Avertron is in Arizona. Because the companies often conduct business via the Internet, they have formed a partnering agreement. When a dispute arises over a delivery date, the court will probably: a. disregard the terms of their partnering agreement. b. look to the terms of the partnering agreement to determine the parties' intent. c. consider the partnering agreement only if its terms are in strict compliance with the Uniform Electronic Transactions Act (UETA). d. consider only those portions of the partnering agreement that are fair to both parties.

b. look to the terms of the partnering agreement to determine the parties' intent.

Expect Big Things Company and ABC Data are in a state that has enacted a modified version of the Uniform Electronic Transaction Act (UETA). The act passed by their state contains a procedure for the acceptance of electronic signatures that differs slightly from the one provided by the federal Electronic Signatures in Global and National Commerce (E-SIGN) Act. If the two companies form an e-contract using an e-signature procedure that complies with the state's version of UETA, their signatures will be a. valid only under state law. b. valid only if the state's procedures are consistent with the E-SIGN Act, and the state's law does not give greater legal effect to one type of technology. c. valid, because states are allowed to preempt the E-SIGN Act if they wish. d. invalid under the E-SIGN Act, because any modification is preemption of federal law, which is unconstitutional.

b. valid only if the state's procedures are consistent with the E-SIGN Act, and the state's law does not give greater legal effect to one type of technology.

Ryan sends Michael a letter of intent for the purchase of a tract of land. The letter of intent outlines the purchase price, the legal description, and the financing terms. A paragraph is included that states this is a non-binding agreement, and is an offer to enter into negotiations. a. The letter of intent is an offer that may be accepted by Michael. b. The letter of intent is a statement of a future intent, which is not an offer. c. The letter of intent is an invitation to negotiate, which is not an offer. d. The letter of intent is an expression of opinion, and does not indicate an intention to enter into a binding agreement.

c. The letter of intent is an invitation to negotiate, which is not an offer.

Sarah tells Jake that she is thinking about buying a car. Jake replies that he would like to sell Sarah one of his cars in a few weeks for a really good price. Jake has made: a. a valid offer to Sarah. b. a valid counteroffer to Sarah's offer. c. a statement that is not a valid offer for lack of definiteness. d. a statement that is not a valid offer for lack of communication.

c. a statement that is not a valid offer for lack of definiteness.

To download software for his Internet connection, Nelson had to click on several boxes at the Web site that stated "I agree" or "I accept." Nelson did not read the accompanying text before clicking on the boxes. In the event of a dispute between Nelson and the service provider, the contract terms will: a. not be enforced. b. be enforced only if the service provider shows that Nelson read them. c. be considered the terms of a binding contract. d. become proposals for the terms of a binding contract.

c. be considered the terms of a binding contract.

Philip receives a mail-order catalogue featuring a new style of water shoes that look perfect for river kayaking. He calls to order a pair and is told that the shoes are sold out. Philip can now: a. sue for breach of contract. b. sue because the catalogue listing constituted a valid offer. c. try somewhere else; the catalogue did not make an effective offer. d. sue because the catalogue company improperly revoked its offer.

c. try somewhere else; the catalogue did not make an effective offer.

Chloe buys a product from Good Times, Inc., that includes a shrink-wrap agreement. After using the product, she decides it is defective and sues Good Times. If the court determines that Chloe learned of the shrink-wrap terms after the contract was finalized, it may conclude that the terms were proposals for additional terms, which then: a. automatically became part of the contract. b. automatically made the contract void. c. were not a part of the contract unless Chloe expressly agreed to them. d. were not a part of the contract because Good Times had not expressly agreed to them.

c. were not a part of the contract unless Chloe expressly agreed to them.

Diana tells Crystal, "I think I'll sell that camping gear I bought for hiking the Pacific Trail for $250. I'm never going to make that trip." This constitutes: a. a valid offer. b. a counteroffer. c. an agreement to agree. d. a statement of future intent.

d. a statement of future intent.