Business Law Chapter 11

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Vocab & Quizzes

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 make and sell copies of the song. This provision is

a click-on agreement.

An acceptance subject to new conditions implicitly rejects the offer.

True

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has

rejected the offer and made a counteroffer.

A counteroffer does not terminate but continues an offer.

False

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is

no contract.

Deepwater Mining Corporation offers to sell East China Refining, Inc., a certain quantity of unrefined oil. If East China sends an acceptance via Deepwater's authorized mode of communication, it will be effective when it is

sent

Parties cannot opt out of the UETA.

false

A "sale" of software generally involves only a right to use the software.

true

Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

not be "denied legal effect" because it is only in electronic form.

Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to

transact business electronically.

An e-record is considered received under the UETA only if a person is aware of its receipt

false

Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

a statement of future intent.

The UETA covers only e-records and e-signatures relating to a transaction

true

Somethin'-in-the-Oven Corporation and Cookin' Good, Inc., transact a deal under the UETA. Other state law applies to a dispute between the parties relating to

the formation of the parties' contract.

An advertisement "this property for sale" is an offer.

false

Under the mailbox rule, an acceptance takes effect at the time it is sent.

true

Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to extend the lease at the same amount of rent. Fanny's intent to sign the lease is determined by reference to Fanny's

words and action.

An offeror must have a serious intention to become bound by the offer.

true

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

true

Under federal law, an electronic signature can be as valid as a signature on paper.

true

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

true

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

true

If an offeror does not expressly authorize a certain mode of acceptance, then acceptance may be made by any reasonable means.

true

An agreement is evidenced by a single event: an offer.

false

Revocation

The offeror's act of withdrawing (revoking) an offer.

Option Contract

Created when an offeror promises to hold an offer open for a specified period of time in return for a payment (consideration) given by the offeree.

Counteroffer

A rejection of the original offer an the simultaneous making of a new offer

Mirror Image Rule

Requires the offeree's acceptance to match the offeror's offer exactly.

Acceptance

A voluntary act by the offeree that shows assent (agreement) to the terms of an offer.

Mailbox Rule

If the authorized mode of communication is the mail, then an acceptance becomes valid once it is dispatched, not when it is received.

Forum Selection Clause

Location in which contract disputes will be resolved.

Click on Agreement

The act of clicking on a box indicating "i agree/accept" to accept an online offer.

Shrink Wrap Agreement

The terms are expressed inside the box in which the goods are packaged.

Cybernotary

Legally recognized certification authority.

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