1 Interactive Quiz for ALT-12e, Chapter 11 Chapter 11 Agreement in Traditional and E-Contracts 1.

. In contract cases, courts generally adhere to which of the following theories when deciding the issue of the offerors intent? a. The objective theory of contracts. b. The revision theory of contracts. c. The just price theory of contracts. d. The subjective theory of contracts.

Answers: a. Correct. U.S. courts hold that an offerors words and conduct mean whatever a reasonable person in offerees position would think they mean. b. Incorrect. There is no such thing as a revision theory of contracts. c. Incorrect. A just price is an issue of concern among theologians and in civil law (as opposed to common law) countries. d. Incorrect. Some courts, such as those in France, apply a subjective theory of contracts, but U.S. courts do not. 2. In order for an offer to be effective, which of the following IS NOT necessary? a. The offer must be communicated to the offeree. b. The price requested must be acceptable by a reasonable person. c. The terms of the offer must be reasonably certain and definite. d. There must be a serious, objective intent by the offeror.

Answers: a. Incorrect. This is a requirement for an effective offer. b. Correct. There is no requirement that the price requested be reasonable. c. Incorrect. This is a requirement for an effective offerthe terms must be clear and definite enough that the parties (and a court, if necessary) can determine the terms of the contract. d. Incorrect. This is a requirement for an effective offer.I 3. You read in a catalogue about a great new laptop computer that you would love to have and see that the computer is priced so that you can afford it. If you call the company to place an order and are told Sorry, were all out!, you may: a. sue for breach of contract. b. sue based on a valid offer.

2 c. try somewhere else; this is not an effective offer. d. hold the company liable, because this was an unreserved auction. Answers: a. Incorrect. The catalogue listing was an invitation to negotiate, not an offer. b. Incorrect. The catalogue listing was an invitation to negotiate, not an offer. c. Correct. The catalogue is not legally responsible for your disappointment because its advertisement was an invitation to negotiate, not an offer. d. Incorrect. This was not an auction but rather an invitation to negotiate. 4. The communication requirement of an offer requires: a. the offeror to mail an offer to the offeree before a communication is valid. b. the offeror to tell the offeree about the offer in person. c. the offeror to inform the offeree about the offer in some effective way. d. the offeree to accept the offer within seven days.

Answers: a. Incorrect. There is no requirement that an offer be mailed to meet this requirement. b. Incorrect. There is no requirement that the offerer tell the offeree about the offer in person. c. Correct. The offeror can write, fax, email, tell, or otherwise inform the offeree about the offer to satisfy the communication requirement. d. Incorrect. There is no requirement that the offeree accept within a certain time frame for the offer to be communicated to the offeree. 5. Filomena offers to sell Rhonda her collection of rare books. Before Rhonda even has a chance to accept, Filomena says, Sorry, I changed my mind, no deal. This is an example of: a. a revocation. b. a rejection. c. a counteroffer. d. a restitution.

Answers: a. Correct. Filomena withdrew, or revoked, the offer.

3 b. Incorrect. Filomena did not reject the offer, she withdrew it. If Rhonda had said, No way, thats a ridiculous price!, that would have been a rejection. c. Incorrect. A counteroffer is made by the other party, not the original offeror. d. Incorrect. Restitution is not a way to terminate an offer. 6. An acceptance must exactly match the terms of the offer in order to be valid. This is known as: a. the specificity principle. b. the mailbox rule. c. the legal sufficiency rule. d. the mirror image rule.

Answers: a. b. c. d. Incorrect. This requirement is known as the mirror image rule. Incorrect. The mailbox rule has to do with the timing of an acceptance. Incorrect. This requirement is known as the mirror image rule. Correct. If an acceptance does not mirror the terms of the offer, as required under the mirror image rule, it is not an effective acceptance but a counteroffer.

7.

The mailbox rule says that: a. an offer is valid only if mailed. b. an acceptance is valid only if mailed. c. an offer is valid once it is deposited in a mailbox. d. an acceptance is effective upon dispatch by an authorized means of acceptance.

Answers: a. Incorrect. The mailbox rule deals with acceptances, not offers. b. Incorrect. The mailbox rule does not require mailing, only dispatch by some authorized meansmaybe mailing, but maybe Federal Express, or fax, or e-mail, or in person. c. Incorrect. The rule deals with acceptances, not offers. d. Correct. Once an acceptance is dispatched (sent, communicated) in an authorized way, it is effective. 8. An e-contract can be defined as: a. any contract formed between merchants involved in e-commerce, regardless of whether the contract is formed online or offline. b. any contract formed electronically, such as over the Internet. c. an electronic contract formed between merchants only. d. an electronic contract formed between a merchant and a consumer.

Answers: a. Incorrect. An e-contract is one that is formed electronically. b. Correct. An e-contract is one that is formed electronically. Typically, the term is used to refer to contracts formed via the Internet. c. Incorrect. An e-contract is any contract formed electronically, not just contracts between merchants. d. Incorrect. An e-contract is any contract formed electronically, not just contracts between merchants and consumers. 9. A forum-selection clause indicates: a. the location for the resolution of any dispute arising under the contract. b. the specific court in which arbitration proceedings will be held. c. which state or nations laws will govern any dispute that arises under the contract d. That a force majeure will excuse the parties from showing up at the dispute-resolution forum if a dispute arises under the contract.

Answers a. b. c. d. 10. Correct. This is what a forum-selection clause indicates. Incorrect. Arbitration is an alternative to litigating a dispute in court. Incorrect. This would be a choice-of-law clause. Incorrect. This is not what a forum-selection clause indicates.

The Uniform Electronic Transactions Act (UETA) is: a. the name of the preliminary draft of the UCITA. b. the name of the final proposed draft of the UCITA. c. a uniform law proposed by the NCCUSL to support the enforcement of e-contracts. d. a uniform law proposed by the ALI to amend UCC Article 2 to include provisions relating to e-contracts.

Answers a. Incorrect. The UETA is a separate uniform law that supports the enforcement of e-contracts. b. Incorrect. The UETA is a separate uniform law that supports the enforcement of e-contracts. c. Correct. This describes the UETA. d. Incorrect. The UETA is a uniform law that supports the enforcement of e-contracts. It did not "amend" UCC Article 2.