Canadian Business Law Today 1st Edition By Nancy Breen - Test Bank

Canadian Business Law Today 1st Edition By Nancy Breen – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 05

Elements of Contracts, E-Commerce and Technology

 

 

True / False Questions

1. A contract is an exchange of promises between two or more parties which can be enforced by the court.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

2. Contracts are the most common and basic legal document used by a business.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

3. From a risk management perspective, contracts do not need to be in writing.
   FALSE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

4. Contract law deals with the legal principles and rules that allow enforceable agreements to be created.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

 

5. There are no exceptions to the parties’ ability to create any enforceable agreement they desire.
   FALSE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

6. There are no exceptions to the substantive aspects of contracts within the control of the parties.
   FALSE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

7. A contract is formed when there is a meeting of the minds.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

8. Businesses use contracts to buy and sell goods and services.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

9. A contract can exist in either a written, verbal, or implied form.
   TRUE

 

Blooms: Remember
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

 

10. A simple agreement between friends is an enforceable contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

11. Keeping a contract short is the best way to avoid legal disputes arising from the contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

12. Express terms are those terms negotiated specifically by the parties and specified in the contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

13. Implied terms are those terms not specifically negotiated by the parties but are implied in the contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

14. Implied terms are those terms negotiated specifically by the parties and specified in the contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

 

15. Express terms are those terms not specifically negotiated by the parties but are implied in the contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

16. A contract is a business’s basic protection in a commercial transaction.
    TRUE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

17. Each province has enacted statute law to govern all business contract disputes.
    FALSE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

18. The courts generally presume parties intend to be legally bound by a contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

19. If you enter into a valid contract that was not in your best interest, the Court will assist you in getting out of the contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

 

20. Basic contract law does not apply to online contracts.
    FALSE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

21. Basic contract law does apply to online contracts.
    TRUE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

22. International e-commerce contracts are not valid in Canada.
    FALSE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

23. All levels of Canadian government are working on laws to recognize e-commerce contracts as valid enforceable contracts.
    TRUE

 

Blooms: Remember
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

24. The person making an offer is the offeror.
    TRUE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

 

25. The person making an offer is the offeree.
    FALSE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

26. The person receiving an offer is the offeror.
    FALSE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

27. The person receiving an offer is the offeree.
    TRUE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

28. An offer is a willingness to form a contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

29. An invitation to treat is a willingness to form a contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

 

30. An invitation to treat is another term for offer.
    FALSE

 

Blooms: Remember
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

31. There are four (4) requirements to contract formation.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention

32. An offer specifies the parties involved, the product, and the price.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-06 Offer

33. An offer is when both parties understand and agree to the terms of a contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-06 Offer

34. Acceptance is when one party agrees to the terms of the offer.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-07 Acceptance

 

35. Acceptance must be communicated by the offeree to the offeror.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-07 Acceptance

36. Consideration is the value one is willing to pay or receive for the promise agreed to in an offer.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-08 Consideration

37. Susan offered to pay $500 for a ring that Donna has agreed to sell to her. Each woman has given consideration to the other for her promise.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-08 Consideration

38. Parties to a contract must intend to create legally binding obligations.
    TRUE

 

Blooms: Remember
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-09 Intention

39. A counter offer creates a new offer.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

 

40. Andy offers to sell his car to Bob, but Bob needs to arrange financing, so Andy says he will give Bob three days to do so. Andy can revoke the offer before the three days are up.
    TRUE

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

41. Jill has been negotiating the purchase of a speedboat with Sandi for the last two weeks. Two days ago, she emailed Sandi, saying “I won’t go any higher than $8,000 and that includes the trailer. Take it or leave it, but that’s my final offer.” Sandi sent an email the same day that said “I will accept $8,000, but not including the trailer.” There is a contract between Jill and Sandi.
    FALSE

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

42. Unless otherwise stated acceptance of an offer can be by any reasonable method.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

43. The post box rule governs acceptance of an offer over a distance.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

 

44. Under the Electronic Commerce Act, acceptance occurs when the offeree sends the email.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

45. Under the Electronic Commerce Act, acceptance occurs when the offeror receives and opens the email.
    FALSE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

46. Mary loves to shop online, particularly from one online retailer. She recently purchased two items that were sent to her home. She contacted the company and wanted to return the items. The Company said “You clicked the ‘I agree’ button. We do not accept returns.” Mary should be able to successfully argue that there was no contract as she did not agree to the “no return” policy.
    FALSE

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-12 Acceptance

47. Jeremy agrees not to sue Angela for having crashed into his car if she agrees to pay for his repairs. Since he promised only not to do something that he could have done, he has not given consideration for her promise to pay.
    FALSE

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

 

48. McSweeney agrees to clear out Broad’s basement, but no price is set at the time. Broad argues, once McSweeney has done the work, that since no price was agreed upon, he should pay only a reasonable price and not the excessive amount stated in the bill presented to him by McSweeney. He is right.
    TRUE

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

49. Quantum meruit means paying as much is deserved.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

50. A person can be required to perform on a contract for a service provided gratuitously.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

51. In business relationships, the courts will presume that parties have an intention to enter into a contact.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-14 Intention

 

52. In contracts between family members, the courts will presume that parties have an intention to enter into a contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-14 Intention

53. In contracts between family members, the courts will not presume that parties have an intention to enter into a contact.
    TRUE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-14 Intention

54. In business relationships, the courts will not presume that parties have an intention to enter into a contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-14 Intention

55. Alliston enters into an agreement with Berkley that, for $2,000, gives him the right to agree to purchase Berkley’s screen printing business within the next 30 days for $50,000. If Alliston decides to buy, they agree that the $2,000 will be the down payment on the purchase price. This agreement is an option.
    FALSE

 

Blooms: Apply
Learning Objective: 05-07 Recognize what option agreements are.
Topic: 05-15 Option Agreements

 

56. An option agreement allows for a contract to remain open for a specified time.
    TRUE

 

Blooms: Remember
Learning Objective: 05-07 Recognize what option agreements are.
Topic: 05-15 Option Agreements

57. An option agreement is enforceable when separate consideration is paid to the offeree.
    TRUE

 

Blooms: Remember
Learning Objective: 05-07 Recognize what option agreements are.
Topic: 05-15 Option Agreements

58. Express terms in a contract must be clear and not ambiguous.
    TRUE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

59. Implied terms in a contract must be clear and not ambiguous.
    FALSE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

60. Judge may add implied terms to a contract to give meaning to the words in the contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

 

61. Judges may add express terms to a contract to give meaning to the words in the contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

62. Important terms can be implied in a contract.
    FALSE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

63. Important terms should be expressed in a contract.
    TRUE

 

Blooms: Remember
Learning Objective: 05-08 Understand the express and implied terms of a contract.
Topic: 05-17 Express and Implied Terms

64. All contracts must be in writing.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-19 Preference for Written over Oral Contracts

65. Terms of an oral contract are easier to prove in court.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-19 Preference for Written over Oral Contracts

 

66. Having contracts reduced to writing is a form of risk management.
    TRUE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-19 Preference for Written over Oral Contracts

67. Contracts for the purchase and sale of land must be in writing.
    TRUE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-20 Requirements for Written Contracts

68. Contracts for the purchase and sale of land can be oral.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-20 Requirements for Written Contracts

69. Contracts for guarantees are required to be in writing.
    TRUE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-20 Requirements for Written Contracts

70. Contracts for guarantees are not required to be in writing.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-20 Requirements for Written Contracts

 

71. Contracts can be both partially written and oral.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-21 The Danger of Partially Written Contracts

72. Electronic contracts are required to be in a special format.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-22 The Use of Electronic Contracts

73. Electronic contracts are not required to be in a special format.
    TRUE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-22 The Use of Electronic Contracts

 

74. Standard form contracts are contracts drafted by one party and usually for their benefit.
    TRUE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-23 Standard Form Contracts

75. Standard form contracts are like all other contracts, the parties can negotiate the terms prior to signing.
    FALSE

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-23 Standard Form Contracts

 

Multiple Choice Questions

 

 

76. James says he would like to buy Mike’s motorbike for $3,000. Mike responds by saying he would accept $4,000 given all the work he has put into it. James says “Ok. I’ll give that. Here’s $2,000 now, and I’ll pay the balance in two instalments.”
    A.This is a contract
    B. This is not a contract
    C. This is an offer
    D. This is an acceptance

 

Blooms: Apply
Learning Objective: 05-01 Know what a contract is.
Topic: 05-01 What Is a Contract?

77. You have an agreement with a friend to meet for coffee after class. Your friend does not show up. You had turned down an opportunity to work and as a result lost 8 hours of wages. You decide to sue your friend. Which of the following statements is true?
    A.You and your friend have a valid contract that the courts would enforce
    B. You and your friend have a valid contract that the courts would not enforce
    C. You and your friend have a simple agreement that the court would enforce
    D. You and your friend have a simple agreement that the court would not enforce

 

Blooms: Apply
Learning Objective: 05-02 Know what separates a contract from an agreement.
Topic: 05-02 Contract vs. Simple Agreement

78. In Canada, the objective of the Uniform Electronic Commerce Act (UECA) is primarily to:
    A.Define what constitutes a privacy violation in a contract
    B. Make electronic contracts as binding on parties as written ones
    C. Provide remedies for internet commerce and breach of contract
    D. Restrict internet gambling and online purchases

 

Blooms: Understand
Learning Objective: 05-03 Know why contracts are useful and needed.
Topic: 05-03 Why are Contracts Needed?

 

79. Which one of the following is an offer as opposed to an “invitation to treat”?
    A.A display of goods on the shelves of Safeway
    B. A notice posted on Kijiji “I’ll pay $100 to whoever finds and returns my lost black lab puppy”
    C. A sweater displayed in the window of a shop with the price tag attached and showing
    D. A notice in an email “15% off the price of all tablets until January”

 

Blooms: Apply
Learning Objective: 05-04 Recognize the differences between an invitation to treat and an offer.
Topic: 05-04 Before the Contract: Invitation to Treat

80. Which of the following is not a requirement for a valid contract?
    A.Acceptance
    B. Consideration
    C. Intention
    D. Writing

 

Blooms: Understand
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention

81. Which of the following is a requirement for a valid contract?
    A.Acceptance
    B. Fairness
    C. Implied
    D. Writing

 

Blooms: Understand
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention

 

82. Mr. Jones went into a supermarket where he saw a new kind of toothpaste on a shelf, ticketed at $2.69. He decided to try it, so he took it to the checkout and placed it on the moving counter. The staff member at the checkout rang up the sale, took Mr. Jones money, put the toothpaste in a bag, and handed it with the receipt and the change to Mr. Jones. A contract was formed when:
    A.Mr. Jones paid for the toothpaste
    B. Mr. Jones picked up the toothpaste
    C. The supermarket employee put the toothpaste on display for Mr. Jones to see
    D. The supermarket employee rang in the sale and took Mr. Jones money

 

Blooms: Apply
Learning Objective: 05-05 Understand the elements of a contract.
Topic: 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention

83. On June 1, the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega’s client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14, Sam mailed back his response and eagerly awaited his prize. On July 15, Mega sent out the last prize it had. Sam’s response arrived on July 16. It was the 1001^st response, and Mega wrote back telling Sam that because all the prizes were gone, he would not be able to have one.
    A.A valid contract was formed between Mega and Sam.
    B. Mega had essentially revoked its offer before Sam accepted.
    C. Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time.
    D. No contract was formed here as there was no communication of Sam’s acceptance before Mega’s offer lapse.

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-10 Beyond the Basics: Completeness, Revocation, Communication, Promises, Special Situations

 

84. Which of the following statements is incorrect with respect to an offer?
    A.It must be in writing
    B. It must contain all major terms
    C. It must contain a willingness to be bound
    D. It must not contain uncertainties

 

Blooms: Understand
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

85. Which of the following would best satisfy the requirements for a valid offer?
    A.I’ll give you $300 for your bike and maybe more if it is fast
    B. I’ll give you $15 for your laptop
    C. I’ll pay $150 for a printer, the model is yet to be determined
    D. I’ll pay $150 for a laptop, the model is yet to be determined

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

86. James offered to sell the vehicle for $20,000 “offer to remains open until noon on Thursday, April 1, 2017.” Which one of the following situations will not end the offer?
    A.A counter-offer from the offeree
    B. An expiration of the time to accept before offeree accepts
    C. James sells the vehicle to another purchaser
    D. James falls ill and suddenly dies

 

Blooms: Apply
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

 

87. Which of the following will not end an offer?
    A.Offer lapses
    B. Offeree makes counter-offer
    C. Offeror dies
    D. Offeror sells to another

 

Blooms: Understand
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-11 Offer

88. A gratuitous promise is:
    A.A gift that creates contractual obligations
    B. A legal obligation to do what is promised
    C. A promise where no legal obligation is created
    D. An arrangement that the courts will enforce

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

89. Quantum meruit means:
    A.A meeting of the minds
    B. A decision to stand on
    C. An agreement with no expectation of payment
    D. What one has earned

 

Blooms: Remember
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-13 Consideration

 

90. Which of the following is incorrect with respect to intention to enter into a valid contract?
    A.Courts apply the reasonable stated intention of the parties in a contract
    B. Courts protect reasonable expectations of parties in a contract
    C. Intention is presumed in commercial contracts
    D. Intention is presumed in family contracts

 

Blooms: Understand
Learning Objective: 05-06 Know how valid consideration and intention affect a contract.
Topic: 05-14 Intention

91. If you pay $2,000 for a 60-day option on a business that is offered for sale at $400,000, which of the following is true?
    A.You have agreed to accept the offer of the business within the 60-day period
    B. You have entered into two contracts, one for time and one for the purchase of business
    C. You have entered into a contract that allows you to get your money back if you don’t accept after the 60 days
    D. You have purchased a 60-day period of time within which you may or may not accept the offer

 

Blooms: Apply
Learning Objective: 05-07 Recognize what option agreements are.
Topic: 05-15 Option Agreements

92. Which of the following contracts needs to be in writing?
    A.Contract for the purchase and sale of a business
    B. Contract for the purchase and sale of cell phones
    C. Contract for the purchase and sale of land
    D. Contract for the purchase and sale of a motor vehicle

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-20 Requirements for Written Contracts

 

93. Which of the following statements regarding online transactions is true?
    A.Clicking “I Accept” may constitute valid acceptance of a contract
    B. Common law has set precedents for entering into contracts online
    C. Entering into contracts online negates the need to satisfy all elements of a contract
    D. Electronic contracts are unenforceable unless also reduced to writing

 

Blooms: Understand
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-22 The Use of Electronic Contracts

94. With regard to online contracts, which of the following statements is most accurate?
    A.Consumers may have to resolve their disputes in a foreign jurisdiction
    B. Consumers will not be held liable for terms that they did not actually read
    C. Electronic documents are unenforceable unless in writing
    D. Electronic documents are effective when the consumer receives a copy

 

Blooms: Understand
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-22 The Use of Electronic Contracts

95. Electronic commerce (E-commerce) legislation consists of:
    A.Laws specifying the jurisdiction that will apply to an online contract dispute
    B. Laws specifying the regulation of digital communication between businesses
    C. Laws specifying the regulations and restrictions for Internet communication between businesses
    D. Laws specifying the time and place of an electronic contract formation

 

Blooms: Remember
Learning Objective: 05-09 Understand the oral; written; and electronic forms for contracts.
Topic: 05-22 The Use of Electronic Contracts