Under the Electronic Signatures in Global and National Commerce Act

question 35

Multiple Choice

Under the Electronic Signatures in Global and National Commerce Act (E-Sign) , _____.

• A) there are no specific rules that businesses must follow when seeking consumer consent to electronic contracts
• B) the price and procedures for withdrawing consent must be spelled out to the customer
• C) e-businesses are permitted to impose consent withdrawal fees on consumers in all situations
• D) a digital signature does not have the same effect as one written in ink on paper

Distinguish between contracts that are void, voidable, and enforceable based on legality and public policy.

Recognize the principles behind the liability of parents for their children's contracts and distinguish between contracts for necessaries and non-necessaries.

Identify when a contract can be ratified and the effects of ratification or disaffirmance on the legality of contracts entered into by minors.

Understand the conditions under which a person may be considered to have legal incapacity to enter into contracts and the consequences thereof.

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Definitions:

Collusion

An agreement between firms to limit competition, set prices, or divide markets, which usually distorts the outcomes of a free market.

Marginal Revenue

Marginal Revenue is the additional income acquired from selling one more unit of a product or service, crucial for determining optimal production levels.

Cost Function

A mathematical relationship that describes how production costs change with variations in output level.

Reaction Curves

Graphs showing how one firm’s optimal output decision responds to quantities of output by competing firms in a market.