24 UNIT THREE: CONTRACTS AND E-CONTRACTS
the contract is made.
9. When does the UETA apply, and what is its effect? The UETA supports all electronic transactions, but it
10. Can parties to a contract that would otherwise be covered by the UETA choose to waive its pro-
ACTIVITY AND RESEARCH ASSIGNMENTS
1. Have students bring current catalogs, advertisements, classified advertisements, and direct mail adver-
tisements to class. Tell them to be prepared to discuss which are offers and which represent preliminary negotiations.
3. Have students bring to class examples of shrink-wrap and click-on agreements and review them in class.
What terms are they likely to object to, once they have examined the agreements more closely?
EXPLANATION OF A SELECTED FOOTNOTE IN THE TEXT
Footnote 5: Gyabaah was hit by a bus owned by Rivlab Transportation Corp. Gyabaah filed a suit in a
New York state court against the bus company. Rivlab's insurer offered to tender the company’s policy limit of $1
million in full settlement of Gyabaah’s claims. On the advice of her attorney Jeffrey Aronsky, Gyabaah signed a
release, but it was not forwarded to Rivlab or its insurer. Two months later, Gyabaah changed her lawyer and her
mind. Aronsky filed a motion to enforce the settlement so that he could obtain his fee. The court denied the motion.
In Gyabaah v. Rivlab Transportation Corp., a state intermediate appellate court affirmed. There was no
binding settlement because the release was not delivered to Rivlab or its insurer, who were thus not informed that the
offer had been accepted. In other words, the lack of communication was fatal to Aronsky’s claim of a settlement.
Assuming that the offerors had not included an expiration date for their offers and could revoke them
at any time, what actions would be required for an effective revocation? In these circumstances, to revoke the
Why did the court conclude that the parties in this case were not bound by the settlement and release