Question 1

What is another name for the main purpose doctrine?

Accepted Answer

A)  The collateral promise rule 
B)  The possibility test 
C)  The leading object rule 
D)  The suretyship provision 
A)  The collateral promise rule 
B)  The possibility test 
C)  The leading object rule 
D)  The suretyship provision

Question 2

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. In this case:

Accepted Answer

A)  the order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed. 
B)  Blevins can enforce the contract for 300 widgets, but not for 400 widgets. 
C)  if Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later. 
D)  the contract is enforceable for 400 widgets, because it has been partially performed. 
A)  the order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed. 
B)  Blevins can enforce the contract for 300 widgets, but not for 400 widgets. 
C)  if Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later. 
D)  the contract is enforceable for 400 widgets, because it has been partially performed.

Question 3

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the:

Accepted Answer

A)  UETA. 
B)  UCC, Article 2E. 
C)  Electronic Signatures in Global and National Commerce Act. 
D)  Interstate and Foreign Commerce Electronic Transactions Act. 
A)  UETA. 
B)  UCC, Article 2E. 
C)  Electronic Signatures in Global and National Commerce Act. 
D)  Interstate and Foreign Commerce Electronic Transactions Act.

Question 4

E-Sign:

Accepted Answer

A)  preempts the Uniform Electronic Transactions Act. 
B)  requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment. 
C)  defines the included transactions narrowly. 
D)  ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds. 
A)  preempts the Uniform Electronic Transactions Act. 
B)  requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment. 
C)  defines the included transactions narrowly. 
D)  ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

Question 5

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

Accepted Answer

A)  A collateral promise made to the creditor 
B)  A promise, the leading object of which is to obtain an economic benefit for oneself 
C)  A collateral promise where there are three parties and two contracts involved 
D)  A promise by an executor to pay the debts of the decedent from the executor's own funds 
A)  A collateral promise made to the creditor 
B)  A promise, the leading object of which is to obtain an economic benefit for oneself 
C)  A collateral promise where there are three parties and two contracts involved 
D)  A promise by an executor to pay the debts of the decedent from the executor's own funds

Question 6

The statute of frauds generally requires that both parties sign the writing.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is untrue with regard to the interpretation of contracts?

Accepted Answer

A)  Express terms prevail over course of performance, and course of performance prevails over course of dealing. 
B)  Technical terms will always be given technical meaning even where a different intent is manifested by the parties. 
C)  Handwritten or typed terms are given greater weight than preprinted terms. 
D)  All writings that are part of the same transaction are interpreted together. 
A)  Express terms prevail over course of performance, and course of performance prevails over course of dealing. 
B)  Technical terms will always be given technical meaning even where a different intent is manifested by the parties. 
C)  Handwritten or typed terms are given greater weight than preprinted terms. 
D)  All writings that are part of the same transaction are interpreted together.

Question 8

With regard to the interpretation of a contract, what priority is given to each of the following items? (a) Course of dealing
(b) Usage of trade
(c) Express terms
(d) Course of performance

Accepted Answer

Express terms prevail. Course

Question 9

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following promises does not have to be evidenced by writing in order to be enforceable?

Accepted Answer

A)  Jones' agreement with Smith to sell his condominium for $100,000 
B)  Stewart's promise to work for Austin for a two-year period 
C)  Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay 
D)  Mindy's agreement with Susan to buy her bike for $400 
A)  Jones' agreement with Smith to sell his condominium for $100,000 
B)  Stewart's promise to work for Austin for a two-year period 
C)  Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay 
D)  Mindy's agreement with Susan to buy her bike for $400

Question 11

The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin.

Accepted Answer

A) True 
 B)False

Question 12

A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

Accepted Answer

A) True 
 B)False

Question 13

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement to be in writing.

Accepted Answer

A) True 
 B)False

Question 14

The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

Accepted Answer

A) True 
 B)False

Question 15

The suretyship provision has been interpreted to include promises made to a debtor.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?

Accepted Answer

A)  An unborn puppy whose mother is an AKC champion 
B)  Trees that will be cut from a ten-acre tree farm 
C)  Food served in the banquet room of a Florida resort 
D)  Medical care received in a hospital 
A)  An unborn puppy whose mother is an AKC champion 
B)  Trees that will be cut from a ten-acre tree farm 
C)  Food served in the banquet room of a Florida resort 
D)  Medical care received in a hospital

Question 17

A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

Accepted Answer

A) True 
 B)False

Question 18

53. Under the UCC, a(n) is a sequence of previous conduct between the parties to an agreement which may be
Fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

Accepted Answer

A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  integrated document 
A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  integrated document

Question 19

The English statute of frauds and the Code's provision differ in language but have the same basic legal effect: an
oral contract for certain identified situations is void.

Accepted Answer

A) True 
 B)False

Question 20

The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

What is another name for the main purpose doctrine?

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the:

E-Sign:

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

The statute of frauds generally requires that both parties sign the writing.

Which of the following is untrue with regard to the interpretation of contracts?

With regard to the interpretation of a contract, what priority is given to each of the following items? (a) Course of dealing (b) Usage of trade (c) Express terms (d) Course of performance

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Which of the following promises does not have to be evidenced by writing in order to be enforceable?

The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin.

A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement to be in writing.

The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

The suretyship provision has been interpreted to include promises made to a debtor.

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?

A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

53. Under the UCC, a(n) is a sequence of previous conduct between the parties to an agreement which may be Fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

The English statute of frauds and the Code's provision differ in language but have the same basic legal effect: an oral contract for certain identified situations is void.

The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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₅₃_._Unde_r_th_e_UCC_,_a(n) _i_s_a_sequenc_e_o_f_previou_s_conduc_t_betwee_n_th_e_partie_s_t_o_a_n_agreemen_t_whic_h_ma_y_be Fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.