Question 1

The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term
"serrated."

Accepted Answer

A) True 
 B)False

Question 2

The main purpose doctrine is an exception developed by the courts to the suretyship provision.

Accepted Answer

A) True 
 B)False

Question 3

Brightstone Co. and Allsale Co. enter an oral contract providing Allsale will provide 100 dozen toys at $50 per dozen to Brightstone. Brightstone faxes a letter to Allsale acknowledging the agreement, but stating only the quantity, not the price. Allsale:

Accepted Answer

A)  cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it. 
B)  cannot raise the defense of the statute of frauds since it is a merchant. 
C)  can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more. 
D)  can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement. 
A)  cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it. 
B)  cannot raise the defense of the statute of frauds since it is a merchant. 
C)  can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more. 
D)  can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement.

Question 4

The parol evidence rule only applies to written contracts.

Accepted Answer

A) True 
 B)False

Question 5

When a court interprets an ambiguous contract, usage of the trade will take precedence over express terms in the contract.

Accepted Answer

A) True 
 B)False

Question 6

The parol evidence rule does not apply to:

Accepted Answer

A)  a typographical error that obviously does not represent the agreement of the parties. 
B)  evidence showing one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule does not apply to the evidence in either of these situations. 
D)  The parol evidence rule applies to the evidence in both of these situations. 
A)  a typographical error that obviously does not represent the agreement of the parties. 
B)  evidence showing one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule does not apply to the evidence in either of these situations. 
D)  The parol evidence rule applies to the evidence in both of these situations.

Question 7

Under the UCC, a(n)

Accepted Answer

A)  course of dealing 
B)  usage of trade 
C)  course of performance d. integrated document
Is a practice or method of dealing, regularly observed and followed in a place or vocation 
A)  course of dealing 
B)  usage of trade 
C)  course of performance d. integrated document
Is a practice or method of dealing, regularly observed and followed in a place or vocation

Question 8

The parol evidence rule is an exclusionary rule of evidence.

Accepted Answer

A) True 
 B)False

Question 9

ABC Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building. ABC promises Ace that it will pay for the materials if the subcontractor does not. ABC's promise is unenforceable unless in writing.

Accepted Answer

A) True 
 B)False

Question 10

The statute of frauds has to do with fraud in the inducement of a contract.

Accepted Answer

A) True 
 B)False

Question 11

In determining the meaning of a contract under the UCC, which of the following will have first priority?

Accepted Answer

A)  Course of performance 
B)  Course of dealing 
C)  Usage of trade 
D)  Express terms 
A)  Course of performance 
B)  Course of dealing 
C)  Usage of trade 
D)  Express terms

Question 12

Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get together and write a memorandum because it is a sale of goods for over $500.

Accepted Answer

A) True 
 B)False

Question 13

The UETA has been adopted by all of the states to give full effect to emergency transactions.

Accepted Answer

A) True 
 B)False

Question 14

The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing or proper electronic form.

Accepted Answer

A) True 
 B)False

Question 15

Richard agrees to supply Henry with all his needs of specially made shampoo for Henry's beauty salon. Henry believes that Richard is a representative of a famous hair products company, but he finds a letter to a competitor written by Richard two days before the agreement is signed proving that Richard is a fraud. Richard says that this letter may not be admitted to court since the contract is wholly integrated. Is he correct?

Accepted Answer

No, prior and contemporary evi

Question 16

Brent loans Manuel $1,600 on his oral promise to repay the loan in three annual installments. Most courts would hold
Manuel's promise is unenforceable under the one­year provision of the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2010, and that it is an integrated document.

Accepted Answer

A)  A letter dated July 9, 2010, reciting agreement to new delivery terms 
B)  A chart showing the dates for delivery written on August 16, 2009 
C)  A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2010 contract 
D)  A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2006 
A)  A letter dated July 9, 2010, reciting agreement to new delivery terms 
B)  A chart showing the dates for delivery written on August 16, 2009 
C)  A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2010 contract 
D)  A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2006

Question 18

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?

Accepted Answer

A)  No, because there is no consideration for the extra 100 shirts 
B)  No, because Barry does not have a writing signed by Champs Tee Shirts 
C)  Yes, because this is a subsequent modification of the original contract 
D)  Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC 
A)  No, because there is no consideration for the extra 100 shirts 
B)  No, because Barry does not have a writing signed by Champs Tee Shirts 
C)  Yes, because this is a subsequent modification of the original contract 
D)  Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

Question 19

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.

Accepted Answer

A) True 
 B)False

Question 20

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Accepted Answer

A)  Wyandott can hold Chris to the order. 
B)  Chris can hold Wyandott to the order. 
C)  Neither party is bound, because there is no signed writing. 
D)  Chris is bound if he makes no objection within 10 days. 
A)  Wyandott can hold Chris to the order. 
B)  Chris can hold Wyandott to the order. 
C)  Neither party is bound, because there is no signed writing. 
D)  Chris is bound if he makes no objection within 10 days.

Exam 15: Contracts in Writing

The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term "serrated."

The main purpose doctrine is an exception developed by the courts to the suretyship provision.

Brightstone Co. and Allsale Co. enter an oral contract providing Allsale will provide 100 dozen toys at $50 per dozen to Brightstone. Brightstone faxes a letter to Allsale acknowledging the agreement, but stating only the quantity, not the price. Allsale:

The parol evidence rule only applies to written contracts.

When a court interprets an ambiguous contract, usage of the trade will take precedence over express terms in the contract.

The parol evidence rule does not apply to:

Under the UCC, a(n)

The parol evidence rule is an exclusionary rule of evidence.

ABC Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building. ABC promises Ace that it will pay for the materials if the subcontractor does not. ABC's promise is unenforceable unless in writing.

The statute of frauds has to do with fraud in the inducement of a contract.

In determining the meaning of a contract under the UCC, which of the following will have first priority?

Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get together and write a memorandum because it is a sale of goods for over $500.

The UETA has been adopted by all of the states to give full effect to emergency transactions.

The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing or proper electronic form.

Brent loans Manuel $1,600 on his oral promise to repay the loan in three annual installments. Most courts would hold Manuel's promise is unenforceable under the one­year provision of the statute of frauds.

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2010, and that it is an integrated document.

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

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

Filters

Brent loans Manuel $1,600 on his oral promise to repay the loan in three annual installments. Most courts would hold Manuel's promise is unenforceable under the oneyear provision of the statute of frauds.