Question 1

A court may not imply a term:

Accepted Answer

A) governing the details of performance. 
B) governing the time of performance. 
C) limiting the cost in a cost-plus contract to 10 percent of the estimated cost. 
D) requiring good faith. 
A) governing the details of performance. 
B) governing the time of performance. 
C) limiting the cost in a cost-plus contract to 10 percent of the estimated cost. 
D) requiring good faith.

Question 2

Suzy Bartles enters into an oral contract to purchase a tract of land from Bill Hermes. The land is considered worthless, but Bartles feels that she has discovered a possible usage that would drastically increase the value of the land. To assure herself of the potential value of the land, Bartles orally hires an attorney to investigate the title and records associated with the land in question. Before gaining any information from her attorney, Bartles orally contracts with a builder to construct a huge building on the site. Because of the size of the project, a completion time is difficult to predict. Bartles now discovers that the land is indeed useless, a fact that she obtains through information from her attorney.
Bartles now refuses to honor her contracts with Hermes, her attorney, and the builder. Must Bartles honor her contractual agreements?

Accepted Answer

All contracts concerning the sale of lan

Question 3

A writing required by the statute of frauds may be in any form.

Accepted Answer

A) True 
 B)False

Question 4

A signed letter from an employer setting forth details of an oral contract of employment satisfies the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 5

Under the majority view, a contract that does not satisfy the statute of frauds is voidable.

Accepted Answer

A) True 
 B)False

Question 6

An oral contract to sell a house is binding if:

Accepted Answer

A) the agreement is witnessed by a member of the clergy. 
B) there is a tape recording of the agreement. 
C) the buyer paid the price and received the deed of conveyance. 
D) the seller is a merchant. 
A) the agreement is witnessed by a member of the clergy. 
B) there is a tape recording of the agreement. 
C) the buyer paid the price and received the deed of conveyance. 
D) the seller is a merchant.

Question 7

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property, specifically:

Accepted Answer

A) goods. 
B) chattel paper. 
C) real property. 
D) none of the above. 
A) goods. 
B) chattel paper. 
C) real property. 
D) none of the above.

Question 8

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.

Accepted Answer

A) True 
 B)False

Question 9

Parol evidence may be admitted to show that a provision was omitted as the result of:

Accepted Answer

A) fraud. 
B) accident. 
C) mistake. 
D) all of the above. 
A) fraud. 
B) accident. 
C) mistake. 
D) all of the above.

Question 10

An oral contract can be enforced when it relates to:

Accepted Answer

A) the purchase of a television set for $200. 
B) the sale of an interest in land for $400. 
C) managing a factory for five years. 
D) a promise to answer for the debt of another. 
A) the purchase of a television set for $200. 
B) the sale of an interest in land for $400. 
C) managing a factory for five years. 
D) a promise to answer for the debt of another.

Question 11

A writing that satisfies the requirement of a writing under the statute of frauds could be evidenced by:

Accepted Answer

A) a note. 
B) a memorandum. 
C) a contract. 
D) all of the above. 
A) a note. 
B) a memorandum. 
C) a contract. 
D) all of the above.

Question 12

An oral agreement to supply a line of credit for two (2) years cannot be enforced because of the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 13

The parol evidence rule prohibits only the use of oral testimony that alters an apparently complete written contract.

Accepted Answer

A) True 
 B)False

Question 14

If a contract is unclear, it will be interpreted against the party who drafted it.

Accepted Answer

A) True 
 B)False

Question 15

Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner, entered into a contract that provided that Franklin would sell Gordon fifty World War II battleship models at Franklin's cost of $2.95 each, plus a reasonable profit. Gordon brought suit to enforce the contract against Franklin, who refused to deliver the models. Franklin claimed that there was no contract because of indefiniteness. Is Franklin correct?

Accepted Answer

Yes. The price of the models is indefini

Question 16

If words and numbers contradict each other in a contract, the rule of construction favors the words.

Accepted Answer

A) True 
 B)False

Question 17

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

Accepted Answer

A) True 
 B)False

Question 18

Parol evidence generally is admissible to explain:

Accepted Answer

A) ambiguous terms. 
B) why signatures are missing. 
C) why a contract was not performed. 
D) implied terms. 
A) ambiguous terms. 
B) why signatures are missing. 
C) why a contract was not performed. 
D) implied terms.

Question 19

The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.

Accepted Answer

A) True 
 B)False

Question 20

A contract is interpreted to give effect to:

Accepted Answer

A) the intent manifested by the contract. 
B) what the court believes is a fair contract. 
C) what the defendant thought the contract meant. 
D) what will be best for the economic life of the community. 
A) the intent manifested by the contract. 
B) what the court believes is a fair contract. 
C) what the defendant thought the contract meant. 
D) what will be best for the economic life of the community.

Exam 17: Writing, Electronic Forms, and Interpretation of Contracts

A court may not imply a term:

A writing required by the statute of frauds may be in any form.

A signed letter from an employer setting forth details of an oral contract of employment satisfies the statute of frauds.

Under the majority view, a contract that does not satisfy the statute of frauds is voidable.

An oral contract to sell a house is binding if:

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property, specifically:

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.

Parol evidence may be admitted to show that a provision was omitted as the result of:

An oral contract can be enforced when it relates to:

A writing that satisfies the requirement of a writing under the statute of frauds could be evidenced by:

An oral agreement to supply a line of credit for two (2) years cannot be enforced because of the statute of frauds.

The parol evidence rule prohibits only the use of oral testimony that alters an apparently complete written contract.

If a contract is unclear, it will be interpreted against the party who drafted it.

If words and numbers contradict each other in a contract, the rule of construction favors the words.

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

Parol evidence generally is admissible to explain:

The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.

A contract is interpreted to give effect to:

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, Parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPS, LlCS, and LlPS

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters