Question 1

"Statute of Frauds" is a title in the United States Code of Laws.

Accepted Answer

A) True 
 B)False

Question 2

Within the statute of frauds, the ________ is an exception as to when a secondary obligation does not need to be in writing.

Accepted Answer

A)  primary-purpose rule 
B)  resulting-fact rule 
C)  main-purpose rule 
D)  delineated rule 
E)  personal-obligation standard 
A)  primary-purpose rule 
B)  resulting-fact rule 
C)  main-purpose rule 
D)  delineated rule 
E)  personal-obligation standard

Question 3

What types of contracts does the statute of frauds require to be in writing? Include in your answer contracts, if any, the UCC requires to be in writing.

Accepted Answer

The types of contracts for which the sta

Question 4

________ is the term for contracts within the statute of frauds involving promises to pay a debt of another if the initial party fails to pay.

Accepted Answer

A)  Promissory estoppel 
B)  Elementary promises 
C)  Debt reconciliation 
D)  Debtor's friend 
E)  Secondary obligation 
A)  Promissory estoppel 
B)  Elementary promises 
C)  Debt reconciliation 
D)  Debtor's friend 
E)  Secondary obligation

Question 5

Which of the following is false regarding written contracts?

Accepted Answer

A)  Disputes are easier to settle when contractual terms are solidified in writing. 
B)  The moment of writing allows both parties to reconsider terms and ensure what they desire. 
C)  In general, written contracts aid in the conduct of smooth business contracts. 
D)  The idea of requiring a writing comes from an English law. 
E)  All contracts must be in writing in order to be enforced. 
A)  Disputes are easier to settle when contractual terms are solidified in writing. 
B)  The moment of writing allows both parties to reconsider terms and ensure what they desire. 
C)  In general, written contracts aid in the conduct of smooth business contracts. 
D)  The idea of requiring a writing comes from an English law. 
E)  All contracts must be in writing in order to be enforced.

Question 6

[RV and bike deal] For his retirement, Milton wants to rent an RV and spend the summer travelling out West. Milton stops by Rudi's RV Heaven and Rudi tells him that he could rent an RV for the summer for $6,000. Milton, who had already researched rental costs, told Rudi he would agree to the price and also wanted to buy two of the bicycles Rudi showed him that were $100 each. Milton and Rudi shook hands and Milton said he would return the next day. When Milton returned, Rudi had the bicycles ready to go, but told Milton that the price for the RV was $8,000, not $6,000. Milton tells him that he cannot change the price because they had an enforceable agreement. Milton also tells him that he will not buy the bicycles, but Rudi tells him the agreement about the bicycles is enforceable and he wants Milton to pay him.
-Does the agreement to rent the RV for $6,000 fall outside the statute of frauds and, thus, would likely be enforceable against Rudi?

Accepted Answer

A)  No, because the agreement is for the sale of goods over $500, which is within the statute of frauds and must be in writing. 
B)  No, because the agreement involved the lease of goods and must be in writing. 
C)  Yes, because the agreement involved the lease of goods, which need not be in writing 
D)  Yes, because the contract can be performed within one year. 
E)  No, because the contract may not be performed within one year. 
A)  No, because the agreement is for the sale of goods over $500, which is within the statute of frauds and must be in writing. 
B)  No, because the agreement involved the lease of goods and must be in writing. 
C)  Yes, because the agreement involved the lease of goods, which need not be in writing 
D)  Yes, because the contract can be performed within one year. 
E)  No, because the contract may not be performed within one year.

Question 7

Oral modifications are inadmissible and unenforceable if a contract's terms require that modification be in writing.

Accepted Answer

A) True 
 B)False

Question 8

In 1677, the English Parliament passed the ________.

Accepted Answer

A)  Act to Prevent Unjust Contracts 
B)  Prevention of Frauds Act 
C)  Perjury Prevention Act 
D)  Act for the Prevention of Frauds and Perjuries 
E)  Act of the Queen against Frauds 
A)  Act to Prevent Unjust Contracts 
B)  Prevention of Frauds Act 
C)  Perjury Prevention Act 
D)  Act for the Prevention of Frauds and Perjuries 
E)  Act of the Queen against Frauds

Question 9

Which of the following was the result in the case in the text Sewing v. Bowman, involving the issue of whether an agreement to share in the profits of the land, such as appreciation in the value of the properties and rental income, came within the statute of frauds?

Accepted Answer

A)  The court ruled that the land constituted an asset of the partnership, so the partnership agreement did not come within the statute of frauds. 
B)  The court ruled that the agreement did involve an interest in land and, therefore, came within the statute of frauds. 
C)  The court ruled that the agreement did not involve an interest in land but placed it within the statute of frauds in order to prevent injustice. 
D)  The court ruled that the agreement fell within the statute of frauds but that an oral agreement was sufficient. 
E)  The court ruled that the agreement to share in the appreciation of the value of the land did not fall within the statute of frauds and that no writing was needed, but that the agreement to share the rental income did fall within the statute of frauds requiring a writing. 
A)  The court ruled that the land constituted an asset of the partnership, so the partnership agreement did not come within the statute of frauds. 
B)  The court ruled that the agreement did involve an interest in land and, therefore, came within the statute of frauds. 
C)  The court ruled that the agreement did not involve an interest in land but placed it within the statute of frauds in order to prevent injustice. 
D)  The court ruled that the agreement fell within the statute of frauds but that an oral agreement was sufficient. 
E)  The court ruled that the agreement to share in the appreciation of the value of the land did not fall within the statute of frauds and that no writing was needed, but that the agreement to share the rental income did fall within the statute of frauds requiring a writing.

Question 10

While testifying on the stand in his breach of contract suit, Constantine admitted that he sold land to Felipe. This is known as a(n) ________.

Accepted Answer

A)  confirmation 
B)  perjury 
C)  deposition 
D)  admission 
E)  acknowledgment 
A)  confirmation 
B)  perjury 
C)  deposition 
D)  admission 
E)  acknowledgment

Question 11

The concept of performance has no effect on the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true about contracts that have been subsequently modified?

Accepted Answer

A)  Parol evidence contradictory to the final terms is admissible. 
B)  Parol evidence regarding a contract's subsequent modification is inadmissible. 
C)  If the agreement is required to be in writing because it is within the statute of frauds, oral modifications are unenforceable. 
D)  Oral evidence of a subsequent written agreement is inadmissible. 
E)  If the contract's terms require that modification be in writing, oral modifications are admissible. 
A)  Parol evidence contradictory to the final terms is admissible. 
B)  Parol evidence regarding a contract's subsequent modification is inadmissible. 
C)  If the agreement is required to be in writing because it is within the statute of frauds, oral modifications are unenforceable. 
D)  Oral evidence of a subsequent written agreement is inadmissible. 
E)  If the contract's terms require that modification be in writing, oral modifications are admissible.

Question 13

Which of the following is not a type of contract within the statute of frauds that concerns a promise to pay a debt?

Accepted Answer

A)  Secondary obligation. 
B)  Secondary promise. 
C)  Collateral promise. 
D)  Suretyship promise. 
E)  Promissory estoppel. 
A)  Secondary obligation. 
B)  Secondary promise. 
C)  Collateral promise. 
D)  Suretyship promise. 
E)  Promissory estoppel.

Question 14

When a contract is incomplete, a court will not look at industry standards to complete the contract unless the parties had agreed to follow standard industry practice.

Accepted Answer

A) True 
 B)False

Question 15

[Courtroom Surprises] Alexandra agrees to sell Rishi her house for $200,000. Alexandra, Rishi, and the house are all located in Tennessee. She also orally agrees to sell her used car to Rishi for $1,000. Alexandra and Rishi discuss the fact that the house needs some repairs. Alexandra gives Rishi a key and tells him to do whatever he wants with the house. In reliance on her promise to sell the house, Rishi sells his home, gets a loan, and has a new roof put on Alexandra's house because of leaks that needed to be repaired to prevent further damage. When presented with the written agreements of sale for the home and the car, however, Alexandra refuses to sign either. Rishi sues, and the case proceeds to trial. Alexandra tells the judge in court under oath that she orally agreed to sell the house but that she changed her mind before signing and that she believes she has protection under the statute of frauds. She tells the judge that no agreement was ever made regarding the car and that she also has protection under the statute of frauds regarding that matter.
-Regarding Alexandra's statement to the judge under oath that she orally agreed to sell the house, which of the following is true?

Accepted Answer

A)  The statement has no effect because of the statute of frauds. 
B)  The statement would be excluded from consideration as parol evidence but only because it involved an amount in excess of $5,000. 
C)  The judge would be estopped from considering the evidence. 
D)  The statement would be classified as an admission and would establish an exception to the statute of frauds involving the agreement on the house. 
E)  The statement would be excluded from consideration because of the collateral interest rule. 
A)  The statement has no effect because of the statute of frauds. 
B)  The statement would be excluded from consideration as parol evidence but only because it involved an amount in excess of $5,000. 
C)  The judge would be estopped from considering the evidence. 
D)  The statement would be classified as an admission and would establish an exception to the statute of frauds involving the agreement on the house. 
E)  The statement would be excluded from consideration because of the collateral interest rule.

Question 16

Which of the following statements is true about the statute of frauds and e-commerce?

Accepted Answer

A)  Statutes that addressed electronic transactions have been around for years. 
B)  The Uniform Electronic Transactions Act was enacted as law in 2000. 
C)  The Uniform Electronic Transactions Act was adopted as law in only half of all states. 
D)  The Uniform Electronic Transactions Act adopts the requirements of the statute of frauds regarding the validity of online transactions. 
E)  The Uniform Electronic Transactions Act reflects the decision that particular electronic transactions may constitute a "written copy" and therefore have legal significance. 
A)  Statutes that addressed electronic transactions have been around for years. 
B)  The Uniform Electronic Transactions Act was enacted as law in 2000. 
C)  The Uniform Electronic Transactions Act was adopted as law in only half of all states. 
D)  The Uniform Electronic Transactions Act adopts the requirements of the statute of frauds regarding the validity of online transactions. 
E)  The Uniform Electronic Transactions Act reflects the decision that particular electronic transactions may constitute a "written copy" and therefore have legal significance.

Question 17

The legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract is known as ________.

Accepted Answer

A)  promissory estoppel 
B)  substantial estoppel 
C)  the promissory rule 
D)  the reliance rule 
E)  promissory reliance 
A)  promissory estoppel 
B)  substantial estoppel 
C)  the promissory rule 
D)  the reliance rule 
E)  promissory reliance

Question 18

[Awesome tuners] Trace owns a music store. At a recent convention, he meets Terrill, who makes electronic guitar tuners. Terrill gives Trace a free sample and tells Trace that his guitar tuners are $20 each. Trace says he definitely wants to buy some and he will email the quantity. After the convention, Terrill emails Trace stating, "Do you still want to buy some tuners?" Trace replies, "Yes! 30 please!" However, Terrill never sends the tuners. Trace tells him they had a deal and that Terrill needs to send the tuners. Terrill, who went to business school, tells Trace that the UCC requires contracts for the sale of goods over $500 to be in writing, and his email reply doesn't satisfy the statute of frauds.
-Trace claims that one of the contract terms is the $20 price per tuner. Is he correct?

Accepted Answer

A)  Yes, but only if there is another writing with the $20 price per tuner. 
B)  Yes, because the written agreement was conditioned on the $20 per tuner oral agreement. 
C)  No, because he failed to include price in the writing. 
D)  No, because the parol evidence rule prevents parties from introducing oral evidence when there is a written contract. 
E)  No, because no exception applies to the parol evidence rule. 
A)  Yes, but only if there is another writing with the $20 price per tuner. 
B)  Yes, because the written agreement was conditioned on the $20 per tuner oral agreement. 
C)  No, because he failed to include price in the writing. 
D)  No, because the parol evidence rule prevents parties from introducing oral evidence when there is a written contract. 
E)  No, because no exception applies to the parol evidence rule.

Question 19

In the "parol evidence rule," what does the term "parol" mean?

Accepted Answer

A)  Words establishing penalties 
B)  Speech or words, specifically words outside the original writing 
C)  Oral speech as opposed to written words 
D)  Written words as opposed to oral speech 
E)  Signature required 
A)  Words establishing penalties 
B)  Speech or words, specifically words outside the original writing 
C)  Oral speech as opposed to written words 
D)  Written words as opposed to oral speech 
E)  Signature required

Question 20

A[n] ________ clause is one way parties can indicate their desire to create an integrated contract.

Accepted Answer

A)  Complete 
B)  Merger 
C)  Adhesion 
D)  Bilateral 
E)  Acknowledged 
A)  Complete 
B)  Merger 
C)  Adhesion 
D)  Bilateral 
E)  Acknowledged

Exam 18: Contracts in Writing

"Statute of Frauds" is a title in the United States Code of Laws.

Within the statute of frauds, the ________ is an exception as to when a secondary obligation does not need to be in writing.

What types of contracts does the statute of frauds require to be in writing? Include in your answer contracts, if any, the UCC requires to be in writing.

________ is the term for contracts within the statute of frauds involving promises to pay a debt of another if the initial party fails to pay.

Which of the following is false regarding written contracts?

Oral modifications are inadmissible and unenforceable if a contract's terms require that modification be in writing.

In 1677, the English Parliament passed the ________.

Which of the following was the result in the case in the text Sewing v. Bowman, involving the issue of whether an agreement to share in the profits of the land, such as appreciation in the value of the properties and rental income, came within the statute of frauds?

While testifying on the stand in his breach of contract suit, Constantine admitted that he sold land to Felipe. This is known as a(n) ________.

The concept of performance has no effect on the statute of frauds.

Which of the following is true about contracts that have been subsequently modified?

Which of the following is not a type of contract within the statute of frauds that concerns a promise to pay a debt?

When a contract is incomplete, a court will not look at industry standards to complete the contract unless the parties had agreed to follow standard industry practice.

Which of the following statements is true about the statute of frauds and e-commerce?

The legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract is known as ________.

In the "parol evidence rule," what does the term "parol" mean?

A[n] ________ clause is one way parties can indicate their desire to create an integrated contract.

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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