Question 1

Which of the following is a collateral promise?

Accepted Answer

A)  Andrew promises Donald that if Donald cannot pay his bills, Andrew will. 
B)  A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it." 
C)  A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will." 
D)  All of these are collateral promises. 
A)  Andrew promises Donald that if Donald cannot pay his bills, Andrew will. 
B)  A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it." 
C)  A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will." 
D)  All of these are collateral promises.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

In interpreting a contract, terms which have been separately negotiated are given priority over standardized pre-printed terms.

Accepted Answer

A) True 
 B)False

Question 4

In which of the following situations does the parol evidence rule not apply?

Accepted Answer

A)  Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. 
B)  Where one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule applies in both of the above situations. 
D)  The parol evidence rule does not apply in either (a) or (b). 
A)  Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. 
B)  Where one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule applies in both of the above situations. 
D)  The parol evidence rule does not apply in either (a) or (b).

Question 5

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)  usage of trade 
B)  course of performance 
C)  extrinsic set of evidence 
D)  course of dealing 
A)  usage of trade 
B)  course of performance 
C)  extrinsic set of evidence 
D)  course of dealing

Question 6

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 Henry's agreement with Richard was signed, proving that Richard is a fraud.Richard says that this letter may not be admitted in court since their contract is wholly integrated.Is he correct?

Accepted Answer

No, prior and contemporaneous

Question 7

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 in writing.

Accepted Answer

A) True 
 B)False

Question 8

Gardner sends Everet a letter offering to sell Everet his car for $2,500.Everet 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 9

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life.This promise must be in writing or in proper electronic form to be enforceable.

Accepted Answer

A) True 
 B)False

Question 10

Barry's Sport Shop calls Champion 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.Champion sends 200.Can Barry force Champion to send the additional 100?

Accepted Answer

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

Question 11

Clara types a letter to Fraser setting forth the terms of their contract that falls within the statute of frauds.At the end of the letter, she types her name but does not sign her signature to it.If Fraser wants to use the letter to satisfy the writing requirement, he may do so.

Accepted Answer

A) True 
 B)False

Question 12

Sam orally agreed to sell his house to Humphrey.Humphrey wanted it ready for his family quickly, so after he paid Sam a 5% deposit, he had a new roof put on, new carpeting installed, and he renovated the kitchen.Sam now thinks the place looks great and has decided not to sell.A business law student told him he could back out of the oral agreement.Can he? Explain.

Accepted Answer

In general, the statute of frauds would

Question 13

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

Accepted Answer

A) True 
 B)False

Question 14

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

In which of the following cases would an oral contract be enforceable without a written memorandum?

Accepted Answer

A)  Anna orders a top-of-the-line computer over the phone. 
B)  Michelle calls an employment agency in Paris to arrange for maid service for her three-month Parisian vacation. 
C)  Catherine calls Lucky Dude Ranch to purchase the championship race horse they have advertised in the paper. 
D)  Ron orders three custom-made suits. 
A)  Anna orders a top-of-the-line computer over the phone. 
B)  Michelle calls an employment agency in Paris to arrange for maid service for her three-month Parisian vacation. 
C)  Catherine calls Lucky Dude Ranch to purchase the championship race horse they have advertised in the paper. 
D)  Ron orders three custom-made suits.

Question 18

The UCC statute of frauds requires that the writing include all agreed-upon terms.

Accepted Answer

A) True 
 B)False

Question 19

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade.

Accepted Answer

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

Question 20

Which of the following is true regarding noncompliance with the statute of frauds?

Accepted Answer

A)  The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds. 
B)  The statute of frauds applies to executed and executory contracts. 
C)  The basic legal effect under the statute of frauds and the UCC differs. 
D)  A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party. 
A)  The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds. 
B)  The statute of frauds applies to executed and executory contracts. 
C)  The basic legal effect under the statute of frauds and the UCC differs. 
D)  A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party.

Exam 15: Contracts in Writing

Which of the following is a collateral promise?

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

In interpreting a contract, terms which have been separately negotiated are given priority over standardized pre-printed terms.

In which of the following situations does the parol evidence rule not apply?

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 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 in writing.

Gardner sends Everet a letter offering to sell Everet his car for $2,500.Everet 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.

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life.This promise must be in writing or in proper electronic form to be enforceable.

Clara types a letter to Fraser setting forth the terms of their contract that falls within the statute of frauds.At the end of the letter, she types her name but does not sign her signature to it.If Fraser wants to use the letter to satisfy the writing requirement, he may do so.

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

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.

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

In which of the following cases would an oral contract be enforceable without a written memorandum?

The UCC statute of frauds requires that the writing include all agreed-upon terms.

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade.

Which of the following is true regarding noncompliance with the statute of frauds?

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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