Question 1

Which of the following is a collateral promise?

Accepted Answer

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

Question 2

Which of the following would NOT require a writing under the statute of frauds?

Accepted Answer

A)  The buyer agrees to pay $10,000 for a piece of real estate. 
B)  A renter agrees to rent a building for a 5-year period. 
C)  An agreement creates an easement to run cables across adjoining land. 
D)  A landscaper agrees to landscape the lot surrounding an office building. 
A)  The buyer agrees to pay $10,000 for a piece of real estate. 
B)  A renter agrees to rent a building for a 5-year period. 
C)  An agreement creates an easement to run cables across adjoining land. 
D)  A landscaper agrees to landscape the lot surrounding an office building. D

Question 3

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more.

Accepted Answer

A)  $50 
B)  $100 
C)  $500 
D)  $1,000 
A)  $50 
B)  $100 
C)  $500 
D)  $1,000 C

Question 4

A number of courts have used the doctrine of promissory estoppel to displace the requirement of a writing by enforcing oral contracts within the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 5

The Uniform Electronic Transactions Act, which has been adopted by all of the states and the District of Columbia, gives full effect to electronic contracts and develops a uniform legal framework for their implementation.

Accepted Answer

A) True 
 B)False

Question 6

Most types of contracts are valid without being written.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

An example of an unenforceable oral contracts is:

Accepted Answer

A)  an oral promise to guarantee the additional duties of another. 
B)  an oral agreement to substitute different land for that described in the original lease contract. 
C)  an oral agreement to extend an employee's contract for six months to a total of two years. 
D)  All of these. 
E)  Two of these but not all three these examples. 
A)  an oral promise to guarantee the additional duties of another. 
B)  an oral agreement to substitute different land for that described in the original lease contract. 
C)  an oral agreement to extend an employee's contract for six months to a total of two years. 
D)  All of these. 
E)  Two of these but not all three these examples.

Question 10

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold:

Accepted Answer

A)  the oral contract is unenforceable because it cannot be performed within one year. 
B)  Article 2 of the UCC controls this loan. 
C)  the oral contract is enforceable only through the doctrine of promissory estoppel. 
D)  the oral contract is enforceable because Paul fully performed his obligation under the contract. 
A)  the oral contract is unenforceable because it cannot be performed within one year. 
B)  Article 2 of the UCC controls this loan. 
C)  the oral contract is enforceable only through the doctrine of promissory estoppel. 
D)  the oral contract is enforceable because Paul fully performed his obligation under the contract.

Question 11

The parol evidence rule applies to partially written agreements.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

Accepted Answer

A) True 
 B)False

Question 16

June, executrix of Calvin's estate, promised Mr. Wentworth in writing that she would personally pay one of Calvin's debts to Wentworth Co. If June fails to pay, the written promise must be in existence at the time Wentworth Co. initiates a lawsuit so the writing can be produced as evidence.

Accepted Answer

A) True 
 B)False

Question 17

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

Which of the following is a collateral promise?

Which of the following would NOT require a writing under the statute of frauds?

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more.

A number of courts have used the doctrine of promissory estoppel to displace the requirement of a writing by enforcing oral contracts within the statute of frauds.

The Uniform Electronic Transactions Act, which has been adopted by all of the states and the District of Columbia, gives full effect to electronic contracts and develops a uniform legal framework for their implementation.

Most types of contracts are valid without being written.

What is another name for the main purpose doctrine?

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.

An example of an unenforceable oral contracts is:

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold:

The parol evidence rule applies to partially written agreements.

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

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

June, executrix of Calvin's estate, promised Mr. Wentworth in writing that she would personally pay one of Calvin's debts to Wentworth Co. If June fails to pay, the written promise must be in existence at the time Wentworth Co. initiates a lawsuit so the writing can be produced as evidence.

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

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

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

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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