Question 1

Any contract involving a sale of goods of $100 or more must be in writing.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain the reason behind having a Statute of Frauds and give arguments for and against having such a statute.

Accepted Answer

The British Parliament passed the original Statute of Frauds in 1677 to prevent lying (fraud)in civil lawsuits.At that time,neither the plaintiff nor defendant was permitted to testify at trial.The Statute of Frauds was passed to provide juries with more reliable evidence as to the existence of a contract by requiring that certain types of contracts be in writing to be enforceable.Almost all states of the U.S.have passed their own version of the Statute of Frauds in order to provide courts with the best possible evidence of whether parties intended to make a contract.An argument for Statutes of Fraud is that they are a valuable tool for justice.The requirement of a writing cautions people to be careful before making or relying on a promise.An argument against Statutes of Fraud is that rather than preventing wrongdoing,they help people commit fraud.Someone might orally agree to terms and then,if the terms become unprofitable,walk away from the contract,knowing it would be unenforceable without a writing.

Question 3

Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal,and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way)promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?

Accepted Answer

A) The promise made by Ethel's Exercise World to buy the weight machines. 
B) Moneybag's promise to pay if Ethel's Exercise World doesn't. 
C) Both Moneybag's promise and Ethel's Exercise World's promise. 
D) None of the promises in this problem need to be in writing. 
A) The promise made by Ethel's Exercise World to buy the weight machines. 
B) Moneybag's promise to pay if Ethel's Exercise World doesn't. 
C) Both Moneybag's promise and Ethel's Exercise World's promise. 
D) None of the promises in this problem need to be in writing. C

Question 4

Sweet Plantation,Inc.made a written contract with Candy,Inc.whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound.A dispute arose as to how much sugar Sweet is to supply.The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would suffice for a signature on a writing under the Statute of Frauds?

Accepted Answer

A) a stamped signature 
B) a handwritten signature 
C) a name keyed at the bottom of an e-mail 
D) Any of these would suffice.Judges define "signature" very broadly. 
A) a stamped signature 
B) a handwritten signature 
C) a name keyed at the bottom of an e-mail 
D) Any of these would suffice.Judges define "signature" very broadly.

Question 6

Vicki entered into a written contract to buy a car from Valley Motors.During the negotiations,the sales representative said that the car had a two-year full warranty.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement;anything said before signing or while signing is irrelevant." The written contract did not include a warranty.Two months after Vicki took delivery of the car,she discovered that the transmission needed to be replaced.Vicki claimed that it was covered by the full warranty.Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

Accepted Answer

A) No.The parol evidence rule will most likely exclude any evidence of the discussion of the warranty. 
B) Yes.The leading object rule will allow evidence as to the discussion of the warranty. 
C) Yes.The evidence is needed because the contract is ambiguous. 
D) No,because the contract was fully executed. 
A) No.The parol evidence rule will most likely exclude any evidence of the discussion of the warranty. 
B) Yes.The leading object rule will allow evidence as to the discussion of the warranty. 
C) Yes.The evidence is needed because the contract is ambiguous. 
D) No,because the contract was fully executed.

Question 7

Hannah orally agrees to sell her house to Brett for $175,000.If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay,most courts will not enforce the contract since it was not in writing.

Accepted Answer

A) True 
 B)False

Question 8

Amanda,a recent university graduate,needed a car to get to her new job.To help Amanda secure a loan for the car,Ted,a friend,agreed to pay the loan should Amanda default.Ted's promise to pay the loan is a collateral promise.His promise must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following oral contracts may be enforceable?

Accepted Answer

A) Nathan owes $1,000 in back rent to his landlord.Miranda tells Nathan not to worry about it,she'll pay his debt for him. 
B) Kenny orally agrees to purchase 5,000 pencils that the ABC Pencil Company stamps with the words "Kenny is the Greatest!" 
C) Mrs.Washington calls the corner grocery and places an order for a loaf of bread,a gallon of milk,and a pound of hamburger to be delivered to her.Ten minutes later,before the store has a chance to put together her items,she calls to cancel the order. 
D) All of these are correct. 
A) Nathan owes $1,000 in back rent to his landlord.Miranda tells Nathan not to worry about it,she'll pay his debt for him. 
B) Kenny orally agrees to purchase 5,000 pencils that the ABC Pencil Company stamps with the words "Kenny is the Greatest!" 
C) Mrs.Washington calls the corner grocery and places an order for a loaf of bread,a gallon of milk,and a pound of hamburger to be delivered to her.Ten minutes later,before the store has a chance to put together her items,she calls to cancel the order. 
D) All of these are correct.

Question 11

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should

Accepted Answer

A) ignore the confirmation. 
B) call the seller and object to the confirmation as soon as she gets back from her two-week vacation. 
C) object to the confirmation in writing within 10 days. 
D) return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods. 
A) ignore the confirmation. 
B) call the seller and object to the confirmation as soon as she gets back from her two-week vacation. 
C) object to the confirmation in writing within 10 days. 
D) return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods.

Question 12

E-signatures are valid in all 50 states.

Accepted Answer

A) True 
 B)False

Question 13

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement;anything said before signing or while signing is irrelevant." This is

Accepted Answer

A) an integration clause. 
B) a Statute of Frauds clause. 
C) parol evidence. 
D) an exculpatory clause. 
A) an integration clause. 
B) a Statute of Frauds clause. 
C) parol evidence. 
D) an exculpatory clause.

Question 14

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Accepted Answer

A) integrated contracts 
B) incomplete contracts 
C) ambiguous contracts 
D) implied contracts 
A) integrated contracts 
B) incomplete contracts 
C) ambiguous contracts 
D) implied contracts

Question 15

Tony signed a contract agreeing to purchase a used,high-powered boat for $10,000.Prior to signing the contract,the sales representative explained that the boat motor was guaranteed for six months for all labor and parts.The written contract contained nothing about the warranty;however,it did have an integration clause in it.Tony had problems with the boat motor,causing expensive repairs.Tony returned the boat to the sales representative for the repairs,only to learn the salesman denied knowing anything about a six-month warranty.If Tony sues,discuss the likely outcome.

Accepted Answer

If the written agreement was intended to

Question 16

Ramona,age 42,orally agreed to work for Brahma,Inc.for the rest of her life for $50,000 per year.This agreement would not be enforceable since it violates the one-year rule of the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 17

J.T.Tidwell entered into an oral contract with Robert Anthony for the purchase of 100 head of cattle at a price of $500 each.When the oral contract was made,Tidwell gave Anthony a check for $1,000 as "earnest money or good faith money towards the purchase of the cattle." Anthony sold the cattle to someone else.Tidwell sued,asking the court to either compel Anthony to perform the contract or to pay damages that Tidwell suffered from the alleged breach of contract.What issues do you see and how would you resolve those issues?

Accepted Answer

Cattle are goods.The Statute of Frauds r

Question 18

Raymond agrees to transfer an easement right to Sandra for $1,000.This contract is within the Statute of Frauds and therefore needs to be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Contracts that cannot be performed within __________ are unenforceable unless they are in writing.

Accepted Answer

A) one month 
B) six months 
C) one year 
D) two years 
A) one month 
B) six months 
C) one year 
D) two years

Question 20

A legal right that an owner gives to another person to make some use of the owner's land is called

Accepted Answer

A) a deed. 
B) a mortgage. 
C) an easement. 
D) a lease. 
A) a deed. 
B) a mortgage. 
C) an easement. 
D) a lease.

Exam 16: Written Contracts

Any contract involving a sale of goods of $100 or more must be in writing.

Explain the reason behind having a Statute of Frauds and give arguments for and against having such a statute.

Which of the following would suffice for a signature on a writing under the Statute of Frauds?

Hannah orally agrees to sell her house to Brett for $175,000.If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay,most courts will not enforce the contract since it was not in writing.

Amanda,a recent university graduate,needed a car to get to her new job.To help Amanda secure a loan for the car,Ted,a friend,agreed to pay the loan should Amanda default.Ted's promise to pay the loan is a collateral promise.His promise must be in writing to be enforceable.

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the Statute of Frauds.

Which of the following oral contracts may be enforceable?

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should

E-signatures are valid in all 50 states.

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement;anything said before signing or while signing is irrelevant." This is

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Ramona,age 42,orally agreed to work for Brahma,Inc.for the rest of her life for $50,000 per year.This agreement would not be enforceable since it violates the one-year rule of the Statute of Frauds.

Raymond agrees to transfer an easement right to Sandra for $1,000.This contract is within the Statute of Frauds and therefore needs to be in writing to be enforceable.

Contracts that cannot be performed within __________ are unenforceable unless they are in writing.

A legal right that an owner gives to another person to make some use of the owner's land is called

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

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Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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