Question 1

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

Accepted Answer

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

Question 2

Define the statute of frauds and give an example of what is covered.

Accepted Answer

The statute of frauds requires that certain designated types of contracts be in writing to be enforceable.Contracts to pay the debt of another,contracts that cannot possibly be performed within one year,contracts in consideration of marriage,agreements for the transfer of an interest in land,and contracts of an executor of an estate to personally pay the debts of the decedent are examples of contracts that must be in writing to be enforceable.

Question 3

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). D

Question 4

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Accepted Answer

A) 	Yes, because the job offer is a collateral promise. 
B) 	Yes, because the job offer is covered by the parol evidence rule. 
C) 	Yes, because the job offer is for longer than one year from March 1. 
D) 	No, because the job offer is for one year from June 15. 
A) 	Yes, because the job offer is a collateral promise. 
B) 	Yes, because the job offer is covered by the parol evidence rule. 
C) 	Yes, because the job offer is for longer than one year from March 1. 
D) 	No, because the job offer is for one year from June 15.

Question 5

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 e

Question 6

The main purpose doctrine is a court-developed exception to the suretyship provision.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

Accepted Answer

A) Jones's agreement with Smith to sell his condominium for $100,000. 
B) Stewart's promise to work for Austin for a two-year period. 
C) Dad's promise to the credit union that he will make payments on his son's truck. 
D) Mindy's agreement with Susan to buy her bike for $400. 
A) Jones's agreement with Smith to sell his condominium for $100,000. 
B) Stewart's promise to work for Austin for a two-year period. 
C) Dad's promise to the credit union that he will make payments on his son's truck. 
D) Mindy's agreement with Susan to buy her bike for $400.

Question 8

Under the UCC parol evidence rule,usage of trade will take priority over specific provisions in a written contract.

Accepted Answer

A) True 
 B)False

Question 9

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it,either directly or by reference.

Accepted Answer

A) True 
 B)False

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

Identify at least six situations in which the parol evidence rule does not apply.

Accepted Answer

a.Article 2 requires a writing in contra

Question 12

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 13

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater.He doesn't recall placing the order.Which of the following is correct?

Accepted Answer

A) Wyandott can hold Chris to the order. 
B) Chris can hold Wyandott to the order. 
C) Neither party is bound, because there is no signed writing. 
D) Chris is bound if he makes no objection within ten days. 
A) Wyandott can hold Chris to the order. 
B) Chris can hold Wyandott to the order. 
C) Neither party is bound, because there is no signed writing. 
D) Chris is bound if he makes no objection within ten days.

Question 14

Which of the following is untrue with regard to the interpretation of contracts?

Accepted Answer

A) Express terms prevail over course of performance, and course of performance prevails over course of dealing. 
B) Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning. 
C) Handwritten or typed terms are given greater weight than preprinted terms. 
D) All writings that are part of the same transaction are interpreted together. 
A) Express terms prevail over course of performance, and course of performance prevails over course of dealing. 
B) Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning. 
C) Handwritten or typed terms are given greater weight than preprinted terms. 
D) All writings that are part of the same transaction are interpreted together.

Question 15

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 16

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?

Accepted Answer

In general,the statute of frauds would r

Question 17

General contract law states that contracts that have to be in writing must:

Accepted Answer

A) specify the parties to the contract. 
B) specify the subject matter and essential terms. 
C) be signed by the party to be charged or by his/her agent. 
D) All of the above. 
E) (a) and (b) but not (c) 
A) specify the parties to the contract. 
B) specify the subject matter and essential terms. 
C) be signed by the party to be charged or by his/her agent. 
D) All of the above. 
E) (a) and (b) but not (c)

Question 18

Under E-Sign,an electronic agent:

Accepted Answer

A) is a computer program or other automated means used independently to initiate an action or respond to electronic records or performances. 
B) is an individual who uses electronic means to initiate an action or respond to electronic records or performance. 
C) is an electronic sound, symbol, or process attached to or logically associated with a contract or other record. 
D) may not form a contract without an individual's reviewing the terms. 
A) is a computer program or other automated means used independently to initiate an action or respond to electronic records or performances. 
B) is an individual who uses electronic means to initiate an action or respond to electronic records or performance. 
C) is an electronic sound, symbol, or process attached to or logically associated with a contract or other record. 
D) may not form a contract without an individual's reviewing the terms.

Question 19

The statute of frauds applies to executory contracts only.

Accepted Answer

A) True 
 B)False

Question 20

Although not covered by the original statute of frauds,most states have statutes requiring a writing to make all but which of the following contracts enforceable?

Accepted Answer

A) A contract to make a will. 
B) A contract authorizing an agent to sell real estate. 
C) Contracts for the sale of securities. 
D) Contracts creating certain types of security interests. 
A) A contract to make a will. 
B) A contract authorizing an agent to sell real estate. 
C) Contracts for the sale of securities. 
D) Contracts creating certain types of security interests.

Exam 15: Contracts in Writing

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

Define the statute of frauds and give an example of what is covered.

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

The main purpose doctrine is a court-developed exception to the suretyship provision.

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

Under the UCC parol evidence rule,usage of trade will take priority over specific provisions in a written contract.

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it,either directly or by reference.

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

Identify at least six situations in which the parol evidence rule does not apply.

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.

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater.He doesn't recall placing the order.Which of the following is correct?

Which of the following is untrue with regard to the interpretation of contracts?

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.

General contract law states that contracts that have to be in writing must:

Under E-Sign,an electronic agent:

The statute of frauds applies to executory contracts only.

Although not covered by the original statute of frauds,most states have statutes requiring a writing to make all but which of the following contracts enforceable?

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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