Question 1

Regarding Alexandra's statement to the judge that the agreement to sell the car was covered by the statute of frauds,which of the following is true?

Accepted Answer

A) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $1,500. 
B) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $5,000. 
C) She was incorrect because while the UCC has a provision regarding writings for the sale of certain goods,that provision is not a part of the statute of frauds. 
D) She was correct. 
E) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $2,000. 
A) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $1,500. 
B) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $5,000. 
C) She was incorrect because while the UCC has a provision regarding writings for the sale of certain goods,that provision is not a part of the statute of frauds. 
D) She was correct. 
E) She was incorrect because the statute of frauds provision involving the sale of goods only applies to goods costing over $2,000.

Question 2

Under ________,if the buyer in an alleged contract for the sale of land has paid any portion of the sale price,has begun to permanently improve the land,or has taken possession of the land,the courts will consider the contract partially performed,and this partial performance will amount to proof of the contract.

Accepted Answer

A) Substantial performance 
B) The sales proof rule 
C) Partial performance 
D) The purchase proof rule 
E) Sales substantiation 
A) Substantial performance 
B) The sales proof rule 
C) Partial performance 
D) The purchase proof rule 
E) Sales substantiation

Question 3

What is the most likely result of Gabriel's attempt to avoid his agreement to pay creditors of the estate out of his own pocket?

Accepted Answer

A) He will be able to avoid the agreement because a promise to pay the debts of an estate would not come within the statute of frauds. 
B) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds,but the oral agreement Gabriel made will likely be enforceable under the main-purpose rule. 
C) He will be able to avoid the agreement because it was not in writing. 
D) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds,but the oral agreement Gabriel made will likely be enforceable under the substantial-purpose rule. 
E) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds;but regardless of whether the debtors can establish reliance,the oral agreement Gabriel made will likely be enforceable because he admitted he had agreed to pay. 
A) He will be able to avoid the agreement because a promise to pay the debts of an estate would not come within the statute of frauds. 
B) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds,but the oral agreement Gabriel made will likely be enforceable under the main-purpose rule. 
C) He will be able to avoid the agreement because it was not in writing. 
D) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds,but the oral agreement Gabriel made will likely be enforceable under the substantial-purpose rule. 
E) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds;but regardless of whether the debtors can establish reliance,the oral agreement Gabriel made will likely be enforceable because he admitted he had agreed to pay.

Question 4

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

Accepted Answer

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

Question 5

Which of the following rules addresses the admissibility of oral evidence as it relates to written contracts.

Accepted Answer

A) Oral evidence 
B) Deficient evidence 
C) Oral admissibility 
D) Frauds evidence 
E) Parol evidence 
A) Oral evidence 
B) Deficient evidence 
C) Oral admissibility 
D) Frauds evidence 
E) Parol evidence

Question 6

Which of the following is true regarding writings created at the same time as a written agreement?

Accepted Answer

A) The parol evidence rule applies to writings created at the same time as the written agreement only if a sale of goods is involved,and in that case the writings are analyzed in the same way as prior or contemporaneous oral evidence. 
B) Although the parol evidence rule applies to writings created at the same time as the written agreement,these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are more readily admitted as part of the written agreement than is oral evidence. 
C) The parol evidence rule applies to writings created at the same time as the written agreement,and these writings are analyzed in the same way as prior or contemporaneous oral evidence. 
D) The parol evidence rule does not apply to writings created at the same time as the written agreement. 
E) Although the parol evidence rule applies to writings created at the same time as the written agreement,these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are less likely to be admitted as part of the written agreement than is oral evidence. 
A) The parol evidence rule applies to writings created at the same time as the written agreement only if a sale of goods is involved,and in that case the writings are analyzed in the same way as prior or contemporaneous oral evidence. 
B) Although the parol evidence rule applies to writings created at the same time as the written agreement,these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are more readily admitted as part of the written agreement than is oral evidence. 
C) The parol evidence rule applies to writings created at the same time as the written agreement,and these writings are analyzed in the same way as prior or contemporaneous oral evidence. 
D) The parol evidence rule does not apply to writings created at the same time as the written agreement. 
E) Although the parol evidence rule applies to writings created at the same time as the written agreement,these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are less likely to be admitted as part of the written agreement than is oral evidence.

Question 7

Written contracts intended to be the complete and final representation of the parties' agreement are what kind of contracts?

Accepted Answer

A) Complete contracts 
B) Acknowledged contracts 
C) Bilateral contracts 
D) Adhesion contracts 
E) Integrated contracts 
A) Complete contracts 
B) Acknowledged contracts 
C) Bilateral contracts 
D) Adhesion contracts 
E) Integrated contracts

Question 8

A promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable in some states.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a type of contract that does not fall within the scope of the statute of frauds?

Accepted Answer

A) Contracts related to any lease of land-related equipment 
B) Contracts whose terms prevent possible performance within one year 
C) Contracts related to an interest in land 
D) Contracts for one party to pay the debt of another if the initial party fails to pay 
E) Promises made in consideration of marriage 
A) Contracts related to any lease of land-related equipment 
B) Contracts whose terms prevent possible performance within one year 
C) Contracts related to an interest in land 
D) Contracts for one party to pay the debt of another if the initial party fails to pay 
E) Promises made in consideration of marriage

Question 10

In most states,which of the following are exceptions to when the statute of frauds would apply?

Accepted Answer

A) Admissions,partial performance,and promissory estoppel 
B) Promissory estoppel and partial performance,but not admissions 
C) Partial performance and admissions,but not promissory estoppel 
D) Admissions but not partial performance or promissory estoppel 
E) Promissory estoppel but not admissions or partial performance 
A) Admissions,partial performance,and promissory estoppel 
B) Promissory estoppel and partial performance,but not admissions 
C) Partial performance and admissions,but not promissory estoppel 
D) Admissions but not partial performance or promissory estoppel 
E) Promissory estoppel but not admissions or partial performance

Question 11

Debts incurred in an initial contract are known as which of the following?

Accepted Answer

A) Secondary promises 
B) Primary obligations 
C) Suretyship promises 
D) Collateral promises 
E) Secondary obligations 
A) Secondary promises 
B) Primary obligations 
C) Suretyship promises 
D) Collateral promises 
E) Secondary obligations

Question 12

When the entire contract is conditioned on something else occurring first,the first event is called a[n] ________.

Accepted Answer

A) Advance. 
B) Condition precedent. 
C) Foregoing condition. 
D) Foreseeable event. 
E) Preceding condition. 
A) Advance. 
B) Condition precedent. 
C) Foregoing condition. 
D) Foreseeable event. 
E) Preceding condition.

Question 13

Does the agreement to purchase the bicycles for $100 each fall outside the statute of frauds and,thus,would likely be enforceable against Milton?

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

Question 14

In which circumstance may a court find parol evidence admissible to further the court's understanding of an agreement?

Accepted Answer

A) When a court determines that a written agreement does not represent a complete and final version of the agreement. 
B) When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable. 
C) When a court determines that there is significant disagreement regarding the complete and final version of the agreement. 
D) When a court determines that there is disagreement between the parties' over performance of the agreement once performance has actually started. 
E) When a court determines that either party failed to do sufficient research to determine if signing the agreement was advisable. 
A) When a court determines that a written agreement does not represent a complete and final version of the agreement. 
B) When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable. 
C) When a court determines that there is significant disagreement regarding the complete and final version of the agreement. 
D) When a court determines that there is disagreement between the parties' over performance of the agreement once performance has actually started. 
E) When a court determines that either party failed to do sufficient research to determine if signing the agreement was advisable.

Question 15

Describe the three main purposes of the statute of frauds,as discussed in the text.

Accepted Answer

First,the statute attempts to ease contr

Question 16

[Lake House] Damian has two houses,a house on the lake and a house in town.Frida wants to buy the house on the lake.Damian and Frida orally agree that Frida will buy the house on the lake for $300,000.Damian hurriedly writes out a contract providing that he would sell "his house" to Frida for $300,000.Damian signs the top of the document.Frida does not sign at all.No merger clause is included in the contract.Damian backs out of the contract,and Frida sues him.He tells the judge that the statute of frauds is left unsatisfied because he did not sign the document at the end and also because Frida did not sign at all.He also tells the judge that,at any rate,the agreement referred to the house in town,not the house on the lake;and that under the parol evidence rule,he had the right to identify the correct house.
-Regarding Damian's assertion that the statute of frauds is left unsatisfied because he did not sign the document at the end,which of the following is true?

Accepted Answer

A) Damian is incorrect because the statute of frauds did not require his signature so long as the parties were clearly identified. 
B) Damian is correct. 
C) Damian is incorrect because while the statute of frauds would require his signature on the document,there is no requirement that the signature be at the end. 
D) Damian is incorrect because the statute of frauds did not require his signature so long as the selling price was referenced. 
E) Damian is incorrect because the statute of frauds did not require his signature so long as the type of subject matter involved was referenced. 
A) Damian is incorrect because the statute of frauds did not require his signature so long as the parties were clearly identified. 
B) Damian is correct. 
C) Damian is incorrect because while the statute of frauds would require his signature on the document,there is no requirement that the signature be at the end. 
D) Damian is incorrect because the statute of frauds did not require his signature so long as the selling price was referenced. 
E) Damian is incorrect because the statute of frauds did not require his signature so long as the type of subject matter involved was referenced.

Question 17

As discussed in the text,a main purpose of the statute of frauds is to prevent unreliable ________ evidence from interfering with a contractual relationship.

Accepted Answer

A) Immaterial 
B) Hearsay 
C) Irrelevant 
D) Oral 
E) Inconclusive 
A) Immaterial 
B) Hearsay 
C) Irrelevant 
D) Oral 
E) Inconclusive

Question 18

Thea has a large farm and significant other assets.She agreed to loan her nephew Marcus $100,000 with payments of principle and interest to be made yearly.A few years later she and Marcus got into a dispute because Thea did not like his new girlfriend,Eileen.Soon thereafter Marcus got notice that Thea was suing him for not paying interest on the note.Marcus defended on the basis that two years after the initial loan agreement was entered into,he and Thea entered into an oral agreement that he would perform services on her farm in lieu of paying interest on the note.If the court follows the reasoning of the court in the Case Opener involving Monroe Bradstad and Jeanne Garland,which of the following is the most likely result of the dispute between Thea and Marcus involving whether he owes past interest amounts?

Accepted Answer

A) Assuming the court credits Marcus' account of events,Marcus will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement. 
B) Marcus will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing. 
C) Marcus will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement. 
D) Assuming the court credits Marcus' account of events,Marcus will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement. 
E) Assuming the court credits Marcus' account of events,based on the parol evidence rule,Marcus will be required to pay only 1/2 of the interest amounts. 
A) Assuming the court credits Marcus' account of events,Marcus will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement. 
B) Marcus will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing. 
C) Marcus will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement. 
D) Assuming the court credits Marcus' account of events,Marcus will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement. 
E) Assuming the court credits Marcus' account of events,based on the parol evidence rule,Marcus will be required to pay only 1/2 of the interest amounts.

Question 19

Which states do not adhere to the admission exception to the statute of frauds?

Accepted Answer

A) Louisiana and New York 
B) North Carolina and Montana 
C) Kentucky and Florida 
D) Hawaii and Alaska 
E) Louisiana and California 
A) Louisiana and New York 
B) North Carolina and Montana 
C) Kentucky and Florida 
D) Hawaii and Alaska 
E) Louisiana and California

Question 20

[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.
-Is Terrill correct that they do not have a sufficient written contract?

Accepted Answer

A) No,because the writing need only state the quantity to be sold. 
B) Yes,because the only term was the quantity,which is not enough to establish a contract. 
C) Yes,because the agreement was less than $500,which need not be in writing. 
D) Yes,because the email is insufficient to constitute writing as it did not include price. 
E) No,because he is confusing the sale of goods with the sale of personal property. 
A) No,because the writing need only state the quantity to be sold. 
B) Yes,because the only term was the quantity,which is not enough to establish a contract. 
C) Yes,because the agreement was less than $500,which need not be in writing. 
D) Yes,because the email is insufficient to constitute writing as it did not include price. 
E) No,because he is confusing the sale of goods with the sale of personal property.

Exam 18: Contracts in Writing

Regarding Alexandra's statement to the judge that the agreement to sell the car was covered by the statute of frauds,which of the following is true?

What is the most likely result of Gabriel's attempt to avoid his agreement to pay creditors of the estate out of his own pocket?

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

Which of the following rules addresses the admissibility of oral evidence as it relates to written contracts.

Which of the following is true regarding writings created at the same time as a written agreement?

Written contracts intended to be the complete and final representation of the parties' agreement are what kind of contracts?

A promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable in some states.

Which of the following is a type of contract that does not fall within the scope of the statute of frauds?

In most states,which of the following are exceptions to when the statute of frauds would apply?

Debts incurred in an initial contract are known as which of the following?

When the entire contract is conditioned on something else occurring first,the first event is called a[n] ________.

Does the agreement to purchase the bicycles for $100 each fall outside the statute of frauds and,thus,would likely be enforceable against Milton?

In which circumstance may a court find parol evidence admissible to further the court's understanding of an agreement?

Describe the three main purposes of the statute of frauds,as discussed in the text.

As discussed in the text,a main purpose of the statute of frauds is to prevent unreliable ________ evidence from interfering with a contractual relationship.

Which states do not adhere to the admission exception to the statute of frauds?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal 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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