Question 1

Oral contracts for the sale of goods of $500 or more will be enforced in situations involving admissions in court.

Accepted Answer

A) True 
 B)False

Question 2

Sagan is borrowing money from Big Bank.His friend Leda,who works for Graille Systems,signs the loan agreement promising to pay the debt if Sagan does not.In this scenario,________ is the obligee,and ________ obligor.

Accepted Answer

A) Sagan,Big Bank 
B) Leda,Big Bank 
C) Graille Systems,Sagan 
D) Big Bank,Sagan

Question 3

Kay,who is quite elderly,uses a star (*)as her signature.In a written contract,Kay's name is written,but on the signature line for Kay's name only the * that Kay made appears.Discuss whether or not the * binds Kay to the contract.

Accepted Answer

The answer of Kay,who is quite elderly,uses a star (*)as...

Question 4

Bernadette contracts in writing to sell Emily a flatbed trailer so that Emily's son can use the trailer as the base of a homecoming parade float on October 17.Bernadette knows all about the parade,but the written contract only requires Bernadette to deliver the trailer "in October" and Bernadette uses the trailer for her projects until October 20 when she tenders delivery to Emily.Emily refuses the trailer and refuses to pay the contract price since her son no longer needs it.Discuss in detail what evidence is admissible in a suit by Bernadette against Emily for breach of contract.

Accepted Answer

The answer of Bernadette contracts in writing to sell Emily...

Question 5

In the Opening Case Round 1,Sole Survivor claimed it could vacate Eastland Mall because it had been constructively evicted.

Accepted Answer

A) True 
 B)False

Question 6

The Fair and Accurate Credit Transactions Act:

Accepted Answer

A) establishes the same type of legal parity between electronic records and paper records. 
B) is a federal act designed to deal with problems associated with cyber-commerce. 
C) prohibits merchants from using credit card receipts that show anything other than the last five credit card numbers. 
D) is a federal amendment to the Uniform Electronic Transactions Act.

Question 7

Sean gives an oral promise to Oscar to buy Oscar's old house,but only offers to keep the promise enforceable for 30 days.Oscar,relying on Sean's promise,puts on a new roof and paints it.Twenty days later,Sean changes his mind and says he's no longer interested.Oscar can enforce Sean's promise.

Accepted Answer

A) True 
 B)False

Question 8

McDougal Construction and Espinosa entered a contract to build the latter a two-story house.However,after the company began its construction,Espinosa decided that she wanted a terrace garden,making the house a three-story.McDougal indicated the additional costs to Espinosa and completed the job including the terrace garden - neither of which was in writing or included in the original contract.Espinosa paid McDougal the original amount,but did not pay the extra amount for the third story.Discuss if the court will admit an oral testimony of the McDougal's to the original contract.

Accepted Answer

The answer of McDougal Construction and Espinosa entered a contract...

Question 9

If the terms of a contract make it unlikely that the contract can be completed within one year,the contract must be in writing to be enforceable under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 10

On September 1,Isabel contracts with Ned to sing at Ned's restaurant starting on October 1 and ending on October 15 of the following year.Discuss if this contract must be written and signed to be legally enforceable.

Accepted Answer

The answer of On September 1,Isabel contracts with Ned to...

Question 11

On September 1^st,Wild Willy's Club orally gives an order to T-Shirts R Us Inc.for T-shirts worth $600.The T-shirts have the date and location of Wild Willy's annual Christmas party on December 15^th printed on them.In late October,Wild Willy's calls T-Shirts to cancel the order.T-Shirts has already processed the order and the T-shirts are ready to be shipped.Discuss in detail whether or not this oral order is enforceable once the T-shirts have been made.

Accepted Answer

The answer of On September 1^st,Wild Willy's Club orally gives...

Question 12

Star Software Systems and Henry orally agree for Henry to write special accounting software.This software usually takes three years to complete,but can be done sooner.Does Henry have an enforceable legal agreement with Star?

Accepted Answer

A) Yes,the agreement is enforceable because Henry could possibly complete writing the software within a year. 
B) No,the agreement is unenforceable because it is not written and signed. 
C) Yes,the agreement is enforceable,but only to the extent of work Henry completes within the first year of the contract. 
D) No,the agreement is unenforceable since the contract involves a tangible work product.

Question 13

Late one evening,Charles and Henry are discussing the purchase and sale of $2,500 of coffee shop equipment after an entrepreneurship class.They are in the classroom when Henry writes their agreement on the classroom whiteboard and both Henry and Charles sign it on the whiteboard.Discuss if this whiteboard document is sufficient to provide a binding written agreement.

Accepted Answer

The answer of Late one evening,Charles and Henry are discussing...

Question 14

Matrix,Inc.is the general contractor of a large commercial building project.Matrix subcontracted with Acme Flooring,Inc.to have flooring installed throughout the building.When Matrix failed to make payments to Acme as agreed,Acme stopped working.Commercial Bank,the lender for the project,orally promised Acme that Commercial would pay whatever Matrix failed to pay Acme if Acme would resume work.Acme finished the flooring,but was still not paid.Which of the following is true under the Statute of Frauds?

Accepted Answer

A) According to the primary objective test,Commercial Bank is not obliged to pay Acme as the promise must be written and signed. 
B) According to the primary objective test,since Commercial Bank's promise enhanced its mortgage interest,it is liable for payment to Acme. 
C) According to the main purpose test,Commercial Bank is not obliged to pay to Acme since Matrix was not a party to its promise. 
D) According to the primary objective test,since Commercial Bank's promise did not involve the actual lending of money,it is not liable to Acme.

Question 15

The main purpose construction rule is the most fundamental guideline for the interpretation of written contracts.

Accepted Answer

A) True 
 B)False

Question 16

Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo,so after signing the contract they orally agree to modify the contract to "1,000 cases of widgets." If later the parties are in litigation concerning the amount of widgets involved in the contract,can evidence of the oral change be introduced into evidence?

Accepted Answer

A) No,since this violates the parol evidence rule. 
B) Yes,since both signed the original contract. 
C) Yes,since this is an exception to the parol evidence rule. 
D) No,since this violates the best evidence rule.

Question 17

Emilio takes his unconscious friend,Todd,to the hospital.However,the hospital will admit Todd only if someone can promise to pay Todd's medical bills.Emilio orally promises to do so,and the hospital admits Todd.Discuss in detail whether or not this statement is legally binding on Emilio and/or Todd.

Accepted Answer

The answer of Emilio takes his unconscious friend,Todd,to the hospital.However,the...

Question 18

Celebrity Shelly Dunkle,wishing to spend a few undisturbed days by herself,checks into a resort hotel.She reserves a suite under the name of Barbi and stamps the initials B.I.into the hotel register.She also orders room service and signs all hotel bills with those same initials.Which of the following statements is true?

Accepted Answer

A) Because Shelly has not signed her real initials,she cannot be held liable for the cost of the suite and all other bills she rings up under the initials B.I. 
B) Because Shelly has not signed her real initials,the hotel management cannot prove that any contractual agreement took place between them. 
C) Because the initials B.I.constitute Shelly's legal signature,she is legally obligated to pay for the cost of the suite as well as for other bills that she signs using those initials. 
D) Because Shelly did not sign her real name both parties must split payments for all bills signed with the initials B.I.

Question 19

When a personal gain to the guarantor is involved,the primary objective test requires that promise to be in writing for the contract to be enforceable.

Accepted Answer

A) True 
 B)False

Question 20

The provisions of Article 2 of the Uniform Commercial Code apply when a cyber-agreement deals with the sale of goods.

Accepted Answer

A) True 
 B)False

Exam 11: Written Contracts and Cyber-Commerce

Oral contracts for the sale of goods of $500 or more will be enforced in situations involving admissions in court.

Sagan is borrowing money from Big Bank.His friend Leda,who works for Graille Systems,signs the loan agreement promising to pay the debt if Sagan does not.In this scenario, is the obligee,and obligor.

Kay,who is quite elderly,uses a star ()as her signature.In a written contract,Kay's name is written,but on the signature line for Kay's name only the that Kay made appears.Discuss whether or not the * binds Kay to the contract.

In the Opening Case Round 1,Sole Survivor claimed it could vacate Eastland Mall because it had been constructively evicted.

The Fair and Accurate Credit Transactions Act:

Sean gives an oral promise to Oscar to buy Oscar's old house,but only offers to keep the promise enforceable for 30 days.Oscar,relying on Sean's promise,puts on a new roof and paints it.Twenty days later,Sean changes his mind and says he's no longer interested.Oscar can enforce Sean's promise.

If the terms of a contract make it unlikely that the contract can be completed within one year,the contract must be in writing to be enforceable under the Statute of Frauds.

On September 1,Isabel contracts with Ned to sing at Ned's restaurant starting on October 1 and ending on October 15 of the following year.Discuss if this contract must be written and signed to be legally enforceable.

Star Software Systems and Henry orally agree for Henry to write special accounting software.This software usually takes three years to complete,but can be done sooner.Does Henry have an enforceable legal agreement with Star?

The main purpose construction rule is the most fundamental guideline for the interpretation of written contracts.

Emilio takes his unconscious friend,Todd,to the hospital.However,the hospital will admit Todd only if someone can promise to pay Todd's medical bills.Emilio orally promises to do so,and the hospital admits Todd.Discuss in detail whether or not this statement is legally binding on Emilio and/or Todd.

When a personal gain to the guarantor is involved,the primary objective test requires that promise to be in writing for the contract to be enforceable.

The provisions of Article 2 of the Uniform Commercial Code apply when a cyber-agreement deals with the sale of goods.