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Gilbert SShaw Was Chairman of the Board of Directors of the the National

Question 24

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Gilbert S.Shaw was chairman of the Board of Directors of the National School of Heavy Equipment, Inc.He drew a substantial weekly salary, held 100 percent of the voting stock and 51 percent of the Class B stock of the school and employed most of his family in the operation of the school.Shaw contracted on behalf of the school with Stuart Studio to produce 25,000 catalogs for the school.The catalogs were being printed in an effort to attract new students through an advertising campaign, as the school was bordering on financial ruin.Gilbert orally assured Stuart Studio that if the National School could not pay the full total that he "would stand good" for the entire bill.The school is now unable to pay for the printing, and Gilbert argues that he is not liable because the statute of frauds requires his promise to be in writing.Which rule might consider this promise to be original and permit the oral agreement to be enforced?


A) The parole evidence rule
B) The leading object rule
C) The public policy rule
D) The Uniform Commercial Code

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