Question 1

Uncle Rodrick was deeply in debt when he died. His niece Evangeline became the administrator of his estate. She orally promised Rodrick's creditors that she would personally pay his debts if they would not publicize the fact that Rodrick died in debt. When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors be legally able to collect from Evangeline?

Accepted Answer

A)  Yes, since there was a bargained-for exchange. 
B)  No, since Evangeline was not Rodrick's child. 
C)  Yes, since Evangeline made a guaranty of payment. 
D)  No, since Evangeline's promise was not in writing and signed.

Question 2

Willy and Brogan, aged 16, enter into a written contract in which Brogan will sell his horse to Willy for $250. Before the sale is finalized, Brogan seeks to be released from the contract and wants to offer in-court oral testimony concerning his age. The admission of Brogan's testimony is most likely governed by the ______________________ rule.

Accepted Answer

A)  standard construction 
B)  best evidence 
C)  equal dignities 
D)  parol evidence

Question 3

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 4

An exception to the _____________ rule states that if a written agreement depends on some event before it becomes enforceable, __________________ evidence may be offered regarding that _____________________

Accepted Answer

A)  Parol evidence, written, condition precedent. 
B)  Standard construction, written, condition precedent. 
C)  Best Evidence, oral, condition precedent. 
D)  Parol evidence, oral, condition precedent.

Question 5

The FACT Act focuses on contracts that involve the sale of computer software, multimedia products, and any other type of computer information.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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...

Question 8

The Statute of Frauds: ______________________.

Accepted Answer

A)  States that all contracts have to be in writing to be enforceable in the court of law 
B)  Decrees oral contracts to be invalid and hence not upheld or enforceable by law 
C)  States that certain types of contracts have to be in writing to be enforceable 
D)  Maintains that agreements can be oral while contracts have to be in the written format

Question 9

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 10

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 11

Which of the following is true of "click" fraud?

Accepted Answer

A)  The click-on process functions only in online contracts and not for online advertisements. 
B)  Clicks are proven ways to gauge interest in the advertiser's service or product. 
C)  A problem that arises in this area is verifying the identity of the "clicker." 
D)  The click-on process functions only for online advertisements and not for online contracts.

Question 12

Some websites use "clickbot" software, which are capable of mechanically clicking on certain advertisements at programmed intervals. All of the major search engines have found themselves in litigation because of this new cyber-confidence game.

Accepted Answer

A) True 
 B)False

Question 13

Joseph dies with no assets, but over $100,000 in personal debt. Joseph's daughter Samantha, who is very wealthy, is made executor of his estate. Joseph's creditors assert that Samantha must personally pay Joseph's debts because she is wealthy, Joseph's daughter and now the executor of his estate. Is Samantha liable?

Accepted Answer

The answer of Joseph dies with no assets, but over...

Question 14

A notary is required to read the document when providing acknowledgment of a signature.

Accepted Answer

A) True 
 B)False

Question 15

Jennifer orally contracts to purchase a television for $450. This contract is legally unenforceable.

Accepted Answer

A) True 
 B)False

Question 16

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...

Question 17

Donna entered into an oral contract with Ava to purchase a house from Ava, with $500 per month payments for the next 10 years. Donna moved into the house, remodeled it, and did extensive repairs. At the end of 10 years, Ava refused to convey title to the house to Donna and produced evidence at the resulting trial that the fair market rental value for the house averaged $800 per month over the 10-year period. Does Donna have an enforceable contract?

Accepted Answer

A)  Yes, Donna is entitled to the ownership of the house because oral contracts for the sale of land are enforceable under the Statute of Frauds. 
B)  No, Donna cannot claim ownership of the house since there was no written contract with Ava. 
C)  Yes, Donna can claim ownership of the house based on equitable estoppel. 
D)  No, Donna is not entitled to the ownership of the house since she was paying below the fair value.

Question 18

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...

Question 19

If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 20

Charles only has a photocopy of his written contract with Jenny, and not the original. The photocopy is not generally acceptable as evidence in a trial concerning the contract.

Accepted Answer

A) True 
 B)False

Exam 11: Written Contracts and Cyber-Commerce

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.

An exception to the _ rule states that if a written agreement depends on some event before it becomes enforceable, evidence may be offered regarding that ___________

The FACT Act focuses on contracts that involve the sale of computer software, multimedia products, and any other type of computer information.

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

The Statute of Frauds: ______________________.

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?

Which of the following is true of "click" fraud?

Some websites use "clickbot" software, which are capable of mechanically clicking on certain advertisements at programmed intervals. All of the major search engines have found themselves in litigation because of this new cyber-confidence game.

A notary is required to read the document when providing acknowledgment of a signature.

Jennifer orally contracts to purchase a television for $450. This contract is legally unenforceable.

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.

If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing.

Charles only has a photocopy of his written contract with Jenny, and not the original. The photocopy is not generally acceptable as evidence in a trial concerning the contract.