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Alice Ace Was the Owner of Ace Construction, Inc

Question 32

Multiple Choice

Alice Ace was the owner of Ace Construction, Inc., (ACI) . Her income was, of course, tied to the productivity of her company. When the firm's computer system needed replacing, she went to Computer Store and orally agreed to pay the $25,000 cost of the new system if ACI did not. Indeed ACI did not pay, but when Computer Store tapped Alice, she raised the statute of frauds as a defense: her agreement to pay if ACI did not was not in writing. Now what?


A) The statute of frauds is a good defense for Alice.
B) Alice is not liable to Computer Store because ACI gave her no consideration for her promise.
C) Alice is not liable because she was a conditional guarantor.
D) Probably Alice will have to pay based on the "main purpose" exception to the statute of frauds.
E) Alice won't have to pay because she is insulated from personal liability by the corporation, ACI.

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