Question 1

The Uniform Commercial Code provides that,under certain circumstances,a merchant may be liable on a written contract,even though that merchant has NOT signed it.

Accepted Answer

A) True 
 B)False

Question 2

Ramona,age 42,orally agreed to work for Brahma,Inc.for the rest of her life for $50,000 per year.This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 3

Amanda,a recent university graduate,needed a car to get to her new job.To help Amanda secure a loan for the car,Ted,a friend,agreed to pay the loan should Amanda default.Ted's promise to pay the loan is a collateral promise.His promise must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 4

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should

Accepted Answer

A) ignore the confirmation. 
B) call the seller and object to the confirmation as soon as she gets back from her two-week vacation. 
C) object to the confirmation in writing within 10 days. 
D) return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods. 
A) ignore the confirmation. 
B) call the seller and object to the confirmation as soon as she gets back from her two-week vacation. 
C) object to the confirmation in writing within 10 days. 
D) return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods.

Question 5

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment;one-half payable in 30 days at the time of closing when the title will be transferred.The buyer,Willis,is to have possession immediately.Willis pays Leslie $25,000,takes possession of the land,and starts building a house.At the time of closing,Willis has made a substantial beginning on the house.However,Leslie refuses to transfer the title,claiming the oral contract is not enforceable.This contract is

Accepted Answer

A) enforceable, because the statute of frauds does not apply to this interest in land. 
B) unenforceable, because there is no writing signed by Leslie. 
C) enforceable, because Willis has partially performed the oral contract and made improvements on the land. 
D) unenforceable, because the parol evidence rule applies. 
A) enforceable, because the statute of frauds does not apply to this interest in land. 
B) unenforceable, because there is no writing signed by Leslie. 
C) enforceable, because Willis has partially performed the oral contract and made improvements on the land. 
D) unenforceable, because the parol evidence rule applies.

Question 6

Patrick owned an acre of land which was being divided into building lots.Nancy was interested in purchasing the corner lot.In a signed writing,Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash,payable on April 30,2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

Accepted Answer

A) True 
 B)False

Question 7

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 8

Abby hires a contractor to make repairs on her house.Before the repairs are finished,Abby dies.Her good friend,Clay is appointed executor of Abby's estate.Clay orally promised that if the estate could not pay the repair bill,he would pay it even though he does not live in the house and has no entitlement under Abby's estate.If the contractor's bill does not get paid,who can the contractor collect from,if anyone?

Accepted Answer

A) The contractor can collect from either the estate or Clay. 
B) The contractor can collect from the estate only. 
C) The contractor can collect from Clay only. 
D) The contractor must collect from the estate first, and then collect any deficiency from Clay. 
A) The contractor can collect from either the estate or Clay. 
B) The contractor can collect from the estate only. 
C) The contractor can collect from Clay only. 
D) The contractor must collect from the estate first, and then collect any deficiency from Clay.

Question 9

When a contract falls within the Statute of Frauds but is not in writing,the contract is

Accepted Answer

A) illegal. 
B) unenforceable. 
C) void. 
D) voidable. 
A) illegal. 
B) unenforceable. 
C) void. 
D) voidable.

Question 10

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement;anything said before signing or while signing is irrelevant." This is

Accepted Answer

A) an integration clause. 
B) a statute of frauds clause. 
C) parol evidence. 
D) an exculpatory clause. 
A) an integration clause. 
B) a statute of frauds clause. 
C) parol evidence. 
D) an exculpatory clause.

Question 11

Herb was interviewed for a job on Wednesday.The employer orally offered Herb a job right on the spot.Herb orally agreed to start working the following Monday,to be employed from that Monday,for one year thereafter.Three weeks after starting the job Herb was fired without cause and replaced by the employer's friend.Will Herb be successful in an action brought against the employer for breach of contract?

Accepted Answer

Probably not.The one-year rule would req

Question 12

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials,RWH,from TriColor Textiles.TriColor had just finished monogramming the blankets when Rest Well called and canceled the order.TriColor will be able to enforce the agreement even though there was no writing.

Accepted Answer

A) True 
 B)False

Question 13

List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.

Accepted Answer

Agreements requiring a writing within th

Question 14

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is

Accepted Answer

A) enforceable under the parol evidence rule. 
B) unenforceable because there is no insurable interest. 
C) enforceable because of the leading object rule. 
D) unenforceable because it is a collateral promise. 
A) enforceable under the parol evidence rule. 
B) unenforceable because there is no insurable interest. 
C) enforceable because of the leading object rule. 
D) unenforceable because it is a collateral promise.

Question 15

Which of the following is a "special circumstance" in which an oral contract may be enforceable under the UCC?

Accepted Answer

A) It is the first transaction between both parties who are not considered to be merchants. 
B) The contract is for goods in an amount of $750. 
C) The seller is specially manufacturing goods for the buyer and begins work on them before the buyer cancels the order. 
D) There are no special circumstances to the UCC; it deems that all contracts must be in writing. 
A) It is the first transaction between both parties who are not considered to be merchants. 
B) The contract is for goods in an amount of $750. 
C) The seller is specially manufacturing goods for the buyer and begins work on them before the buyer cancels the order. 
D) There are no special circumstances to the UCC; it deems that all contracts must be in writing.

Question 16

J.T.Tidwell entered into an oral contract with Robert Anthony for the purchase of 100 head of cattle at a price of $500 each.When the oral contract was made,Tidwell gave Anthony a check for $1000 as "earnest money or good faith money towards the purchase of the cattle." Anthony sold the cattle to someone else.Tidwell sued,asking the court to either compel Anthony to perform the contract or to pay damages that Tidwell suffered from the alleged breach of contract.What issues do you see and how would you resolve those issues?

Accepted Answer

Cattle are goods.The statute of frauds r

Question 17

Hannah orally agrees to sell her house to Brett for $175,000.If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay,most courts will not enforce the contract since it was not in writing.

Accepted Answer

A) True 
 B)False

Question 18

Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way)promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?

Accepted Answer

A) The promise made by Ethel's Exercise World to buy the weight machines. 
B) Moneybag's promise to pay if Ethel's Exercise World doesn't. 
C) Both Moneybag's promise and Ethel's Exercise World's promise. 
D) None of the promises in this problem need to be in writing. 
A) The promise made by Ethel's Exercise World to buy the weight machines. 
B) Moneybag's promise to pay if Ethel's Exercise World doesn't. 
C) Both Moneybag's promise and Ethel's Exercise World's promise. 
D) None of the promises in this problem need to be in writing.

Question 19

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common-law rule is that the

Accepted Answer

A) UCC requires the signature of only one party. 
B) UCC does not require all the terms of the agreement to be in writing. 
C) common-law requires only an indication that the parties reached an agreement. 
D) common-law requires only the signature of the defendant and the quantity of goods being sold. 
A) UCC requires the signature of only one party. 
B) UCC does not require all the terms of the agreement to be in writing. 
C) common-law requires only an indication that the parties reached an agreement. 
D) common-law requires only the signature of the defendant and the quantity of goods being sold.

Question 20

Explain the reason behind having a statute of frauds and give arguments for and against having such a statute.

Accepted Answer

The British Parliament passed the origin

Exam 16: Written Contracts

The Uniform Commercial Code provides that,under certain circumstances,a merchant may be liable on a written contract,even though that merchant has NOT signed it.

Ramona,age 42,orally agreed to work for Brahma,Inc.for the rest of her life for $50,000 per year.This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

Amanda,a recent university graduate,needed a car to get to her new job.To help Amanda secure a loan for the car,Ted,a friend,agreed to pay the loan should Amanda default.Ted's promise to pay the loan is a collateral promise.His promise must be in writing to be enforceable.

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds.

When a contract falls within the Statute of Frauds but is not in writing,the contract is

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement;anything said before signing or while signing is irrelevant." This is

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials,RWH,from TriColor Textiles.TriColor had just finished monogramming the blankets when Rest Well called and canceled the order.TriColor will be able to enforce the agreement even though there was no writing.

List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is

Which of the following is a "special circumstance" in which an oral contract may be enforceable under the UCC?

Hannah orally agrees to sell her house to Brett for $175,000.If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay,most courts will not enforce the contract since it was not in writing.

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common-law rule is that the

Explain the reason behind having a statute of frauds and give arguments for and against having such a statute.

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

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Cyberlaw and Privacy

Introduction to Contracts

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Consideration

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Capacity and Consent

Third Parties

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

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Starting a Business: LLCs and Other Options

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Life and Death of a Corporation

Management Duties

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Planning for the Future: Estates and Insurance

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