Question 1

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade.

Accepted Answer

A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  integrated document 
A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  integrated document B

Question 2

Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force Champion to send the additional 100?

Accepted Answer

A)  No, because there is no consideration for the extra 100 shirts. 
B)  No, because Barry does not have a writing signed by Champion Tee Shirts. 
C)  Yes, because this is a subsequent modification of the original contract. 
D)  Yes, because Champion Tee Shirts is a merchant within the meaning of Article 2 of the UCC. 
A)  No, because there is no consideration for the extra 100 shirts. 
B)  No, because Barry does not have a writing signed by Champion Tee Shirts. 
C)  Yes, because this is a subsequent modification of the original contract. 
D)  Yes, because Champion Tee Shirts is a merchant within the meaning of Article 2 of the UCC. B

Question 3

In which of the following situations does the parol evidence rule not apply?

Accepted Answer

A)  Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. 
B)  Where one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule applies in both of the above situations. 
D)  The parol evidence rule does not apply in either (a) or (b). 
A)  Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. 
B)  Where one of the parties to the contract lacks contractual capacity. 
C)  The parol evidence rule applies in both of the above situations. 
D)  The parol evidence rule does not apply in either (a) or (b). D

Question 4

Most types of contracts are valid without being written.

Accepted Answer

A) True 
 B)False

Question 5

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Accepted Answer

A)  Wyandott can hold Chris to the order. 
B)  Chris can hold Wyandott to the order. 
C)  Neither party is bound, because there is no signed writing. 
D)  Chris is bound if he makes no objection within ten days. 
A)  Wyandott can hold Chris to the order. 
B)  Chris can hold Wyandott to the order. 
C)  Neither party is bound, because there is no signed writing. 
D)  Chris is bound if he makes no objection within ten days.

Question 6

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

Accepted Answer

A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  extrinsic set of evidence 
A)  course of dealing 
B)  usage of trade 
C)  course of performance 
D)  extrinsic set of evidence

Question 7

The parol evidence rule applies to partially written agreements.

Accepted Answer

A) True 
 B)False

Question 8

Tom's bank is threatening to repossess his car. Tom's mother notifies the bank that she promises to pay the bank if Tom defaults on the loan. This promise must be in writing or have a sufficient electronic record to be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

An example of an unenforceable oral contracts is:

Accepted Answer

A)  an oral promise to guarantee the additional duties of another. 
B)  an oral agreement to substitute different land for that described in the original lease contract. 
C)  an oral agreement to extend an employee's contract for six months to a total of two years. 
D)  All of these. 
E)  Two of these but not all three these examples. 
A)  an oral promise to guarantee the additional duties of another. 
B)  an oral agreement to substitute different land for that described in the original lease contract. 
C)  an oral agreement to extend an employee's contract for six months to a total of two years. 
D)  All of these. 
E)  Two of these but not all three these examples.

Question 10

The parol evidence rule is:

Accepted Answer

A)  another term for the exclusionary rule. 
B)  a rule of construction. 
C)  a rule of interpretation. 
D)  a rule of substantive law. 
A)  another term for the exclusionary rule. 
B)  a rule of construction. 
C)  a rule of interpretation. 
D)  a rule of substantive law.

Question 11

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

Accepted Answer

A) True 
 B)False

Question 12

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. In this case:

Accepted Answer

A)  parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months. 
B)  parol evidence cannot be used to explain the term, because it is in an integrated document. 
C)  the term "year" is ambiguous, and the parties can bring in parol evidence to clarify their intent. 
D)  parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution. 
A)  parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months. 
B)  parol evidence cannot be used to explain the term, because it is in an integrated document. 
C)  the term "year" is ambiguous, and the parties can bring in parol evidence to clarify their intent. 
D)  parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

Question 13

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it, either directly or by reference.

Accepted Answer

A) True 
 B)False

Question 14

The statute of frauds generally requires that both parties sign the writing.

Accepted Answer

A) True 
 B)False

Question 15

The suretyship provision rule within the statute of frauds applies to cases involving one party promising to perform the duty of another party to yet a third party.

Accepted Answer

A) True 
 B)False

Question 16

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Accepted Answer

A) True 
 B)False

Question 17

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Accepted Answer

A)  Yes, because the job offer is a collateral promise. 
B)  Yes, because the job offer is covered by the parol evidence rule. 
C)  Yes, because the job offer is for longer than one year from March 1. 
D)  No, because the job offer is for one year from June 15. 
A)  Yes, because the job offer is a collateral promise. 
B)  Yes, because the job offer is covered by the parol evidence rule. 
C)  Yes, because the job offer is for longer than one year from March 1. 
D)  No, because the job offer is for one year from June 15.

Question 18

In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing?

Accepted Answer

A)  The goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture. 
B)  A party admits in an answer to a complaint in a lawsuit that the contract was made. 
C)  Delivery and acceptance of the goods has been made. 
D)  All of the above. 
A)  The goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture. 
B)  A party admits in an answer to a complaint in a lawsuit that the contract was made. 
C)  Delivery and acceptance of the goods has been made. 
D)  All of the above.

Question 19

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

Accepted Answer

A)  Jones's agreement with Smith to sell his condominium for $100,000. 
B)  Stewart's promise to work for Austin for a two-year period. 
C)  Dad's promise to the credit union that he will make payments on his son's truck. 
D)  Mindy's agreement with Susan to buy her bike for $400. 
A)  Jones's agreement with Smith to sell his condominium for $100,000. 
B)  Stewart's promise to work for Austin for a two-year period. 
C)  Dad's promise to the credit union that he will make payments on his son's truck. 
D)  Mindy's agreement with Susan to buy her bike for $400.

Question 20

An employment contract that is in any way capable of being performed within one year from the date of the agreement falls within the requirements of the statute of frauds.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade.

In which of the following situations does the parol evidence rule not apply?

Most types of contracts are valid without being written.

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

The parol evidence rule applies to partially written agreements.

Tom's bank is threatening to repossess his car. Tom's mother notifies the bank that she promises to pay the bank if Tom defaults on the loan. This promise must be in writing or have a sufficient electronic record to be enforceable.

An example of an unenforceable oral contracts is:

The parol evidence rule is:

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. In this case:

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it, either directly or by reference.

The statute of frauds generally requires that both parties sign the writing.

The suretyship provision rule within the statute of frauds applies to cases involving one party promising to perform the duty of another party to yet a third party.

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing?

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

An employment contract that is in any way capable of being performed within one year from the date of the agreement falls within the requirements of the statute of frauds.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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