Question 1

Most states' statutes of frauds do not require land leases to be in writing unless they:

Accepted Answer

A) involve more than two parties. 
B) are ancestral property. 
C) are going to be sold permanently. 
D) are for one year or more. 
A) involve more than two parties. 
B) are ancestral property. 
C) are going to be sold permanently. 
D) are for one year or more.

Question 2

Davis owes a $5 million debt to C Bank.He also owes $2 million to Samuel.However right now,Davis is having trouble paying either loan.C Bank is willing to finance Davis's debt,but only if Samuel co-signs.Samuel,who fears that he will get nothing on his $2 million loan if Davis does not get some help from the bank,is willing to do so.Thus,C Bank,Samuel,and Davis complete a three-party agreement in which the bank agrees to finance the $5 million debt,Davis agrees to pay it back at a certain rate over a certain term,and Samuel agrees to pay the debt "in the event that Davis first defaults." Is this agreement covered by the statute of frauds? Why or why not?

Accepted Answer

No,the statute of frauds does not apply

Question 3

Whose signatures are needed in order to satisfy the statute of frauds?

Accepted Answer

A) Only the signatures of witnesses to the agreement are required. 
B) Only the signature of the party attempting to enforce the contract is required. 
C) Only the signature of the party against whom enforcement is being sought. 
D) Only the signature of the third party to the contract,the beneficiary,is required. 
A) Only the signatures of witnesses to the agreement are required. 
B) Only the signature of the party attempting to enforce the contract is required. 
C) Only the signature of the party against whom enforcement is being sought. 
D) Only the signature of the third party to the contract,the beneficiary,is required.

Question 4

Mr.Blue orally agrees to sell his home to Mr.Green.The court will refuse to recognize and enforce this agreement.

Accepted Answer

A) True 
 B)False

Question 5

Ned and Bill complete an oral contract for the sale of land from Ned to Bill for $100,000.Bill pays Ned the $100,000,and then begins to build his house on the land.At this point,Ned says that the deal is off and refuses to convey the deed to Bill.In doing so,Ned relies on the statute of frauds.Is this agreement enforceable by Bill?

Accepted Answer

Yes.Although the statute of frauds provi

Question 6

Why is the contract for the insurance of a building not covered within the real estate provision of the statute of frauds?

Accepted Answer

A) It does not involve the transfer of interests in land. 
B) It involves a physical asset. 
C) It involves two or more parties. 
D) It need not be in writing. 
A) It does not involve the transfer of interests in land. 
B) It involves a physical asset. 
C) It involves two or more parties. 
D) It need not be in writing.

Question 7

A mortgage does not have to be writing.

Accepted Answer

A) True 
 B)False

Question 8

The Uniform Commercial Code is different from the common law statute of frauds rule,as it:

Accepted Answer

A) is easier to satisfy. 
B) requires all contracts to be in writing. 
C) applies to service contracts only. 
D) applies to real estate contracts only. 
A) is easier to satisfy. 
B) requires all contracts to be in writing. 
C) applies to service contracts only. 
D) applies to real estate contracts only.

Question 9

The statute of frauds was created in 1677 in which country?

Accepted Answer

A) United States of America 
B) Germany 
C) England 
D) Russia 
A) United States of America 
B) Germany 
C) England 
D) Russia

Question 10

All contracts must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 11

The term "parol evidence" means written or spoken statements that are not contained in the written contract.

Accepted Answer

A) True 
 B)False

Question 12

In the case in the text,Yung-Kai Lu v.Univ.of Utah,the court held that:

Accepted Answer

A) Lu's claim satisfied the statute of frauds but under Utah's parol evidence rule,he could not testify to any pre-contract verbal agreement. 
B) Lu's claim satisfied the statute of frauds and under Utah's parol evidence rule,he could testify to any pre-contract verbal agreement. 
C) Lu's claim was barred by the statute of frauds and under Utah's parol evidence rule,he could not testify to any pre-contract verbal agreement. 
D) Lu's claim was barred by the statute of frauds and under Utah's parol evidence rule,he could testify to any pre-contract verbal agreement. 
A) Lu's claim satisfied the statute of frauds but under Utah's parol evidence rule,he could not testify to any pre-contract verbal agreement. 
B) Lu's claim satisfied the statute of frauds and under Utah's parol evidence rule,he could testify to any pre-contract verbal agreement. 
C) Lu's claim was barred by the statute of frauds and under Utah's parol evidence rule,he could not testify to any pre-contract verbal agreement. 
D) Lu's claim was barred by the statute of frauds and under Utah's parol evidence rule,he could testify to any pre-contract verbal agreement.

Question 13

A memorandum for the sale of goods that does not indicate the ________ of goods to be sold will not satisfy the UCC's writing requirement.

Accepted Answer

A) quality 
B) quantity 
C) delivery 
D) cost 
A) quality 
B) quantity 
C) delivery 
D) cost

Question 14

As demonstrated in Dynegy,Inc.v.Yates,the case in the text,when a contract is determined to be collateral:

Accepted Answer

A) the principal debtor must pay the guarantor directly. 
B) the guarantor must pay,even if the principal debtor is able to do so. 
C) it will be unenforceable unless it is evidenced by a writing. 
D) proof of an oral agreement is sufficient to prove a contract existed. 
A) the principal debtor must pay the guarantor directly. 
B) the guarantor must pay,even if the principal debtor is able to do so. 
C) it will be unenforceable unless it is evidenced by a writing. 
D) proof of an oral agreement is sufficient to prove a contract existed.

Question 15

If it is not indicated in the memorandum,where should the parties sign to make the document enforceable?

Accepted Answer

A) Right corner 
B) Left corner 
C) Bottom 
D) Any place on the memorandum 
A) Right corner 
B) Left corner 
C) Bottom 
D) Any place on the memorandum

Question 16

Abel enters into an oral contract to work for Carr for an indefinite period of time at a rate of $50,000 per year.Is this agreement exempt from the statute of frauds?

Accepted Answer

A) No,because the agreement covers services with a value in excess of $500. 
B) No,because the agreement covers a time period in excess of one year. 
C) Yes,because the agreement is for an indefinite period of time. 
D) Yes,because the work can be completed within one year. 
A) No,because the agreement covers services with a value in excess of $500. 
B) No,because the agreement covers a time period in excess of one year. 
C) Yes,because the agreement is for an indefinite period of time. 
D) Yes,because the work can be completed within one year.

Question 17

Rick tells Dan that Sue will inherit a mansion if she pays him back an old debt.Since Sue is unable to pay the debt,Dan offers to pay it,provided that he gets the mansion from Rick.The agreement between Dan and Rick need not be in writing under the:

Accepted Answer

A) collateral contract rule. 
B) parol evidence rule. 
C) leading object rule. 
D) part performance rule. 
A) collateral contract rule. 
B) parol evidence rule. 
C) leading object rule. 
D) part performance rule.

Question 18

Mr.Yellow agreed to pay the debt created by Mr.Blue in his contract to Mr.Green.This agreement is called a collateral contract.

Accepted Answer

A) True 
 B)False

Question 19

The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.

Accepted Answer

A) True 
 B)False

Question 20

Under the ________,no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage.

Accepted Answer

A) parol evidence rule 
B) leading object rule 
C) collateral contract rule 
D) part performance rule 
A) parol evidence rule 
B) leading object rule 
C) collateral contract rule 
D) part performance rule

Exam 16: Writing

Most states' statutes of frauds do not require land leases to be in writing unless they:

Whose signatures are needed in order to satisfy the statute of frauds?

Mr.Blue orally agrees to sell his home to Mr.Green.The court will refuse to recognize and enforce this agreement.

Why is the contract for the insurance of a building not covered within the real estate provision of the statute of frauds?

A mortgage does not have to be writing.

The Uniform Commercial Code is different from the common law statute of frauds rule,as it:

The statute of frauds was created in 1677 in which country?

All contracts must be in writing to be enforceable.

The term "parol evidence" means written or spoken statements that are not contained in the written contract.

In the case in the text,Yung-Kai Lu v.Univ.of Utah,the court held that:

A memorandum for the sale of goods that does not indicate the ________ of goods to be sold will not satisfy the UCC's writing requirement.

As demonstrated in Dynegy,Inc.v.Yates,the case in the text,when a contract is determined to be collateral:

If it is not indicated in the memorandum,where should the parties sign to make the document enforceable?

Abel enters into an oral contract to work for Carr for an indefinite period of time at a rate of $50,000 per year.Is this agreement exempt from the statute of frauds?

Rick tells Dan that Sue will inherit a mansion if she pays him back an old debt.Since Sue is unable to pay the debt,Dan offers to pay it,provided that he gets the mansion from Rick.The agreement between Dan and Rick need not be in writing under the:

Mr.Yellow agreed to pay the debt created by Mr.Blue in his contract to Mr.Green.This agreement is called a collateral contract.

The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.

Under the ________,no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

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