Question 1

A bilateral contract is "taken out of the statute of frauds" when:

Accepted Answer

A) it is completed within a year from the day of its existence. 
B) it is fully performed by at least one party. 
C) it is put in writing. 
D) it has strict rules of performance. 
A) it is completed within a year from the day of its existence. 
B) it is fully performed by at least one party. 
C) it is put in writing. 
D) it has strict rules of performance.

Question 2

Smith and Benson make an oral contract for the sale of land at a price of $500,000.After paying Smith $400,000 of the purchase price,Benson takes possession of the land.One month later,Smith wants to boot Benson off the land.His argument is that the parties' oral agreement is unenforceable under the statute of frauds.Which of the following is most correct?

Accepted Answer

A) Smith is correct,because the contract is for an amount greater than $500. 
B) Smith is correct,because this is an oral contract for the sale of real estate. 
C) Smith is incorrect,because the contract is for an indefinite period of time. 
D) Smith is incorrect,because Benson paid part of the purchase price and took possession. 
A) Smith is correct,because the contract is for an amount greater than $500. 
B) Smith is correct,because this is an oral contract for the sale of real estate. 
C) Smith is incorrect,because the contract is for an indefinite period of time. 
D) Smith is incorrect,because Benson paid part of the purchase price and took possession.

Question 3

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor,the contract:

Accepted Answer

A) is the opposite of an original contract. 
B) is considered void. 
C) is outside the statute of frauds. 
D) needs to be in writing. 
A) is the opposite of an original contract. 
B) is considered void. 
C) is outside the statute of frauds. 
D) needs to be in writing.

Question 4

Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd 480 widgets (goods)at a price of $480.Later,the parties want to modify the contract so that the price would become $520.This modification:

Accepted Answer

A) must be in writing. 
B) must be oral because the first contract was oral. 
C) can be oral but need not be. 
D) is unenforceable because the first contract is unenforceable. 
A) must be in writing. 
B) must be oral because the first contract was oral. 
C) can be oral but need not be. 
D) is unenforceable because the first contract is unenforceable.

Question 5

The statute of frauds covers all contracts that are for an indefinite period of time.

Accepted Answer

A) True 
 B)False

Question 6

Arnold promised to sell his car to Adams in lieu of full payment of his debt.However,in the written contract,Adams had forgotten to specify which car he wants to sell.Is there any remedy?

Accepted Answer

Yes.He can recourse

Question 7

The underlying purpose of the statute of frauds is to:

Accepted Answer

A) prevent fraud in general. 
B) corroborate the existence of an oral contract. 
C) punish those who commit fraud. 
D) make fraud illegal. 
A) prevent fraud in general. 
B) corroborate the existence of an oral contract. 
C) punish those who commit fraud. 
D) make fraud illegal.

Question 8

A contract that fails to comply with the statute of frauds is generally:

Accepted Answer

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

Question 9

Big Bank is a major creditor of Bonwill Department Store.After a major loss in profits due to poor holiday sales,Big Bank decides to help keep Bonwill from bankruptcy.Big Bank orally promises Mary Tudor,a supplier of Bonwill's,that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill.Most likely,Big Bank's oral agreement:

Accepted Answer

A) is unenforceable under the statute of frauds. 
B) is unenforceable because it is a collateral contract. 
C) is enforceable under the "main purpose" or "leading object" exception to the statute. 
D) is enforceable because a collateral contract is not covered under the statute of frauds. 
A) is unenforceable under the statute of frauds. 
B) is unenforceable because it is a collateral contract. 
C) is enforceable under the "main purpose" or "leading object" exception to the statute. 
D) is enforceable because a collateral contract is not covered under the statute of frauds.

Question 10

An administrator makes an oral promise to pay the debts of the deceased.The debts amount to $60,000.This oral promise is enforceable.

Accepted Answer

A) True 
 B)False

Question 11

April and Brian entered into a partially integrated written contract.During negotiations,April made an oral statement to Brian regarding the terms of the contract.This statement was not contained in the written contract.Under the parol evidence rule,evidence of April's oral statement would be admissible if it were used to:

Accepted Answer

A) create a completely new agreement. 
B) introduce an ambiguous term in the written contract. 
C) prove an additional term consistent with the written agreement. 
D) change the terms of the written contract. 
A) create a completely new agreement. 
B) introduce an ambiguous term in the written contract. 
C) prove an additional term consistent with the written agreement. 
D) change the terms of the written contract.

Question 12

A(n)________ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.

Accepted Answer

A) implied 
B) third-party beneficiary 
C) collateral 
D) quasi 
A) implied 
B) third-party beneficiary 
C) collateral 
D) quasi

Question 13

Which of the following is a uniform state law designed to "remove barriers to electronic commerce by validating and effectuating electronic records and signatures"?

Accepted Answer

A) Uniform Electronic Transactions Act (UET
A)  
B) Electronic Signatures in Global and National Commerce Act (E-Sign) 
C) Electronic Communications Privacy Act (ECP
A)  
D) Graham-Leach-Bliley Act (GLB
A)  
A) Uniform Electronic Transactions Act (UET
A)  
B) Electronic Signatures in Global and National Commerce Act (E-Sign) 
C) Electronic Communications Privacy Act (ECP
A)  
D) Graham-Leach-Bliley Act (GLB
A)

Question 14

The Electronic Signatures in Global and National Commerce Act (E-Sign):

Accepted Answer

A) invalidates agreements between parties conducting transactions by electronic means. 
B) states that electronic transactions on subjects covered by the statute of frauds require an additional writing. 
C) overrides state laws that are inconsistent with the UETA. 
D) creates barriers to e-commerce by invalidating electronic records and digital signatures. 
A) invalidates agreements between parties conducting transactions by electronic means. 
B) states that electronic transactions on subjects covered by the statute of frauds require an additional writing. 
C) overrides state laws that are inconsistent with the UETA. 
D) creates barriers to e-commerce by invalidating electronic records and digital signatures.

Question 15

On May 1,Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450.Dix paid Wilk $100 as a deposit.The following day,Wilk received another offer to purchase the land for $650,the fair market value.Wilk immediately notified Dix that he would not sell the land for $450.If Dix sues Wilk for specific performance,Dix will:

Accepted Answer

A) prevail,because the amount of the contract was less than $500. 
B) prevail,because there was part performance. 
C) lose,because the fair market value of the land is over $500. 
D) lose,because the agreement was not in writing and signed by Wilk. 
A) prevail,because the amount of the contract was less than $500. 
B) prevail,because there was part performance. 
C) lose,because the fair market value of the land is over $500. 
D) lose,because the agreement was not in writing and signed by Wilk.

Question 16

Sean made an oral promise to sell a piece of land to Manny.Manny took a huge loan from the bank by mortgaging everything he had.After taking almost half the money from Manny,Sean decides that he wants to sell the land to Jason who is offering a higher price for the property.Which of the following doctrines can Manny take recourse to in order to implement his oral contract with Sean?

Accepted Answer

A) Integration 
B) Subsequent agreement 
C) Confirmatory memorandum 
D) Part performance 
A) Integration 
B) Subsequent agreement 
C) Confirmatory memorandum 
D) Part performance

Question 17

Bruce told Adam that he was selling his house in Syracuse,New York.Adam sent Bruce an e-mail containing an offer of $300,000 for the house.Bruce responded via e-mail that he wanted $315,000 for the house.After further e-mails,the parties finally agreed on a sale with a price of $310,000.A series of e-mails contained the terms of the sale,and all included a salutation containing their typewritten names.However,Bruce later decided to sell the house to Marty for $325,000.Adam sued Bruce,claiming that Bruce breached their contract for the sale of the house.Most likely,Adam will:

Accepted Answer

A) lose,because the contract does not meet the statute of frauds. 
B) lose under the parol evidence rule. 
C) win,because the essential terms of the contract were set forth in the signed e-mails. 
D) win,because of the partial performance exception to the statute of frauds. 
A) lose,because the contract does not meet the statute of frauds. 
B) lose under the parol evidence rule. 
C) win,because the essential terms of the contract were set forth in the signed e-mails. 
D) win,because of the partial performance exception to the statute of frauds.

Question 18

In entering into contracts for services,customers might be influenced by statements made by sales representatives.Businesses offering services often use standardized form contracts.Under the parol evidence rule,pre-contract statements made in these circumstances are effectively unenforceable.How can a business effectively and ethically use standardized form contracts and the parol evidence rule?

Accepted Answer

This can be done by including a merger o

Question 19

Which of the following is admissible with respect to a partially integrated contract?

Accepted Answer

A) Evidence that seeks to make the contract completely divisible 
B) Evidence that resolves ambiguities in the contract 
C) Evidence that the contract is unconditional on the happening of some event 
D) Evidence that contradicts the contract's provisions 
A) Evidence that seeks to make the contract completely divisible 
B) Evidence that resolves ambiguities in the contract 
C) Evidence that the contract is unconditional on the happening of some event 
D) Evidence that contradicts the contract's provisions

Question 20

Subsequent agreements are treated in what way under the parol evidence rule?

Accepted Answer

A) Subsequent agreements are admissible under the parol evidence rule 
B) Subsequent agreements are not admissible unless they were filed with a governmental agency 
C) Subsequent agreements are not admissible since they attempt to modify an integrated contract 
D) Subsequent agreements are not admissible unless that involve two international parties 
A) Subsequent agreements are admissible under the parol evidence rule 
B) Subsequent agreements are not admissible unless they were filed with a governmental agency 
C) Subsequent agreements are not admissible since they attempt to modify an integrated contract 
D) Subsequent agreements are not admissible unless that involve two international parties

Exam 16: Writing

A bilateral contract is "taken out of the statute of frauds" when:

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor,the contract:

Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd 480 widgets (goods)at a price of $480.Later,the parties want to modify the contract so that the price would become $520.This modification:

The statute of frauds covers all contracts that are for an indefinite period of time.

Arnold promised to sell his car to Adams in lieu of full payment of his debt.However,in the written contract,Adams had forgotten to specify which car he wants to sell.Is there any remedy?

The underlying purpose of the statute of frauds is to:

A contract that fails to comply with the statute of frauds is generally:

An administrator makes an oral promise to pay the debts of the deceased.The debts amount to $60,000.This oral promise is enforceable.

A(n)________ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.

Which of the following is a uniform state law designed to "remove barriers to electronic commerce by validating and effectuating electronic records and signatures"?

The Electronic Signatures in Global and National Commerce Act (E-Sign):

Which of the following is admissible with respect to a partially integrated contract?

Subsequent agreements are treated in what way under the parol evidence rule?

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

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The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

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

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