Question 1

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable.

Accepted Answer

A) True 
 B)False

Question 2

In determining the meaning of a contract, which of the following will have first priority?

Accepted Answer

A)   Course of performance.
B)   Course of dealing.
C)   Usage of trade.
D)   Express terms.

Question 3

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Accepted Answer

A) True 
 B)False

Question 4

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold:

Accepted Answer

A)   the oral contract is unenforceable because it cannot be performed within one year.
B)   Article 2 of the UCC controls this loan.
C)   the oral contract is enforceable only through the doctrine of promissory estoppel.
D)   the oral contract is enforceable because Paul fully performed his obligation under the contract.

Question 5

The executor-administrator provision applies to promises of an executor of a decedent's estate to the decedent's creditors.

Accepted Answer

A) True 
 B)False

Question 6

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more.

Accepted Answer

A)   $50
B)   $100
C)   $500
D)   $1,000

Question 7

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.

Accepted Answer

A) True 
 B)False

Question 8

On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.

Accepted Answer

A) True 
 B)False

Question 9

What is another name for the main purpose doctrine?

Accepted Answer

A)   The collateral promise rule.
B)   The possibility test.
C)   The leading object rule.
D)   The suretyship provision.

Question 10

A contract to pay for lawn care services costing $1,500 would have to be in writing or in proper electronic form to be enforceable.

Accepted Answer

A) True 
 B)False

Question 11

The statute of frauds has to do with fraud in the inducement of a contract.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding noncompliance with the statute of frauds?

Accepted Answer

A)   The basic legal effect under the statute of frauds and the UCC differs.
B)   The statute of frauds applies to executed and executory contracts.
C)   A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party.
D)   The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

Question 13

Which of the following is untrue with regard to the interpretation of contracts?

Accepted Answer

A)   Express terms prevail over course of performance, and course of performance prevails over course of dealing.
B)   Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning.
C)   Handwritten or typed terms are given greater weight than preprinted terms.
D)   All writings that are part of the same transaction are interpreted together.

Question 14

Which of the following is a collateral promise?

Accepted Answer

A)   A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."
B)   Andrew promises Donald that if Donald cannot pay his bills, Andrew will.
C)   A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it."
D)   All of these are collateral promises.

Question 15

Which of the following promises in consideration of marriage would be outside the statute of frauds?

Accepted Answer

A)   In consideration of Joan's promising to marry him, Dwight promises to pay her an allowance and to give her all of his property upon his death.
B)   John and Mary mutually agree that their marriage shall not affect the existing property rights of the other.
C)   John and Joan mutually promise to marry each other in a formal ceremony on June 23.
D)   Joan promises to release a money judgment against Steven in consideration of his marrying her.

Question 16

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Accepted Answer

A) True 
 B)False

Question 17

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would NOT require a writing under the statute of frauds?

Accepted Answer

A)   The buyer agrees to pay $10,000 for a piece of real estate.
B)   A renter agrees to rent a building for a 5-year period.
C)   An agreement creates an easement to run cables across adjoining land.
D)   A landscaper agrees to landscape the lot surrounding an office building.

Question 19

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

Accepted Answer

A) True 
 B)False

Question 20

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

Which of the following promises in consideration of marriage would be outside the statute of frauds?

Correct AnswerverifiedShow Answer

Which of the following would NOT require a writing under the statute of frauds?

Correct AnswerverifiedShow Answer

In determining the meaning of a contract, which of the following will have first priority?

Correct AnswerverifiedShow Answer

The executor-administrator provision applies to promises of an executor of a decedent's estate to the decedent's creditors.

Correct AnswerverifiedShow Answer

What is another name for the main purpose doctrine?

Correct AnswerverifiedShow Answer

Which of the following is untrue with regard to the interpretation of contracts?

Correct AnswerverifiedShow Answer

Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold:

Correct AnswerverifiedShow Answer

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable.

Correct AnswerverifiedShow Answer

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Correct AnswerverifiedShow Answer

A contract to pay for lawn care services costing $1,500 would have to be in writing or in proper electronic form to be enforceable.

Correct AnswerverifiedShow Answer

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

Correct AnswerverifiedShow Answer

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Correct AnswerverifiedShow Answer

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Correct AnswerverifiedShow Answer

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.

Correct AnswerverifiedShow Answer

On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.

Correct AnswerverifiedShow Answer

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more.

Correct AnswerverifiedShow Answer

Which of the following is true regarding noncompliance with the statute of frauds?

Correct AnswerverifiedShow Answer

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

Correct AnswerverifiedShow Answer

The statute of frauds has to do with fraud in the inducement of a contract.

Correct AnswerverifiedShow Answer

Which of the following is a collateral promise?

Correct AnswerverifiedShow Answer

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