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Ed 15 - Kenneth Clarkson Roger Leroy Miller - Test Bank...

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Ch16: The Writing Requirement True / False 1. An agreement subject to the writing requirement must be written on paper. a. True b. Fals e ANSWER: Fals e 2. The purpose of the Statue of Frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms. a. True b. Fals e ANSWER: True 3. In an effort to prevent fraud, the Statute of Frauds denies enforceability to certain contracts that do not comply with its requirements. a. True b. Fals e ANSWER: True 4. A contract that is oral is always enforceable against a party to the agreement who does not wish to follow through with it. a. True b. Fals e ANSWER: Fals e 5. Any contract involving consumer goods must be in writing to be enforceable. a. True b. Fals e ANSWER: Fals e 6. Under the Statute of Frauds, a contract involving an interest in land must be in writing to be enforceable. a. True b. Fals e ANSWER: True 7. An agreement that involves an option to buy real property need not be in writing for the option to be enforced. a. True Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement b. Fals e ANSWER: Fals e 8. An oral promise to sell certain real property is enforceable without more, but the actual sale must be in writing to be enforceable. a. True b. Fals e ANSWER: Fals e 9. A contract for the sale of land does not ordinarily include physical objects attached to the real property, such as buildings, fences, and trees. a. True b. Fals e ANSWER: Fals e 10. A contract must be in writing to be enforceable if it cannot by its terms be performed within one year from the day after the contract’s formation. a. True b. Fals e ANSWER: True 11. A contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible. a. True b. Fals e ANSWER: Fals e 12. A contract must be in writing to be enforceable if the contract makes performance possible within any definite period of time. a. True b. Fals e ANSWER: Fals e 13. For a particular contract to fall under the one-year rule, the parties must subjectively believe that its performance is impossible to complete within a year. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement a. True b. Fals e ANSWER: Fals e 14. The assumption of direct financial responsibility for a debt does not need to be in writing to be enforceable. a. True b. Fals e ANSWER: True 15. A promise to pay a primary obligation normally must be in writing to be enforceable. a. True b. Fals e ANSWER: Fals e 16. A promise to pay another’s debt only if that party fails to pay does not need to be in writing to be enforceable. a. True b. Fals e ANSWER: Fals e 17. An oral sales contract for goods priced at less than $500 is unenforceable. a. True b. Fals e ANSWER: Fals e 18. An agreement made before marriage that defines each partner’s interest in the other partner’s property is a collateral promise. a. True b. Fals e ANSWER: Fals e 19. A unilateral promise to pay a sum of money or to give property in consideration of a promise to marry must be in writing. a. True b. Fals e Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement ANSWER: True 20. To satisfy the UCC’s Statute of Frauds, a writing evidencing a sales contract need only state the price term. a. True b. Fals e ANSWER: Fals e 21. An oral contract that should be in writing to be enforceable under the Statute of Frauds may be enforceable if it has been partially performed. a. True b. Fals e ANSWER: True 22. A party who seeks the performance of an oral contract must prove that the contract existed. a. True b. Fals e ANSWER: True 23. Reliance on a certain type of oral contract can be enough to remove it from the Statute of Frauds. a. True b. Fals e ANSWER: True 24. An oral contract that would otherwise be unenforceable under the Statute of Frauds will not be enforced under the doctrine of promissory estoppel. a. True b. Fals e ANSWER: Fals e 25. An oral contract for customized goods may be enforced in certain circumstances. a. True b. Fals e ANSWER: True 26. Any confirmation, invoice, sales slip, check, or e-mail may constitute a writing that satisfies the Statute of Frauds. a. True b. Fals Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement e ANSWER: True 27. A written contract must consist of a single document to constitute an enforceable contract. a. True b. Fals e ANSWER: Fals e 28. A memorandum evidencing an oral contract must contain every term of the deal to be enforceable. a. True b. Fals e ANSWER: Fals e 29. A written contract or a written memorandum signed by the party who seeks to enforce it will satisfy the Statute of Frauds. a. True b. Fals e ANSWER: Fals e 30. To be enforceable, a memorandum evidencing an oral contract must identify the consideration. a. True b. Fals e ANSWER: True 31. A party’s signature must be at the end of a writing for the writing to constitute an enforceable contract. a. True b. Fals e ANSWER: Fals e 32. To clarify the terms of a written contract, a court will admit any parol evidence. a. True b. Fals e ANSWER: Fals e 33. Parol evidence can be introduced at trial to correct an obvious clerical error in a contract if the error clearly does not Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement represent the parties’ agreement. a. True b. Fals e ANSWER: True 34. In a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning. a. True b. Fals e ANSWER: True 35. Because the Convention on Contracts for the International Sale of Goods incorporates a Statute of Frauds provision, most nations require contracts to meet certain writing requirements to be enforceable. a. True b. Fals e ANSWER: Fals e Multiple Choice 36. Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by a. Duane or Evan. b. Duane, Evan, or Finance Bank. c. Finance Bank. d. none of the choices. ANSWER: d 37. Kee and Lu enter into a contract for the sale of Mountain Valley Ranch. To be enforceable, this contract must be a. substantiated by reliable, external evidence. b. signed in a sufficient manner by both parties. c. in writing or evidenced by a written memorandum. d. all of the choices. ANSWER: c 38. To cater a holiday banquet, Food Service LLC agrees to buy one hundred pumpkin pies from Great Desserts Inc. To be enforceable, the agreement must be in writing if the pies cost at least a. $100. b. $250. c. $499. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement d. $500. ANSWER: d 39. Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for a. the appointment. b. the purchase. c. the employment agreement. d. none of the choices. ANSWER: b 40. Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide airconditioning and heating maintenance for Banyan Grove’s facilities for two years. This contract is enforceable by a. Air Flo. b. Banyan Grove. c. any third party, such as a HVAC supplies provider. d. none of the choices. ANSWER: d 41. Grain Co-op LLC and Hearty Cereals Inc. discuss the terms of a contract for deliveries of corn over a two-year period. This transaction falls within the provision of the Statute of Frauds involving a. collateral promises. b. the one-year rule. c. all of the choices. d. transfers of interests in real property. ANSWER: b 42. ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by a. ActioNOW. b. Becca. c. any third party, such as ActioNOW’s clients. d. none of the choices. ANSWER: d 43. Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by a. Trey only. b. Solar only. c. any interested third party, such as a Solar supplier. d. either Solar or Trey. ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement 44. Guardian Security Inc. and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide services for Hedge’s offices for as long as needed. This contract may be enforceable by a. Guardian only. b. Hedge only. c. any interested third party, such as one of the firms’ employees. d. either Guardian or Hedge. ANSWER: d 45. Omar orally agrees with Pi Pizza to provide delivery service to its customers for nine months. This contract is enforceable by a. none of the choices. b. either Omar or Pi. c. any interested third party, such as a Pi customer. d. Pi only. ANSWER: b 46. Natalie promises to pay for medical services provided by Otto to Polly. Natalie receives no personal benefit for the promise. To be enforceable, the promise must be in writing if a. Natalie promises to pay only if Polly does not pay. b. Natalie assumes primary financial responsibility for the cost. c. Otto’s services will be provided in installments with separate payments. d. Polly also promises to pay. ANSWER: a 47. Lew tells a representative of Music Inc. that he will pay for Nora’s trumpet if she does not. Lew does not secure any personal benefit for this promise. This promise is enforceable as a contract a. any of the choices. b. only if Nora agrees to it. c. only if the value of the trumpet is more than $500. d. only if it is in writing. ANSWER: d 48. Farah agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the “main purpose” rule, the promise must be for the benefit of a. any third party, such as a Guitars Inc. customer. b. Farah. c. Guitars Inc. d. Home Bank. ANSWER: b 49. Daredevil Rides Inc. owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil’s debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement a. none of the choices. b. Daredevil, Equipment, or Food. c. Daredevil only. d. Equipment only. ANSWER: b 50. Pumps Inc. agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of a. all of the choices. b. Pumps. c. Quality. d. Reliable. ANSWER: b 51. Elena offers to invest a certain amount in Falco’s business if Falco marries Elena’s daughter Glenna. This promise is enforceable a. only if it is in writing. b. only if the amount of the investment is more than $500. c. only if Glenna agrees to marry Falco. d. under no circumstances. ANSWER: a 52. Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. the books, the shoes, and the tablet. b. the shoes and the tablet only. c. the tablet only. d. the books only. ANSWER: c 53. Dick’s Burgers enters into an oral contract with Equipment Warehouse for the purchase of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by a. Dick’s or Equipment. b. the manufacturer of the mixer. c. any third party with a material interest, such as one of Dick’s suppliers. d. none of the choices. ANSWER: a 54. Rough Canyon Adventures Inc. and Swampcraft Inc. enter into an oral contract for Swampcraft’s sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by a. Swampcraft only. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement b. Rough only. c. any interested third party, such as a Rough tour guide or client. d. none of the choices. ANSWER: d 55. Physicians Clinic orders by phone seven cases of disposable nitrile gloves from Quality Medical Supplies, Inc. After three cases are delivered and accepted, the clinic repudiates the contract. Quality Medical can enforce the contract to a. any extent because the order was placed orally. b. no extent because the order was placed orally. c. the extent of the three accepted boxes. d. the extent of the four undelivered boxes. ANSWER: c 56. Lumber LLC files a suit against Mill Company to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if a. Lumber foreseeably and justifiably relied on Mill’s promise. b. Mill denies the existence of any contract. c. neither party has begun to perform. d. the deal does not involve customized goods. ANSWER: a 57. Real Fries Inc. and Spud Farm discuss periodic deliveries of potatoes. Despite the absence of an invoice or other writing evidencing the terms of a deal, Spud begins to perform, and Real accepts the deliveries but refuses to pay. As a contract, this arrangement is most likely enforceable against a. neither party. b. Spud only. c. Real only. d. Spud and Real, at least to the extent of the performance. ANSWER: d 58. Representatives of Oil Inc. and Petro Corporation discuss the terms of a contract for shipments of refined oil. Petro emails Oil a note that summarizes the points on which they agreed. Between these parties, there is a. an oral contract only. b. a tentative contract only. c. a written contract. d. no contract. ANSWER: c 59. Gusher Irrigation Inc. and Heartland Farm enter into a contract for a sale of irrigation equipment for $50,000. To be enforceable, the contract should be in writing and identify a. the source of payment. b. the price. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement c. the terms of payment. d. the quantity. ANSWER: d 60. Hardware Store Company and Indestructible Tools Inc. sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a correct title, such as “Purchase Order” or “Sales Invoice.” b. a date, such as “October 2019” or “10/2019.” c. a quantity term, such as “50 hammers” or “100 boxes of assorted nails.” d. the parties’ contact information. ANSWER: c 61. According to most states’ laws, to be enforceable as a contract under the Statute of Frauds, a writing must a. contain both contracting parties’ signatures. b. describe the parties. c. name the parties. d. recite the parties’ contractual motivations. ANSWER: c 62. Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationery and signs it. This agreement is most likely enforceable against a. no one. b. Spring and Thirsty. c. Rocco. d. Thirsty. ANSWER: c 63. Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood’s blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain a. all terms. b. the essential terms. c. the preliminary terms. d. the quality terms. ANSWER: b 64. To be enforceable, a contract that is required to be in writing must include a. no particular signatures. b. the signatures of all of the parties to the agreement. c. the signature of the party against whom enforcement is sought. d. the signature of the party who is seeking enforcement. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement ANSWER: c 65. Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. a correct title, such as “Land Transfer” or “Real Estate Agreement.” b. a declaration of the contract’s purpose. c. a statement of the source of financing. d. a description of the land. ANSWER: d 66. Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a. an orally agreed-on condition. b. terms discussed before the contract but not contained in it. c. terms discussed at the time of the contract that contradict the writing. d. nothing. ANSWER: a 67. Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will a. exclude the evidence. b. reform the written terms to match the evidence. c. strike a balance between the evidence and the written terms. d. dismiss the case. ANSWER: a 68. Blake and Carla sign a contract for the sale of Blake’s Bakery to Carla. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement. In a dispute between the parties, with respect to the terms, a court is most likely to admit evidence that is a. ambiguous. b. consistent. c. contradictory. d. clear. ANSWER: b 69. Mako and Nico agree to buy and develop certain real estate. The parties intend their written contract to be a final statement of the terms, which are complex, lengthy, and subject to many conditions. This writing is a. a completely integrated contract. b. a partially divisible contract. c. a partially integrated contract. d. a completely severable contract. Copyright Cengage Learning. Powered by Cognero.

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Ch16: The Writing Requirement ANSWER: a 70. Char and Dill sign a written contract for the sale of Dill’s BBQ Food Truck to Char. The parties intend their written contract to be a final statement of the terms of their agreement. Later, Dill disputes some of the provisions in the deal with Char. If the dispute results in litigation, a court will most likely exclude evidence that a. supports the written terms. b. contradicts the written terms. c. duplicates the written terms. d. reinforces the written terms. ANSWER: b Essay 71. Waterfront Hotel Corporation in Boston offers a job to Carol, who lives in Denver. Carol orally agrees to work for Waterfront for two years. She moves her family to Boston and begins work. Three months later, she is fired for no stated cause. She files a suit against the employer for reinstatement or pay. Waterfront pleads the lack of a written contract. In whose favor is the court likely to rule, and why? ANSWER The court might conclude that under the doctrine of promissory estoppel, the employer : is estopped from claiming the lack of a written contract as a defense. This oral contract may be enforced because the employer made a promise on which the employee justifiably relied in moving, the reliance was foreseeable, and injustice can be avoided only by enforcing the promise. If the court strictly enforces the Statute of Frauds, however, the employee may be without a remedy because a contract that cannot be pe...