Chapter 15

Question 1

Which of the following promises does not have to be evidenced by writing in order to be enforceable?
a. Jones’ 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 if his son
does not pay
d. Mindy’s agreement with Susan to buy her bike for $400

Answer 1

Mindy’s agreement with Susan to buy her bike for $400

Question 2

Chris receives a printed form in the mail from Wyandott Heating 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?
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 10 days.

Answer 2

Chris can hold Wyandott to the order.

Question 3

In states that have adopted it, the UETA:

a. encourages and gives full effect to electronic contracts.
b. gives full effect to emergency transactions.
c. supplements and covers all of the UCC.
d. covers wills, codicils, and testamentary trusts.

Answer 3

encourages and gives full effect to electronic contracts.

Question 4

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?
a. A collateral promise made to the creditor
b. A promise, the leading object of which is to obtain an economic benefit for oneself
c. A collateral promise where there are three parties and two contracts involved
d. A promise by an executor to pay the debts of the decedent from the executor’s own funds

Answer 4

A promise, the leading object of which is to obtain an economic benefit for oneself

Question 5

E-Sign provides consumers must:
a. evidence their consent on paper to conducting transactions with electronic records after
being informed of the types of hardware and software required.
b. receive a “clear and conspicuous” statement informing them of their right to withdraw
consent to receiving electronic records.
c. receive a “clear and conspicuous” statement informing them of their right to have the
record provided only in electronic form.
d. All of the above.

Answer 5

receive a “clear and conspicuous” statement informing them of their right to withdraw
consent to receiving electronic records.

Question 6

What is another name for the main purpose doctrine?
a. The collateral promise rule
b. The possibility test
c. The leading object rule
d. The suretyship provision

Answer 6

The leading object rule

Question 7

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict
the written agreement?
a. Prior oral or written agreements
b. Contemporaneous oral or written agreements
c. Subsequent oral or written agreements modifying the original agreement
d. Both (a) and (b).

Answer 7

Subsequent oral or written agreements modifying the original agreement

Question 8

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.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document

Answer 8

course of dealing

Question 9

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have
accepted successive tenders of performance by the other party without objection.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document

Answer 9

course of performance

Question 10

Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or
vocation or trade.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document

Answer 10

usage of trade

Question 11

In determining the meaning of a contract under the UCC, which of the following will have first priority?
a. Course of performance
b. Course of dealing
c. Usage of trade
d. Express terms

Answer 11

Express terms

Question 12

Which of the following would NOT require a writing under the statute of frauds?
a. Where the buyer of a five-acre lot pays the $40,000 purchase price, thus fully performing
his obligation
b. Where a renter agrees to rent a building for a 5-year period
c. Where a contractor enters into an agreement for an easement across adjoining land to run
cables
d. Where a landscaper agrees to landscape the lot surrounding an office building

Answer 12

Where a landscaper agrees to landscape the lot surrounding an office building

Question 13

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?
a. An unborn puppy whose mother is an AKC champion
b. Trees that will be cut from a ten-acre tree farm
c. Food served in the banquet room of a Florida resort
d. Medical care received in a hospital

Answer 13

Medical care received in a hospital

Question 14

E-Sign:
a. preempts the Uniform Electronic Transactions Act.
b. requires persons to agree to use or accept electronic records or electronic signatures,
provided they are informed of the types of hardware and software required and they have
the required equipment.
c. defines the included transactions narrowly.
d. ensures that the electronic form of Internet and e-mail agreements will not make them
unenforceable because of the statute of frauds.

Answer 14

ensures that the electronic form of Internet and e-mail agreements will not make them
unenforceable because of the statute of frauds.

Question 15

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of
frauds writing requirement?
a. The names of the parties to the contract
b. The signature of the party being sued
c. The signature of the party suing
d. The subject matter and essential terms of the unperformed promises

Answer 15

The signature of the party suing

Question 16

Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of
frauds?
a. A typewritten name
b. Handwritten initials
c. A printed name
d. All of the above meet the signature requirement.

Answer 16

All of the above meet the signature requirement.

Question 17

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be
enforceable?
a. Contracts to make wills.
b. Contracts for the sale of securities.
c. Contracts for the sale of personal property for more than $5,000.
d. Contracts creating certain types of security interests.
e. All of the above.

Answer 17

All of the above.

Question 18

On March 1, Sara, a student, received a telephone call from ComputerChip, 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 Sara ask for a letter
confirming the telephone conversation if she accepts the offer immediately?
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

Answer 18

Yes, because the job offer is for longer than one year from March 1

Question 19

Which of the following would be admissible under the parol evidence rule? Assume the written contract was
made on June 1, 2007, and that it is an integrated document.
a. A letter dated July 9, 2007, reciting agreement to new delivery terms
b. A chart showing the dates for delivery written on August 16, 2006
c. A copy of two letters while the parties were in the negotiation stage of their contract which
showed agreement to a term not included in the June 1, 2007 contract
d. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise,
which is dated December 1, 2003

Answer 19

A letter dated July 9, 2007, reciting agreement to new delivery terms

Question 20

Barry’s Sport Shop calls Champs 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. Champs sends 200. Can Barry force Champs to send the additional 100?
a. No, because there is no consideration for the extra 100 shirts
b. No, because Barry does not have a writing signed by Champs Tee Shirts
c. Yes, because this is a subsequent modification of the original contract
d. Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

Answer 20

No, because Barry does not have a writing signed by Champs Tee Shirts

Question 21

Which of the following is untrue with regard to the interpretation of contracts?
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 even where a different intent is
manifested by the parties.
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.

Answer 21

Technical terms will always be given technical meaning even where a different intent is
manifested by the parties.

Question 22

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the
administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art’s Appliance Store. Paul
says to Art, “If there isn’t enough money in the estate, I’ll personally see that the bill is paid.” Which of the
following is correct?
a. The oral statement is enforceable because Paul is the administrator.
b. An oral statement such as this is not enforceable because it is outside the statute of frauds.
c. An oral statement such as this is not enforceable because this promise is within the statute
of frauds.
d. The oral statement is enforceable because it is a collateral promise.

Answer 22

An oral statement such as this is not enforceable because this promise is within the statute
of frauds.

Question 23

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for
many transactions affecting interstate or foreign commerce is the:
a. UETA.
b. UCC, Article 2E.
c. Electronic Signatures in Global and National Commerce Act.
d. Interstate and Foreign Commerce Electronic Transactions Act.

Answer 23

Electronic Signatures in Global and National Commerce Act.

Question 24

Which of the following promises in consideration of marriage would be outside the statute of frauds?
a. In consideration of Joan’s promising to marry him, a man 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.

Answer 24

John and Joan mutually promise to marry each other in a formal ceremony on June 23.

Question 25

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to
satisfy the writing requirement?
a. The price of the goods
b. The quantity of the goods
c. The signatures and names of the buyer and the seller
d. The time and place for delivery

Answer 25

The quantity of the goods

Question 26

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts
the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation
of America on the top of the form. The form states that an order has been received for “300” widgets and that
it will be filled promptly.
a. The order acceptance form fails to meet the writing requirement in the UCC, because it
isn’t signed.
b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets.
c. If Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later.
d. The contract is enforceable for 400 widgets, because it has been partially performed.

Answer 26

Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

Question 27

The parol evidence rule does not apply to:
a. a typographical error that obviously does not represent the agreement of the parties.
b. evidence showing one of the parties to the contract lacks contractual capacity.
c. The parol evidence rule does not apply to either (a) or (b).
d. The parol evidence rule applies to both (a) and (b).

Answer 27

The parol evidence rule does not apply to either (a) or (b).

Question 28

A 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.
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 an integrated document.
c. The term “year” in the contract 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.

Answer 28

The term “year” in the contract is ambiguous, and the parties can bring in parol evidence
to clarify their intent.

Question 29

Requirements for a memorandum that satisfies the statute of frauds include that the writing:
a. must be a single document.
b. must not contain an attachment.
c. needs to be notarized.
d. None of the above.

Answer 29

None of the above.