Question 1

Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in
A) all states.
B) no states.
C) one state.
D) some states.

Accepted Answer

The doctrine of promissory estoppel is a common law principle that is recognized in some states. It varies from state to state in terms of the elements required to establish it, but it generally applies when one party makes a promise to another party, who relies on that promise to their detriment. If the promise is not fulfilled, the relying party may be able to enforce the promise under promissory estoppel. Therefore, it is not applicable in all states, but only in some states.

Question 2

Francine buys a new business-law textbook for $125 and a used car for $6,000. She also signs a one-year lease for an apartment for $700 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
A) the apartment lease, and the textbook and car purchases.
B) the apartment lease and the car purchase only.
C) the apartment lease only.
D) the textbook and car purchases only.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing, including those for the sale of goods over $500 and leases longer than one year. The car purchase exceeds $500, and the lease is for one year, so both are covered. The textbook purchase is not covered as it is not over $500.

Question 3

Julie orally agrees to assume Carlyle's debt to FunGames, Inc. Julie gets a substantial personal benefit from the agreement-Carlyle agrees to work for Julie's landscaping service for six months. Julie's oral assumption of the debt is enforceable by
A) Julie or Carlyle only.
B) FunGames only.
C) any of the parties.
D) no one.

Accepted Answer

All parties are bound by the oral agreement since Julie's assumption of Carlyle's debt is supported by consideration (Carlyle's agreement to work for Julie's landscaping service for six months). Therefore, all parties can enforce the agreement.

Question 4

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable, the contract must be in writing for the purchase of
A) the tunes, the GPS device, and the tablet.
B) the GPS device and the tablet only.
C) the tablet only.
D) the tunes only.

Accepted Answer

The answer of On Monday, Merlin buys a tablet for...

Question 5

Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any per?sonal benefit from the agreement. This contract is enforceable by
A) any party.
B) Jiffy only.
C) Jiffy or Kyle.
D) none of the parties.

Accepted Answer

The answer of Ilsa and Jiffy Loan Company enter into...

Question 6

Marta buys a candy bar for $5 and signs a contract for delivery of fresh flowers to her mother's nursing home every week for the rest of her mother's life. She then enters into a contract to assume George's debt to FastCars Dealership. Marta receives no personal benefit from assuming George's debt. The Statute of Frauds covers
A) the candy purchase only.
B) the candy purchase and the delivery contract only.
C) the contract to assume George's debt only.
D) the contract to assume George's debt and the delivery contract only.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing to be enforceable, including contracts for the transfer of debt. Therefore, the contract to assume George's debt is covered by the Statute of Frauds, but the candy purchase and flower delivery contract are not.

Question 7

Quest Holdings, Inc., orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp. Ray pays part of the rent, takes possession, and improves the property for use by his enterprise. The contract is most likely enforceable by
A) Quest Holdings and Ray.
B) Quest Holdings but not Ray.
C) any interested third party, such as a Swamp & Bayou client.
D) no one.

Accepted Answer

An oral contract is generally enforceable, and in this case, both parties have performed their obligations (Quest Holdings by allowing Ray to take possession and Ray by paying part of the rent and improving the property). Therefore, the contract is likely enforceable between Quest Holdings and Ray. It would not be enforceable by a third party such as a Swamp & Bayou client, as they are not a party to the contract.

Question 8

Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes posses?sion of the items, this contract is enforce?able by
A) either party.
B) neither party.
C) Atlantic only.
D) PRC only.

Accepted Answer

Without a written contract, an oral contract for the sale of goods over $500 is unenforceable under the Statute of Frauds. Therefore, neither party can enforce the contract before PRC takes possession of the goods.

Question 9

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against
A) no one.
B) Lucas and Natural Soft Drinks.
C) Lucas.
D) Natural Soft Drinks.

Accepted Answer

The answer of Lucas orally agrees to sell his Mountain...

Question 10

Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by
A) either party.
B) Miranda only.
C) neither party.
D) Nicky only.

Accepted Answer

Under the doctrine of promissory estoppel, if a party makes a promise knowing that the other party will rely on it, and the other party does in fact rely on the promise to his or her detriment, then the promisor may be estopped (prevented) from reneging on the promise. In this case, Miranda has made an oral promise to Nicky to buy his fishing trawler for $20,000, and if Nicky acts in reliance on this promise (e.g. by not selling the trawler to someone else in the meantime), then he may have a claim for promissory estoppel against Miranda. Therefore, the transaction is enforceable by Nicky only.

Question 11

Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than
A) $5.
B) $15.
C) $50.
D) $500.

Accepted Answer

The contract must be in writing if the goods are valued at more than $500. This is based on the Statute of Frauds, which requires certain types of contracts, including contracts for the sale of goods, to be in writing if they exceed a certain amount.

Question 12

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con?tract is enforceable by
A) the seller or the buyer.
B) the manufacturer of the mixer.
C) any third party with an interest in the deal, such as one of Dick's customers.
D) none of the choices.

Accepted Answer

An oral contract is enforceable if its terms can be proved. In this case, Dick's Burgers n' Shakes and Restaurant Equipment Warehouse (REW) entered into an oral contract for the sale of a single-spindle milkshake mixer for $300. Both the seller (REW) and the buyer (Dick's Burgers n' Shakes) can enforce this contract if its terms can be proved. The manufacturer of the mixer and any third party with an interest in the deal, such as one of Dick's customers, are not parties to the contract and therefore cannot enforce it.

Question 13

Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel,
A) the Charger must be considered a customized good.
B) Carolina must act in reliance on Benito's promise to her detriment.
C) Benito's promise must have been overheard by a third party.
D) there must be written evidence of the deal.

Accepted Answer

For the promise to be enforceable under the doctrine of promissory estoppel, Carolina must have acted in reliance on Benito's promise to her detriment. This means that Carolina must have taken some type of action, such as selling her car or making modifications to the Charger in anticipation of the sale, and suffered some type of harm or loss as a result of Benito's subsequent refusal to purchase the car. The other choices are incorrect - the fact that the Charger is a customized good has no bearing on the enforceability of the promise, the presence of a third party or written evidence is not necessary for promissory estoppel to apply.

Question 14

Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if
A) Daisy foreseeably and justifiably relied on Elton's promise to her detriment.
B) Elton denies the existence of any contract.
C) neither party has begun to perform.
D) the deal does not involve customized goods.

Accepted Answer

The doctrine of promissory estoppel allows for the enforcement of an oral contract that would otherwise be unenforceable under the Statute of Frauds if the plaintiff can show that they foreseeably and justifiably relied on the defendant's promise to their detriment.

Question 15

Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic 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 ten accepted cartons.
D) the extent of the twenty ordered cartons.

Accepted Answer

Since Veggie accepted ten cartons, Organic Food Packers, Inc. can enforce the contract to the extent of the accepted cartons. This is because Veggie's acceptance of the ten cartons created a legally binding agreement for those cartons, and Veggie cannot repudiate that part of the contract. However, since the order was placed orally, enforcing the contract beyond the ten accepted cartons may be difficult without any written evidence or agreement. Therefore, Organic can only enforce the contract to the extent of the accepted cartons.

Question 16

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate
A) the method of delivery.
B) the method of payment.
C) the quantity of saddles.
D) the seller.

Accepted Answer

The quantity of goods being sold is one of the key elements required to be in writing under the Statute of Frauds for the contract to be enforceable. The method of delivery, method of payment, and seller are not specifically required to be in writing although it is generally a good practice to include those terms in a written contract.

Question 17

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. 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 Glenn agrees to marry Flossy.
D) under no circumstances.

Accepted Answer

The answer of Eleanora offers Flossy the amount of an...

Question 18

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret. The contract must be in writing if the pecans cost
A) $100.
B) $150.
C) $250.
D) $500.

Accepted Answer

According to the Statute of Frauds, contracts for the sale of goods over $500 must be in writing. Therefore, the contract between Dixie May and Margaret for one hundred pounds of pecans must be in writing if the pecans cost $500 or more.

Question 19

Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds 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 party.
B) Sharon.
C) Tom's Guitars.
D) United Funds.

Accepted Answer

The "main purpose" rule states that a promise to pay the debt of another must be in writing unless the promisor's main purpose is to secure a personal benefit. In this case, Sharon is assuming the debt owed by Tom's Guitars, so the primary benefit of the promise is for her own personal benefit. Therefore, the promise to assume the debt does not need to be in writing to be enforceable.

Question 20

Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by
A) none of these parties.
B) any of these parties.
C) Wild Rides only.
D) RollercoasterRepair only.

Accepted Answer

The answer of Wild Rides Theme Park owes both RollercoasterRepair,...

Quiz 13: The Statute of Fraudswriting Requirement

Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in

Francine buys a new business-law textbook for $125 and a used car for $6,000. She also signs a one-year lease for an apartment for $700 monthly rent to start at the beginning of the next month. The Statute of Frauds covers

Julie orally agrees to assume Carlyle's debt to FunGames, Inc. Julie gets a substantial personal benefit from the agreement-Carlyle agrees to work for Julie's landscaping service for six months. Julie's oral assumption of the debt is enforceable by

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable, the contract must be in writing for the purchase of

Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any per?sonal benefit from the agreement. This contract is enforceable by

Quest Holdings, Inc., orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp. Ray pays part of the rent, takes possession, and improves the property for use by his enterprise. The contract is most likely enforceable by

Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes posses?sion of the items, this contract is enforce?able by

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con?tract is enforceable by

Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel,

Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic can enforce the contract to

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret. The contract must be in writing if the pecans cost

Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by