Question 1

E-Sign:

Accepted Answer

E-Sign, or the Electronic Signatures in Global and National Commerce Act, applies in all 50 states, providing a legal framework for the use of electronic signatures and records in commerce.

Question 2

Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office complex. The contract provides the fee will be $75 per month. At the time Gabriel signs the agreement, the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month. Abe adds as Gabriel is signing, "I just forgot to put that sliding scale in this contract. Don't worry - I'll take care of it because we understand each other." Gabriel:

Accepted Answer

The parol evidence rule prevents the introduction of evidence of prior or contemporaneous agreements that contradict a written contract. Since the contract states $75 per month and does not include the discussed winter fee reduction, Gabriel will be bound to pay $75 per month.

Question 3

Wade and Jessi have an oral contract to buy and sell Wade's car for $15,000. After Jessi has paid the money and received possession and title to the car, she is having second thoughts about buying the car.

Accepted Answer

The statute of frauds requires certain contracts to be in writing, but once a contract is fully executed (i.e., Jessi has paid and received the car), the statute of frauds cannot be used as a defense.

Question 4

Which of the following best describes acceptance with additional terms under the new UCC?

Accepted Answer

The answer of Which of the following best describes acceptance...

Question 5

Parol evidence:

Accepted Answer

Parol evidence is limited to protect the integrity of written contracts by preventing the introduction of prior or contemporaneous oral statements that contradict the written agreement. However, it can be allowed in certain situations, such as to clarify ambiguities or show fraud.

Question 6

Which of the following eliminates the effect of the mailbox rule?

Accepted Answer

An offer that specifies "Acceptance is effective upon receipt only" overrides the mailbox rule, which typically makes acceptance effective upon dispatch.

Question 7

Alpha Enterprises sent an offer to Omega Enterprises. The offer read as follows: AVAILABLE FOR IMMEDIATE SHIPMENT: 600 WIRELESS NOKIA PHONES - MODEL HCG5321 (THE PHONE FROM "CHARLIE'S ANGELS"). PRICE IS $10 EACH. 30 DAYS, SAME AS CASH. ALL WARRANTIES IN EFFECT. THIS OFFER EXPIRES ON TUESDAY, MARCH 15, 2016. Omega sent the following letter in response on March 14, 2016, via overnight delivery: HAPPY TO ACCEPT YOUR OFFER ON THE NOKIA PHONES. SHIP IMMEDIATELY. There was a major snowstorm that hit the east coast on March 14, 2016, and Omega's letter did not arrive at Alpha's headquarters until March 18, 2016. Alpha had sold the phones to another company. Omega demanded the 600 phones for $10 each claiming that it had accepted the offer in time.

Accepted Answer

Omega's acceptance was sent before the offer expired, and under the mailbox rule, acceptance is effective upon dispatch, not upon receipt.

Question 8

Which of the following contracts would not be governed by the UCC?

Accepted Answer

The UCC governs contracts for the sale of goods. Dentures are considered a service rather than a good, so a contract for dentures would not be governed by the UCC.

Question 9

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance.
Day 2: Mike receives Tina's fax.
Day 3: Mike calls Tina to revoke his offer.
Mike and Tina:

Accepted Answer

The answer of Day 1: Mike sends Tina a letter...

Question 10

The statute of frauds:

Accepted Answer

The statute of frauds originated in England with the Statute of Frauds Act of 1677, which was enacted to prevent fraud and perjury in contractual agreements by requiring certain contracts to be in writing.

Question 11

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale."
Melanie: "How about $875?"
Judith: "I don't know. It's been in my family for 130 years."
Melanie: "How about $1000?"
Judith: "I'll think about it."

Accepted Answer

There is no contract because there has not been an offer and acceptance. Judith has not agreed to sell the armoire for any amount, she is simply considering Melanie's offers. Without mutual agreement on the terms, there is no binding contract.

Question 12

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok. Will deliver tomorrow AM."
Pat and Walt:

Accepted Answer

A contract was formed when Pat's Pumps sent the fax agreeing to Walt's offer. The fax satisfied the requirements for offer and acceptance, and a meeting of the minds was reached on the essential terms, including the quantity and price of the pumps. The statute of frauds does not apply since the transaction is for goods that are over $500, but the contract was not required to be in writing. The mirror image rule does not apply since the fax from Pat's Pumps accepted Walt's offer without adding additional terms or conditions.

Question 13

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Accepted Answer

The answer of Which of the following contract subject matters...

Question 14

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75."
Jane: "$65 and it's a deal."
Al: "No way."
Jane: "Too late. We have a contract."
Which of the following statements is true?

Accepted Answer

There is no contract because there was no agreement reached on the price. Jane and Al negotiated but never agreed on the final price before Al refused the offer.

Question 15

Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation.
Day 5 - School teacher hand delivers letter withdrawing resignation.
Day 6 - Teacher receives superintendent's letter.

Accepted Answer

The resignation was accepted on Day 4 when the superintendent mailed the acceptance letter, making the withdrawal on Day 5 too late.

Question 16

The CISG:

Accepted Answer

The answer of The CISG:
...

Question 17

Which of the following contracts must be in writing to be enforceable?

Accepted Answer

Contracts involving the sale of an interest in land, including easements, must be in writing to be enforceable according to the Statute of Frauds. Contracts for the sale of goods over $500 (not applicable to the bike sale) and short-term service contracts (like the six-month consulting contract) do not require a written agreement to be enforceable.

Question 18

The Uniform Electronic Transaction Act (UETA):

Accepted Answer

The UETA has not been adopted in all 50 states, it has not been declared unconstitutional, and it is not the same as E-sign.

Question 19

Which of the following is/are governed by the UCC?

Accepted Answer

The Uniform Commercial Code (UCC) governs contracts for the sale of goods, which includes tangible, movable items like water, extracted oil, and barges.

Question 20

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99."
Andy: "Too late, we already reached agreement by phone."
Barb: "Too bad, it wasn't in writing."
Which of the following statements is true?

Accepted Answer

The agreement must be in writing to be enforceable under the Statute of Frauds.

Quiz 10: Contracts and Sales: Introduction and Formation

E-Sign:

Wade and Jessi have an oral contract to buy and sell Wade's car for $15,000. After Jessi has paid the money and received possession and title to the car, she is having second thoughts about buying the car.

Which of the following best describes acceptance with additional terms under the new UCC?

Parol evidence:

Which of the following eliminates the effect of the mailbox rule?

Which of the following contracts would not be governed by the UCC?

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina:

The statute of frauds:

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it."

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok. Will deliver tomorrow AM." Pat and Walt:

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75." Jane: "$65 and it's a deal." Al: "No way." Jane: "Too late. We have a contract." Which of the following statements is true?

Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation. Day 5 - School teacher hand delivers letter withdrawing resignation. Day 6 - Teacher receives superintendent's letter.

The CISG:

Which of the following contracts must be in writing to be enforceable?

The Uniform Electronic Transaction Act (UETA) :

Which of the following is/are governed by the UCC?

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99." Andy: "Too late, we already reached agreement by phone." Barb: "Too bad, it wasn't in writing." Which of the following statements is true?