Question 1

Colette and Dealership Auto Sales Company enter into an oral contract under which Dealership Auto agrees to pro?vide Colette with lifetime employment. This con?tract may be enforceable by
A) Colette only.
B) Dealership Auto only.
C) any interested third party, such as a Dealership Auto customer.
D) either Colette or Dealership Auto.

Accepted Answer

The answer of Colette and Dealership Auto Sales Company enter...

Question 2

Fact Pattern 16-B1 (Questions B18-B19 apply)
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
-Refer to Fact Pattern 16-B1. Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are
A) ambiguous.
B) consistent.
C) contradictory.
D) clear.

Accepted Answer

If the written contract is intended to be a final statement of most, but not all, of the terms of the agreement, evidence of additional terms will only be admitted if they are consistent with the written contract. Ambiguous and contradictory terms will not be admitted, and clear terms are already included in the written contract.

Question 3

Best Silo Storage applies for a business loan from County Credit Union. To help Best Silo get the loan so that it will be able to stay in business and fulfill a deal it has made with her, Dakota promises the credit union's loan officer that she will repay the loan if Best Silo does not. To be enforceable, Dakota's promise
A) need not be in writing.
B) must be in writing because it benefits Best Silo.
C) must be in writing because the credit union is not a party to the other deal.
D) must be in writing because it benefits Dakota.

Accepted Answer

Dakota's promise does not need to be in writing because it is a personal guarantee, which is an oral agreement to pay the debt of another party if that party cannot pay it themselves. Personal guarantees do not need to be in writing to be enforceable.

Question 4

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written con?tract 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 2014" or "10/2014."
C) a quantity term, such as "50 hammers" or "100 boxes of assorted nails."
D) the parties' contact information.

Accepted Answer

The contract must include a quantity term to specify what goods are being sold. While the other options may be helpful in identifying the contract and the parties involved, they are not necessary elements for enforceability.

Question 5

Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, the writing must include
A) a correct title, such as "Shipment Contract."
B) all essential and nonessential terms.
C) a statement of the consideration.
D) a description of the parties' businesses.

Accepted Answer

The answer of Grain Farms, LLC, and Harvest-to-Market Truck &...

Question 6

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 a promise to be enforceable under promissory estoppel, the promisee must have acted in reliance on the promise to their detriment. The other options are not relevant to this doctrine.

Question 7

Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each. Before Whitewater takes posses?sion of the rafts, this contract is enforceable by
A) Xtra only.
B) Whitewater only.
C) any interested third party, such as a Whitewater tour guide.
D) none of the choices.

Accepted Answer

The oral contract between Whitewater Canyon Adventures, Inc., and Xtra Overstock Company is unenforceable by either party because it violates the Statute of Frauds, which requires contracts for the sale of goods worth more than $500 to be in writing. Therefore, the contract cannot be enforced by any interested third party either.

Question 8

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. Such a contract is normally
A) voidable by a party who does not wish to follow through with it.
B) void.
C) valid.
D) voidable but only by consent of both parties.

Accepted Answer

The answer of Sonya and Taylor enter into an oral...

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

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 11

Fact Pattern 16-B1 (Questions B18-B19 apply)
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
-Refer to Fact Pattern 16-B1. The writing that Alain and Brie signed is
A) a completely integrated contract.
B) a conditionally integrated contract.
C) a partially integrated contract.
D) a supplemental integrated contract.

Accepted Answer

The contract is partially integrated because it only includes some, but not all, of the terms of the agreement. The parties intend to negotiate the price after Alain purchases the building, which is not included in the contract.

Question 12

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 can be enforceable, and in this case, Quest Holdings and Ray both entered into a valid agreement. Ray paid part of the rent, took possession of the property, and made improvements, indicating his intent to follow through with the lease. Therefore, both parties can enforce the contract. However, it is unlikely that any third party would have the right to enforce the contract as they are not a party to the agreement.

Question 13

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

Promissory estoppel is a doctrine that is recognized in some, but not all, states in the United States. It is based on the idea that a party who has relied on another party's promise to their detriment should be able to enforce that promise, even if there was no formal contract. Therefore, the correct choice is D, some states.

Question 14

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them. This contract may be enforce?able by
A) Guardian Security only.
B) Hedge Fund only.
C) any interested third party, such as a Hedge Fund shareholder.
D) either Guardian Security or Hedge Fund.

Accepted Answer

An oral contract is generally enforceable under the law, and either party (Guardian Security or Hedge Fund) would have the legal right to enforce it. However, third parties such as shareholders would generally not have standing to enforce the contract unless they were intended beneficiaries or had some other legal interest in the contract.

Question 15

Larue buys an iPod for $150 and a new laptop for $1,200, and signs a one-year employment contract for a $4,800 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
A) the employment contract, and the laptop and iPod purchases.
B) the employment contract and the laptop purchase only.
C) the employment contract only.
D) the laptop and iPod purchases only.

Accepted Answer

The answer of Larue buys an iPod for $150 and...

Question 16

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. Abner's oral promise is enforceable as a contract by
A) Brass & Woodwind Musical Instruments, Inc.
B) Claudia.
C) Abner.
D) none of the choices.

Accepted Answer

Abner's promise lacks consideration as he did not secure any personal benefit. Therefore, it is not enforceable as a contract by any of the parties involved.

Question 17

The owners of Ngai Rice Valley Farms, Inc., and Ozuru Markets, Ltd., are citizens of countries that had ratified the Convention on Contracts for the International Sale of Goods. They enter into a contract for a sale of rice. To be enforceable, this contract
A) need not be in writing.
B) may be oral or written, but has certain requirements as to form.
C) must be in writing.
D) must comply with the UCC's Statute of Frauds provisions.

Accepted Answer

The answer of The owners of Ngai Rice Valley Farms,...

Question 18

Dinner Theater files a suit against Entertainers Agency, Inc., to enforce a con?tract. The only written evidence of the contract is a memo on Entertainers's let?terhead signed by Fiorello, a company officer. The con?tract can be en?forced if the memo includes
A) a correct title, such as "Dinner Theater-Entertainers Artist Contract."
B) Fiorello's title.
C) all essential terms.
D) a reference to the source of the funds to be paid.

Accepted Answer

All essential terms must be included in a written contract in order for it to be enforceable. The absence of any essential term will render the contract unenforceable.

Question 19

Sea Harvest Fish Company and Temp Refrigerated Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writ?ing
A) only if the amount of the rent to be paid is less than $500.
B) only if the amount of the rent to be paid is more than $500.
C) only if the amount of the rent to be paid is more than $5,000.
D) if the amount of the rent to be paid is any amount.

Accepted Answer

According to the Statute of Frauds, leases for a term longer than one year must be in writing to be enforceable, regardless of the amount of rent to be paid. Therefore, the lease between Sea Harvest Fish Company and Temp Refrigerated Storage Company must be in writing to be enforceable, regardless of the amount of rent to be paid.

Question 20

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians 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.

Accepted Answer

Since three boxes have already been delivered and accepted by Physicians Clinic, this implies that the contract had been partially performed. Therefore, Quality Medical can enforce the contract to the extent of the three accepted boxes.

Quiz 16: The Writing Requirement and Electronic Records

Colette and Dealership Auto Sales Company enter into an oral contract under which Dealership Auto agrees to pro?vide Colette with lifetime employment. This con?tract may be enforceable by

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written con?tract for a sale of goods. To be enforceable, this written contract must include

Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, the writing must include

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,

Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each. Before Whitewater takes posses?sion of the rafts, this contract is enforceable by

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. Such a contract is normally

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

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

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

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

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them. This contract may be enforce?able by

Larue buys an iPod for $150 and a new laptop for $1,200, and signs a one-year employment contract for a $4,800 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. Abner's oral promise is enforceable as a contract by

The owners of Ngai Rice Valley Farms, Inc., and Ozuru Markets, Ltd., are citizens of countries that had ratified the Convention on Contracts for the International Sale of Goods. They enter into a contract for a sale of rice. To be enforceable, this contract

Dinner Theater files a suit against Entertainers Agency, Inc., to enforce a con?tract. The only written evidence of the contract is a memo on Entertainers's let?terhead signed by Fiorello, a company officer. The con?tract can be en?forced if the memo includes

Sea Harvest Fish Company and Temp Refrigerated Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writ?ing

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to