BUSAD 120 - Business Law » Summer 2022 » Chapter 16 Study Guide Quiz
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Question #1
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.
none of the choices.
B.
Claudia.
C.
Brass & Woodwind Musical Instruments, Inc.
D.
Abner.
Question #2
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.
Carolina must act in reliance on Benito’s promise to her detriment.
B.
there must be written evidence of the deal.
C.
Benito’s promise must have been overheard by a third party.
D.
the Charger must be considered a customized good.
Question #3
Colette and Dealership Auto Sales Company enter into an oral contract under which Dealership Auto agrees to provide Colette with lifetime employment. This contract may be enforceable by
A.
any interested third party, such as a Dealership Auto customer.
B.
either Colette or Dealership Auto.
C.
Colette only.
D.
Dealership Auto only.
Question #4
Dinner Theater files a suit against Entertainers Agency, Inc., to enforce a contract. The only written evidence of the contract is a memo on Entertainers’s letterhead signed by Fiorello, a company officer. The contract can be enforced if the memo includes
A.
Fiorello’s title.
B.
a correct title, such as “Dinner Theater–Entertainers Artist Contract.”
C.
a reference to the source of the funds to be paid.
D.
all essential terms.
Question #5
Fact Pattern 16-B1 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.
clear.
C.
consistent.
D.
contradictory.
Question #6
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 statement of the consideration.
B.
all essential and nonessential terms.
C.
a correct title, such as “Shipment Contract.”
D.
a description of the parties’ businesses.
Question #7
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 quantity term, such as “50 hammers” or “100 boxes of assorted nails.”
C.
the parties’ contact information.
D.
a date, such as “October 2014” or “10/2014.”
Question #8
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 purchase only.
B.
the employment contract only.
C.
the laptop and iPod purchases only.
D.
the employment contract, and the laptop and iPod purchases.
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.
Natural Soft Drinks.
B.
Lucas and Natural Soft Drinks.
C.
no one.
D.
Lucas.
Question #10
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.
any interested third party, such as a Swamp & Bayou client.
C.
no one.
D.
Quest Holdings but not Ray.
Question #11
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 writing
A.
only if the amount of the rent to be paid is more than $500.
B.
only if the amount of the rent to be paid is more than $5,000.
C.
only if the amount of the rent to be paid is less than $500.
D.
if the amount of the rent to be paid is any amount.
Question #12
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 possession of the rafts, this contract is enforceable by
A.
Xtra only.
B.
none of the choices.
C.
Whitewater only.
D.
any interested third party, such as a Whitewater tour guide.
Question #13
A collateral promise is one made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform.
A.
True
B.
False
Question #14
A prenuptial agreement must be in writing to be enforceable under the Statute of Frauds.
A.
False
B.
True
Question #15
An agreement that includes an option to purchase real property must be in writing for the option to be enforced.
A.
False
B.
True
Question #16
Any collateral promise falls outside the Statute of Frauds and does not need to be in writing to be enforceable.
A.
True
B.
False
Question #17
Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.
A.
True
B.
False
Question #18
Oral evidence of the modification of a contract after its making can be introduced at a trial.
A.
True
B.
False
Question #19
The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.
A.
True
B.
False
Question #20
The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.
A.
False
B.
True
Question #21
To be enforceable as a contract, a writing must have been signed by the party who seeks to enforce it.
A.
False
B.
True
Question #22
To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include all essential and non-essential terms.
A.
True
B.
False
Question #23
Under the Statute of Frauds, all contracts must be in writ¬ing to be enforceable.
A.
False
B.
True
Question #24
Unless a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will not be enforceable.
A.
False
B.
True
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