Quizzes-Law1-Fall2013
Chp. 15 - Statute of Frauds
1. Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writing if the amount of the rent payment is
a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.
2. Eustace and Durango Oil Company enter into an oral contract under which Eustace agrees to work on a Durango oil rig for not less than six months. This contract is enforceable by
a. Eustace.
b. Durango.
c. any interested third party, such as a member of Eustace’s family.
d. none of the choices.
3. Isaac and Holiday Fruit Company enter into an oral contract under which Isaac agrees to provide delivery service for holiday Fruit for nine months. This contract is enforceable by
a. Isaac.
b. Holiday Fruit.
c. any interested third party, such as a Holiday Fruit customer.
d. none of the choices.
4. Dotty tells a representative of Education Loan Company over the phone that she will pay Felipe’s student loan if he does not. Dotty does not get any personal benefit for the promise. This promise is enforceable as a contract by
a. Dotty.
b. Education Loan Company.
c. any interested third party, such as Felipe or a member of his family.
d. none of the choices.
5. Grady obtains a business loan from Farmers County Bank. To keep Grady in business, and thereby obtain the benefits of a deal between them, Dakota promises the bank’s loan officer that she will repay the loan if Grady does not. To be enforceable, Dakota’s promise
a. need not be in writing.
b. must be in writing because it benefits Grady.
c. must be in writing because the bank is not a party to the other deal.
d. must be in writing because it benefits Dakota.
6. Lena buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,500 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
7. Rand offers Quade the amount of a down payment on a house if Quade marries Rand’s daughter Pepper. This promise is enforceable
a. only if it is in writing.
b. only if the price of the house includes the land.
c. only if Pepper agrees to marry Quade.
d. under no circumstances.
8. Valley Commercial Space, Inc., orally contracts for a lease of its facilities to Willis for the use of his start-up driftboat company. Willis pays part of the price, takes possession, and improves the property for his boatbuilding enterprise. The contract is most likely enforceable by
a. Valley and Willis.
b. Willis but not Valley.
c. any interested third party, such as a driftboat customer.
d. no one.
9. Sierra Lumber Company and Recycle & Resale, Inc., (R&R) enter into an oral contract for Sierra’s sale to R&R of six used forklifts for $2,900 each. Before R&R takes possession of the goods, this contract is enforceable by
a. Sierra.
b. R&R.
c. any interested third party, such as an R&R customer for the goods.
d. none of the choices.
10. Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene 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.
11. Gia orally promises Heck that she will buy his fishing trawler. For this promise to be enforceable under the doctrine of promissory estoppel
a. the trawler must be considered a customized good.
b. Heck must act in reliance on Gia’s promise to his detriment.
c. Gia’s promise must be in writing.
d. the parties must stop promising until the deal is transacted.
12. E-Business, Inc. files a suit against Federated Financial 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.
13. Trey and Unice orally agree on the sale of Trey’s Health Club to Unice and note the terms on a sheet of the club’s stationery, which Trey signs. This agreement is most likely enforceable against
a. neither Trey nor Unice.
b. Trey and Unice.
c. Trey.
d. Unice.
14. Nutrition Services, LLC, and Oneida’s Catering & Café Supply Company sign a written contract that does not involve a sale of goods. To be enforceable, the writing must include
a. a correct title, such as “Service Contract.”
b. all essential and non-essential terms.
c. a statement of the consideration.
d. a description of the parties’ businesses.
15. Vern’s Roofing Company and Weatherall Tiles, Inc., sign a written contract 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 “November 11, 2011” or “11/11/11.”
c. a quantity term, such as “50 pallets” or “100 cartloads.”
d. the parties’ cell phone numbers or e-mail addresses.
16. Vidal files a suit against Spectator Sports World, Inc., to enforce a contract. The only written evidence of the contract is a memo on Spectator’s letterhead signed by a company officer. The contract can be enforced if the memo includes
a. a correct title, such as “Vidal-Spectator Contract.”
b. the name and title of the person who signed the memo.
c. all essential terms.
d. a reference to the source of the funds for payment.
17. Ramon contracts in writing to sell his Little Shop of Bagels to Suni. When Suni discovers that the kitchen equipment has been removed, she files a suit against Ramon. The court decides that the written contract includes everything that the parties intended. An agreement about the kitchen equipment may be admissible if it is
a. a previous agreement.
b. not otherwise contained in the parties’ contract.
c. a subsequent modification of the parties’ contract.
d. under no circumstances.
18. Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states “12 percent.” The parol evidence rule governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
Fact Pattern 1 (Questions 19– 20 apply)
Odell and Pete sign a contract for the sale of Odell’s Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price.
19. Refer to Fact Pattern 1. Pete later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of
a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.
20. Refer to Fact Pattern 15-B1. The writing that Odell and Pete signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
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