Business Law 2nd Test

T or F- A dentist who performs services without a license is entitled to sue to collect for the services.

False

Which of the following statements is true of statutes of limitations?

In the case of running accounts, such as purchases from department stores, the statue starts from the date of the last purchase

Parol evidence refers to:

Spoken words

An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n)

Tender of payment

Which of the following is true of Sunday contracts?

Their laws are a result of statutes

When a party sues to enforce and alleged contract, the Statute of Frauds requires that:

There be a note in writing signed by the party against whom the claim for a breach of contract is made

Which of the following is true of gambling contracts?

They are transactions wherein the parties stand to win or lose based on pure chance

T or F- A contract is indivisible if it can be performed in ways other than as an entity

True

T or F- Contracts obstructing the administration of justice are unenforceable

True

T or F- If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged

True

T or F- Many state statutes made Sunday contracts illegal. Most states have repealed those laws

True

T or F- The contract and the memorandum required by the Statute of Frauds must set forth all the material terms of the transaction

True

Default refers to:

A breach of any contractual obligation

Which of the following types of agreements, according to the Statute of Frauds requires that:

An agreement containing a promise in consideration of marriage

Which of the following is true of contracts that limit the freedom of marriage?

An agreement not to marry during minority is valid

A force majeure clause in a contract is a contract provision that excuses performance by a party when:

An extraordinary event outside the party's control occurs

In a written contract, Sheldon agreed to tutor the children of Mrs. Smith for a certain period of time. However Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other commitments. In this case, there has been a(n):

Anticipatory breach

Which of the following is an example for a contract contrary to public policy?

B agrees to appoint D as deputy sheriff, provided he helps him win the local elections

AB Developers sign a contract with CL Corp., agreeing to build a $29 million office for the corporation. The construction contract was substantially performed. There were, however, a few minor breaches of the contract by AB Developers that made CL Corp. incur damages worth $10,000. Which of the following is most likely to be true in this scenario?

CL needs to pay the full price under the contract less the damages suffered by CL

T or F- A lease of real property for less than one hear must be in writing in order to be in binding

False

T or F- According to the Statute of Frauds, an agreement of an executor to pay the debts of the estate from the executor's personal funds, needs to be an oral contract

False

T or F- An agreement not to marry certain named individuals is valid

False

T or F- Contracts which are designed to limit competition are acceptable by law

False

T or F- Electronic signatures are legally unenforceable

False

T or F- If a written contract appears complete, the parol evidence rule will permit modification

False

T or F- The Statue of Frauds states that the memorandum must contain more essential terms than the written contract

False

T or F- The Statute of Frauds does not apply when the promisor promises the debtor that the promisor will pay the debt owed to the third person

False

Which of the following is true of the parol evidence rule?

It allows a written contract to be modified by oral testimony if there is evidence of fraud

Which of the following is true of the Statute of Frauds?

It applies only to executory contracts

Which of the following statements best defines a tender of performance?

It is an offer to perform an obligation in satisfaction of the terms of a contract

Under the ___, it is unlawful to discriminate in price between competing buyers if the goods are of like grade, quantity, and quality

Robison-Patman Act

T or F- After a discharge in bankruptcy, creditors' rights of action to enforce most of the contracts of a debtor are barred

True

T or F- All contracts must be for a lawful purpose otherwise they would be considered void

True

T or F- An advantage that written contracts have over oral contracts is that they can ascertained

True

T or F- An attorney may contract to appear before a Senate committee meeting to encourage or oppose the passage of a bill

True

T or F- The legal rate applies when parties are silent as to the rate

True

T or F- The parol evidence rule assumes that a written contract represents the complete agreement

True

Which of the following is true of contracts?

Written evidence, composed in clear language, is more reliable than oral

In which of the following situations is a state most likely to enforce a usury law?

X sells a plot of land at a rate higher than the maximum contract rate

The usual remedy for breach of contract is to sue for:

damages