Business Law Chapter 13

9.A[n] ______ is a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing. A. Admission B. Submission C. Deposition D. Interrogatory E. Confirmation

A. Admission

18. Which of the following occurs when a party to a contract transfers her rights to a contract to a third party? A. Assignment B. Referral C. Disgorgement D. Privity E. Transfer

A. Assignment

20.Which of the following is true regarding oral assignments? A. Assignments may be made orally. B. The UCC requires that assignments be in writing when the amount being assigned is greater than $1,000. C. Assignments are not covered by the statute of frauds. D. The UCC requires that assignments be in writing when the amount being assigned in greater than $2,000. E. Both that assignments may be made orally and that the UCC requires that assignments be in writing when the amount being assigned is greater than $1,000.

A. Assignments may be made orally.

2.Which of the following is a type of contract that falls within the scope of the statute of frauds? A. Contracts whose terms prevent possible performance within one year B. Contracts involving the provision of any services C. Contracts involving the provision of any goods D. Contracts involving any debt E. All the above

A. Contracts whose terms prevent possible performance within one year

11.Which of the following is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract? A. Promissory estoppel B. Substantial estoppel C. Promissory rule D. Reliance rule E. Promissory reliance

A. Promissory estoppel

5.Which of the following is a term for contracts within the statute of frauds involving promises to pay a debt of another if the initial party fails to pay? A. Secondary obligations B. Primary promises C. Primary debts D. Third-party debts E. Commercial promises

A. Secondary obligations

7. Which of the following was the result in the case in the text Shelby's, Inc. v. Sierra Bravo, Inc., involving the issue of whether an agreement to deposit debris and soil on land came within the statute of frauds? A. The court ruled that the agreement did not involve an interest in land and did not come within the statute of frauds. B. The court ruled that the agreement did involve an interest in land and, that it came within the statute of frauds, and that no oral agreement was sufficient. C. The court ruled that the agreement did not involve an interest in land but placed it within the statute of frauds in order to prevent injustice. D. The court ruled that the agreement fell within the statute of frauds but that an oral agreement was sufficient. E. None of the above.

A. The court ruled that the agreement did not involve an interest in land and did not come within the statute of frauds.

23.Which of the following states that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right? A. The first-assignment-in-time rule B. The last-assignment-in-time rule C. The English rule D. The French rule E. The American rule

A. The first-assignment-in-time rule

21.Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature? A. When the only part of a contract left to be fulfilled is the payment. B. When the sale of goods are involved. C. When no more than half the contractual duties have been performed. D. When no more than three-fourths of the contractual duties have been performed. E. When at least one-third of the contractual duties have been performed.

A. When the only part of a contract left to be fulfilled is the payment.

1. A purpose of the statute of frauds is to prevent unreliable _____ evidence from interfering with a contractual relationship. A. Hearsay B. Oral C. Irrelevant D. Immaterial E. Hearsay and irrelevant

B. Oral

10.Under ______, if the buyer in an alleged contract for the sale of land has paid any portion of the sale price, has begun to permanently improve the land, or has taken possession of the land, the courts will consider the contract partially performed, and this partial performance will amount to proof of the contract. A. Substantial performance B. Partial performance C. Sales substantiation D. The purchase proof rule E. The sales proof rule

B. Partial performance

13. What does the term "parole" in the "parole evidence rule' mean? A. Words establishing penalties B. Speech or words C. Speech only outside the original writing D. Only another writing outside the original writing E. Only untrue speech outside the original writing

B. Speech or words

15. When may a court rule that parole evidence may be admissible to further the court's understanding of an agreement? A. When a court determines that a written agreement represents a complete and final version of the agreement. B. When a court determines that a written agreement does not represent a complete and final version of the agreement. C. When a court determines that there is disagreement between the parties over performance of the agreement. D. When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable. E. When a court determines that either party failed to do sufficient research to determine if signing the agreement was advisable.

B. When a court determines that a written agreement does not represent a complete and final version of the agreement.

19. Which of the following is false regarding rights of an assignee and assignor? A. Assignees essentially fill in for the assignor as the legal recipient of contractual duties. B. Assignees acquire the same rights as the assignor had. C. Assignees are offered additional protection than assignors. D. The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor. E. When an assignor transfers rights to an assignee, the assignor legally gives up all rights she previously had to collect on the contract.

C. Assignees are offered additional protection than assignors.

8.Which of the following is needed in order to satisfy the UCC's requirement for a written document? A. The contract or memorandum needs only to state the price of the goods. B. The contract or memorandum needs only to state the quality of the goods. C. The contract or memorandum needs only to state the quantity to be sold. D. The contract or memorandum needs to state the price of the goods and the quality of the goods, but not the quantity to be sold. E. The contract or memorandum needs to state the price of the goods, the quality of the goods, and also the quantity to be sold.

C. The contract or memorandum needs only to state the quantity to be sold.

16.Which of the following is true regarding writings created at the same time as a written agreement? A. The parole evidence rule applies to writings created at the same time as the written agreement. B. Writings created at the same time as a written agreement are more readily admitted as part of the written agreement than is oral evidence regarding conditions or terms in the final agreement. C. As long as contemporaneous written documents do not substantially contradict what is in the final writing, judges can deem these other writings to be part of the final written agreement. D. All the above. E. The parole evidence rule applies to writings created at the same time as the written agreement, and writings are no more likely to be allowed into evidence than oral evidence regarding conditions or terms in the final agreement.

D. All the above.

6.Which of the following are not considered an interest in land within the statute of frauds? A. Promises to sell crops annually. B. Agreements between parties for profit sharing from the sale of real property. C. Boundary disputes that have been settled through the use of land. D. All the above. E. Promises to sell crops annually and agreements between parties for profit sharing from the sale of real property, but not boundary disputes that have been settled through the use of land.

D. All the above.

12.Which of the following may constitute a writing under the UCC? A. Faxes B. E-mails C. Formal written contracts D. Invoices E. All the above

E. All the above

17.Which of the following are exceptions to the parole evidence rule? A. Contracts that have been subsequently modified B. Contracts conditioned on orally agreed-on terms C. Contracts that are not final as they are part written and part oral D. Contracts with ambiguous terms E. All the above

E. All the above

4. Which of the following is true regarding the statute of frauds requirement involving contracts that cannot be performed within one year? A. The one-year period begins to run the day after the contract is created, not when the contract is scheduled to begin. B. Even if it is highly unlikely that a contract will be completed within one year, a contract does not come within the statute of frauds if it could be completed within one year. C. If a party contracts for lifetime employment, the contract does not have to be in writing in order to be enforceable. D. Contracts whose performance, based on the terms of the contract, could not possibly occur within one year fall within the statute of frauds. E. All the above are true.

E. All the above are true.

22.Which of the following is most accurate regarding what may be assigned even in the presence of an anti-assignment clause? A. Assignments made by operation of law. B. Assignments for the right to receive monetary payments. C. Assignments for the right to receive damages for a breach of contract to sell goods or services. D. Assignments made by operation of law, and assignments for the right to receive monetary payments, but not assignments for the right to receive damages for a breach of contract to sell goods or services. E. Assignments made by operation of law, assignments for the right to receive monetary payments, and assignments for the right to receive damages for a breach of contract to sell goods or services.

E. Assignments made by operation of law, assignments for the right to receive monetary payments, and assignments for the right to receive damages for a breach of contract to sell goods or services.

3.Which of the following is a type of contract that falls within the scope of the statute of frauds? A. Contracts related to an interest in land B. Promises made in consideration of marriage C. Contracts related to any lease D. All the above E. Contracts related to an interest in land and promises made in consideration of marriage, but not contracts related to any lease

E. Contracts related to an interest in land and promises made in consideration of marriage, but not contracts related to any lease

14.What is a purpose of the parole evidence rule? A. To restrict oral evidence from being admitted that supports an agreement in its written form. B. To restrict written evidence from being admitted that supports an agreement in its written form. C. To restrict oral and written evidence from being admitted that supports an agreement in its written form. D. To restrict hearsay from being admitted that supports or contradicts an agreement in its written form. E. To restrict evidence from being admitted that substantially contradicts an agreement in its written form.

E. To restrict evidence from being admitted that substantially contradicts an agreement in its written form.