Business Law Ch.16
c
Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least a. $50. b. $250. c. $500. d. $499.
c
ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by a. ActioNOW. b. any third party, such as ActioNOW's clients. c. none of the choices. d. Becca.
b
Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. Banyan Grove. b. none of the choices. c. Air Flo. d. any third party, such as a HVAC supplies provider.
c
Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for a. the purchase. b. the appointment. c. the employment agreement. d. none of the choices.
d
Colin and Delta Water Company enter into an oral contract under which Delta agrees to provide Colin with lifetime employment. This contract may be enforceable by a. any interested third party, such as a Delta supplier. b. Delta only. c. Colin only. d. either Colin or Delta.
a
Daredevil Rides Inc. owes debts to Equipment Repair Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by a. Daredevil, Equipment, or Food. b. Equipment only. c. none of the choices. d. Daredevil only.
d
Don and Evon orally agree on the sale of Don's Electrical Supplies Company to Evon and jot down the terms on the back of one of Don's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain a. all terms. b. the qualitative terms. d. the essential terms.
a
Eleanor offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanor's son Glen. This promise is enforceable a. only if it is in writing. b. under no circumstances. c. only if Glen agrees to marry Flossy. d. only if the amount of the investment is more than $500.
b
Fact Pattern 16-1 Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. Refer to Fact Pattern 16-1. Between Grain and Hearty, this contract is most likely enforceable against a. Grain only. b. Grain and Hearty, at least to the extent of the performance. c. neither party. d. Hearty only.
c
Flo agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. Home Bank. b. any third party, such as a Guitars Inc. customer. c. Flo. d. Guitars Inc.
d
Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide security services for Hedge's offices for as long as Hedge needs them. This contract may be enforceable by a. any interested third party, such as a Hedge shareholder. b. none of the choices. c. Hedge only. d. either Guardian or Hedge.
a
Hal's Hardware Inc. and Ideal Tools Corporation sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a quantity term, such as "50 hammers" or "100 boxes of assorted nails." b. a correct title, such as "Purchase Order" or "Sales Invoice." c. a date, such as "October 2017" or "10/2017." d. the parties' contact information.
d
Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract a. any of the choices. b. only if Nora agrees to it. c. only if the value of the trumpet is more than $500. d. only if it is in writing.
b
Marketing, Inc., and Nature's Foods Corporation (NFC) discuss a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Marketing begins to perform, but Nature's refuses to pay. Between Marketing and Nature's, the e-mails are a. a pre-contract. b. a written contract. c. no contract. d. a post-contract.
c
Maya and Nick enter into a contract. To be enforceable, the contract must include a. the signatures of both Maya and Nick. b. no particular signatures. c. the signature of the party against whom enforcement is sought. d. the signature of the party who is seeking enforcement.
a
Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. the tablet only. b. the books only. c. the shoes and the tablet only. d. the books, the shoes, and the tablet.
c
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. no extent because the order was placed orally. b. the extent of the four undelivered boxes. c. the extent of the three accepted boxes. d. any extent because the order was placed orally.
a
Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of a. Pumps. b. all of the choices. c. Reliable. d. Quality.
b
Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. a declaration of the contract's purpose. b. a description of the land. c. a correct title, such as "Land Transfer" or "Real Estate Agreement." d. a statement of the source of financing.
d
Rough Canyon Adventures, Inc., and Sturdy Stuff Inc. enter into an oral contract for Sturdy's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by a. Sturdy only. b. Rough only. c. any interested third party, such as a Rough tour guide or client. d. none of the choices.