Chapter 16 Study Guide Quiz

Navigation » List of Schools » Glendale Community College » Business Administration » BUSAD 120 – Business Law » Summer 2022 » Chapter 16 Study Guide Quiz

Need help with your exam preparation?

Existing Quiz Clients Login here

Below are the questions for the exam with the choices of answers:

Try The Exam

Question #1

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 True

B False

Question #2

Under the Statute of Frauds, all contracts must be in writ¬ing to be enforceable.

A True

B False

Question #3

To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include all essential and non-essential terms.

A False

B True

Question #4

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 #5

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.

A True

B False

Question #6

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 #7

Oral evidence of the modification of a contract after its making can be introduced at a trial.

A True

B False

Question #8

Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

A False

B True

Question #9

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 #10

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 #11

A prenuptial agreement must be in writing to be enforceable under the Statute of Frauds.

A True

B False

Question #12

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 #13

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 Whitewater only.

B Xtra only.

C any interested third party, such as a Whitewater tour guide.

D none of the choices.

Question #14

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 less than $500.

B only if the amount of the rent to be paid is more than $5,000.

C if the amount of the rent to be paid is any amount.

D only if the amount of the rent to be paid is more than $500.

Question #15

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 any interested third party, such as a Swamp & Bayou client.

B Quest Holdings but not Ray.

C no one.

D Quest Holdings and Ray.

Question #16

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 Lucas and Natural Soft Drinks.

B no one.

C Lucas.

D Natural Soft Drinks.

Question #17

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 laptop and iPod purchases only.

B the employment contract and the laptop purchase only.

C the employment contract only.

D the employment contract, and the laptop and iPod purchases.

Question #18

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 the parties’ contact information.

B a date, such as “October 2014” or “10/2014.”

C a quantity term, such as “50 hammers” or “100 boxes of assorted nails.”

D a correct title, such as “Purchase Order” or “Sales Invoice.”

Question #19

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 all essential and nonessential terms.

B a correct title, such as “Shipment Contract.”

C a statement of the consideration.

D a description of the parties’ businesses.

Question #20

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 contradictory.

B consistent.

C clear.

D ambiguous.

Question #21

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 a reference to the source of the funds to be paid.

B all essential terms.

C a correct title, such as “Dinner Theater–Entertainers Artist Contract.”

D Fiorello’s title.

Question #22

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 Dealership Auto only.

B Colette only.

C either Colette or Dealership Auto.

D any interested third party, such as a Dealership Auto customer.

Question #23

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 there must be written evidence of the deal.

B the Charger must be considered a customized good.

C Benito’s promise must have been overheard by a third party.

D Carolina must act in reliance on Benito’s promise to her detriment.

Question #24

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 Brass & Woodwind Musical Instruments, Inc.

B Claudia.

C none of the choices.

D Abner.

Try The Exam

Fresh Grad Lands Job as Real Estate Agent With Help from Professional Writers

Chapter 16 Study Guide Quiz

Need help with your exam preparation?

Below are the questions for the exam with the choices of answers:

Christian S.

Tyra

Linda

Manush

We accept payment