BUS 263 Test 2 | Complete Solutions (Verified) Fred 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. Fred. c. any third party, such as a Guitars Inc....
Fred 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. Fred.
c. any third party, such as a Guitars Inc. customer.
d. Guitars Inc.
Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance
Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement
between Duane and Evan is enforceable by
a. Finance Bank.
b. Duane, Evan, or Finance Bank.
c. Duane or Evan.
d. none of the choices.
Main St. Markets Inc. and Nature's Food Corporation discuss the terms of a contract.
They exchange "signed" e-mails that summarize the terms on which they agree. Main
St. begins to perform, but Nature's refuses to pay. Between Main St. and Nature's, the
e-mails are
a. a pre-contract.
b. no contract.
c. a written contract.
d. an oral contract.
Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable,
this contract must be
a. signed in a sufficient manner by both parties.
b. in writing or evidenced by a written memorandum.
c. substantiated by reliable, external evidence.
d. all of the choices.
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. $500.
b. $499.
,c. $50.
d. $250.
Lewis tells a representative of Music 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. only if Nora agrees to it.
b. any of the choices.
c. only if the value of the trumpet is more than $500.
d. only if it is in writing.
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 books, the shoes, and the tablet.
b. the shoes and the tablet only.
c. the books only.
d. the tablet only.
Nate promises to pay for dental services provided by Otto to Polly. Nate receives no
personal benefit for the promise. To be enforceable, the promise must be in writing if
a. Otto's services will be provided in installments with separate payments.
b. Nate promises to pay only if Polly does not pay.
c. Polly also promises to pay.
d. Nate assumes primary financial responsibility for the cost.
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. any third party, such as a HVAC supplies provider.
b. Air Flo.
c. none of the choices.
d. Banyan Grove.
Oscar orally agrees with Papa's Pizza Restaurant to provide delivery service to its
customers for nine months. This contract is enforceable by
a. either Oscar or Papa's.
b. Papa's only.
c. none of the choices.
d. any interested third party, such as a Papa's customer.
, 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 three accepted boxes.
c. any extent because the order was placed orally.
d. the extent of the four undelivered boxes.
Builders Corporation files a suit against Concrete Company to enforce a written
contract. If the court finds that the parties intended the contract to be the final statement
of their agreement, parol evidence can be admitted to prove
a. terms discussed before the contract but not contained in it.
b. terms discussed at the time of the contract that contradict the written terms.
c. nothing.
d. an orally agreed-on condition.
Gold Mines Inc. sells stock in a nonexistent gold mine to Harry in violation of a blue-sky
law. Harry can sue the seller to recover
a.the profit that the seller realized from all investors in the mine.
b.the purchase price of stock.
c.nothing.
d.the value of the investment if it did exist.
Rosa signs a covenant not to compete with her employer, Sales Corporation. A court
decides that the covenant is unreasonably restrictive. Most likely, the court will
a.enforce it.
b.reform it to prevent any undue burden.
c.refuse to enforce it unless the employer pays additional consideration.
d.evaluate its effect over time.
In determining procedural unconscionability, a court is most likely to consider whether
a.any provision deprived one party of the benefits of the agreement.
b.any provision left one party without a remedy for the other's nonperformance.
c.none of the choices.
d.the buyer had an opportunity to ask questions about the contract.
Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain
destination for $5,000. Countrywide delivers the crates, but Dewey does not pay.
Countrywide learns that the crates contained stolen goods. Countrywide can recover
from Dewey
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