BUL 3310 EXAM 3 QUESTIONS WITH
VERIFIED ANSWERS
Dillon struggles with his algebra class and, in July, decides that he is going to arrange
for a tutor for the upcoming school semester. He eventually persuades Vonda to tutor
him. They discuss Vonda's fee and hours and decide that their arrangement will last for
the entire school semester. Under the Statute of Frauds, this contract:
a. must be in writing under the UCC.
b. does not need to be in writing.
c. must be in writing because it is collateral.
d. must be in writing based on the one-year rule. - Answer-b. does not need to be in
writing.
Laura agrees to purchase a house from Andrew. The one-page contract contains their
names, addresses, and the legal description of the house, and is signed only by Laura.
Laura changes her mind and decides not to purchase the house. Under the Statute of
Frauds, this contract is:
a. unenforceable, because it is signed only by Laura.
b. enforceable, because it is signed by Laura.
c. unenforceable, because it does not contain the essential terms.
d. enforceable, because it contains the essential terms. - Answer-c. unenforceable,
because it does not contain the essential terms.
Heather agrees to work for Noah for one year in his law office. Noah writes an
employment contract that states that Heather is to earn $20 per hour and to work forty
hours per week. Noah terminates Heather's employment after six months. Heather sues
to recover what she claims are her losses. At trial, both parties discover that the
contract says that Heather's hourly wage is $0.20 per hour. What can Heather and
Noah do about the error?
a. They can offer parol evidence to clarify the clerical error.
b. They can offer evidence of the consideration that supported their contract.
c. They can ask the court to rewrite the contract.
d. They are bound by the writing under the Statute of Frauds. - Answer-a. They can
offer parol evidence to clarify the clerical error.
,Gerald, a multi-millionaire, marries Audrey, a waitress at his favorite coffee shop. Gerald
tells Audrey that in the event of their divorce, he will give Audrey $150,000 per year for
life. To seal the deal, he gives her $1.5 million up front, which she accepts. Gerald and
Audrey divorce, and she sues for alimony of $500,000 per year. Gerald claims they
have an agreement for $150,000. Is Gerald correct?
a. No; this is an unconscionable contract.
b. Yes; the court will likely decide in Gerald's favor because he provided consideration.
c. Yes; there is partial performance.
d. No; this was an oral agreement, and to be enforceable, it must be in writing. -
Answer-d. No; this was an oral agreement, and to be enforceable, it must be in
writing
,Darrel is moving to another state, so Raj and Darrel make an oral agreement that Raj
will buy Darrel's house. Raj gives Darrel a down payment and agrees to make monthly
payments to Darrel. Raj moves his family from India, and they move into the house. He
enrolls his children in school, buys all new furniture, and builds a shed on the property.
Six months later, Darrel moves back into town and informs Raj that he wants his house
back. Raj refuses, and Darrel sues. The court will likely decide that the oral agreement
is:
a. enforceable due to partial performance.
b. enforceable because it is a collateral promise.
c. not enforceable because it pertains to goods worth over $500.
d. not enforceable because it pertains to land. - Answer-a. enforceable due to partial
performance.
Tracy agrees to do contract work for Fun Time Children's Publishers. Fun Time sends
her a PDF agreement via e-mail, and Tracy adds a signature into the PDF and e-mails it
back. This contract:
a. is invalid because it is not properly signed.
b. is valid under the Uniform Electronic Transactions Act.
c. must also be signed by hand and faxed or mailed by Tracy.
d. will be enforceable against Fun Time whether or not they signed it because it is in
electronic form. - Answer-b. is valid under the Uniform Electronic Transactions Act.
Gary made a contract with Vince to paint Gary's 1,000-square-foot house for $2,000,
which they both sign. When Vince arrived at Gary's house, he found that it was actually
2,000 square feet. This contract:
a. would be an exception to the parol evidence rule.
b. is an exception to the UCC because it applies to a customized service.
c. is not enforceable because it does not state the essential terms.
d. is valid because it is in writing. - Answer-a. would be an exception to the parol
evidence rule.
Dory and Kelvin sign a contract in which Dory agrees to buy 10 acres of land from
Kelvin. The land includes a house and shed. When Dory moves into the house, she
finds that Kelvin has removed all of the furniture. Dory objects. Which of the following is
true?
a. Because the furniture is considered personal property, it must remain with the land.
b. Because the furniture is considered personal property, it may be removed from the
, land.
c. Because the furniture is considered real property, it may be removed from the land.
d. Because the furniture is considered real property, it must remain with the land. -
Answer-b. Because the furniture is considered personal property, it may be removed
from the land.
To download software for his Internet connection, Nelson had to click on several boxes
at the Web site that stated "I agree" or "I accept." Nelson did not read the accompanying
text before clicking on the boxes. In the event of a dispute between Nelson and the
service provider, the contract terms will:
a. become proposals for the terms of a binding contract.
b. be considered the terms of a binding contract.
c. be enforced only if the service provider shows that Nelson read them.
d. not be enforced. - Answer-b. be considered the terms of a binding contract.
Carrie contracts with Tyler to buy a car through an online auction service. All of their
negotiations and transactions are conducted electronically. None of their
communications ever mentions the Uniform Electronic Transactions Act (UETA), which
was adopted by their state in 2001. Their contract is:
a. covered by the UETA only if the transaction occurred after 2004.
b. covered by the UETA.
c. covered by the UETA only if their contract involves computer information.
d. not covered by the UETA. - Answer-b. covered by the UETA.
Dave offers to buy Melanie's scooter for $30. Melanie responds by asking Dave if that is
his best offer. A reasonable person would conclude that:
a. Melanie has accepted Dave's offer.
b. Melanie has now given Dave the power of acceptance.
c. Melanie can still accept and bind Dave to his offer.
d. Melanie rejected the original offer. - Answer-c. Melanie can still accept and bind Dave
to his offer.
