Business Law 3201: Chapter 15: Test Bank Questions:
1. Which of the following promises does not have to be evidenced by writing in order to be enforceable?
a. Jones' agreement with Smith to sell his condominium for $100,000
b. Stewart's promise to work for Austin for a two-year period
c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay
d. Mindy's agreement with Susan to buy her bike for $400: d. Mindy's agreement with Susan to buy her bike for $400
2. Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600
heater. He doesn't recall placing the order. Which of the following is correct?
a. Wyandott can hold Chris to the order.
b. Chris can hold Wyandott to the order.
c. Neither party is bound, because there is no signed writing.
d. Chris is bound if he makes no objection within 10 days.: b. Chris can hold Wyandott to the order.
3. In states that have adopted it, the UETA:
a. encourages and gives full effect to electronic contracts.
b. gives full effect to emergency transactions.
c. supplements and covers all of the UCC.
d. covers wills, codicils, and testamentary trusts.: a. encourages and gives full effect to electronic contracts.
4. Which of the following is an exception to the suretyship provision requirement under the statute of frauds?
a. A collateral promise made to the creditor
b. A promise, the leading object of which is to obtain an economic benefit for oneself
c. A collateral promise where there are three parties and two contracts in-volved
d. A promise by an executor to pay the debts of the decedent from the executor's own funds: b. A promise, the leading object
of which is to obtain an economic benefit for oneself
5. E-Sign provides consumers must:
a. evidence their consent on paper to conducting transactions with electronic records after being informed of the types of
hardware and software required.
b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic
records.
c. receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic
form.
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, Business Law 3201: Chapter 15: Test Bank Questions:
d. All of the above.: b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent
to receiving electronic records.
6. What is another name for the main purpose doctrine?
a. The collateral promise rule
b. The possibility test
c. The leading object rule
d. The suretyship provision: c. The leading object rule
7. Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?
a. Prior oral or written agreements
b. Contemporaneous oral or written agreements
c. Subsequent oral or written agreements modifying the original agreement
d. Both (a) and (b).: c. Subsequent oral or written agreements modifying the original agreement
8. Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly
regarded as establishing a common basis of understanding for interpreting their conduct under the contract.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document: a. course of dealing
9. Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive
tenders of performance by the other party without objection.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document: c. course of performance
10. Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or
trade.
a. course of dealing
b. usage of trade
c. course of performance
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1. Which of the following promises does not have to be evidenced by writing in order to be enforceable?
a. Jones' agreement with Smith to sell his condominium for $100,000
b. Stewart's promise to work for Austin for a two-year period
c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay
d. Mindy's agreement with Susan to buy her bike for $400: d. Mindy's agreement with Susan to buy her bike for $400
2. Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600
heater. He doesn't recall placing the order. Which of the following is correct?
a. Wyandott can hold Chris to the order.
b. Chris can hold Wyandott to the order.
c. Neither party is bound, because there is no signed writing.
d. Chris is bound if he makes no objection within 10 days.: b. Chris can hold Wyandott to the order.
3. In states that have adopted it, the UETA:
a. encourages and gives full effect to electronic contracts.
b. gives full effect to emergency transactions.
c. supplements and covers all of the UCC.
d. covers wills, codicils, and testamentary trusts.: a. encourages and gives full effect to electronic contracts.
4. Which of the following is an exception to the suretyship provision requirement under the statute of frauds?
a. A collateral promise made to the creditor
b. A promise, the leading object of which is to obtain an economic benefit for oneself
c. A collateral promise where there are three parties and two contracts in-volved
d. A promise by an executor to pay the debts of the decedent from the executor's own funds: b. A promise, the leading object
of which is to obtain an economic benefit for oneself
5. E-Sign provides consumers must:
a. evidence their consent on paper to conducting transactions with electronic records after being informed of the types of
hardware and software required.
b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic
records.
c. receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic
form.
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, Business Law 3201: Chapter 15: Test Bank Questions:
d. All of the above.: b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent
to receiving electronic records.
6. What is another name for the main purpose doctrine?
a. The collateral promise rule
b. The possibility test
c. The leading object rule
d. The suretyship provision: c. The leading object rule
7. Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?
a. Prior oral or written agreements
b. Contemporaneous oral or written agreements
c. Subsequent oral or written agreements modifying the original agreement
d. Both (a) and (b).: c. Subsequent oral or written agreements modifying the original agreement
8. Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly
regarded as establishing a common basis of understanding for interpreting their conduct under the contract.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document: a. course of dealing
9. Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive
tenders of performance by the other party without objection.
a. course of dealing
b. usage of trade
c. course of performance
d. integrated document: c. course of performance
10. Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or
trade.
a. course of dealing
b. usage of trade
c. course of performance
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