Business Law Chp 16 &17

Front 1

Which of the following promises must be in writing to be enforceable?

Back 1

a promise made by an executor of an estate to personally pay a debt the estate owes

Front 2

The status of a third party to a contract is determined by

Back 2

the intentions of the original contracting parties.

Front 3

For the purposes of the statute of frauds, an interest in land includes

Back 3

a long-term lease on an apartment. a real estate mortgage. an easement

Front 4

Betty is president and sole shareholder of Pronex, Inc. Pronex, Inc. wishes to borrow money, in order to get the loan, the bank requires Betty to orally agree to personally pay the debt of the corporation if Pronex, Inc. cannot pay. Complete the following statement to make it true:Betty's guarantee to repay is

Back 4

enforceable because of the leading object rule.

Front 5

A rock group assigns its payment for a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. Under this arrangement the rock group is the

Back 5

assignor

Front 6

Which of the following duties can probably be delegated?

Back 6

An agreement to paint a house

Front 7

Bert hires a contractor to make repairs on his house. Unfortunatley, before the repairs are finished, Bert dies in an untimely boating accident. His good friend, Ernie is appointed executor of Bert's estate. Ernie was approached by the home repairman and Ernie orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under to the house or any part of Ernie's estate. If the repairman's bill does not get paid, who can the home repairman collect from, if anyone?

Back 7

The repairman can only collect from Bert's estate

Front 8

A spouse who is named the beneficiary of his wife's life insurance policy would be called

Back 8

an intended beneficiary.

Front 9

A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with outrageous stage outfits, and to which the group owes a great sum of money. This arrangement is

Back 9

a valid assignment because this is a simple transfer of the right to receive money.

Front 10

When is an assignment valid and enforceable against an obligor (i.e. when must they change their peformance)?

Back 10

from the moment the obligor is notified of the assignment

Front 11

Which of the following duties can probably be delegated?

Back 11

An agreement to paint a house

Front 12

Becky entered into a written contract to buy a car from Mountain High Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This provision in a contract is called:

Back 12

an integration clause.

Front 13

Mabel's Exercise World plans to order three weight machines from Patrick's Push, Pedal and Pull, Inc. for a total of $15,000. Patrick's demands that Mabel's friend, Lotsa Loot, a wealthy independent businesswoman (not connected with Mabel's business in any way) promise to pay Patrick's for the three machines if Mabel's Exercise World does not. Which of the promises in this problem MUST be in writing to be enforceable?

Back 13

Both Lotsa Loot's promise and Mabel's Exercise World's promise.must be in writing

Front 14

When one person agrees to pay the debt of another as a favor to that debtor, This is called

Back 14

a collateral promise.

Front 15

Which statement most accurately describes third party beneficiary rights?

Back 15

A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.

Front 16

Which statement regarding assignment is accurate?

Back 16

An assignment becomes invalid when the obligor receives notice of the assignment.

Front 17

Bo and Derek were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: "Bo agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2011." Bo signed the napkin. On May 1, 2011, Derek was ready to close the deal and transfer title but Bo refused to pay the purchase price. If Derek sues Bo for the price of the land, the most likely result will be:

Back 17

Derek will win because the writing satisfies the statute of frauds.

Front 18

Does the statement "The sale of goods will not be enforceable unless there is some writing, signed by the defendant, indicating that the parties reached an agreement" ACCURATELY and FULLY reflect the UCC's basic rule?

Back 18

No. It should also state that the contract must be for the sale of goods of $500 or more.

Front 19

Nelwyn assigns to Sheryl a right to receive her rent payments on rental property she owns. In terms of Nelwyns' warranty as the assignor, the law implies which of the following?

Back 19

that Nelwyn actually has a right to the rental payments

Front 20

When is an assignment valid and enforceable against an obligor (i.e. when must they change their peformance)?

Back 20

from the moment the obligor is notified of the assignment

Front 21

Charlie agrees to lease his house to Gayle for nine months, the lease to begin six months after Gayle signs the lease contract. Which is a true statement about this contract.

Back 21

Under the statute of frauds the lease is required to be in writing because of the one-year rule.

Front 22

Amy Grant, a retailer, has been trying to purchase Glen Campbell's antique desk for some time, but Glen has been reluctant to sell. Glen is an antique wholesaler. One evening Glen said to Amy, "Okay, I'll sell the desk for $550." Amy replied, "Thank you, Glen. I accept." The agreement was not reduced to writing, but Glen and Amy did shake hands. Two days later, Amy sent Glen a letter outlining the terms of the agreement, and stating that she would deliver $550 cash according to the agreement within ten days. The letter was signed, "Best regards, Amy." Later, Amy had second thoughts, and refused to go through with the purchase. Nothing had been exchanged at this point. Glen

Back 22

can enforce the contract against Amy because the statute of frauds is satisfied under this situation because of ther merchants exception.

Front 23

A donee beneficiary

Back 23

usually does not give consideration in return for the gift.

Front 24

In order to satisfy the statute of frauds, a writing must

Back 24

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

Front 25

Hillary hired Donald, an experienced CPA, to prepare her tax returns. Donald was too busy and delegated the work to Bernie,, his intern who is also a CPA. This delegation is

Back 25

not enforceable, as Hillary hired Donald to perform personal services.