CHAPTER 17 - LEGALITY & STATUTE OF FRAUDS QUIZ

1. Tex, a resident of Texas, goes to Las Vegas and cashes two checks for $5,000. He loses all of his money, and stops payment on both checks. The casino keeps one of the checks, and sells the other to a collection service in Houston. Casino gambling is illegal in Texas. If both the casino and the collection agency sue Tex, who will he have to pay?

a. the casino
b. the collection agency
c. both A and B
d. none of the above

2. Ben is an attorney who practices without a license. His client Mel owes him $1,000 for the performance of legal services when Mel learns this fact. He refuses to pay. What is the status of their contract?

a. valid
b. void
c. voidable
d. unenforceable

3. Most illegal contracts violate statutes. Are there other ways a contract may be deemed to have an illegal purpose?

a. yes, if it violates common law principles
b. yes, if it violates public policy doctrines
c. both a and b
d. none of the above

4. Andy shines shoes. The state requires him to have a license, primarily so the state can raise money through the annual fee he pays. Andy, however, does not have a license. Bill gets his shoes shined. What is the status of Andy's and Bill's transaction?

a. valid
b. void
c. voidable
d. unenforceable

5. Carmen hates her daughter's boyfriend, Brandon. She offers Brandon $1,000 if he will not marry her daughter. Brandon accepts. What is the status of their contract?

a. valid
b. void
c. voidable
d. unenforceable

6. Alex buys an air conditioner for $2,000. The fair market value is $200. Which of the following is his best theory to get out of the contract?

a. duress
b. procedural unconscionability
c. substantive unconscionability
d. fraud

7. When he buys property in Bigotville, Adolph signs a contract that prohibits him from reselling the property to various people. Which of these prohibitions would be void against public policy?

a. no resale to Italians
b. no resale to Muslims
c. no resale to women
d. All would violate public policy.

8. Exxon and Barney's gas are competitors in a small town, and Exxon wants to shut Barney's down. Which of the following agreements would not violate public policy?

a. Exxon buys Barney's and, as part of the agreement, Barney cannot open up another service station in town.
b. Exxon pays Barney $10,000 a year to close down, but does not buy his service station.
c. Both A and B violate public policy.
d. Neither A nor B violates public policy.

9. Assume all of the following businesses have customers sign exculpatory clauses that read, "Operator not liable for any loss or injury." Which of these is the MOST likely to be enforced. (That is, which operator is most likely not to be liable for loss or injury?)

a. Southwestern Bell, a phone company
b. City Utilities, an electricity provider
c. AstroWorld, an amusement park
d. Federal Express, a delivery company

10. Norm hires Linda to clean his apartment once a week. He also tells her, "Oh, yeah. When you come by every week, I want you to bring me a big bag of crack." Which parts of this contract, if any, are enforceable?

a. the cleaning portion
b. the drug delivery portion
c. Both are enforceable.
d. Neither is enforceable.

11. Which of the following contracts are "within" the UCC Statute of Frauds?

a. the sale of a $300 tennis racquet
b. the sale of a $600 tennis racquet
c. the sale of $600 worth of tennis lessons
d. both b and c

12. Why was the original Statute of Frauds passed in England in 1677?

a. to prevent plaintiffs from buying juries
b. to prevent plaintiffs from buying witnesses
c. to prevent plaintiffs from buying judges
d. all of the above

13. Which of the following are within the portion of the Statute of Frauds that deals with interests in land?

a. sale of a house
b. rental of a house
c. purchase of an acre of land
d. all of the above

14. Jess signs a contract to cut down 100,000 trees for a lumber mill for $1,000,000. Does this contract have to be in writing?

a. yes, if the job takes him over one year to complete
b. yes, because he will receive $1,000,000
c. both a and b
d. No, it needs no writing.

15. I hire Paul Simon on July 4, 1997, to play at my Christmas party in 1998. I will pay him $10,000. Does this contract have to be in writing?

a. yes, because I will pay him over $500
b. yes, because the contract will take over a year to complete
c. both a and b
d. No, this contract need not be in writing

16. Jess goes to work for Dell computers. Which of these contracts would require a writing?

a. "I will work for you for 5 years."
b. "I will work for you for life."
c. "I will work for you indefinitely."
d. all of the above

17. Mother and son go bicycle shopping. The bike son wants costs $400. Which of the following arrangements with the bike shop would require a writing?

a. Son agrees to pay himself.
b. Mother agrees to pay herself.
c. Son agrees to pay, and Mother agrees to pay if he does not.
d. both B and C

18. Mother and son go bicycle shopping. Son agrees to pay for the bike himself, and mother agrees to pay if son does not. The choices list various uses to which the bicycle might be put. In which cases would a writing NOT be required?

a. Son will be the only rider, and will ride the bike to school.
b. Mother will be the only rider, and will use the bike for exercise.
c. Son will be the primary rider, but Mother may borrow it from time to time.
d. No answer is correct; every choice requires a writing.

19. Best Buy orders a shipment of computers from IBM. In order to have a valid writing for this sale of goods, which of the following MUST be included?

a. the price to be paid
b. the number of computers desired
c. the date of delivery
d. all of the above

20. Barney orders a dozen kegs of beer from Moe at a cost of $600. Moe never delivers the beer, and Barney brings a lawsuit. He has a written copy of the agreement between himself and Moe. For this writing to overcome the Statute of Frauds, which parties must have signed it?

a. Barney
b. Moe
c. both Barney and Moe
d. neither Barney nor Moe

21. Billy Bob Bransky sits down to sign a contract ordering a motorcycle. Which of the following, if written by Billy Bob, would be a valid signature?

a. "B.B. Bransky"
b. "Billy Bob"
c. "B"
d. all of the above

22. Under the UCC, which of the following constitute a writing sufficient to satisfy the Statute of Frauds?

a. a canceled check
b. an invoice
c. a faxed copy of a document
d. all of the above

23. Landlord Lenny and Tenant Tom have a lease contract. Tom brings a lawsuit, alleging that Lenny broke promises to repaint the apartment, provide a microwave, and pay the gas and water bills. The contract does not mention any of these items. Under the parole evidence rule, what items is Tom likely to be able to argue about?

a. the repainting
b. the microwave installation
c. the bills
d. none of the above

24. Which of the following are exceptions to the parole evidence rule? That is, what types of evidence ARE admissible in court?

a. evidence a contract was signed under duress
b. evidence a party to a contract is a minor
c. both a and b
d. neither a nor b

25. Ben runs a furniture store, and Manny has been a customer of Ben's for years. Manny orders a couch, and expects that it will be delivered. It is not delivered, and a lawsuit is filed. The contract does not mention delivery. Which of the following evidence will Manny be able to introduce in court?

a. evidence that Ben had always delivered free of charge on Manny's orders in the past
b. evidence that free delivery is customary in the furniture business
c. both A and B
d. none of the above