Business law multiple choice

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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.

1. Charles orally promises Holly that he will marry her. He also states that if they ever get divorced, he will transfer one-half of his assets to Holly. They marry and divorce within a year. Which of the following is true of Charles’s promise to Holly? A. The promise isn’t legally enforceable unless Holly proves that the promise influenced her decision to marry him.

B. The promise isn’t legally enforceable because it wasn’t written.

C. The promise is legally enforceable only if it doesn’t involve the transfer of land.

D. The promise qualifies as an enforceable oral contract.

2. Coretta and Mary find a property to purchase. They sign a written agreement that states the agreed-on price, closing date, and items that are to stay in the house. They forget to include the washer and dryer in the agreement, but the seller tells them he will leave them if they want them. Right before closing, they walk through the property and find that the washer and dryer have been removed. They purchase the property and sue the seller for not leaving the washer and dryer. Coretta and Mary most likely A. won’t win based on the statute of frauds.

B. won’t win based on the statute of limitations.

C. won’t win based on the parol evidence rule.

D. will win based on the seller’s representation when they looked at the property.

3. Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. The _______ rule requires that this agreement be in writing and signed to be enforceable. A. standard construction

B. equal dignities

C. parol evidence

D. best evidence

4. Star Software Systems and Henry orally agree for Henry to write special accounting software. This software usually takes three years to complete but can be finished sooner. Does Henry have an enforceable legal agreement with Star? A. Yes, the agreement is enforceable, but only to the extent of work Henry completes within the first year of the contract.

B. No, the agreement is unenforceable since the contract involves a tangible work product.

C. No, the agreement is unenforceable because Henry could possibly complete writing the software within a year.

D. Yes, the agreement is enforceable because Henry could possibly complete writing the software within a year.

5. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center

together. They see a house in the perfect neighborhood with a “For Sale by Owner.” They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they’ll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they’re going to sue him for breach of contract. Bella and Connie most likely A. will win because the owner breached his agreement to sell them the house.

B. will win because the owner shouldn’t have entered into a contract with them if he wasn’t sure he wanted to sell the house.

C. won’t win because they can find another house that will work just as well.

D. won’t win because they shouldn’t have entered into an oral contract to buy the house.

6. Tom and Zeke enter into a contract for Tom to paint Zeke’s house for $1,000. The contract doesn’t specify a time for performance by Tom. Six years later, Tom shows up with a bucket of paint, paints the house, and demands payment. Which of the following is true? A. The contract violates the statute of frauds.

B. Tom couldn’t have breached the contract because the contract didn’t specify a time for performance, and he did do the painting work.

C. Tom breached the contract because he didn’t perform within a reasonable time.

D. The contract was unenforceable because it didn’t specify a time for performance.

7. Which of the following is an example of discharge by impossibility? A. Jason agrees to paint Sheila’s house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.

B. Jason agrees to paint Sheila’s house for $1,000. Before Jason can paint, Sheila’s house burns down.

C. Jason agrees to paint Sheila’s house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn’t get paid.

D. Jason agrees to paint Sheila’s house for $1,000. Sheila later tells Jason that she won’t pay him. As a result, Jason decides not to paint.