Business Law Principles And Practices International Edition 8th Edition By Arnold – Test Bank

Chapter 11—Formal Requirements—Statute of Frauds/E-Signatures

TRUE/FALSE

1. A written contract needs at least one witness to establish its existence and its terms.

ANS: F PTS: 1 REF: p. 189

2. All states have a law that requires certain contracts to be in writing.

ANS: T PTS: 1 REF: p. 190

3. A contract for the sale of $400 worth of merchandise must be in writing.

ANS: F PTS: 1 REF: p. 190

4. The statute of frauds applies only to executory contracts.

ANS: T PTS: 1 REF: p. 190

5. The statute of frauds does not apply to agreements in which one person assumes primary responsibility for the payment of a debt.

ANS: T PTS: 1 REF: p. 191

6. An executor or administrator is one who handles a deceased person’s estate.

ANS: T PTS: 1 REF: p. 191

7. An executor’s written promise to pay a deceased person’s debts out of personal funds is valid.

ANS: T PTS: 1 REF: p. 191

8. Important contracts should be in writing to reduce the possibility of perjury by either party.

ANS: T PTS: 1 REF: p. 189

9. If a contract can be carried out within one year, it need not be in writing.

ANS: T PTS: 1 REF: p. 193

10. The evidence needed to satisfy the statute of frauds may be an informal memorandum.

ANS: T PTS: 1 REF: p. 194

11. Today, under modern law, no contract or signature may be denied legal effect solely because it is in electronic form.

ANS: T PTS: 1 REF: p. 195