Cengage Advantage Books Business Law Principles And Practices 9th Edition By Arnold – Test Bank
Chapter 11—Memorialize Contracts in Writing—Statute of Frauds
TRUE/FALSE
1. A written contract needs at least one witness to establish its existence and its terms.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 202 OBJ: LO: 11-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
2. All states have a law that requires certain contracts to be in writing.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 203 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
3. A contract for the sale of $400 worth of merchandise must be in writing.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 203 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
4. The statute of frauds applies only to executory contracts.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 203 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
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 DIF: Difficulty: Easy
REF: p. 204 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Comprehension
6. An executor or administrator is one who handles a deceased person’s estate.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 204 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
7. An executor’s written promise to pay a deceased person’s debts out of personal funds is valid.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 204 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
8. Important contracts should be in writing to reduce the possibility of perjury by either party.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 203 OBJ: LO: 11-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
9. If a contract can be carried out within one year, it need not be in writing.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 206 OBJ: LO: 11-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
10. The evidence needed to satisfy the statute of frauds may be an informal memorandum.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 207 OBJ: LO: 11-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
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 DIF: Difficulty: Easy
REF: p. 209 OBJ: LO: 11-4 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom’s: Knowledge
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