AAU BUS 230 Module 4 Quiz: Principles of Business Law I (2014)

Assessment Module 4 Check Your Understanding Question Points1. When obligations under a contract are transferred, the delegating party is relieved of any further obligations under the contract.a. Trueb. False2. The key to determining whether a contract is enforceable under the one-year rule of the statute of frauds is the answer to the following question:a. is it possible to carry out the terms of the contract within one year of the date of the agreement?b. is it likely that the parties will carry out the terms of the contract within one year of the date of the agreement?c. is it reasonable to expect that the parties will carry out the terms of the contract within one year of the date of the agreement?d. do the parties wish to carry out the terms of the contract within one year from the date that the contract will actually begin?3. A written contract or memorandum must be signed by:a. both parties.b. either party.c. the party to be held liable.d. the party bringing suit.4. Which statement is correct regarding the transfer of contractual rights?a. The assignor acquires only such rights as the assignee has under the contract.b. The assignee acquires only such rights as the assignor has under the contract.c. The assignee acquires rights greater than the assignor has under the contract.d. The assignor acquires rights greater than the assignee has under the contract.5. The party to whom rights under a contract are transferred is called the obligor.a. Trueb. False6. If a contract is required to be in writing, an assignment of that contract must also be in writing.a. Trueb. False7. Miller said to Avid, a retail merchant, “Deliver this $1,500 computer to my nephew Ronald McDonald and send the bill to me.” Avid did as he was requested, but Miller refused to pay the bill, claiming that the nephew was really not interested in using the computer. Is Miller liable?a. Yes; an oral promise to pay one’s own debt is binding.b. Yes; an oral promise to pay the debt of another is binding.c. No; an oral promise to pay the debt of another is not binding.d. No; there was no consideration for the oral promise.8. Atad orally contracts to support his aunt until her death. In most states this contract is:a. unenforceable.b. illegal.c. valid.d. unconscionable.9. A delegation is:a. a transfer of contractual rights to a third party.b. a gift transferred to a third party in error.c. a transfer of duties by operation of law.d. none of the choices apply.10. The statute of frauds applies only to:a. executed contracts.b. executory contracts.c. informal contracts.d. hormal contracts.11. Another name for the assignor is the obligor.a. Trueb. False12. A contract to answer for the debt of another person is called a:a. contract of adhesion.b. prenuptial agreement.c. contract of guaranty.d. parol contract.13. A contract right that may not be assigned is the right to:a. collect money.b. an attorney’s services.c. the damages awarded for a breach of contract.d. receive standard merchandise.14. Nonpersonal rights may be transferred without permission.a. Trueb. False15. Under the provisions of the statute of frauds, one example of a contract that does not have to be in writing to be enforceable is a(n):a. promise to pay the debts of another living person.b. agreement for the transfer of ownership in real property.c. agreement to rent real property for one year or less.d. agreement for the sale of merchandise valued at $700.16. A contract is not assignable if:a. the assignment is not in writing.b. the assignment was made as security for a debt.c. the obligor fails to notify the assignee.d. none of the choices apply.17. An assignment involving real property:a. usually requires no special form.b. may be made orally.c. must be in writing.d. may be made orally or in writing.18. The parol evidence rule:a. serves the same purpose as the statute of frauds.b. applies if all dealings between the parties are oral.c. allows parties to introduce evidence to change the terms of a written contract.d. none of the choices apply.19. One example of a contract that must be in writing is a contract to:a. rent an apartment for six months.b. care for someone for the rest of her or his life.c. purchase a computer for $350.d. pay a friend’s debts.20. Which of the following statements is true?a. The assignee acquires the same rights as the assignor.b. The right to work for someone cannot be assigned without permission.c. An assignment usually requires no special form.d. All of the choices apply