ALLIED BUS230 MODULE 4 check your understanding

Question Points
1. When
obligations under a contract are transferred, the delegating party is relieved
of any further obligations under the contract.
a. True
b. False

2. 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. True
b. False
6. If a
contract is required to be in writing, an assignment of that contract must also
be in writing.
a. True
b. False
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7. 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. True
b. False
12. 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. True
b. False
15. 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.