The following three questions are based on the following scenario: Jones goes to

Question

The following three questions are based on the following scenario: Jones goes to a clothing store and orders $1000 worth of clothing on credit. The salesperson writes up a receipt describing the terms of the deal, but Jones does not sign anything. Three days later, the store makes a partial delivery of $750 worth of clothing, which Jones accepts. One day later, however, Jones decides that he doesn't want the clothing. When the store insists that he has to pay the full $1000, Jones argues that he doesn’t have to pay because of the Statute of Frauds.  Which of the following is the most correct?

The Statute of Frauds does not apply to this contract.

The Statute of Frauds applies because the clothing is Specially Manufactured Goods.

The Statute of Frauds applies because this is a contract for the sale of goods for a contract price of more than $500.

The Statute of Frauds applies because this is a contract for the sale of goods for a contract price of $500 or more.

2.25 points   

QUESTION 2

Same scenario: Jones goes to a clothing store and orders $1000 worth of clothing on credit. The salesperson writes up a receipt describing the terms of the deal, but Jones does not sign anything. Three days later, the store makes a partial delivery of $750 worth of clothing, which Jones accepts. One day later, however, Jones decides that he doesn't want the clothing. When the store insists that he has to pay the full $1000, Jones argues that he doesn’t have to pay because of the Statute of Frauds.  Which of the following is correct?

The writing in this case is not adequate because Jones is the party to be charged and he did not sign the receipt.

The writing in this case is not adequate because a receipt cannot serve as a writing under the Statute of Frauds.

The writing in this case is adequate because it is signed by the clothing store salesperson, who is the party to be charged.

None of the above is correct.

2.25 points   

QUESTION 3

Same scenario: Jones goes to a clothing store and orders $1000 worth of clothing on credit. The salesperson writes up a receipt describing the terms of the deal, but Jones does not sign anything. Three days later, the store makes a partial delivery of $750 worth of clothing, which Jones accepts. One day later, however, Jones decides that he doesn't want the clothing. When the store insists that he has to pay the full $1000, Jones argues that he doesn’t have to pay because of the Statute of Frauds.   Which of the following is correct?

Jones can get out of the contract because it violates the Statute of Frauds and is unenforceable.

Jones will have to pay $1000 because of the "main purpose" or "leading objection" exception to the Statute of Frauds.

Jones will have to pay $750 because he accepted the partial delivery.

None of the above is correct.

2.25 points   

QUESTION 4

The following five questions are based on the this scenario: Johnny, a 16 year-old boy, contracts to buy a used car for $1,000 from Dave. Johnny pays Dave $300 as a down payment and agrees to pay the balance in $100 monthly installments over the course of the next seven months. Dave transfers his right to receive the balance of the purchase price ($700) to Jen. In return, Jen pays Dave $500 cash.  Dave's transfer of the balance of the purchase price to Jen is called:

A novation.

An integration.

An assignment.

A delegation.

2.25 points   

QUESTION 5

Same scenario: Johnny, a 16 year-old boy, contracts to buy a used car for $1,000 from Dave. Johnny pays Dave $300 as a down payment and agrees to pay the balance in $100 monthly installments over the course of the next seven months. Dave transfers his right to receive the balance of the purchase price ($700) to Jen. In return, Jen pays Dave $500 cash.   Which of the following is correct?

Johnny is the obligee.

Dave is the obligee.

Jen is the delegator.

Jen is the third party beneficiary.

2.25 points   

QUESTION 6

Same scenario: Johnny, a 16 year-old boy, contracts to buy a used car for $1,000 from Dave. Johnny pays Dave $300 as a down payment and agrees to pay the balance in $100 monthly installments over the course of the next seven months. Dave transfers his right to receive the balance of the purchase price ($700) to Jen. In return, Jen pays Dave $500 cash. Dave's contract with Johnny falls within the Statute of Frauds.

True

False

2.25 points   

QUESTION 7

Same scenario: Johnny, a 16 year-old boy, contracts to buy a used car for $1,000 from Dave. Johnny pays Dave $300 as a down payment and agrees to pay the balance in $100 monthly installments over the course of the next seven months. Dave transfers his right to receive the balance of the purchase price ($700) to Jen. In return, Jen pays Dave $500 cash. If Johnny becomes insolvent and cannot pay Jen, Dave is liable and has to pay Jen.

True

False

2.25 points   

QUESTION 8

Change the facts slightly: Now let's assume that when Jen tries to enforce the contract, 16 year-old Johnny disaffirms on the grounds of lack of capacity (his minority). In this case:

Johnny will not have to pay Jen.

Jen has recourse against Dave because he impliedly warranted that the claim was valid.

Both A & B are correct.

None of the above is correct.

The Statute of Frauds does not apply to this contract.

The Statute of Frauds applies because the clothing is Specially Manufactured Goods.

The Statute of Frauds applies because this is a contract for the sale of goods for a contract price of more than $500.

The Statute of Frauds applies because this is a contract for the sale of goods for a contract price of $500 or more.

Explanation / Answer

Question 1. Option (c) is the correct answer as The statute of frauds requires contracts to be in written and signed by both parties that involve sale of goods of more than $500.

Question 2. Option (A) is the correct answer as Jones, who is the party against whom it is to be charged, did not sign the agreement.

Question 3. Option (A) is the correct answer as Jones can get out of the contract because it violates Statute of frauds.

Question 4. Option (D) is the correct answer as delegation in contractual terms is an act of transferring the responisbility of carrying out a specific task to another person

Question 5. Option (C) as Jen is the delegator because he is the one who will perform the given task.

Question 6. True, as there is no written agreement signed by both parties for this transaction of more than $ 500.

Question 7. True, as delegation contract doesn't make Jen liable and Dave is still liable to pay if Johny becomes insolvent.

Question 8. Option (A) as Johny is a minor and will not have to pay Jen.

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