True/False
Indicate whether the sentence or statement is true
or false.
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| 1. | A
legislature or court may protect the judicial process by not permitting disputants
to
use the courts to promote nonjudicial activity such as perjury, illegality,
and
inappropriate forum shopping.
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| 2. | A
common misconception is that a contract can exist without a writing.
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| 3. | Whether a contract is written has nothing to do with the formation of the
contract
(offer and acceptance) unless the offeror mandates a writing as the
method of
acceptance.
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| 4. | Although as a general rule a writing is not required for contract formation,
written
evidence of the contract may be required for the enforcement of the
contract.
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| 5. | In
1776, the British Parliament enacted a Statute of Frauds that required certain
types
of contract to be in writing to be enforceable.
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| 6. | The
Statute of Frauds has a twofold purpose: cautionary and evidentiary.
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| 7. | In
the United States, each state legislature has enacted a Statute of Frauds.
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| 8. | All
Statute of Frauds provisions appear together in state statutes.
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| 9. | In
1954, the British Parliament repealed all of its Statutes of Frauds except promises
to
answer for the debt of another and contracts for the sale of land. American
legislatures
have not done the same.
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| 10. | All
contracts that take more than a year to fully perform must be in writing to
be
enforceable.
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| 11. | All
contracts that will take less than a year to fully perform need not be in writing to
be
enforceable.
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| 12. | To
satisfy the Statute of Frauds so a contract is enforceable, the writing must be
signed
by both contracting parties.
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| 13. | The
probability that the contract will be fully performed within the year is irrelevant.
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| 14. | UCC 2–201(1) states that a contract for the sale of goods for the price of
more than
$500 must be in writing to be enforceable against any contracting
party.
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| 15. | UCC 2–201(1) states that the quantity of goods must be accurate for the
contract to be
enforced against a party who signed it.
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| 16. | UCC 2–201(1) requires a writing but the writing need not include price,
time and
place of payment or delivery, and applicable warranty.
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| 17. | UCC 2–201 only applies to transactions between merchants.
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| 18. | UCC 2–201(2) provides that a written confirmation sent by a merchant who is
not
being held liable under the contract may satisfy the signature requirement of the
other
merchant.
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| 19. | UCC 2–201(3)(a) exempts specially manufactured (custom-made) goods from
the
writing requirement of UCC 2–201(1).
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| 20. | UCC 2–201(3)(b) eliminates the UCC 2–201(1) writing requirement
when a party
admits in court or in a court document the existence of the
contract.
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| 21. | UCC 2–201(3)(c) eliminates the writing requirement of subsection (1) if the
seller has
accepted payment for the goods or if the buyer accepted shipment of
the goods.
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| 22. | Restatement (Second) of Contracts 139 supports the use of reliance to circumvent
the
lack of a writing as required by the Statute of Frauds.
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| 23. | Courts are divided whether reliance can be used to circumvent the writing
requirement
required by UCC 2–201(1).
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| 24. | A
contracting party, who has conferred a benefit on another contracting party but
who
could not maintain a breach of contract cause of action since the contract was not
in
writing, could bring a restitution cause of action and have a restitution
remedy.
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| 25. | A
contract that violates the law is illegal and therefore is unenforceable.
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| 26. | The
enforceability of a legal contract is not affected by an illegal act that was used
to
procure the contract or an illegal act that was committed during the performance of
the
contract.
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| 27. | To be
enforceable, a covenant not to compete must protect a legitimate interest of
a
party, such as (1) a business’s good will if the covenant is in a contract for
the sale of
the business or (2) an employer’s trade secrets and confidential
lists if the covenant is in
a contract for employment.
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| 28. | If a
contract is unenforceable due to illegality, a contracting party could bring
a
restitution action to recover the benefit he or she conferred on the
other.
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| 29. | Sun
’n Fun, a retail sporting goods store, employed Grover as one of its buyers. As
a
part of his job, Grover would attend various merchandise markets. At one
market,
Grover received a $2,000 bribe from Panama Beach, Inc., a wholesaler
of surfboards, to
entice Grover to enter into a contract for Sun ’n Fun for
$100,000 worth of surfboards.
After the surfboards were delivered to Sun ’n Fun
by Panama Beach, Inc., Sun ’n Fun
discovered the
bribery and refused to pay Panama Beach.
Panama Beach could successfully maintain a breach of contract action
against Sun
’n Fun for the price of the surfboards.
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| 30. | When
contracting parties are in pari delicto (equal fault), neither party
could
successfully maintain a restitution action.
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| 31. | A
court will transfer an action to the named forum only if the forum selection
provision
in the contract listed that forum as the exclusive site for
litigation.
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| 32. | A
court will refuse to enforce a forum selection clause if a trial in the named
forum
would create a serious inconvenience for any of the
participants.
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