1. In order to satisfy the Statute of Frauds, the parties’ writing must:
A) Be signed by both parties.
B) Be notarized.
C) Be signed by the party to be charged (the person using the statute of frauds as a defense) or his agent.
D) Contain all the necessary contract terms in one document.
2. Chica, a women’s clothing store, held a “prize drawing” for a $500 shopping spree on Saturday that it had advertised throughout the week. Participation in the drawing required being at the store by noon and completing a form that included personal information and placing it in a box. The information would then be put into a database for marketing purposes. “Fashion consultants” offering merchandise for sale greeted customers arriving at the store on Saturday morning. Joy was the winner of the drawing. Has she given “consideration” for the prize?
A) No: she gave no legal value to Chica.
B) No: unless she purchased an item from one of the “fashion consultants.”
C) Yes: she made an effort to come to the store and give information, that was for the store’s use.
D) Yes: unless the store was conveniently located.
3. Which of the following contractual limitations on remedies is most likely to be considered unconscionable?
A) An airline’s liquidated damages clause in a ticket purchase agreement for failure to run a flight.
B) A fashion designer’s liquidated damages clause for lost profits in its agreement to deliver its Spring line to a department store in time for its President’s Day sale.
C) Wild Hare Haircare products’ liquidated damages clause for personal injury caused by use of its products.
D) Mary Tudor’s Housepaints’ liquidated damages clause for property damage caused by use of its products.
4. The Benson Bearing Company sells Textron, Inc. a quantity of ball bearings that were stored in an independent warehouse at the time of the sale. The contract says that Textron is to pick up the ball bearings at the warehouse. The risk of loss passes to Textron:
A) At the time of the contract.
B) At the time it receives a negotiable warehouse receipt for the ball bearings.
C) At the time it pays for the ball bearings.
D) At the time it picks up the ball bearings.
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