B15

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B15.An accord and satisfaction is used to discharge a liquidated debt.PAGE:238TYPE:=
NAT: AACSB AnalyticAICPA LegalB16.In many states, a release requires a signed writing.PAGE:238TYPE:N
NAT: AACSB AnalyticAICPA LegalB17.A covenant not to sue is an agreement to substitute a contractual obligationfor a legal action.PAGE:239TYPE:N
NAT: AACSB Reflective AICPA LegalB18.Promissory   estoppel   requires   reliance   of   a   substantial   and   definitecharacter.PAGE:239TYPE:=
NAT: AACSB AnalyticAICPA LegalB19.Under the doctrine  of promissory estoppel, every gratuitous promise isbinding if the promisee changes position in reliance on the promise.PAGE:239TYPE:=
NAT: AACSB AnalyticAICPA LegalB20.Promises to pay debts barred by a statute of limitations are not enforceabledue to the absence of consideration.PAGE:240TYPE:=
NAT: AACSB Reflective AICPA LegalMULTIPLE CHOICE QUESTIONSB1.Rollo promises to perform, for a price, shoe repair services in affiliationwith Togs ‘n Things, a clothing store.  To support a contract, the consid-eration exchanged by the parties must be
124          TEST BANK B—UNIT THREE:  CONTRACTS AND E-CONTRACTSb.equally valuable.c.legally sufficient.d.wisely priced.ANSWER:CPAGE:232TYPE:=NAT: AACSB AnalyticAICPA Legal
CHAPTER 12:  CONSIDERATION          125B2.Axel, the owner of Bar-B-Q Café, announces that he plans to paint its frontfluorescent red. Cleo, the owner of Delicate Dress Shop next door, promisesto pay Axel $1,000 to use a more conservative color. Axel agrees. Cleo’spromise isPAGE:232TYPE:=
NAT: AACSB Reflective AICPA LegalB3.Jill promises to pay Kyle $500 because “he does not have as much money asother people.” Jill’s promise isa.enforceable because society wants people to keep their promises.b.enforceable because the redistribution of wealth is a valid social goal.c.not enforceable because Jill could have given more.d.not enforceable because Kyle has not given consideration in return.ANSWER:DPAGE:233TYPE:=
NAT: AACSB Reflective AICPA Legal

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Term
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AACSB Analytic, 200, AACSB Reflective AICPA, 229

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