A Buyer Agrees to Purchase "Two Cars" from an Elevator

question 60

Multiple Choice

A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over the meaning of "two cars?"

• A) Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars.
• B) Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal one-year warranty (which is stated in the written contract) to two years.
• C) Oral evidence that the word "car" refers to an elevator, because that is how the word "car" is used in the elevator industry, and that it does not refer to any of the company's automobiles.
• D) Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars.
• E) The parole evidence rule prevents any additional evidence from being considered, even if terms are not clear on their face.

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Definitions:

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).

Antitrust Laws

Legislation aimed at preventing anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.

Monetary Award

A financial compensation granted to a party, often as a result of a legal settlement or judgement.