Jack and Jill Were Discussing Business Over Lunch When They

question 52

Multiple Choice

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods.Because neither of them had any paper handy,Jack wrote the following on a napkin: "Jill agrees to purchase from Jack,1,000 widgets to be delivered on July 1,2001,at a cost of $10,000,payable on delivery." Jill signed the napkin,although Jack did not sign it.Jack delivered the widgets per the contract,but Jill refuses to pay for them.If Jack sues Jill for the price of the goods,the most likely result is which of the following?

• A) Jill will win because this writing is not sufficient under the Statute of Frauds.
• B) Jack will win because Jill signed the napkin.
• C) Jill will win because Jack did not sign the contract.
• D) Jack will win because the Statute of Frauds does not apply to this situation.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deduction of overheads, payroll, taxation, and interest payments.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation ratio of a company's current share price compared to its per-share earnings.

Market Price

The present trading value for assets or services within the scope of a commercial market.

Shares Of Stock

Units of ownership interest in a corporation or financial asset, giving shareholders a proportion of the corporation's assets and profits.