Aranda Claims That Rita's Telephone Call with Aranda Is an Admission

question 5

Multiple Choice

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an exception to the statute of frauds under the UCC. Is Aranda correct?

• A) Yes, an admission is an exception to the statute of frauds under the UCC and Rita admitted the existence of the contract over the telephone.
• B) Yes, an admission is an exception to the statute of frauds under the UCC but only when it is expressly worded as an admission to the other party.
• C) No, even though an admission is an exception to the statute of frauds under the UCC, Rita never admitted the existence of a contract.
• D) No, even though an admission is an exception to the statute of frauds under the UCC, the admission was not made in pleadings, testimony, or court.
• E) No, an admission is not an exception to the statute of frauds.

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Definitions:

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead costs.

Accounting Records

Documentation and books that capture all financial transactions of a business, company, or individual, providing a basis for financial statements and audits.

Cost of Goods Available

The total cost of inventory available for sale, calculated as the beginning inventory plus the cost of goods manufactured or purchased.

Overapplied Overhead

Occurs when the amount of overhead allocated to products exceeds the actual overhead incurred.