Lima Called Mark and Asked Him to Build Her Another

question 55

Multiple Choice

Lima called Mark and asked him to build her another custom dresser for her house like one he had previously built. Lima decided she didn't want it after Mark tried to deliver it. She tells Mark they have no contract. Is she correct?

• A) Yes, oral contracts for customized goods are enforceable.
• B) Yes, but only if Mark can prove the phone call was placed by Lima.
• C) Yes, but only if parol evidence can be used to show the parties intent.
• D) No, all contracts must be in writing.
• E) No, oral contracts are not legal.

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Definitions:

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Inventory

The goods and materials a business holds for the ultimate goal of resale or utilization in production.

Quick Ratio

A liquidity ratio measuring a company's ability to meet short-term obligations with its most liquid assets, excluding inventories.