[Biff-1955-Tannen]

I understand that if it can be completed in a year it does not need to be in writing, but doesn’t the fact that it’s over $500 still require it to be in writing? It seems like they’re cherry picking on which rules they want to follow…

Able hired Carr to restore Able’s antique car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within one year. The agreement is:

Incorrect A.

unenforceable, because it covers services with a value in excess of $500.

B.

unenforceable, because it covers a time period in excess of one year.

C.

enforceable, because personal service contracts are exempt from the statute of frauds.

D.

enforceable, because the work could be completed within one year.

The statute applies only to the following:

Answer is D.

Statute of Frauds

The statute applies only to the following:

The sale of goods having a value in excess of $500

A contract that will not be performed within one year of the signing

The sale of real property or of securities

The promise to answer for the debt of another

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Biff-1955-Tannen]

Ohhhhhhhh… literally right after I posted, I think I got it. Is it because this is for services and not goods?

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Future Rhody CPA]

Yes, that's the reason. the $500 rule only applies to goods, not services

FAR- 96 (January 2016)
BEC- 94 (January 2016)
REG- 87 (April 2016)
AUD- (July 30th 2016)

[monikernc]

Biff, onto REG, i see. how did FAR go?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Biff-1955-Tannen]

FAR was a catastrophe. As far as knowing the content it wasn't too bad. The sims really screwed me though. On 2 sims, (2 parts on 1 sim, and 1 part on the other sim), I couldn't change my journal entry. So for example it gives me 4 lines to do the journal entry. I initially make an entry using 4 accounts, and later realize that I only need 3. I try to change that 4th account to a blank, and I don't have an option to take the account off, only to change the account title.
Then on another sim, (without going into what kind of schedule), I have to fill out a schedule. I'm perfectly able to get the end result that it wanted from the schedule, but it gives me zero direction on how it wants it filled out. Does it want me to put 0 for the “value per unit” if there are no units, or does it want me to put the value per unit regardless of if there are units.

So i'll be taking FAR again in July. Beyond ridiculous that I'm going to have to retake FAR not because I didn't know the content, but because I can't read minds on how they want sims formatted and can't unselect accounts.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Author]

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