Contracts and Sales Multistate Bar Practice Exam

Which exception allows a contract for goods over $500 to be removed from the Statute of Frauds?

1. Goods accepted and paid for

2. Goods listed under warranty

3. Goods offered at a discount

4. Goods with promotional pricing

The correct answer is: Goods accepted and paid for

The exception allowing a contract for goods over $500 to be removed from the Statute of Frauds is when the goods have been accepted and paid for. The Statute of Frauds requires certain types of contracts to be in writing to be enforceable, one of which pertains to contracts for the sale of goods valued at $500 or more. However, if the buyer has accepted the goods and made payment, the necessity for the contract to be in writing is undermined, as acceptance and payment demonstrate a commitment by the buyer to the transaction. This exception is fundamental because it recognizes the practicality of real transactions; if the buyer has physically accepted the goods and has paid for them, there is a clear indication that a contract has been fulfilled. The other options, while they may represent various conditions of sale, do not pertain to recognized legal exceptions to the Statute of Frauds regarding goods over $500. Thus, they do not serve to negate the requirement for a written contract under this statute.