Empire Industries needs to purchase hightech engines for its new range of self-driving cars. Piett vis'rts Kuat Drive Yards on behalf of Empire Industries. and selects a suitable model of engine to buy. Before signing the contract, Piett asks the Kuat Drive Yards salesperson whether the engine he has selected is capable of withstanding the extreme heat of Australia's outback. He is assured that it can. Piett is happy to hear that, telling the salesperson that he would not have agreed to purchase the engines othen'vise. particularly as they rely upon cuttingedge technology that is extremely expensive. Piett signs the contract. on behalf of Empire Industries. without reading it. The contract states that payment must be made in full upon delivery of the engines in two weeks' time. The contract does not contain any guarantee about the engine's capacity to operate in high temperature conditions. Later, several purchasers of Empire lndustries' selfdriving cars find themselves stranded in the Australian outback. when their engines overheat and their cars then break down. In determining if Empire Industries and Kuat Drive Yards have formed a legally binding contract. which of the following is CORRECT? Select one: 0 a. The contract will not be legally binding because Piett, acting on behalf of Empire Industries. did not have an opportunityto read the contract before he signed it. O b. The contract will become legally binding when Kuat Drive Yards delivers the engines, as this will be the time at which consideration is provided by both parties. 0 c. The contract will only become legally binding when Empire Industries pays for the engines) as without payment being made there is no consideration. 0 d. The contract is immediately legally binding. as the exchange of promises by the parties to each do things in the future is good consideration. which of the following statements is CORRECT? Select one: 0 a. Empire Industries is bound by Piett's signature. regardless of whether or not he read the contract before signing. O b. Empire Industries is bound by Piett's signature. because signing a written document is conclusive proof of an intention to be bound by a document regardless of the nature of the document. 0 c. Since business contracts must be entirely.r in writing. this contract cannot be partly oral and partly written. 0 (1. Empire Industries is not bound by Piett's signature. because he did not read the contract before signing it. According to the parol evidence rule, which of the following statements is CORRECT? Select one: 0 a. Signing a written document is conclusive proof of an intention to be bound, regardless of the nature of the document and regardless of whether or not the document was read. For this reason. the salesperson's oral statement is binding 0 b. Where contracts are in writing. and appear to be the parties' complete agreement. it is presumed that the written document is the entire agreement between the parties, and evidence that would add to, vary, or contradict the terms of the written document cannot be introduced by the parties. As a result, the salesperson's statement about the engines would be excluded from the written contract. 0 c. The parol evidence rule allows parties to put forward evidence of oral promises made before and after written contracts are signed. Forthis reason. the salesperson's statement about the engines is incorporated into the contract. 0 d. Since the parol evidence mic is always strictly applied, the salesperson's oral statement about the engines cannot be legally binding under any circumstances. Empire Industries may.r be able to establish that the salesperson's oral statement amounts to a collateral contract. which of the following is CORRECT with respect to the collateral contract? Select one: 0 a. The salesperson's promise can be aterm ofthe collateral contract even if it is found to contradict the terms ofthe main contract, ifthe circumstances are found to be exceptional. O b. The statement made by the salesperson must be promissory in nature and must have been intended have contractual effect for a collateral contract to exist. 0 c. Empire Industries agreeing to enter into the main contract is not good consideration for the collateral contract. Empire Industries must provide some additional consideration. even if it is nominal. for a valid collateral contract to exist. 0 d. The parol evidence rule would prevent Empire Industries from establishing a collateral contract, and as a result, its claim would be unsuccessful. Applying the reasonable person test to see whether the salesperson's oral statement was promissory, which of the following is CORRECT? Select one: O a. The statement was not important to Empire Industries in the overall context of the contract as Empire Industries needed to buy new engines and this was its priority, so the salesperson's statement is less likely to be promissory. O b. The statement may be classified as promissory due to the close proximity of when it was made relative to when the contract was formed. O c. Whether the salesperson is an experienced salesperson or not is irrelevant, as courts will consider the circumstances as a whole objectively, and find that the salesperson's oral statement was just an opinion and therefore was not promissory. O d. The statement will be found to be promissory and a term of a collateral contract because it has been incorporated by giving reasonable notice, before the time the contract for the engines was made