Questions 11-15 relate to the scenario about Hi-Tech Industries and Lost Stars Pty Ltd, set out below. These facts are the same for all of Questions 11 -1 5. Hi-Tech Industries is developing a new handheld personal computer system, allowing high-end computer gaming anywhere, any time. It negotiates with Lost Stars Pty Ltd, forthe purchase of suitable electronic components. Before signing the contract, Hi-Tech Industries asks Lost Stars Pty Ltd whether the central processing unit selected can withstand high temperatures. (It expects that its customers will use the new gaming device in popular, and very hot, holiday destinations.) Lost Stars Pty Ltd assures Hi-Tech Industries that it can. HiTech Industries tells Lost Stars Pty Ltd that this is the decisive factor in its conclusion of the contract, as Lost Stars Pty Ltd's competitors could not provide this assurance. Hi-Tech Industries signs the contract, but does not read it. The contract states that payment must be made in full, upon delivery of the electrical components (which are listed in the contract) in three months' time. The contract does not contain any heat guarantees regarding the central processing units. After the computer system is released into the market. Hi-Tech Industries receives many reports of central processing unit failures from customers using the device in very hot regions of the world. In determining if Hi-Tech Industries and Lost Stars Pty Ltd have formed a legally binding contract, which of the following is CORRECT? Select one: 0 a. The contract will only become legally binding when Hi-Tech Industries pays for the electronic components, as without payment being made there is no consideration. 0 b. The contract will not be legally binding if Hi-Tech Industries did not read the contract before signing it. O c. The contract is immediately legally binding, as the exchange of promises by the parties to each do things in the future is good consideration. 0 d. The contract will become legally binding when Lost Stars Pty Ltd delivers the electrical components, as this will be the time at which consideration is provided by both parties. Which of the following statements is CORRECT? Select one: 0 a. Hi-Tech Industries is bound by its 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. O b. Hi-Tech Industries is not bound by its signature, because it did not read the contract before signing it. O c. Hi-Tech Industries is bound by its signature, regardless of whether or not it read the contract before signing. Q d. Since business contracts must be entirely in writing, this contract cannot be partly oral and partly written. According to the parol evidence rule, which of the following statements is CORRECT? Select one: 0 a. Since the parol evidence rule is always strictly applied, Lost Stars Pty Ltd's oral statement about the central processing units cannot be legally binding under any circumstances. 0 b. 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. Forthis reason, Lost Stars Pty Ltd's oral statement is binding. 0 c. Where contracts are in writing. and appearto 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, Lost Stars Pty Ltd's statement about the central processing units would be excluded from the written contract. 0 d. The parol evidence rule allows parties to put forward evidence of oral promises made before and after written contracts are signed. For this reason, Lost Stars Pty Ltd's statement about the central processing units is incorporated into the contract. Hi-Tech Industries may be able to establish that Lost Stars Pty Ltd's oral statement amounts to a collateral contract. Which of the following is CORRECT with respect to the collateral contract? Select one: Q a. Hi-Tech Industries agreeing to enter into the main contract is not good consideration for the collateral contract. Hi-Tech Industries must provide some additional consideration, even if it is nominal, for a valid collateral contract to exist. 0 b. The parol evidence rule would prevent Hi-Tech Industries from establishing a collateral contract. and as a result, its claim would be unsuccessful. O c. The statement made by Lost Stars Pty Ltd must be promissory in nature and must have been intended have contractual effect for a collateral contract to exist. 0 d. Lost Stars Pty Ltd's promise can be a term of the collateral contract even if it is found to contradict the terms of the main contract, if the circumstances are found to be exceptional. Applying the reasonable person test to see whether Lost Stars Pty Ltd's oral statement was promissory, which of the following is INCORRECT? Select one: 0 a. The statement was not important to Hi-Tech Industries in the overall context of the contract as Hi-Tech Industries needed to buy central processing units and this was its priority, so Lost Stars Pty Ltd's statement is less likely to be promissory. O b. If Lost Stars Pty Ltd is a mass reseller of a wide variety of goods and if it has little expertise in relation to any particular type of goods, its statement is less likely to be promissory. O c. The statement may be classied as a promise due to the close proximity of when it was made relative to when the contract was formed. Q d. If Lost Stars Pty Ltd has a recognised expertise in the durability of the electrical components it sells, its statement is more likely to be promissory