In which situation would a court NOT enforce an oral contract under the Statute of Frauds?

For a contract to be enforceable under the Statute of Frauds, certain types of contracts must be in writing to be legally binding. This includes contracts for the sale of goods valued at $500 or more, which fall under the Uniform Commercial Code (UCC).

In the situation where the buyer takes possession of goods without payment, this does not fulfill the writing requirement set by the Statute of Frauds. The mere act of taking possession is not sufficient to enforce the contract related to the sale of goods valued at $5,000 without a written agreement. In contrast, the other scenarios provided demonstrate instances where the contract might be enforced despite being oral. For example, starting the manufacturing of goods or admitting the existence of a contract reflects actions or admissions that could lead to an enforceable obligation.

Overall, the correct answer illustrates the significance of written agreements in transactions involving substantial amounts to clearly outline the terms and obligations of the parties involved.