Problem in posting data of dropdown input field

Problem in posting data of dropdown input field

I am having following form with form.php

<html>
<head>
<script src="//ajax.googleapis.com/ajax/libs/jquery/1.8.3/jquery.min.js"></script>
<script src="form.js"></script>
</head>
<?
mysql_connect('localhost','root','');
mysql_select_db('test'); 
$query="SELECT * FROM user";
$result=mysql_query($query);

?>
<div id="contact_form">
<form name="contact" action="">
<fieldset>
<label for="txn_unit" id="txn_unit">Txn Unit</label>
<SELECT name="namee" id="name">
<OPTION value="">SELECT</OPTION>
<?
while($row=mysql_fetch_assoc($result))
{
?>
<OPTION value="<? echo $row['id']; ?>"><? echo $row['first_name']; ?></OPTION>
<?
}
?>
</SELECT>
<label class="error" for="name" id="name_error">Owner name field is required.</label>

<label for="description" id="desc_label">Description</label>
<input type="text" name="desc" id="desc" size="30" value="" class="text-input">
<label class="error" for="desc" id="desc_error">Description is required.</label>

<label for="income" id="income">Income</label>
<input type="text" name="income" id="income" size="30" value="" class="text-input">
<label class="error" for="income" id="income_error">Income field is required.</label>

<label for="expend" id="expend_label">Expend</label>
<input type="text" name="expend" id="expend" size="30" value="" class="text-input">
<label class="error" for="expend" id="expend_error">Expend field is required.</label>
<label class="error" for="expend" id="combine_error1">In Income and Expend field, one field is required.</label>
<label class="error" for="expend" id="combine_error2">In Income and Expend field, only one field is required.</label>


    <br />  
    <input type="submit" name="submit" class="button" id="submit_btn" value="ok" />
</fieldset>
</form>


And form.js is as follow-

$(function() {
  $('.error').hide();
  $(".button").click(function(){
     //validate and process from here
      $('.error').hide();

        var namee=$("input#namee").val();
         if(namee=""){
         $("label#name_error").show();
         $("input#name").focus();
          return false;
          }

          var income=$("input#income").val();
          var expend=$("input#expend").val();
           if(income!="" && expend!="")
            {
              $("label#combine_error2").show();
              $("input#income").focus();
              $("input#expend").focus();
            }

         var description=$("input#desc").val();
         if(description=="")
           {
              $("label#desc_error").show();
              $("input#desc").focus();
              return false;
           }


          if(income=="" && expend=="")
            {
              $("label#combine_error1").show();
              $("input#income").focus();
              $("input#expend").focus();
            }


      var dataString='name='+namee+'&description='+description+'&income='+income+'&expend='+expend;
      $.ajax({
        type: "POST",
        url: "process.php",
        data: dataString,
        success: function() {
          $('#contact_form').html("<div id='message'></div>");
          $('#message').html("<h2>Transaction Saved</h2>")
          .hide()
          .fadeIn(1500,function(){
           $('#message').append("<img id='checkmark' src='images/check.png'/>");
            });
           }
        });
       return false;
});
});


I am having following problems with this code-
1.)with error it submits the form.Mean when we submit without the rule defined in the jquery it submits the form.
2.)And the namee input field with dropdown is not posting to process.php