Question 1

Under the UCC,which statement is not true regarding a buyer's right to reject nonconforming goods?

Accepted Answer

A) The buyer may reject any or all of the goods. 
B) The right to reject the goods can be waived inadvertently. 
C) The buyer may treat the goods as if it owned them. 
D) A buyer who has taken possession of goods must hold the goods for a time sufficient to permit the seller to remove them. 
A) The buyer may reject any or all of the goods. 
B) The right to reject the goods can be waived inadvertently. 
C) The buyer may treat the goods as if it owned them. 
D) A buyer who has taken possession of goods must hold the goods for a time sufficient to permit the seller to remove them. C

Question 2

To which of the following does article 2 of the UCC apply?

Accepted Answer

A) The sale of goods. 
B) The rendering of services. 
C) The sale of land. 
D) Both the sale of goods and the rendering of services. 
A) The sale of goods. 
B) The rendering of services. 
C) The sale of land. 
D) Both the sale of goods and the rendering of services. A

Question 3

________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

Accepted Answer

A) Wars 
B) Market fluctuations 
C) Embargoes 
D) Natural disasters 
A) Wars 
B) Market fluctuations 
C) Embargoes 
D) Natural disasters B

Question 4

Polly sold Jason a used car for $1,000.Their contract provided that the engine in the car was in good shape,a true statement as far as Polly knew.Unfortunately,the day after Jason purchased the car,it broke down and was discovered to have significant engine problems.Jason told Polly that he wanted a refund.Polly told him that he was not entitled to a refund because she did not lie and that as far as she knew,there was nothing wrong with the car.Which of the following is true?

Accepted Answer

A) Jason is entitled to a refund because of the breach of an express warranty. 
B) Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose. 
C) Jason is entitled to a refund only if he can obtain evidence that Polly lied. 
D) Jason is not entitled to a refund under any circumstances because the vehicle was used. 
A) Jason is entitled to a refund because of the breach of an express warranty. 
B) Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose. 
C) Jason is entitled to a refund only if he can obtain evidence that Polly lied. 
D) Jason is not entitled to a refund under any circumstances because the vehicle was used.

Question 5

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

Accepted Answer

A) when the goods are properly delivered to the carrier. 
B) when the carrier tenders the goods to the buyer at the specified destination. 
C) when the contract is finalized. 
D) when the seller pays for the goods. 
A) when the goods are properly delivered to the carrier. 
B) when the carrier tenders the goods to the buyer at the specified destination. 
C) when the contract is finalized. 
D) when the seller pays for the goods.

Question 6

Indicate how a seller may disclaim or limit warranties under the UCC.

Accepted Answer

The seller need not make any express war

Question 7

The Agreement for Import and Export governs most international sales.

Accepted Answer

A) True 
 B)False

Question 8

Under the UCC,a failure to perform is excused under the doctrine of

Accepted Answer

A) impossibility 
B) commercial impossibility 
C) commercial impracticability 
D) consumer impracticability 
A) impossibility 
B) commercial impossibility 
C) commercial impracticability 
D) consumer impracticability

Question 9

Under the UCC,a firm offer only applies to

Accepted Answer

A) merchants 
B) merchants and non-merchants 
C) non-merchants 
D) option contracts 
A) merchants 
B) merchants and non-merchants 
C) non-merchants 
D) option contracts

Question 10

Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week in a state that has adopted the Uniform Electronic Transactions Act.The transaction was done electronically,and both Kiera and Ben signed through the use of an electronic signature.Unfortunately,problems resulted when Ben failed to show up as scheduled.Ben told Kiera that the contract was not good because his signature was done electronically.Kiera told him that he was wrong and that he needs to get up to date with the modern age.Which of the following is correct regarding the dispute?

Accepted Answer

A) Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B) Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive)form. 
C) Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D) Kiera is correct that her electronic signature is sufficient. 
A) Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B) Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive)form. 
C) Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D) Kiera is correct that her electronic signature is sufficient.

Question 11

Under the Convention on Contracts for the International Sale of Goods (CISG),an offer becomes effective when

Accepted Answer

A) the offeror sends it 
B) it reaches the offeree 
C) the offeree reads it 
D) the offeree replies 
A) the offeror sends it 
B) it reaches the offeree 
C) the offeree reads it 
D) the offeree replies

Question 12

A contract is ________ when one party is induced to enter a contract without having any meaningful choice.

Accepted Answer

A) substantively unconscionable 
B) procedurally unconscionable 
C) procedurally impracticable 
D) substantively impracticable 
A) substantively unconscionable 
B) procedurally unconscionable 
C) procedurally impracticable 
D) substantively impracticable

Question 13

Which of the following is true regarding the UCC?

Accepted Answer

A) The UCC does not regulate sales of goods by nonmerchants. 
B) The UCC regulates sales of goods by both merchants and nonmerchants,and the same set of rules always apply regardless of whether a merchant or nonmerchant is involved. 
C) The UCC regulates sales of goods by both merchants and nonmerchants,but different rules may apply to them. 
D) The UCC regulates sales of goods by nonmerchants only if more than $1,000 in sales is at issue, and the same set of rules apply to nonmerchants as well as merchants. 
A) The UCC does not regulate sales of goods by nonmerchants. 
B) The UCC regulates sales of goods by both merchants and nonmerchants,and the same set of rules always apply regardless of whether a merchant or nonmerchant is involved. 
C) The UCC regulates sales of goods by both merchants and nonmerchants,but different rules may apply to them. 
D) The UCC regulates sales of goods by nonmerchants only if more than $1,000 in sales is at issue, and the same set of rules apply to nonmerchants as well as merchants.

Question 14

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

Accepted Answer

A) True 
 B)False

Question 15

If all parties are merchants,additional provisions in an acceptance automatically become part of the contract unless

Accepted Answer

A) the offer expressly limits acceptance to the terms of the offer. 
B) the new terms materially alter the original offer. 
C) the party making the original offer notifies the other party within a reasonable time that it objects to the new terms. 
D) all the responses are correct. 
A) the offer expressly limits acceptance to the terms of the offer. 
B) the new terms materially alter the original offer. 
C) the party making the original offer notifies the other party within a reasonable time that it objects to the new terms. 
D) all the responses are correct.

Question 16

The UCC permits a contract to be enforced if the parties intended a binding contract,even though important terms may have been left open for later agreement.

Accepted Answer

A) True 
 B)False

Question 17

Buyer contacted Seller and ordered 5,000 computers in a single lot from Seller's catalogue.The computers were to have 128 megabytes of RAM each and an 800-megahertz processor.When the shipment arrived,only 2,500 units were shipped.Buyer called Seller and was furious,explaining that he had ordered the equipment for an exclusive trade show and expected to sell the entire lot.The next day Buyer received an additional 2,500 units,but they had only 64 megabytes of RAM each and a 600-megahertz processor.What are Buyer's rights regarding the entire 5,000 units under the UCC? Discuss fully.

Accepted Answer

A buyer has the right to reject nonconfo

Question 18

When the seller provides the buyer with a document enabling it to pick up goods held at an independent warehouse,the risk of loss passes to the buyer

Accepted Answer

A) when the goods are picked up by the buyer. 
B) when the contract of sale is signed. 
C) when the buyer receives the document entitling it to pick up the goods. 
D) when the buyer pays for the goods. 
A) when the goods are picked up by the buyer. 
B) when the contract of sale is signed. 
C) when the buyer receives the document entitling it to pick up the goods. 
D) when the buyer pays for the goods.

Question 19

What is the rule regarding the enforceability of a contract for the sale of goods that comes within the statute of frauds if no quantity is specified?

Accepted Answer

If no quantity is specified,the contract

Question 20

If a buyer wrongfully cancels a contract under the UCC,the seller may not recover

Accepted Answer

A) the difference between the market price and the unpaid contract price. 
B) damages that are adequate to put the seller in as good a position as performance would have. 
C) damages and expenses saved because of the buyer's breach. 
D) the profit that it would have made from full performance. 
A) the difference between the market price and the unpaid contract price. 
B) damages that are adequate to put the seller in as good a position as performance would have. 
C) damages and expenses saved because of the buyer's breach. 
D) the profit that it would have made from full performance.

Exam 8: sales, licensing, and e-commerce

Under the UCC,which statement is not true regarding a buyer's right to reject nonconforming goods?

To which of the following does article 2 of the UCC apply?

________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

Indicate how a seller may disclaim or limit warranties under the UCC.

The Agreement for Import and Export governs most international sales.

Under the UCC,a failure to perform is excused under the doctrine of

Under the UCC,a firm offer only applies to

Under the Convention on Contracts for the International Sale of Goods (CISG),an offer becomes effective when

A contract is ________ when one party is induced to enter a contract without having any meaningful choice.

Which of the following is true regarding the UCC?

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

If all parties are merchants,additional provisions in an acceptance automatically become part of the contract unless

The UCC permits a contract to be enforced if the parties intended a binding contract,even though important terms may have been left open for later agreement.

When the seller provides the buyer with a document enabling it to pick up goods held at an independent warehouse,the risk of loss passes to the buyer

What is the rule regarding the enforceability of a contract for the sale of goods that comes within the statute of frauds if no quantity is specified?

If a buyer wrongfully cancels a contract under the UCC,the seller may not recover

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