Question 1

The Statute of Frauds applies to which contracts under Articles 2 and 2A of the UCC?

Accepted Answer

A)  The Statute of Frauds applies to all contracts. 
B)  The Statute of Frauds applies to sales contracts of goods costing more than $100 and lease contracts involving payments of $500. 
C)  The Statute of Frauds applies to sales contracts of goods costing more than $500 and lease contracts involving payments of $1,000. 
D)  The Statute of Frauds applies whenever the value of the contract is greater than $1,000. 
E)  The Statute of Frauds applies whenever the value of the contract is greater than $5,000. 
A)  The Statute of Frauds applies to all contracts. 
B)  The Statute of Frauds applies to sales contracts of goods costing more than $100 and lease contracts involving payments of $500. 
C)  The Statute of Frauds applies to sales contracts of goods costing more than $500 and lease contracts involving payments of $1,000. 
D)  The Statute of Frauds applies whenever the value of the contract is greater than $1,000. 
E)  The Statute of Frauds applies whenever the value of the contract is greater than $5,000.

Question 2

What is the "Statute of Frauds" doctrine? What are some of the exceptions to the Statute of Frauds rule? Do the exceptions defeat the purpose of the rule?

Accepted Answer

The Statute of Frauds requires certain c

Question 3

Under the UCC,an accommodation shipment is considered a counteroffer.

Accepted Answer

A) True 
 B)False

Question 4

In a finance lease,the lessor may acquire the title or the right to the possession of the goods.

Accepted Answer

A) True 
 B)False

Question 5

Buyers are free to accept or reject accommodation shipments.

Accepted Answer

A) True 
 B)False

Question 6

Both the common law and the UCC provide that a contract is created when the offeror receives the acceptance,not when the offeree sends the acceptance.

Accepted Answer

A) True 
 B)False

Question 7

Article 2 and Article 2(A)of the UCC cover which types of transactions?

Accepted Answer

A)  sales of goods and sales of real property 
B)  sales of goods and leases of goods or real property 
C)  sales of goods and contracts for the providing of services 
D)  sales of goods and leases of goods 
E)  sales of goods and leases of services 
A)  sales of goods and sales of real property 
B)  sales of goods and leases of goods or real property 
C)  sales of goods and contracts for the providing of services 
D)  sales of goods and leases of goods 
E)  sales of goods and leases of services

Question 8

For the written confirmation rule to apply,who must be a merchant?

Accepted Answer

A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree 
E)  the offeror, the offeree, and the assignee 
A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree 
E)  the offeror, the offeree, and the assignee

Question 9

The written confirmation rule only satisfies the Statute of Frauds requirement if the transaction is between non-merchants.

Accepted Answer

A) True 
 B)False

Question 10

Under the UCC,an electronic record is not the same as writing.

Accepted Answer

A) True 
 B)False

Question 11

An agreement modifying a sales or lease contract needs no consideration to be binding.

Accepted Answer

A) True 
 B)False

Question 12

Should UCC Article 2 and Article 2A apply to services? What are the benefits and difficulties that would arise if UCC Article 2 and 2A applied to services?

Accepted Answer

Articles 2 and 2A should not be applied

Question 13

Under the UCC,the buyer or seller can reserve the right to set the price at a later date.

Accepted Answer

A) True 
 B)False

Question 14

If a buyer receives and accepts goods,pursuant to an oral contract and the Statute of Frauds of applies,then the contract is unenforceable.

Accepted Answer

A) True 
 B)False

Question 15

Under Article 2 of the UCC,where the offeror is a merchant and the offeree is a non-merchant,what is the effect of minor differences in terms contained in an acceptance?

Accepted Answer

A)  A contract will be formed incorporating the different terms of the acceptance. 
B)  No contract is formed, and the purported acceptance is treated as a counteroffer. 
C)  A contract is formed, but only if the parties resolve the differences in the offer and the acceptance. 
D)  A contract is formed according to the terms of the offer, and the additional terms are treated as proposed additions to the contract. 
E)  The purported acceptance is treated as a rejection, except that the original offer remains open under the firm offer rule. 
A)  A contract will be formed incorporating the different terms of the acceptance. 
B)  No contract is formed, and the purported acceptance is treated as a counteroffer. 
C)  A contract is formed, but only if the parties resolve the differences in the offer and the acceptance. 
D)  A contract is formed according to the terms of the offer, and the additional terms are treated as proposed additions to the contract. 
E)  The purported acceptance is treated as a rejection, except that the original offer remains open under the firm offer rule.

Question 16

Generally,the UCC does not apply to transactions when both parties are non-merchants.

Accepted Answer

A) True 
 B)False

Question 17

Under the UCC,a contract is created when acceptance of the offer is ________.

Accepted Answer

A)  when the offeree receives the acceptance 
B)  when the offeror receives the acceptance 
C)  when the offeror sends the acceptance 
D)  when the offeree sends the acceptance. 
E)  when the post office postmarks the acceptance 
A)  when the offeree receives the acceptance 
B)  when the offeror receives the acceptance 
C)  when the offeror sends the acceptance 
D)  when the offeree sends the acceptance. 
E)  when the post office postmarks the acceptance

Question 18

Molly,a non-merchant,is at a boat store and orally agrees to purchase a sailboat for $2,000.Molly sends a written confirmation to the boat dealer the next day describing all relevant terms of their agreement.There is no response from the store.When Molly goes to the store a week later to pick up the boat,the store refuses to sell the boat for $2,000.Which is true regarding whether the Statute of Frauds has been satisfied?

Accepted Answer

A)  This Statute of Frauds has not been satisfied. 
B)  This Statute of Frauds has been satisfied because the boat dealer did not object to the written confirmation. 
C)  This Statute of Frauds has been satisfied if $2,000 is a reasonable price for the boat. 
D)  This Statute of Frauds has been satisfied because the boat dealer is a merchant. 
E)  The firm offer rule would require the boat to be sold at the offered price of $2,000 in order for the Statute of Frauds to be satisfied. 
A)  This Statute of Frauds has not been satisfied. 
B)  This Statute of Frauds has been satisfied because the boat dealer did not object to the written confirmation. 
C)  This Statute of Frauds has been satisfied if $2,000 is a reasonable price for the boat. 
D)  This Statute of Frauds has been satisfied because the boat dealer is a merchant. 
E)  The firm offer rule would require the boat to be sold at the offered price of $2,000 in order for the Statute of Frauds to be satisfied.

Question 19

Acceptance of goods occurs if the seller sends non-conforming goods and the buyer accepts them.

Accepted Answer

A) True 
 B)False

Question 20

A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over the meaning of "two cars?"

Accepted Answer

A)  Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars. 
B)  Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal one-year warranty (which is stated in the written contract) to two years. 
C)  Oral evidence that the word "car" refers to an elevator, because that is how the word "car" is used in the elevator industry, and that it does not refer to any of the company's automobiles. 
D)  Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars. 
E)  The parole evidence rule prevents any additional evidence from being considered, even if terms are not clear on their face. 
A)  Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars. 
B)  Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal one-year warranty (which is stated in the written contract) to two years. 
C)  Oral evidence that the word "car" refers to an elevator, because that is how the word "car" is used in the elevator industry, and that it does not refer to any of the company's automobiles. 
D)  Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars. 
E)  The parole evidence rule prevents any additional evidence from being considered, even if terms are not clear on their face.

Exam 16: Formation of Sales, Lease, and E-Contracts

The Statute of Frauds applies to which contracts under Articles 2 and 2A of the UCC?

What is the "Statute of Frauds" doctrine? What are some of the exceptions to the Statute of Frauds rule? Do the exceptions defeat the purpose of the rule?

Under the UCC,an accommodation shipment is considered a counteroffer.

In a finance lease,the lessor may acquire the title or the right to the possession of the goods.

Buyers are free to accept or reject accommodation shipments.

Both the common law and the UCC provide that a contract is created when the offeror receives the acceptance,not when the offeree sends the acceptance.

Article 2 and Article 2(A)of the UCC cover which types of transactions?

For the written confirmation rule to apply,who must be a merchant?

The written confirmation rule only satisfies the Statute of Frauds requirement if the transaction is between non-merchants.

Under the UCC,an electronic record is not the same as writing.

An agreement modifying a sales or lease contract needs no consideration to be binding.

Should UCC Article 2 and Article 2A apply to services? What are the benefits and difficulties that would arise if UCC Article 2 and 2A applied to services?

Under the UCC,the buyer or seller can reserve the right to set the price at a later date.

If a buyer receives and accepts goods,pursuant to an oral contract and the Statute of Frauds of applies,then the contract is unenforceable.

Under Article 2 of the UCC,where the offeror is a merchant and the offeree is a non-merchant,what is the effect of minor differences in terms contained in an acceptance?

Generally,the UCC does not apply to transactions when both parties are non-merchants.

Under the UCC,a contract is created when acceptance of the offer is ________.

Acceptance of goods occurs if the seller sends non-conforming goods and the buyer accepts them.

A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over the meaning of "two cars?"

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