Question 1

Which of the following is not considered a counter-offer?

Accepted Answer

A)  under the common law, when a party includes additional terms in an acceptance 
B)  an accommodation shipment 
C)  under the "battle of the forms" doctrine, any additional terms in forms used to complete the transaction 
D)  under the UCC, in a transaction between two merchants, when a party includes additional terms in an acceptance 
E)  under the UCC, in a transaction between non-merchants, when a party includes additional terms in an acceptance 
A)  under the common law, when a party includes additional terms in an acceptance 
B)  an accommodation shipment 
C)  under the "battle of the forms" doctrine, any additional terms in forms used to complete the transaction 
D)  under the UCC, in a transaction between two merchants, when a party includes additional terms in an acceptance 
E)  under the UCC, in a transaction between non-merchants, when a party includes additional terms in an acceptance

Question 2

Under Article 2 of the UCC,what is an accommodation shipment?

Accepted Answer

A)  any accidental or intentional shipment of nonconforming goods 
B)  any shipment of nonconforming goods that the seller intends the buyer to accept as a substitute 
C)  any shipment of nonconforming goods that the seller notifies the buyer is being offered as a substitute for the goods ordered 
D)  any shipment of goods sent pursuant to a court order resulting from a breach 
E)  any accidental shipment of nonconforming goods 
A)  any accidental or intentional shipment of nonconforming goods 
B)  any shipment of nonconforming goods that the seller intends the buyer to accept as a substitute 
C)  any shipment of nonconforming goods that the seller notifies the buyer is being offered as a substitute for the goods ordered 
D)  any shipment of goods sent pursuant to a court order resulting from a breach 
E)  any accidental shipment of nonconforming goods

Question 3

If a sales or lease contract does not state the time of performance then it is unenforceable under the UCC.

Accepted Answer

A) True 
 B)False

Question 4

In order for the firm offer rule to be valid,which of the following must occur?

Accepted Answer

A)  A merchant must offer to buy, sell or lease goods. 
B)  A merchant must give an oral assurance that the offer will not be revoked. 
C)  A merchant must offer to buy, sell or lease goods and provide an oral assurance that the offer will not be revoked. 
D)  A merchant must offer to buy, sell or lease goods and provide a written assurance that the offer will not be revoked. 
E)  A merchant or non-merchant must offer to buy, sell or lease goods and provide a written assurance that the offer will not be revoked. 
A)  A merchant must offer to buy, sell or lease goods. 
B)  A merchant must give an oral assurance that the offer will not be revoked. 
C)  A merchant must offer to buy, sell or lease goods and provide an oral assurance that the offer will not be revoked. 
D)  A merchant must offer to buy, sell or lease goods and provide a written assurance that the offer will not be revoked. 
E)  A merchant or non-merchant must offer to buy, sell or lease goods and provide a written assurance that the offer will not be revoked.

Question 5

Under common law's mirror image rule,the offeree's acceptance must be on the same terms as the offer.

Accepted Answer

A) True 
 B)False

Question 6

To satisfy the Statute of Frauds requirement,the writing must be sufficient to indicate that a contract has been made between the parties.

Accepted Answer

A) True 
 B)False

Question 7

If parties to a contract do not specify when payment should be made.Under the UCC,payment must be made:

Accepted Answer

A)  within 90 days. 
B)  within 60 days. 
C)  within 30 days. 
D)  within a reasonable time. 
E)  at the time and place of deliver of the goods or title. 
A)  within 90 days. 
B)  within 60 days. 
C)  within 30 days. 
D)  within a reasonable time. 
E)  at the time and place of deliver of the goods or title.

Question 8

Kristina,a buyer,enters into a sales contract with Shayda,a seller.The contract is written and includes all of the major terms of the contract,except for the price to be paid for the goods.The contract between Kristina and Shayda is:

Accepted Answer

A)  Enforceable, if the price is not stated, then the price will be the "reasonable price" at the time of delivery. 
B)  Enforceable, if the price is not stated, then Kristina must accept the goods and pay whatever price Shayda tells her to pay. 
C)  Unenforceable, even if Shayda latter provides Kristina with a price, a contract must have a fixed price at the time it is made to be valid under the UCC. 
D)  Unenforceable because the Statute of Frauds requires specific price terms in writing. 
E)  Whether the contract is enforceable depends on whether a firm offer was made. 
A)  Enforceable, if the price is not stated, then the price will be the "reasonable price" at the time of delivery. 
B)  Enforceable, if the price is not stated, then Kristina must accept the goods and pay whatever price Shayda tells her to pay. 
C)  Unenforceable, even if Shayda latter provides Kristina with a price, a contract must have a fixed price at the time it is made to be valid under the UCC. 
D)  Unenforceable because the Statute of Frauds requires specific price terms in writing. 
E)  Whether the contract is enforceable depends on whether a firm offer was made.

Question 9

Mike and Jill enter into a written contract for the lease of a car.Jill has leased cars from Mike on two previous occasions.The lease states "the car may be driven for a reasonable number of miles each year and there may be a surcharge for excessive mileage." At the end of the lease,which last for two years,Jill has put 100,000 miles on the car.Mike charges Jill a surcharge and Jill refuses to pay because she does not believe that 100,000 miles in two years is excessive.What will the Court consider first,in determining what the lease meant by "reasonable number of miles"?

Accepted Answer

A)  Any oral or written statements made by Mike or Jill regarding the meaning of "reasonable number of miles." 
B)  The fact that in the first year, Jill brought the car to Mike for an oil change, the car had 60,000 miles at the time and Mike did not complain. 
C)  The fact that in the past Jill has driven the other leased cars for 100,000 miles without being charged. 
D)  The fact that in the car leasing business, "reasonable number of miles" usually means 30,000 miles a year. 
E)  The fact that Mike charges all of his customers a surcharge when they drive more than 20,000 miles each year. 
A)  Any oral or written statements made by Mike or Jill regarding the meaning of "reasonable number of miles." 
B)  The fact that in the first year, Jill brought the car to Mike for an oil change, the car had 60,000 miles at the time and Mike did not complain. 
C)  The fact that in the past Jill has driven the other leased cars for 100,000 miles without being charged. 
D)  The fact that in the car leasing business, "reasonable number of miles" usually means 30,000 miles a year. 
E)  The fact that Mike charges all of his customers a surcharge when they drive more than 20,000 miles each year.

Question 10

Under the UCC,if an offer is received by mail,the acceptance:

Accepted Answer

A)  must also be made by mail. 
B)  can be made by another means, but only if the offer so states. 
C)  is effective only once it is received by the offeror. 
D)  can be canceled by the offeree at any time during the period of a firm offer. 
E)  can be made in any commercially reasonable manner. 
A)  must also be made by mail. 
B)  can be made by another means, but only if the offer so states. 
C)  is effective only once it is received by the offeror. 
D)  can be canceled by the offeree at any time during the period of a firm offer. 
E)  can be made in any commercially reasonable manner.

Question 11

Under the UCC a person is a merchant,if by their occupation they hold themselves out to as having knowledge or skill about the goods in the transaction.

Accepted Answer

A) True 
 B)False

Question 12

In which of the following circumstances has acceptance NOT been made?

Accepted Answer

A)  The delivery of the goods has been made and the buyer signifies the goods are non-conforming, but states they will not return them. 
B)  An order is placed with the Seller and the Seller immediately ships the goods. 
C)  The delivery of the goods has been made and the buyer fails to reject the goods within a reasonable time. 
D)  A seller sends an offer via e-mail and the buyer responds by mailing a letter of acceptance. 
E)  A buyer places an order and the seller ships non-conforming goods. 
A)  The delivery of the goods has been made and the buyer signifies the goods are non-conforming, but states they will not return them. 
B)  An order is placed with the Seller and the Seller immediately ships the goods. 
C)  The delivery of the goods has been made and the buyer fails to reject the goods within a reasonable time. 
D)  A seller sends an offer via e-mail and the buyer responds by mailing a letter of acceptance. 
E)  A buyer places an order and the seller ships non-conforming goods.

Question 13

The lessor is the person who acquires the right to possession and use of goods under a lease.

Accepted Answer

A) True 
 B)False

Question 14

Under the UCC,a valid sales or lease contract only requires consideration and acceptance.

Accepted Answer

A) True 
 B)False

Question 15

Susan decides to buy new carpet for her home.She goes to Carpet City and chooses the carpet she likes.As part of the deal,Carpet City agrees to install the carpet.The carpet is installed while Susan is at work.When she returns home and sees it,Susan immediately notices problems.The carpet is not the same quality of carpet she ordered,and the color is off.Does the UCC apply,and why or why not?

Accepted Answer

A)  The UCC does not apply because the deal with Carpet City included service that is not covered by the UCC. 
B)  The UCC does not apply because Susan and Carpet City did not agree in writing before the carpet was installed that the UCC would apply. 
C)  The UCC applies because it applies to service contracts as well as to contracts for the sale of goods. 
D)  The UCC applies because the predominant part of the transaction between Susan and Carpet City was the sale of goods. 
E)  The UCC does not apply because it does not apply to mixed contracts of goods and services. 
A)  The UCC does not apply because the deal with Carpet City included service that is not covered by the UCC. 
B)  The UCC does not apply because Susan and Carpet City did not agree in writing before the carpet was installed that the UCC would apply. 
C)  The UCC applies because it applies to service contracts as well as to contracts for the sale of goods. 
D)  The UCC applies because the predominant part of the transaction between Susan and Carpet City was the sale of goods. 
E)  The UCC does not apply because it does not apply to mixed contracts of goods and services.

Question 16

Article 2 of the UCC only applies to a mixed sale if the contract for services is a predominant part of the transaction.

Accepted Answer

A) True 
 B)False

Question 17

Under the UCC,the Statute of Frauds requires that certain contracts be typed on a computer in order to be enforceable.

Accepted Answer

A) True 
 B)False

Question 18

A party can be treated by the UCC as a merchant for some transactions and as a nonmerchant for other transactions.

Accepted Answer

A) True 
 B)False

Question 19

Jared needs a fancy sports car.Jared only wants to use the car for three months.Jared goes to the bank and requests a loan for the sports car.Instead of giving Jared a loan for the car,the bank tells Jared,"we (the Bank)will purchase the car and you can use it for three months,so long as you pay us $4,000 a month." The Bank purchases the sports car from the manufacturer and then lets Jared use the car,so long as he makes $4,000 each month.Under the UCC,what type of sale or lease is this?

Accepted Answer

A)  an ordinary sale 
B)  a finance sale 
C)  a finance lease 
D)  an ordinary lease 
E)  a manufacturer sale and lease 
A)  an ordinary sale 
B)  a finance sale 
C)  a finance lease 
D)  an ordinary lease 
E)  a manufacturer sale and lease

Question 20

Mario and Bongo are computer programmers in different divisions at the same company.Mario knows that Bongo's wife is pregnant for the first time and has just learned that she will be having triplets.Mario sends Bongo a signed,written memo offering to sell his minivan to Bongo for $12,000.Realizing that this is a good deal,Bongo responds with a signed letter saying that he'll take the minivan for $12,000,but that is premised on Mario giving the interior a thorough cleaning.Mario never responds in any way to the statement about the cleaning,but Mario and Bongo have several additional communications regarding details of payment,transfer of title,etc.When they meet to exchange money,keys,title,etc.,Bongo refuses to go through with the deal because the interior has not been cleaned.Which of the following is true in this situation?

Accepted Answer

A)  Because the change in Bongo's acceptance was not a material change, Mario has duty to clean the minivan. 
B)  There is an enforceable contract for the sale without a duty to clean the van. 
C)  A court would likely order specific performance for Mario to clean the minivan. 
D)  There is no contract because the response contained terms different from the offer. 
E)  The written confirmation rule means that Mario has a duty to clean the minivan. 
A)  Because the change in Bongo's acceptance was not a material change, Mario has duty to clean the minivan. 
B)  There is an enforceable contract for the sale without a duty to clean the van. 
C)  A court would likely order specific performance for Mario to clean the minivan. 
D)  There is no contract because the response contained terms different from the offer. 
E)  The written confirmation rule means that Mario has a duty to clean the minivan.

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

Which of the following is not considered a counter-offer?

Under Article 2 of the UCC,what is an accommodation shipment?

If a sales or lease contract does not state the time of performance then it is unenforceable under the UCC.

In order for the firm offer rule to be valid,which of the following must occur?

Under common law's mirror image rule,the offeree's acceptance must be on the same terms as the offer.

To satisfy the Statute of Frauds requirement,the writing must be sufficient to indicate that a contract has been made between the parties.

If parties to a contract do not specify when payment should be made.Under the UCC,payment must be made:

Kristina,a buyer,enters into a sales contract with Shayda,a seller.The contract is written and includes all of the major terms of the contract,except for the price to be paid for the goods.The contract between Kristina and Shayda is:

Under the UCC,if an offer is received by mail,the acceptance:

Under the UCC a person is a merchant,if by their occupation they hold themselves out to as having knowledge or skill about the goods in the transaction.

In which of the following circumstances has acceptance NOT been made?

The lessor is the person who acquires the right to possession and use of goods under a lease.

Under the UCC,a valid sales or lease contract only requires consideration and acceptance.

Article 2 of the UCC only applies to a mixed sale if the contract for services is a predominant part of the transaction.

Under the UCC,the Statute of Frauds requires that certain contracts be typed on a computer in order to be enforceable.

A party can be treated by the UCC as a merchant for some transactions and as a nonmerchant for other transactions.

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